AKAR TOOLS LTD (530621) - STOCK OF THE WEEK

Dear Investor friends,  today I am discussing  one industrial/ Auto goods segment stock.

AKAR TOOLS LTD (530621)

Akar Tools Ltd, an ISO/TS 16949:2009 certified company is the forward integrated enterprises of R.L. Group of Industries. Company is an India-based company, which is engaged in the manufacturing of automotive components, such as hand tools and commercial automotive forgings, and leaf springs business. 

Company’s plant is situated in Waluj near Aurangabad, Maharashtra, which is one of the major automotive clusters in India with good transport connectivity.

Since, Start of production in 1991, Akar Tools Ltd manufacturer's hi- quality precision engineered forging components, company became a public limited company in 1994.

PRODUCTS

Company's products are falling mainly in four segments.

     1.    Hand Tools

     2.    Tool Kits

     3.    Forging

     4.    Leaf springs

     1.    Hand Tools

Company’s products are branded under the name of “AKAR”. In this segment number of different products are being manufactured mainly are

Spanner / Wrenches

Automotive / Working Tools

Plumbing Tools

Electrical and Electronics Tools

Striking Tools

Lubricating Tools

Tool Apron

Hand Truck

     2.    Tool Kits

These are widely used in automotive industries. Akar manufactures both Automotive and Non-Automotive tool kits.

In this segment Akar products are being used by for Two wheeler, Three wheeler, Four wheeler and Commercial vehicle manufacturers.

     3.    Forging

Here in this category products are for Automotive shafts, Gear Blanks, Steering levers, Pulleys etc. These products are also for Automotive and Non-automotive uses.

     4.    Leaf Springs

Akar manufactures various types of Multi Leaf spring such as Bogie Type, Progressive Type, Single stage, two stages. These leaf springs are widely used for Heavy Duty trucks Special Application Vehicles SUVs & MUVs, LCV & HCVS in Trucks and Buses.

Akar is Equipped with an imported parabolic machine with manufacturing capability from 6mm to 60 mm thickness rolling capacity with minimum Parabolic thickness tolerance. Various type of leaf springs are manufactured and supplied Worldwide.

Akar innovative design and manufacturing capability has resulted in efficient air ride main support members that are both durable and high performing for a variety of suspension designs.

Clients

AKAR Tools is having strong customer base from renowned Auto industries. Some of them are as below.

Company website: Clickhere 

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 73.06%

Company posted 189.35 Cr top line in Last Financial Year.

Net profit is 2.62 Cr bottom-line in the Last Financial year

Stock is trading low PE as compared to industry PE & major peers.

EPS 4.86

Regular dividend paying company

Stock is trading at Rs 97.

Company posted good set of number YOY basis and grown 42 % on bottom-line numbers as compared to previous year numbers. Company products are mainly for Auto industries, as this sector will grow because of lower interest rates this will be a huge positive for the stock. Company is having strong customer base in the Auto industry leaders. Considering above this stock will give good returns to the investors in near future.

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”

35% RETURN IN 4 WEEKS - RIBA TEXTILES

Dear Investor friends, we have discussed RIBA TEXTILES LTD  just few weeks back  @ 68 levels. Stock today touched 91.7 levels( New 52 week high) !!!! 

Investors have earned 35% in few weeks

OLD POST: Clickhere

# VALUEPICKSTOCK

ECOPLAST LTD (526703) - STOCK OF THE WEEK

Dear friends, today I am expressing my view on one flexible packaging industry stock.

ECOPLAST LTD (526703)

Ecoplast was incorporated on 7th May 1981 as a private limited company. Then it is became public limited company in the year 1994. Today it is India’s one of the leading manufacture and supplier of multilayer co-extruded polyethylene and co-polymer films to the flexible packaging industry as well as a variety of other specialty applications around the world.  

Ecoplast has had a major role in the development of the flexible packaging industry in India ; this industry uses multi layer polyethylene and co-polymer films for laminating to one or more substrates, such as polyester film, polypropylene film, often in combinations with aluminium foil and/or paper, depending upon the packaging system.

Since over three decades, Ecoplast has been setting standards on high quality and innovation of multilayer film structures to provide the required film properties critical to pack, preserve and display a wide range of products world over.

Ecoplast has its manufacturing facility at Valsad, Gujarat. As a manufacturing specialist, Ecoplast has state-of-the-art machinery from leading technology and machine manufactures in the world. Company's machines give  the capabilities to delivery an outstanding product and allow us to constantly innovate better methods of production.  

PRODUCTS

Company main products falls under two segments, that is Lamination films and Surface protection films.

For many applications in flexible packaging, the use of a single material may not satisfy all of the properties demanded of the product. In these cases, a composite consisting of two or more layers of material may provide the desired performance. A particularly common means of creating such a composite is to laminate various polymeric films to other films, foils, papers, etc. with a polymeric adhesive. 

1. LAMINATION FILMS

Company's lamination are widely used in following industries.

Agro Industries

Cosmetics & Toiletries

Food & Beverages

Pharmaceuticals

Speciality Application:

·        Adhesive films for bonding substrates for the Automobile Industry.

·        Cement (25kg Pack)

·        Easy Open/Seal-Peel Films

·        Films for Vacuum Metalising

·        Lubricating Oils

·        PLASPER : Polymer based Synthetic Paper Retort Films

2. SURFACE PROTECTION FILMS.

Ecoplast Ltd. is a well-known manufacturer of surface protection films. Ecoplast provides complete range of surface protection films designed to prevent abrasion, scratching during manufacturing and damage during delivery cycles.

This products are widely used in following industries.

Stainless Steel

Aluminum Composite Panel

Coated Steel

Marble/Tiles

Aluminum Sections

PVC Sections

Decorative Laminates

Company is certified with ISO 14000,22000 and 9001.

Company is having global customer presence in more than 11 countries.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 66.38% (Increased from March Qtr)

Company posted 96.85 Cr top line in Last Financial Year.

Net profit is 1.97 Cr bottom-line in the Last Financial year

Stock is trading low PE 15 as compared to industry PE & major peers.

EPS 6.56

Company is reducing debt.

Regular dividend paying company

Stock is trading at Rs 101.

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

Promoters are increasing their stake in the company reveals the trust about the business and future growth for the company. As the Packaging industry is evergreen segment in the industrial segment, Ecoplast is serving most of all industrial segments. Company’s customers are growing in a good phase is a huge positive for the stock. Moreover Company’s overseas business is also growing very fast.

By looking at the above stock will rerate to its peers and will give decent returns to the investors.

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”

STOCK DOUBLED IN JUST 2 MONTHS - INDTONER

Dear Investor friends, we have discussed INDIAN TONERS DEVELOPERS just 2 months back  @ 162 levels. Stock recently touched 335 levels!!!! 

Investors have doubled their money in less than 2 months

WHATELSE INVESTORS WANT!!!!!!!!!

OLD POST: Clickhere

# VALUEPICKSTOCK

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”