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.
Hello Sir, it is already trading at 52 week high. can we enter at CMP?
ReplyDeleteGood question, Rohit.
DeleteLot of people wonder, the stock is at 52-week high. Is it good time to buy?
Answering that one question only, will not help.
You need to ask 2 more questions.
1. Is the stock over-valued or in a bubble territory?
2. Can the stock go higher?
Once you answer these two questions, you can make a decision whether to buy at 52-week high or not?
Take example of Pondy Oxides and Ram Ratna
Both of them became 5-baggers in 12 - 18 months.
People who bought at 52-week high could still double their money. If they hold on, they may even triple their money.
So, there is no ready-made or formula-based answer. It all depends on case to case.
Wish you good profits in the market :-)
cheers!
Sir, how to identify bubble territory for a stock. i am asking this same question for the second time in your blog. if its not confidential then please educate us as well.
DeleteHa ha ha ....
DeleteGood one, Philip.
There is nothing confidential about it :-)
Firstly, just because you ask something once, twice or thrice, i'm under no obligation to respond. I will respond only when feel like and if i feel like.
People who are real seekers have asked questions 100's of times or more. So expecting to find answers to profound questions just by asking once or twice, is not persistence enough :-)
Having said that;
How to identify a bubble?
That is a million dollar question?
So people spend years or even decades to find answer to that question.
So do you really expect me to explain that with a few sentences in the comments section of a blog?
Get real, Philip.
I appreciate your search for answers, but, get the approach right.
best regards!
Ok Thanks Sir, I got it and thanks for the response , just one more question , would you suggest to allocate all my fund at a time would you suggest to buy some 75 % now and 25 % Incase of any market correction. . please throw me some light on it.
DeleteSir, i didnt mention "second time" in my reply in any negative sense. please dont get me wrong if it sounded bad. i just wanted to say that i asked this same Q earlier also.
ReplyDeleteplease research SURAT TEXTILE
ReplyDeleteDear Yogi,
ReplyDeleteMahalaxmi Rubtech will touch 90 RS in this rally. Holding tightly is the key. I have made certain observations here. Promotor Holding Rising from 55 to 62. They tried to buy it from open market but later on they issued warrants. A high quality company with niche products. There are not many Companies in Technical Textiles.
Moreover Company could again do a anualised Profit of 6 Cr. In many cases I have seen textile companies Trade at 15X-20X of its Anualised Net Profit. So we could see a Marketcap of 90-130 Crores here, which translates to stock price in Range 90-130. 130 will take time say 1 year or so. But 90-100 Looks a Near Term to Medium Term Possibility.
Thanks again for such a well articulated blog.
Hope we all make bumper Profits here.
Somebody was talking about bubble. I think bubble is percevied value and nobody is perfect to find that. Even WB,RJ,PL. We just have to enter with Margin of safety.
Thanks again. Will wait for ur valuable comment on above.
Thanks, Suyog.
DeleteGood to see your views and pointers.
Mahalaxmi is headed much higher. There is no doubt on that. How high will it go in this rally? That would be extremely difficult to guess. So I would prefer to wait and watch.
About bubble, it is not just perception; Building and bursting of bubbles is a reality of the stock market. It is a play between greed and fear, the bulls and the bears.
With experience and specific skills, we should be able to time the bubbles. The timing is never going to be perfect. We should not even think about perfection here. Even if we get it right to the extent of 50% we will end up making truckloads of money.
Wish you too good profits.
cheers!
Sir can u pls tell me two to three companies for starting SIP for 5 years and more. Plss
ReplyDeleteSir i would personally like to thank you for your recommendation. i have made good money following you and being patient. All your reco are for long term and everyone will be rewarded. Thank you and God bless
ReplyDeleteSir, I am Thankful to you for your recommendations. learnt a lot from blog.
ReplyDeleteSir, pls provide your view on Patel engineering.
Managment ha staken many steps to reduce debt and putting all efforts to become a clean company.It is evident from the actions what they taken from last one year.From the balance sheet it looks like they are having huge networth which is not getting reflected in the current market cap.
Kindly provide your view on the company.
Thank you
sir...kindly provide your views on VLS finance. Thanks
ReplyDeleteStallion Asset value picks Venture capital serve you, multibagger stock recommendations to make money online.
ReplyDeletethnks for share.. Forex trading tips
ReplyDeletehow to identify bubble territory for a stock...stock market tips
ReplyDeletePlease share your profit/loss screenshots here
ReplyDeleteIntraday Profit screenshots