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Small & Mid Cap

Star Picks

MICROSEC
RESEARCH

194 948 388% Cera Sanitaryware 350 1897 442% Dhanuka Agritech 92 457 397% 25 582 2195% 104 674 547% La Opala RG Ltd PI Industries Somany Ceramics 42 348 728% 7822 15278 95% Wimplast Ltd 328 1929 488% Zensar Technologies Ltd. 2015 Microsec Research . We had expected average returns of ~3035% annually for a three year period. Portfolio Returns(%) Nifty CNXMidcap CNX500 Sensex 610% Note: Recommended prices are adjusted to corporate action (Bonus/splits) 15 Sep. TV Today Network Ltd. Ultramarine Pigments Ltd. 255 800 214% 5342 7819 46% 7203. The selected stocks are likely to generate ~30% annualized returns for a period of 3 years.moneycontrol.com/news_html_files/news_attachment/2012/Small-Mid-CapPicks_Microsec_120912. Microsec Research has proved their mettle time and again while identifying multi-baggers which have outperformed benchmarks by a wide margin. Our previous list of stock recommendations made through the report “Small & Midcap Picks” released on 09/09/2012.pdf Small & Midcap Picks (September 07.2012) Stocks Recommended Recommended Price (INR) CMP(as on Sep 09.Dear Patrons. The selected stocks are filtered on stringent parameters and meet most of the criteria set by us while identifying mid cap stocks. The stocks are: * * * * * Ador Welding Ltd. Mahindra Lifespace Developers Ltd. Microsec Research presents five mid cap stocks for investment with 3 years perspectives which have potential to give superior returns. has completed 3 years and has generated an absolute average returns of ~610% in 3 years against Nifty returns of 46% and CNXMIDCAP returns of ~76%.1 12649 76% 4196 6522 55% 17684 25720 45% Tide water oil(India) Ltd. For details of that report click on the following link: http://www. Banco Products (India) Ltd.2015) Returns(%) Amara Raja Batteries Ltd.

367 2190 497% 35 92 163% Navneet Education Ltd. 114 438 284% Emami Ltd. The selected picks have generated an absolute average return of ~572% till date. 133 259 Average Returns(%) Sensex 94% 572% 15519 25720 66% BSE Midcap 5608 10434 86% BSE Smallcap 6387 10675 67% Note: Recommended prices are adjusted to corporate action (Bonus/splits) Besides having a deep understanding on different asset classes across equities.2009) Stocks Recommended Recommended Price (INR) Returns(%) from inception CMP(as on Sep 09. Pidilite Industries Ltd. Kindly refer to the brief reports in the following pages. commodities. With that perspective in mid.pdf Brand Value Picks (August 13. Happy Investing Team Microsec Research 15 Sep.Similarly our thematic report “Brand Value Picks” released on 13/08/2009 generated average returns of ~300% in 3 years against zero percent returns in BSE SMALL CAP space. we present to you the following stocks. 162 1026 533% Blue Star Ltd. 70 556 694% TTK Prestige Ltd. currencies in local and global markets. 112 872 677% Hawkins Cookers Ltd. we strive our best to identify small and mid cap companies that have the potential to become bigger in days to come.microsec. 111 245 120% Bata India Ltd. 157 3928 2396% Zodiac Clothing Company Ltd. 2015 Microsec Research .2015) Bajaj Electricals Ltd. Click on the following link for the report: http://www. 346 345 0% Castrol India Ltd. 130 1214 835% Greenply Industries Ltd.in/Static/Pdf/634445116595490000_brand%20value%20picks%20Aug%2013%2009.

Media & Entertainment 10-11 5 Ultramarine Pigments Ltd.No. 16 Microsec Research .Table of Contents S.. Realty 8-9 4 TV Today Network Ltd. Specialty Chemicals 12-13 Disclaimer………………………………………………. Particulars Sector Page Number 1 Ador Welding Limited Capital Goods 4-5 2 Banco Products Limited Auto Ancillary 6-7 3 Mahindra Lifespace Developers Ltd.

Recovery in India economy may boost welding sector and company’s financials in future. including thermometry instruments.63 205.35 Strong Financial growth with sound ratios: The Company has registered a strong financial 1.in 15th September 2015 Microsec Research .The Company’s EBITDA margin improved from 7.Banco Ador Products Welding (India) Ltd Ltd BUY Sector. Revenue of the company has grown by 3. production related to improve in process quality and deviation control.630 9.60 current high interest rate scenario the conservative capital structure is advantageous to 1.00 Debt Free company: Ador Welding Limited is near about debt free company. Transport Infrastructure and Industrial sectors. micro-processor instruments.21% to 7.63 125.Capital Goods Market Data Current Market Price (INR) 52 Week High/Low (INR) Market Capitalization (In INR Cr) S h a reholding DII 16.33 crore and CAPEX of INR1. Expansion to aid growth in Future: The Company completed CAPEX of INR9.09% We rate Ador Welding Limited a BUY. In FII 0.BO 10. 18.20 electrodes and their accessories. ADOR.03% Investment Highlights Non Institution 27.49%. 165.63 85. We believe that the company’s capacity expansion drive for AWL IN Research & Development. ROE of the company arrived at 15.63 65.76 treatment control instruments. DC machines and power equipment.63 145. Railwasy.63 Revival of the economy may boost demand of welding products: Welding business depends on Automobile. For FY2015-16 the CAPEX has been budgeted at INR12.63 Price 185. Ador Welding financial ratios are strong and the valuation has potential for significant upside.29 the company.50 crore mainly for automation at consumable and 517041 equipment plant.93% growth in FY15. thus helping in improving bottom line in coming year. The Company also manufactures industrial electronics 325 /185 equipment and process control equipment.A comparison to INR371 crore. Infrastructure sector is major consumer of welding Consumption.19% Promoter and Promoter Group 56.60 crore is in various stages of progress. Company reported PAT of INR32 Crore Vs Loss of INR5 crore from last year FY14.99% to INR386 crore in N. analytical ADORWELD instruments for R&D.63 Period CLOSE(Ador Welding Ltd) CLOSE(SENSEX) Saroj Singh Executive Research Email Id-ssingh2@microsec. In the 13. EBITDA of the company improved from INR27 crore to INR29 .69% STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (In INR Cr) Beta vs Sensex Average Daily Volume Average 5 Years PE Dividend Yield PEG Ratio 245.63 105. Constructions.7%.63 225. as well as reprographic equipment and supplies. production equipments to balance lines for achieving capacity levels. products development is good to maintain its strong growth. Ador Welding Limited manufactures welding 253. heat 346.

86x its FY16E EPS of IN28. the stock is trading at 8. Wires & Fluxes b) Welding & Cutting Equipment c) Gas cutting. At the CMP of INR253.Management Name Designa tio n AB Advani SM Bhat N Malkani Nagpal P K Gupta R N Sapru M K Maheshwari Gaurav Lalwani S G Mirchandani K Digvijay Singh AT Malkani D A Lalvani R A Mirchandani V M Bhide Chairman Managing Director Whole Time Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Non Executive Director Non Executive Director Non Executive Director Company Secretary Products / Services Ador Welding Limited has business as follow: a) Welding Electrodes.20. PPE and Accesories d) CNC cutting machines e) Project business (OEB) Valuation We maintain a positive outlook on Ador Welding Limited. Key Risks Slowdown in economy may impact the company performance 15th September 2015 Microsec Research .59.

10% repair trade. Indian Railway is also client of Banco product (India) Ltd.00 /88. with a growing presence in the North American/Middle – Eastern/African and South American markets. clinker & cement production and packing.75 155.5 million tonne per annum capacity project combined with a 10 megawatt power plant.75 12-Sep-2012 12-Sep-2013 12-Sep-2014 Period CLOSE(Banco Products CLOSE(SENSEX) Saroj Singh Executive Research Email Id-ssingh2@microsec.75 Leading radiator suppliers to Europe: Company supply to most of the OEM’s within India and has started supplying OEMs in Europe.Banco Products (India) Ltd BUY Sector. We believe exit from lake cement may help the company core business. intercoolers. The project includes limestone-mining.88 2.45 78. Company is also India’s leading exporter of aftermarket radiators to the Europe.30 1.Tata Motors. there is ongoing development for various inquiries for European/Japanese OEM’s. We expect that the increasing automotive segment activities result in the higher revenue generation for the company in the days to come.75 55.259 6. Ashok Leyland and Mahindra and Mahindra Ltd. Banco Products (India) Ltd.53% N.in 15th September 2015 Microsec Research .68 million.BO 2. oil-coolers.00 14. 0.60 manufactures engine cooling components and engine sealing gaskets to the automotive 833. Improvement in commerical vehicles demand in India: On standalone basis company most of the revenue coming from commercial vehicles segment. A sale to aftermarket is also DII 7. in July 2010.58% FII important to company business and making available to quality and reliable radiator to 0.75 Price 255. 184.88% STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (In INR Cr) Beta vs Sensex Average Daily Volume Average 5 Years PE Dividend Yield PEG Ratio 500039 BANCOINDIA BNCO IN BNCO. Make in India-positive for the company: The focus on Infrastructure sector is on the agenda of the current government and which eventually lead to the development of the automotive sector as a whole.90 We rate Banco Products (India) Limited a BUY.44% Promoter and Promoter Group 67.Auto Ancillary Market Data Current Market Price (INR) 52 Week High/Low (INR) Market Capitalization (In INR Cr) 116. Exit from Lake Cement Ltd: Banco Products India Limited. I Sha reholding Investment Highlights Non Institution 24. Banco Products had acquired 51% equity stake in Lake Cement. along with its subsidiaries. and engine gaskets. Higher revenue and better realizations would improve the margins of the company and boost the financials. Improving commercial vehicles demand in India is positive for the company. has decided to exit its Tanzania-based cement unit Lake Cement Limited for USD$17.75 105. The Company's products include radiators. 205. Company domestic commercial vehicles client like.19 industry in India and elsewhere around the world.A 305.

tractors Catalogue Valuation We maintain our positive outlook on Banco Products (India) Limited. At the CMP of INR116.Management Name Designa tio n Mehul K Patel Himali H Patel Mukesh D Patel Udayan P Patel Devesh A Pathak Ramkisan Devidayal Samir K Patel Kiran Shetty Deepkumar Vaghela Chairman Whole Time Director Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director Promoter & Non-Executive Director Executive Director Company Secretary Products / Services Banco Products (India) Limited has diversified its product as follow: a) Cooling Systems b) Sealing Gaskets c) Jointing Gaskets & Sheets d) Rubber Products Cooling Systems Radiator/ Intercooler. Key Risks If there is slowdown the Automobile sector than it may adversely impact Banco Products (India) Limited. Slowdown in global economy may impact the company performance 15th September 2015 Microsec Research . Intercooler cores.90.17. the stock is trading at 6.81x its FY16E EPS of IN17. Truck Catalogue. Industrial radiators Sealing Gaskets General Catalogue.

44 million square feet of development potential largely concentrated in the MWC in Chennai.16% 276.72% NA CLOSE(Mahindra Lifespace Developers Ltd) CLOSE(SENSEX) 177.22 11. It has provided the Company an opportunity to address this large.20 1.61 24.BO 10.65 314.086.30 Shareholding DII 1.61 8.48% 7.37 100.19 485.00% FY2016E 1.30% Net Profit 141.30 Net Profit Margins (%) 19.408.Mumbai”. the project is spread Over approximately 5 hectares and comprises of 1268 apartments.70 EBITDA Margins (%) 37.in FY2013A RoE EV/EBITDA 34.49 1.79 20.70% Investment Highlights Deferent strategic & sustainable business model: Mahindra Lifespaces is one of the few real estate companies in India with the experience of serving both retail consumers and businesses through its two segments of operations — residential development and large format integrated cities/industrial clusters.72% EPS P/E P/BV 15 Sep.39% 33. Presently the Company has two these kind of project “Happinest Boisar.57% Net Profit Growth (%) 18.83% 164.41 on affordable housing. 1 & 2 BHK.41 Price We rate Mahindra Lifespace Developers Ltd.53 316.36% 44. underserved market with its carefully crafted strategy and product. It has joint venture with several State Governments.80 7. Right market segments and geographies Plans: MLDL has delivered a creditable performance as because of its strategy to focus on the right market segments and geographies as well as its efforts to build its sales and marketing network and improve efficiencies in project execution. The Company has a landbank with 12.41 10-Jul-2015 10-Sep-2015 10-May-2015 10-Jan-2015 Period 10-Mar-2015 10-Nov-2014 10-Jul-2014 10-Sep-2014 10-May-2014 10-Jan-2014 10-Mar-2014 10-Nov-2013 10-Jul-2013 10-Sep-2013 10-May-2013 10-Jan-2013 10-Mar-2013 10-Sep-2012 10-Nov-2012 97.15% 14.88% STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (In INR Crs) Average P/E Beta vs Sensex Average Daily Volume Dividend Yield PEG Ratio 532313 MAHLIFE MLIFE IN MALD.91 40. business model and marketing & sales network in India and its valuation aspect. Special Economic Zone (SEZ) segment expected to improve: The Government’s ‘Make in India’ initiative and focus on smart cities is a favourable development for growth opportunities in this segment.30 1.05% 28.06% FY2017E 1. 2015 738.41 5.162. a BUY.41 Growth (%) 127.48% 54.83 27.19 1.29% FY2014A 705.56% -38.52 11.26 FY2015A 1. The company is one of the leading real estate development companies in India.Realty Market Data Current Market Price (INR) 52 Week High / Low (INR) Market Capitalization (In INR Crs) FII 25.72% -28.35 9.Mahindra Lifespace Developers Limited BUY Sector.03 53. Jaipur a 74:26 joint venture between Mahindra Lifespaces and Rajasthan State Industrial Development & Investment Corporation Limited (RIICO). We are positive about the company based on trigger like company’s strong management.514 2.36 8.38% 31.31 1.10 -4. In this segment the Company has two projects one Mahindra World City (MWC) Chennai.41 107.01 221.10% 15.7x 0.77% 8.55 580.5 acres and comprises of 800+ apartments.63 64.80 21.00 40.41 Net Sales 137.05 12. as because the Company has further expanded the size and scope of this opportunity.25 308.862. MLDL along with its subsidiaries companies is engaged in the development of residential projects and large format developments such as integrated cities and industrial clusters.27 358.27% 24.97 392.23% 10. the near term focus. currently an 89:11 joint venture between Mahindra Lifespaces and the Tamil Nadu Industrial Development Corporation Limited (TIDCO) and another is Mahindra World City (MWC).89% 454.95 Microsec Research .51% 14. Mahindra Lifespace Developers Limited Financial Performance. 1 & 2 BHK and “happinest Avadi – Chennai”. MLDL’s mission is “Transforming urban landscapes by creating sustainable communities”.86 7.62 266. forward.50 398.52% Non Institutions 21.95 434.63% 12.00/401.00 219.(In crores except per share data & %) 167.72% 27. It’s make the difference with other real estate companies in India.41 117. “Happinest” — the Company’s affordable housing product: The present Government’s focus Promoter and Promoter Group 50.41 Particulars 157.97 11.74% 6.55 11.20 164. 147.01 14. the project is spread over approximately 13.16 1.34 EBITDA BVPS Analyst: Ajoy Mukherjee Email Id: amukherjee@microsec.

the CMP discounts Bloomberg consensus FY2016E and FY2017E earnings at 11.Management Arun K. inability to sell the project as per plan. the stock trades at a PE of7. inability to complete and deliver projects according to the schedule leading to additional cost of construction and maintenance. poor customer satisfaction. At CMP of INR454.70X in last five years. Key Concern 15 Sep. which looks attractive from an investment point of view. In addition. this has not resulted in significant reduction of interest rates for home loans. failure to comply with laws and regulations leading to fines.00X of FY2015 EPS. This can have a direct impact on the performance of the real estate sector and the Company. 2015  RBI has reduced the policy rates in the wake of cooling down of inflation. Prakash Hebalkar Non-Executive Independent Director Non-Executive Independent Director Sanjiv Kapoor Non-Executive Independent Director Dr. time taken for approvals.36x and 8. fraud and unethical practices. Mahindra Group Shailesh Haribhakti Dr. penalties and lengthy litigations.  Key operational risks faced by the Company include longer development period for procurement of land. Nanda Anita Arjundas Chairman Managing Director & Ceo – Mahindra Lifespace Developers Ltd President – Real Estate Sector. inability to attract and retain talent.49x respectively. erosion of brand value.55. appointment and retention of quality contractors. Addon The real estate industry is easily affected by changes in government policies and regulations. Microsec Research . Anish Shah Additional Director Projects/Locations/Brands Valuation MLDL traded at an average PE of 11.

85/165. Advertising revenues is growing.01% 16.17 EV/EBITDA Analyst: Ajoy Mukherjee Email Id: amukherjee@microsec. 2015 Source: Bloomberg.44 476.00 29.67 389. the TV News channels from the company .57 P/E 30.17 10-Jul-2015 10-Sep-2015 10-May-2015 10-Jan-2015 Period 10-Mar-2015 10-Nov-2014 10-Jul-2014 10-Sep-2014 10-May-2014 10-Jan-2014 10-Mar-2014 10-Nov-2013 10-Jul-2013 10-Sep-2013 10-May-2013 10-Jan-2013 10-Mar-2013 10-Sep-2012 10-Nov-2012 90.00% 19.29 107.376.56% 18.80 352.17 290. Microsec Research (EPS adjusted as per PAT) Microsec Research .TV Today Network Limited BUY Sector – Media & Entertainment Market Data Current Market Price (INR) 52 Week High / Low (INR) Market Capitalization (In INR Crs) 230. STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (In INR Crs) Average P/E(5 years) Beta vs Sensex Average Daily Volume Dividend Yield PEG Ratio 532515 TVTODAY TVTN IN TVTO.14 RoE 3.22% No.37% 13.60 15.5% to reach INR 97500 crore in 2019.91% 15.75 11. CLOSE(SENSEX) 390.17 Significant growth in Media & Entertainment industry in India: The Indian market is poised to grow at a CAGR (Compound Annual Growth Rate) of 13. India Today. reach and the credibility they enjoy with the audience. India Today Television. Aaj Tak has maintained its Leadership among Hindi News Channels in the New Audience Measurement System BARC also with a Market Share of 16.53 120.04 91. a growth rate that is almost double that of the global media and entertainment industry.39% 29. to grow from INR 102600 crore in 2014 to reach INR 196400 crore by 2019. relate in this the Company is constantly investing in content as well as marketing & distribution on the basis of detailed research in order to achieve better ratings.Aaj Tak.75% 9.79 8.(In crores except per share data & %) Particulars Net Sales FY2013A FY2014A FY2015A FY2016E FY2017E 312.87 2.38 157.52 P/BV 1.87% 18.39 140.in 15 Sep.82 27.48 7.53 63.35 19. Promoter and Promoter Group 57.44 89.09 Shareholding Investment Highlights Non Institutions DII 4.56 542.92 14.85% 28. a 24 hr English News channel that is built on the 40 year legacy of the India Today Gold Standard of journalism. The growth in popularity of digital media continued surging year after year with a significant growth in digital advertising.45% 19. TV Today Network Limited Financial Performance.33 81.06% 402. We are positive about the company based on trigger like company’s leadership in market share.40 197.1 news channel for the 14th consecutive year has contributed to the growth in advertising revenue.45 117.98% 190. Ace Equity.15 1.21 61.68 75.66% NA CLOSE(TV Today Network Ltd) We rate TV Today Network Ltd.9%.02 6.17 Net Profit 12.99 154.43 11.58 2.99% EBITDA Margins (%) Price 340.BO 5.17 Net Profit Margins (%) 3.2%.65 BVPS 54.92% 31.60 13. India Today Television has already become the No.37% 24.86 2.75% 17. Subscription revenue growth at an annualized growth rate of 16% is expected to outpace the advertising revenue annualized revenue growth of 14%.5x 0.07% 32. a BUY.91% EBITDA 43.42% Digital and new media is geared for substantial revenue growth: The present government’s focus on digital India.31 13.36% Incremental market share with leadership position: The leadership position of Aaj Tak as the 38.29% 32. 2 Channel with a Market Share of 24.20 240.81% 17. on account of improving monetization due to digitization.03% 31.17 Net Profit Growth (%) 16. and is expected to grow at a CAGR of 15.70 261. The company is one of the leading Digital Media & publication network company.05 10.15 1.55% 22.16% EPS 2.14% 12.4%. Incremental Digital advertising revenue and its valuation aspect.55 5. Tez and Dilli Aaj Tak have all shown growth in market share.934 0.20 617.77% 13.46 15. The television industry in India is estimated at INR 47500 crore in 2014.60 Growth (%) 1.

which looks attractive from an investment point of view.95X of FY2015 EPS. the stock trades at a PE of 16. In addition.70. Key Concern 15 Sep.52x respectively.75x and 11. 2015  The main concern of the company is Issues of MSO’s (Multiple System Operators) and LCO’s (Local Cable Operator). Microsec Research . At CMP of INR230. the CMP discounts Bloomberg consensus FY2016E and FY2017E earnings at 14.  Competition leading to increasing content and distribution cost.5X in last five years.Management Aroon Purie Anil Vig Ashok Kapur Chairman & Managing Director Non Executive Independent Director Non Executive Independent Director Koel Purie Rinchet Devajyoti Bhattacharya Rajeev Thakore Non Executive Independent Director Non Executive Director Non Executive Director Products/Services/Brands Television Publication Others I N D IA TODAY BUSI N ESS TODAY M EN ' S HEALTH AAJ TAK C O SM OPOLITAN WO M EN'S HEALTH AUTO BI LD THOMSON PRESS R EAD ER' S DIGEST PR EVENTION M USI C TODAY H AR VARD BUSINESS R EVIEW IINDIA TODAY GO L F DIGEST INDIA GAD GETS AND GIZM OS D ESI GN TODAY MUSIC INDIA TR AVEL PLUS GO O D H OUSEK EEPING Valuation The Company traded at an average PE of 27.

22 192.73% STOCK SCAN BSE Code NSE Code Bloomberg Ticker Reuters Ticker Face Value (INR) Equity Share Capital (In INR Crs) Average P/E(5 years) Beta vs Sensex Average Daily Volume Dividend Yield PEG Ratio 506685 ULTRMARINE UMP IN ULTR. Improving profit from the Wind Mills Generation significantly: The total revenue of the windmills is INR2. the company hopes that the constraints and bottlenecks faced by Windmill operators will be reduced.84% Net Profit Growth (%) 77.00% NA CLOSE(Ultramarine & Pigments Ltd) CLOSE(SENSEX) Stable and high dividend yield: The company’s 5 year average dividend yield is 5. Chemicals and Petro Chemicals Investment Region (PCIR) in Gujarat with the intention of expanding its surfactant chemicals manufacturing and processing operations which is in process of establishing infrastructural facilities.01% 10.78% 10.56 6.15 4.88 BVPS 29.7x 1.48 Period RoE EV/EBITDA Analyst: Ajoy Mukherjee Email Id: amukherjee@microsec. faced lesser interest charges.89 5.15 Growth (%) EBITDA Margins (%) 117.09% 17. an increase of 24% over the previous year with an EBITDA margin of ~50%.63% 30.07 P/E 15. In FY2013-14 EBITDA margin of this segment was 20.56 140. 137. as the Tamil Nadu State Grid capacity is increased.00% amounting to INR3 per share.12 7.58% 10.55% 19.80 23.26 Shareholding Non Institutions Investment Highlights 48.95% 17. In the coming years.56 FY2013A -11.74% 18.19% 14.00 12. having two factories in south India.Ultramarine & Pigments Limited BUY Sector – Specialty Chemicals Market Data Current Market Price (INR) 52 Week High / Low (INR) Market Capitalization (In INR Crs) 72.99% 10. 2015 Source: Bloomberg.13% 19.99% Net Profit 12.56 157.12% DII 0.07 38. The Company has acquired the land at Dahej-Petroleum.74 20. the company has declared an equity dividend of 150.93 6.85% 7. At the current share price of INR72.01% EBITDA 24.31 15.56 31.20 3.16. The company has a good dividend track report and has consistently declared dividends for the last 10 years. in FY2014-15 it was at 22.29 4. The company improve the profit from the Windmills significantly because it repaid the entire term loan availed from EXIM Bank.92 10.401 4.BO 2.66% 9.61 1.42% 16.84 10.25/60.89 1.13 14. For the FY2014-15. expanding its surfactant chemicals manufacturing and processing operations and.65% 12.56 Price Gujarat-Dahej project with the intention of expanding its surfactant chemicals: The Company had entered into an agreement with Gujarat Industrial Development Corporation (GIDC) for allotment of land at Dahej.35 91.00 211.90 212.27 10.42 7.39 18.27%.00 Net Profit Margins (%) 8.71 28. The company started in 1961.62%.70% 19.16 34. It specializes in the manufacture of inorganic pigments and organic surfactants with international quality standard.90 1. Microsec Research (EPS adjusted as per PAT) Microsec Research .15 31.23% 10.13% and 31st March 2015 closing share price INR64. We are positive about the company based on trigger like company’s diversified business model with IT enabled services & BPO activities and wind turbine generator.70 38.22 FY2016E FY2017E 172.14 1.16 9.63% 18.58% EPS 4.57 34.(In crores except per share data & %) Particulars Net Sales 177.19 43. and as a result. Ace Equity. Ultramarine & Pigments Limited Financial Performance.56 10-Jul-2015 10-Sep-2015 10-May-2015 10-Jan-2015 10-Mar-2015 10-Nov-2014 10-Jul-2014 10-Sep-2014 10-May-2014 10-Jan-2014 10-Mar-2014 10-Nov-2013 10-Jul-2013 10-Sep-2013 10-May-2013 10-Jan-2013 10-Mar-2013 10-Sep-2012 10-Nov-2012 FY2014A FY2015A 150.68 14.4% increased by 200 basis points.46% 18. Growth in IT Enabled Services & BPO activities which is high & incremental margin segment: IT Enabled Services & BPO activities are the high margin segment and it is significantly increasing.00 5.in 15 Sep.4%.65 this results in a dividend yield of 4.19 P/BV 2. a BUY.10 17.01 5.90 this result in a divident yield of 4. Promoter and Promoter Group 51.88% 10.14% We rate Ultramarine & Pigments Ltd.56 97.02% 7. is one of the leading pigment and surfactant manufacturing company of Indian origin.

Sridhar Joint Managing Director Vice Chairperson & Managing Director Ms. the stock trades at a PE of 11. R.26X of FY2015 EPS. Key Concern   15 Sep. Santhanam Director Joint Managing Director Products/Services/Brands Pigments Surfactants Ultramarine Blue Linear Alkyl Benzene Sulphonic Acid Ultramarine Violet Alpha Olefin Sulphonate Bismuth Vanadate Yellow Sodium Lauryl Sulphate Mixed metal Oxide Pigments Sodium Lauryl Ether Sulphate Others Dry Mix Detergents IT Enabled Services & BPO activities Wind Turbine Generator Valuation The Company traded at an average PE of 10. There is shrinking demand for laundry and white washing applications.7X in last five years. S. 2015 The domestic market for pigments continued to pose challenges. the CMP discounts Bloomberg consensus FY2016E and FY2017E earnings at 10. In addition. Indira Sundararajan Mr.35. Microsec Research . Sampath Chairman & Managing Director Mrs.02x and 9. Tara Parthasarathy Mr. Insufficient distribution and sales promotion in the detergent segment for retail sale. which looks attractive from an investment point of view. S.06x respectively. At CMP of INR72.Management Mr. and there is a slowdown in the manufacturing sector.

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Microsec Benchmark its Research Benchmarking Fundamental Research 50.00% 20.3 percent and CNXMID CAP has given a return of 18.00% 25.00% 0.2 percent Microsec benchmark its Research and the same is updated on our website at www.8 percent.000 invested individually in all 338 stocks ie.00.00% 10. strike the right balance through Benchmarking Research. Come.00% As on 31st August 2015 45.38.86.400 giving a return of 32. .00.00% 5.in.48. 3. On the same basis Nifty has given a return of 12.00% Microsec Research Nifty CNX Midcap An amount of ` 1.00% 30.00% 35.microsec.00% 15.000 as and when recommended has appreciated to ` 4.00% 40.