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The little investment Almanac

1. IG Petroleum: (Tracking Date 02/10/2016; price 193.2) : The stock seems to be reasonably
good. Lower PE and growing company. Concern could be recent decline in sales reported in
Mar16. Presence of Anil Kumar Goel as value investor gives confidence.
Excerpt from RJ fan website “The largest manufacturer of Phthalic anhydride, a chemical used to make paints, could
benefit from the declining supply of the chemical over the past few months. Due to this, despite flattish earnings growth for the
March quarter, the stock is up 35% in the last three months. Adjusted net profit in FY16 almost doubled.”
Vijay Kedia also bought stake(100000) in 2005 @24.2, whose current status needs to be
checked in annual report.
2. Sutluz Textile and Industries: (Tracked Date 02/10/2016, price 698.75) The company looks
to be growing but concern could also be growing debt. Excerpts from RJ Fan site “Sutlej Textiles
is a top-quality Birla company which has been recommended by Nirmal Bang with a target price of Rs. 796. Nirmal Bang’s logic
for recommending Sutlej is very sound.
Sutlej Textiles is also recommended by Karvy on the basis that the Company is going to expand its spindles capacity from
293,736 (FY15) to 412,392 by the end of FY17E.
Dilip Ghorawat, the CFO of Sutlej Textiles, also came on record a few days ago to state that the expansion will start contributing
to revenues from the Q4 of the current fiscal and will add to its growth. It also appears that Dolly Khanna is a stealth investor in
Sutlej Textiles.”
3. Renaissance Jwellary: (Tracked Date 02/10/2016; price 134.75) The company is told to be
Titan in making. Declining debt and increasing sales. What needs to be checked is that
whether the company can expand its base. RJ Fan site says” The Mumbai-based company must be the
only jeweller after Titan to have no long-term debt on its balance sheet. Its business mainly involves designing and making low-
priced products for brands like Amazon, Hallmark, JCPenney, Walmart in the overseas markets. Although, March quarter
earnings growth were flattish, earnings growth for the entire fiscal was 16.3%. Capital allocation efficiency and earnings
multiple of below 5 make is attractive.”
4. Gokaldas Exports: (Tracked Date 02/10/2016; price 76.40) The RJ Fan site says “Bangalore-based
clothing company which owns innerwear brand Enamor and exports garments to foreign brands was struggling with high debt
and losses. However, in the last two quarters, the company surprised the street with strong numbers. It reported adjusted
profit of Rs. 54 crore in the second-half of FY16 against losses in the corresponding period of the previous
year. The company is expected to sustain its financial performance.”
Porinju bought some stake in this and seems to be bullish about the company. The debt to
equity of 1 was a concern and if this is now sorted out it could be a good turnaround story.
5. SriKalahasthi Pipes (Tracked on 02/10/2016; price 285): Presence of Anil Kumar Goel,
morgan Stanley and nirmal bang, gives a confindence in company. Workout financials of the
company. RJ Fan site says, “Srikalahasthi Pipes shot into prominence when news emerged that Dolly Khanna, Anil
Kumar Goel, Nirmal Bang & Morgan Stanley had cornered large stakes in the Company. Unfortunately, the Company was then
embroiled in a corporate governance issue with Electrosteel, its loss-making parent, and this sent the stock price plunging. It is
not known whether the wizards continue to hold the stock or not.
There is a recent initiating coverage report on Srikalahasthi Pipes by AUM Capital which recommends a buy on the basis that
the Company is one of the largest manufacturers of DI pipes and that its marquee client list includes L&T, NCC, Indian Hume
Pipes, VA Tech Wabag Ltd, Sriram EPC Ltd etc.
Srikalahasthi is also highly recommended by SP Tulsian and DD Sharma, both of whom are veteran stock pickers.”
6. NCL Industries Ltd: (Traked on 02/10/2016; price 121.2) The company is cement industry in
south, which due to formation of new state Telangana could see good demand to capture
share. Declining debt is good sign. RJ Fansite says, “NCL Industries is not familiar to us because none of our
favourite stock wizards have a stake in it. However, the stock has been an incredible multi-bagger with nearly 300% gains over
24 months and 122% gains over the past 12 months.
K Ravi, the boss man of NCL Industries, revealed that the Company has ambitious expansion plans to take advantage of the
burgeoning demand for cement in Telengana and Andhra Pradesh.”