Asahi Songwon Colors POTENTIAL MULTIBAGGER STOCK D30M01Y2017

Asahi Songwon Colors is in the business of speciality chemicals. This Gujarat based company is engaged in the manufacturing of phthalocyanine pigments comprising of CPC blue and a range of beta blue pigments.
For more info check, http://www.asahisongwon.com/       

NUMBERS - THE LATEST         
Market cap: 312 crores                   CMP on Day30 Jan2017: Rs 256                BV: 120
Revenue FY16: 224 cr                     Net profit FY16: 21 crore approx                FV: 10     

POSITIVES 
1. Around 80% of the company revenues comes from exports. Some of their top clients are DIC, Japan; Sun Chemicals, USA and Clariant Chemicals.
2. Operating margin has gone up from 10.8% in FY13 to 17.6% in FY16. In the same time D/E ratio has come down from 0.59 to 0.33
3. Excellent results in Q2FY2017 results with sales of 68 crore and net profit of 7 CR.
4. By de-bottlenecking of operating capacity, the company plans to increase production from 750 to 850 tonnes per month.

INTERESTING INFO  
1. Company has introduced 2 new products; Beta Blue 15.4 and Alpha Blue. These could help in improving the margins going forward
2. They have around 25 crores in cash and corpus which eases possibility of future expansion.
3. AksharChem, a similar company, which was demerged from Asahi Songwon, moved up from 150 to 750 in one year backed by excellent results. So Asahi Songwon doubling from current levels should not be a surprise :-)
4. DIC Corp and Clariant have been long term stake holders in the company. 

NEGATIVES - POSSIBLE RISKS 
1. Extremely difficult to find negatives in this company :-) 

MY TAKE 
Asahi Songwon Colors is a high quality company. Excellent management pedigree, niche products, proven track record with a business that has global scope in terms of growth. Almost an ideal company. Management has undertaken a host of initiatives that will show in the future results.

Several companies that are into specialty chemicals have proven to be great wealth creators over the last couple of years. Most of the good quality ones are trading at 4 to 6 times book. Asahi Songwon has all the attributes of a high quality company, however, which is available at around 2 times book. So this comes in the category of a great business at a reasonable price.

Asahi Songwon is a high probability potential multibagger. It is just a matter of patience!! 


Disclosure: I own shares in Asahi Songwon  


For commercial collaboration, consultation and JV ideas;
                                                you can contact me via zorbayogi9@gmail.com      


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.  

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.

Maan Aluminium POTENTIAL MULTIBAGGER STOCK D24M01Y2017

Maan Aluminium is an aluminium products manufacturing and trading company. Established in the year 1989, the manufacturing unit of this company is located in Pithampur, Madhya Pradesh. 
For more info check, http://maanaluminium.in          

NUMBERS - THE LATEST      
Market cap: 30 crores                CMP on Day24 Jan2017: Rs 93              BV: 83
Revenue FY16: 190 cr                Net profit FY16: 0.6 crore approx             FV: 10          

POSITIVES 
1. For the year FY2016, the profit before tax increased by 122%, with a 20% increase in the export volumes.
2. Revenues in the last 2 quarters have been consistently above 100 crores. Both q-o-q and y-o-y this is a huge improvement.
3. Maan Aluminium has expertise in producing designs with more than 10,000 shapes, thereby able to cater to a wide range of customer requirements.
4. Over the last few quarters, there has been a steady increase in the net profit of the company 

INTERESTING INFO   
1. The manufacturing revenues achieved last year was only on 50% utilization of installed capacity. Therefore there is a huge scope for growth.
2. Equity capital of the company is quite low, and promoters hold around 65%
3. Two insurance companies also own shares in the company
4. In the annual report of FY2016, there is a quote by Bill Cosby on the cover which says, "In order to succeed, your desire for success should be greater than your fear of failure". This indicates the mindset of the promoter and the management :-)         

NEGATIVES - POSSIBLE RISKS   
1. Any melt down in global metal prices could be a negative for this company. 


MY TAKE   
Maan Aluminium is a turn-around story. After a bad spell of several years, the company is coming into the positive. Efforts by the management in the last 12 - 18 months is in the right direction. The results of the steps taken are visible in the numbers.  

At a market cap of around 30 crores, this is probably the cheapest company in the Aluminium sector. Supportive global metal prices could act as a tailwind for this sector, which could significantly boost the profitability of the company.   

From current levels, the stock could head much higher over the near and medium term.    

Maan is a potential multibagger!!     


Disclosure: I own shares in Maan Aluminium    


For commercial collaboration, consultation and JV ideas;
                                              you can contact me via zorbayogi9@gmail.com      


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.   

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.

Ram Ratna Wires POTENTIAL MULTIBAGGER STOCK D14M01Y2017

Ram Ratna Wires is a leading manufacturer of winding wires used in heavy electrical equipment. Starting out as a small electrical shop, this company has transformed into RR Shramik, the leading supplier of copper wires used in transformers, switch-gears, transmission lines, capacitors, etc   
For more info check, http://www.rrshramik.com/         
(there is also an old website for the entire group)  

NUMBERS - THE LATEST             
Market cap: 178 crores                 CMP on Day14 Jan2017: Rs 81               BV: 36    
Revenue FY16: 720 cr                    Net profit FY16: 9 cr approx                  FV: 10          

POSITIVES        
1. As winding wires is one of the primary inputs to electrical equipments and machines, Ram Ratna is set for good future growth with increased government emphasis on infrastructure   
2. Since last 3 quarters the company has done a net profit of 4+ crores. That too on the back of a sluggish year. There is quite good scope that annual EPS for the current FY could well double compare to last FY.
3. Though the last year balance sheet indicates a debt of 100+ crores, long term debt here stands at only 12 - 15% of that. Rest all could be working capital.   
4. Crisil has upgraded the company's bank limit rating from BBB- to A3  
5. RRW has been declaring dividend since last 6 - 7 years without fail         

INTERESTING INFO   
1. Company Management has indicated their global aspirations. The new website (rrshramik) streamlined on the RRW business, rather than the entire group, clearly shows their focus and intent. The design and strcuture of the website is surely geared towards international markets. Forex earned last year was only around 50 crores. There could be huge scope to grow and expand this business.  
2. The company has an extensive product line comprising of 16 products falling into 5 groups. Details in the website.  
3. Promoters of Ram Ratna Wires own 73% of the company. Another 10% is owned by anchor investors. So only 17% is owned by around 4000 shareholders.   
4. RRW website homepage headline is,
Quality: Stemming from our dedication to give you a superlative experience in electrical technology.
This indicates the positive mindset of the management :-)       

NEGATIVES - POSSIBLE RISKS   
1. Delay in infra spending by the government  
2. Apart from that, there is nothing much that I can think of :-)          

MY TAKE   
Ram Ratna Wires has all the attributes of a potential multibagger. Good quality company with a wide range of niche products having a proven and capable management, with concrete vision for future growth and expansion.   

There is a high degree of probability that there will be huge infrastructure spend in India over the next 1 - 2 years, including the electrical industry under a dynamic and result-oriented power minister. This could directly become a substantial tailwind for RRW.    

All one needs to do it buy the shares, and sit on them tightly for few years. Making excellent profits here is highly probable.  

RRW is an obvious potential multibagger!!  


Disclosure: I own shares in Ram Ratna           


For commercial collaboration, consultation and JV ideas;
                                                   you can contact me via zorbayogi9@gmail.com  


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.       

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.