Saturday, 22 July 2017

CHAMAN LAL SETIA EXPORTS LTD - STOCK OF THE WEEK

Dear Investor friends, Today i am expressing my view on Agriculture product  company.

CHAMAN LAL SETIA EXPORTS LTD (530307)




Chaman Lal Setia Exports Ltd was established back in 1974 in Amritsar in Punjab and went on to become one of the largest manufacturer-exporter of basmati rice. Founded on the core principles of integrity, trust, honesty and fair dealings. Company’s flagship brand "Maharani" basmati rice is one of the most trusted basmati rice company in India due to its honest dealings and fair business practices. Chaman Lal Setia Exports Ltd grew as its Maharani basmati rice gained popularity for its distinguished flavor and taste.


The company started its exports in 1982 and got recognized as an export house by Ministry of Commerce, Govt. of India in 1989. Over a period of time, company upgraded ourselves a Star Exports House. Company marked its presence in a number of states in India also constantly evolving to reach more and more states. In the international market, it is exporting rice to more than 70 countries across the world in the Maharani brand or under the private labels of the customers.



Chaman Lal Setia Exports has a modern, state of the art, rice milling and processing unit in Karnal, Haryana. Processing is carried out under carefully controlled conditions. From selection of raw paddy from farms to the final packaging, each step is covered by a set of quality parameters implemented by our experienced. 


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PRODUCTS

Company products include the famed Maharani brand basmati rice, non-basmati rice and innovative rice as well as exclusive, hand-picked varieties that appeal to connoisseurs. Its exclusive range features flavored rice and rice for diabetics. Company know rice like no one else and offer it in a way no other manufacturer can.

Maharani Basmati product range

In this product Range Company manufactures majorly 3 variant.
1.    Mithas Basmati Rice
2.    Begum Basmati Rice
            3.    Nezzah Indian Basmati Rice







Non – Basmati Products

Here in this segment Company products are sold under the brand name of Green world aromatic rice.




Innovative product range

This is the most growing fast segment of the company. As the health conscious of the users are more, company offers products for Diabetics. It's a specially processed parboiled rice with low G.I. (Glycaemic Index). Company product is based on scientific knowledge, creating the perfect grain. This segment use special cultivars and process to create low G.I. level rice. This makes the rice suitable for consumers when used in moderate quantity meal of cooked rice.



Another range in this segment is Bhathi Sella Rice ( Roasted Parboiled Rice) which sustains the nuturion value of rice.


Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 74.7%

Company posted 136.9 Cr top line in March qtr.
26 % growth QOQ basis (136.9 Cr against 108.1 Cr)

Net profit is 8.41 Cr in the March qtr.
27 % growth QOQ basis (8.41 Cr against 6.63 Cr)




Stock is trading low PE 13 as compared to industry PE of 28

EPS 7.44
Company is reducing debt.
Regular dividend paying company
3 year ROE : 33%

Stock is trading at Rs 97.

Company is trading PE is low as compared to its peers and reducing trend of debt.

Company’s products are having a huge demand in both domestic as well as international markets. Company’s new Innovative and value added products are with good market share is a positive for the company. Company has performed consistent growth of over 40% over the past five years. By considering above, this stock will give handsome returns to the investors in a days to come.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

4 comments:

  1. Dear sir, Thank you for the pick

    ReplyDelete
  2. Sir, your picks are awesome. I have made good profits from your recent calls like PBM POLY, VIPUL ORGANICS etc. What is your view on KRBL o same segment

    ReplyDelete
    Replies
    1. KRBL is also good stock, but if you see the track record of profit growth Chamanal given more profit growth(44%) than KRBL(27%)

      Delete
  3. Nilesh Moradiya23 July 2017 at 08:13

    Sir, I have came across your blog recently.All are good stocks. Monday I will buy Chamanal for long term.

    ReplyDelete