Mahalaxmi Rubtech is in the business of technical textiles and synthetic, coated and printed fabrics. This Ahmedabad based company has manufacturing capacity to produce printing blankets of upto 426 feet in length and 3700 mm in width.
For more info check, http://www.mrtglobal.com/
NUMBERS - THE LATEST
Market cap: 61 crores CMP on Day22 Apr2017: Rs 61 BV: 53
Revenue FY16: 168 cr Net profit FY16: 3 crore approx FV: 10
POSITIVES
1. Revenues of Mahalaxmi increased from 144 to 168 crores y-o-y. Further, the profit increased from 2.91 to 3.08 cr.
2. Promoters strengthened their stake from 55.99% to 57.08% between 2015 and 2016. They further increased their stake by alloting 11,50,000 shares to the promoter and promoter group upon conversion of warrants at 45 rs.
3. In the last FY the company earned foreign revenues to the tune of 20 crores. With strong focus, the exports could grow quite well in the future.
4. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.
INTERESTING INFO
1. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.
2. Some of the specialized and niche products of the company are offset printing blankets, rubber coated fabrics, hydraulic seals and air cells.
3. Last year the company participated in 'touch the future' held in Germany during May - June
4. Check out the website and product range to see the diversity of end use of the company products.
NEGATIVES - POSSIBLE RISKS
1. Simultaneous slowdown in both domestic and global markets.
2. Increase in cost of raw materials
MY TAKE
Between the years 2007 and 2011 Mahalaxmi had a glorious time with revenues increasing from 10 to 128 crores and profits from 1 cr to 6 crores. The share price had a phenomenal rise from 15 rs in 2009 to 250+ in 2010. However 2012 to 2015 has been very challenging for the company with almost flat revenues and profits.
With increased involvement of the younger generation of the promoter family, increased product range, increased export growth and enhanced profits, the company is positioned to do well over the next few years.
Mahalaxmi Rubtech is a potential multibagger!!
Disclosure: I own shares in Mahalaxmi
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.
For more info check, http://www.mrtglobal.com/
NUMBERS - THE LATEST
Market cap: 61 crores CMP on Day22 Apr2017: Rs 61 BV: 53
Revenue FY16: 168 cr Net profit FY16: 3 crore approx FV: 10
POSITIVES
1. Revenues of Mahalaxmi increased from 144 to 168 crores y-o-y. Further, the profit increased from 2.91 to 3.08 cr.
2. Promoters strengthened their stake from 55.99% to 57.08% between 2015 and 2016. They further increased their stake by alloting 11,50,000 shares to the promoter and promoter group upon conversion of warrants at 45 rs.
3. In the last FY the company earned foreign revenues to the tune of 20 crores. With strong focus, the exports could grow quite well in the future.
4. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.
INTERESTING INFO
1. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.
2. Some of the specialized and niche products of the company are offset printing blankets, rubber coated fabrics, hydraulic seals and air cells.
3. Last year the company participated in 'touch the future' held in Germany during May - June
4. Check out the website and product range to see the diversity of end use of the company products.
NEGATIVES - POSSIBLE RISKS
1. Simultaneous slowdown in both domestic and global markets.
2. Increase in cost of raw materials
MY TAKE
Between the years 2007 and 2011 Mahalaxmi had a glorious time with revenues increasing from 10 to 128 crores and profits from 1 cr to 6 crores. The share price had a phenomenal rise from 15 rs in 2009 to 250+ in 2010. However 2012 to 2015 has been very challenging for the company with almost flat revenues and profits.
With increased involvement of the younger generation of the promoter family, increased product range, increased export growth and enhanced profits, the company is positioned to do well over the next few years.
Mahalaxmi Rubtech is a potential multibagger!!
Disclosure: I own shares in Mahalaxmi
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.
