Starting out with just one small polymer extrusion plant, today Emmbi Industries has grown to one of the India's largest specialty polymer processing company. In a journey of 2 decades, the company has transformed from a small operation with less than 10 members to a company that has over 180 customers in around 50 countries across the world.
For more info check, http://www.wovensackindia.com/
NUMBERS - THE LATEST
Market cap: 124 crores CMP on Day26 Jan2016: Rs 70.20 BV: 35.86
Revenue FY15: 192 cr Net profit FY15: 6 CR FV: 10
POSITIVES
1. Stable and consistent revenue growth over a decade.
FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding.
INTERESTING INFO
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years.
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.
NEGATIVES - POSSIBLE RISKS
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.
MY TAKE
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time.
Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.
At a market cap of 124 crores, this company with great future prospects, is available cheap.
An excellent potential multibagger!!
Disclosure: I own shares in Emmbi Industries.
For consultation(commercial) 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 3 - 4 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 analysis and make your own decisions.
For more info check, http://www.wovensackindia.com/
NUMBERS - THE LATEST
Market cap: 124 crores CMP on Day26 Jan2016: Rs 70.20 BV: 35.86
Revenue FY15: 192 cr Net profit FY15: 6 CR FV: 10
POSITIVES
1. Stable and consistent revenue growth over a decade.
FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding.
INTERESTING INFO
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years.
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.
NEGATIVES - POSSIBLE RISKS
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.
MY TAKE
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time.
Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.
At a market cap of 124 crores, this company with great future prospects, is available cheap.
An excellent potential multibagger!!
Disclosure: I own shares in Emmbi Industries.
For consultation(commercial) 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 3 - 4 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 analysis and make your own decisions.
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ReplyDeleteSir can u throw some light on the competitors and business moat of the company
ReplyDeleteSir can u throw some light on the competitors and business moat of the company
ReplyDelete#NIVEZA #REVIEW on #TALWALKARS #STOCKS::
ReplyDeleteTalwalkars Gym business is growing at a consistent rate over the years. In 2010, Talwalkars listed with market cap of INR 308 Cr and that time they had 58 fitness centres. Now in 5 years time they have expanded to more than 150 fitness centres with market cap of 650 Cr. The company recently raised INR 107 Cr from QIP. By doing that the company has brought down its net debt to equity ratio at 0.4. Consistent revenue growth with good margins such as EBITDA margins of 55-56% and net margins of 21-22% and ROE of above 13% makes it good value investment. Every year, the company adds few fitness centres. Revenues have grown from INR 102 Cr in 2010-11 to INR 252 Cr in 2014-15 with a CAGR of 25%. Net profits for the past 5 years have grown at CAGR of 30%.
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dear sir,
ReplyDeleteplease share your view on SRS LTD.
THIS IIS WHAT I HAVE COLLECTED THE INFO ABOUT SRS.
IS IT A MULTIBAGGER????
SRS LTD is a diversified company ( 4 in 1) with a business portfolio comprising of Gold and Jewelery( 14 Stores ), Cinema Exhibition ( 57 Screen), Retail ( 28 Stores), Hotel and Food & Beverages( 8 Food Courts ,5 banquet halls, 3 Multi Cuisine SRS Punjabi Haandi and 1 Flamez trendy bar Restaurant ). The revenue for fy 15_16 was 4119.62 crore with an net profit of 39.71 crore. srs market cap is 238 crore with an pe of 7 compare to industry pe of 23. price/book value is 0.49.company can post the income of 5000 crore in fy 16_17 with a good increase in net profit. if you compare the business model of Future consumer enterprises ltd and PVR that kind of buisness model it is having. SRS Ltd is an fastest growing company mainly focusing on tier 2 cities. Company’s major source of revenue is from jewelery. SRS Ltd has total 57 screens in cinemas business planning to expand to 100 screen on franchise basis.this stock is a long term stock with an holding view of 1-2 years. Stock split 1:10 will happen in first week of August 2016.If you see other SRS group Share SRS Finance ( book value 11.58) and SRS real Infra(book value 5.32 ) are trading above their book value where as SRS Ltd (whose book value is 20.65) is trading at 8.50 …Very much under value share
dear pruthvi,
DeleteI have no idea about SRS
In general, I avoid companies with multiple businesses.
It is much easier to make money in businesses that have a single line of business :-)
best regards!
Hi Sir,
ReplyDeleteHow are you? It's been a long time site is not updated. Ane new stock reco coming soon?
Thanks,
Siv
Thanks for your input on Emmbi,Now i enter into @119..
ReplyDeleteHope , it would give good return on long run