10 stocks analysts forgot to recommend

Crystal Barretto & Kiran Kabtta Somvanshi, ET Bureau

Taking a call on whether a stock should or should not be part of your portfolio is
a tough one. That’s why most of us leave the job to bigwigs of Dalal Street, the
over 1,500 brokerages in Mumbai collectively tracking a thousand stocks. These
brokers offer a thorough analysis of how companies perform on a quarterly
basis, thereby aiding your investment decisions.

However, most of them have failed to detect a few stocks as these companies
are either too small in size for analysts to track or they don’t belong to
mainstream sectors. Managements of some companies remain low-profile and
are less media-savvy. In such cases, analysts do not track these companies due
to lack of adequate information.

ET Intelligence Group takes a thorough look at the universe of stocks to find

such companies that have a good value and a promising growth but remained
invisible on the analysts’ radar.

We analysed a list of almost 300 B-group shares, which were less tracked, and
picked 10 stocks using certain valuation parameters. These parameters included
debt-equity ratio less than 1, return on capital higher than 20%, price-earnings
11
multiple not more than 15 and net sales and market capitalisation exceeding Rs
 Aditya Birla Chemicals
Aditya Birla Click to edit Master text styles
Chemicals is a 51% Second level
arm of Hindalco ● Third level
● Fourth level
Industries with a 5% ● Fifth level

stake held by other

promoter group
entities. It is a
leading producer of
inorganic chemicals,
such as caustic soda,
chlorine, hydrogen
and their derivatives.
It has a history of 22
Clariant Chemicals

Clariant Chemicals, a Click to edit Master text styles

63% arm of Second level
Third level
●

Germany’s Clariant, Fourth level

●

is India’s leader in Fifth level

●

specialty chemicals.
It has divested a few
of its noncore
businesses. In 2009,
it sold flexible
laminating adhesives
business followed by
disposing of its 33
Excel Crop Care

Excel Crop Care is an Click to edit Master text styles

agrochemicals Second level
company. Over the Third level
●

Fourth level
●

past five quarters Fifth level

●

ended December
2010, it has posted a
decent growth in its
financials with
September 2010
quarter being the
strongest, showing
the maximum 44
Honda Siel Power Products

Honda Siel Power Click to edit Master text styles

Products, a part of Second level
● Third level
the Honda Motor ● Fourth level
Company, makes ● Fifth level

portable generator
sets, general-
purpose engines,
water pumps, lawn
mowers and brush
cutters. Its sales
have grown at a
CAGR of 8.2% over 55
Ineos ABS India

Ineos ABS India, Click to edit Master text styles

which is an 83% Second level
Third level
●

subsidiary of Ineos Fourth level

●

Global Group, is Fifth level

●

India’s leading maker

of an engineering
plastic named
acrylonitrile
butadiene styrene
(ABS). It is a
highperformance
plastic, used 66
Kabra Extrusiontechnik

Kabra Click to edit Master text styles

Extrusiontechnik is Second level
Third level
●

maker of machinery Fourth level

●

used for producing Fifth level

●

plastic pipes,
packaging films,
window and door
profiles. It has
augmented its
offering with a new
plant that makes drip
irrigation systems. To 77
FDC

FDC (Foods, Drugs & Click to edit Master text styles

Chemicals) is a Second level
player in oral ● Third level
● Fourth level
rehydration salts, ● Fifth level

opthalmics and
paediatrics. It earns
over 90% of its
revenues from the
domestic market. It
has launched
products in various
therapeutic areas 88
IFB Industries

IFB Industries is a Click to edit Master text styles

consumer goods Second level
company. It’s more Third level
●

Fourth level
●

profitable Fifth level

●

engineering segment
contributes nearly
20% to its total
revenues. Its home
appliances business
of washing
machines, dryers,
microwave ovens 99
 Insecticides India

Insecticides India Click to edit Master text styles

(IIL) is an agro- Second level
Third level
●

chemicals and Fourth level

●

pesticides company. Fifth level

●

It has posted a
robust growth in its
financials. In the past
seven quarters, its
operating profit
margin has been in
the range of 8-10%.
It may continue 1010
Ricoh India

Ricoh India makes Click to edit Master text styles

Second level
photocopiers, fax ● Third level
machines, printers ● Fourth level
● Fifth level

and other digital

multifunction
products. Its
revenues have been
growing at a very
slow pace since
FY05. It plans to
expand its portfolio,
geographic footprint 1111