VTM LIMITED (532893) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on one Textile stock.

VTM LIMITED (532893)

Virudhunagar Textile Mills (VTML) is an India-based fabrics manufacturing company was incorporated in 1946. The company's plant is located in Virudhunagar. The Company has approximately 270 looms in its manufacturing unit. It also has over 130 Sulzer machines, approximately 140 Air jets and approximately three Jacquard machines to work in tandem to produce approximately one million meters of fabric every month.

The Company's product types include Square Inch Drills, Twills, Sateens, Piques, Yarn Dyed, Jacquards and a range of Complex Dobbies. The Company's woven fabrics include Cambric, Voile, Feather Proof, Poplin, Pinpoint Oxford, Satin, Stripe Sateen, Satin, Check Sateen, Weft Str.Satin, Plain+Satin Stripe, H.B.Twill, Pique, 2/2 Twill, Percale (1/1), Percale (1/1) Pima, Grey Sheeting, Swiss Dot, Birds Eye and Yarn Dyed, among others. The Company is involved in the manufacture of grey weaving requirements for both the export and domestic markets.

In 2000-01 28 Shuttle Looms have been replaced looms at a cost of Rs.855 crores and this was financed through internal accruals. To make it more competitive in both International and Domestic markets,the Company has proposed to modernise its plant & machinery under TUFS at an estimated cost of Rs.10 crores. The modernisation scheme if implemented will yield a high value in its product mixture.

Some of the varieties produced by VTML are cambric, voile, poplin, pin point oxford, satin, chambray, drill, oxford weave, grey sheeting, etc. The mill is equipped with state of the art machineries like 60 air-jet weaving machines, besides 174 Lakshmi Ruti C looms of various widths.

PRODUCT TYPES

Company is having following product Types:

·        Sq.Inch Drills

·        Twills

·        Sateens

·        Piques

·        Jacquards

·        Complex Dobbies

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 75 % as on dec qtr.

Company posted 42.06 Cr top line in Dec Qtr.

Net profit is 2.17 Cr bottom-line in Dec Qtr.

Regular dividend paying company.

Virtually debt free company.

Debt to equity ratio : 0.08

Stock is trading at Rs 32

Company is mainly engaged in the business of Textile segment mainly in the day to day segment product categories. This segment is a consumption theme and have a good growth going forward.

By considering above, and performance of the company over QOQ investors will get handsome returns in a days to come.

PLEASE NOTE : THIS IS NOT A REASERCH REPORT AND NOT ANY RECOMMENDATION REPORT.

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”

POCL ENTERPRISES LTD (539195) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on one metal oxides, Specialized metal products company.

POCL ENTERPRISES LTD (539195)

POCL Enterprises Limited (POEL)  is an ISO 9001:2008 company and specializes in manufacturing and trading of various metals, chemicals and their oxides. The company has manufacturing units in Puducherry (formerly Pondicherry), Kakkalur – Thiruvallur, Maraimalai Nagar, Tamilnadu.

POCL Enterprises initially established in 1988 as a trading house, has over the years after the demerger has had manufacturing processes included.

Company is having four verticals as follows.

1.    Metal Oxides

2.    Plastic additives

3.    Zinc Refining

4.    Lead Alloying

1.    Metal Oxides : Metals like lead and zinc are common elements but are rarely to be found in their native state and generally found in combination with other metals by nature. Oxides are chemical compounds with one or more oxygen atoms combined with another element. Metallic Oxides are basic in nature generally solids and have high densities

2.    Plastic additives: In this category company manufactures PVC stabilizers which are extensively used in RPVC pipes, cables foot wares etc.

3.    Zinc Refining : World-wide use of zinc oxide is in excess of 1.8 million tons annually. On a contained zinc basis the oxide accounts for about 9% metallic zinc. Probably 60% zinc oxide uses secondary zinc, primarily top dross from continuous galvanizing, as the zinc source. Although rubber products and in particular tires are the major use for rubber, there are considerable variations around the world in use patterns. For example, the ceramic market is equally as important as rubber is some areas.

4.    Lead Alloying: Lead is a dense, soft, low-melting metal and has been used in many applications an important component of batteries and about 80% of the world’s lead production is consumed by the battery industry. Lead is the densest common metal and this quality makes it effective in sound barriers and as a shield against X-rays.

APPLICATION OF THE PRODUCTS

1.    LEAD: Company manufactures different oxides of lead, it has got following major applications.

·         Lead is widely used in manufacture of storage batteries, lead oxides and lead compounds.

·        Also used in radiation shielding, solder cable sheathing, alloys and type metal.

·        All types of lead alloys manufactured per customers specifications.

2.    ZINC OXIDES: Company manufactures different purity grades of ZINC, it has got following Industrial applications.

·        Used in varistors, thermal papers,electroplating & dietary supplement in animal feed.

·        Widely used in ceramic, floor tiles, frits & glazes

·        Primarily used as accelerator, activator & reinforcing agent in rubber

3.    LEAD SULPHATES & LEAD DERIVATIVES: These are having following Industrial applications.

·        Primarily used as light and heat stabilizer in PVC formulation.

·        Anti-oxidising and ultra-violet screening for vinyl and chlorinated resins.

·        Widely used in rigid PVC profiles, pipes and PVC compounds. Also used in plastics.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 46.98 % as on dec qtr.

Company posted 119.09 Cr top line in sept Qtr.

Net profit is 1.29 Cr bottom-line in sept Qtr.

Operating margins were improved

Stock is trading at Rs 77

Company is mainly engaged in the business lead and other metal oxides derivatives are extensively used in storage batteries and other related industries. As this business will reach to next orbit in near future is having tremendous potential for the growth in the industry.

By considering above, and performance of the company over QOQ investors will get handsome returns in a days to come.

PLEASE NOTE : THIS IS NOT A REASERCH REPORT.

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”

NOTICE...

Dear Investor friends, due to some unavoidable circumstances there will not be no stock discussion today.

I will share my opinion on new stock on Monday.

#VALUEPICKSTOCK

PRADEEP METALS LTD (513532) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on metal/engineering company

PRADEEP METALS LTD (513532)

Pradeep Metals Limited is an India-based ISO 9000 company engaged in manufacturing of steel products. The Company offers components for process control equipment and components for valves. The Company is engaged in manufacturing of closed die forgings and processing. Its products include material grades, valves, gears and automotive, manifolds, forged flanges and general engineering. 

The Company offers intricate closed die stainless, alloy and carbon steel forgings as finished and semi-finished machined components. The Company offers its products to its customers in the United States, the United Kingdom, Singapore, Sweden, Denmark, France, Germany, Mexico and Argentina. Pradeep metals serves various industries, such as instrumentation, oil and gas, and petro-chemical. 

The Company's plant is located at Rabale, Navi Mumbai. The plant is integrated with various facilities for design, die tooling, laboratory testing, cutting, forging, heat-treating and machining.

PRODUCTS

Company Products are fall under mainly following groups.

1.    Forged Flanges

2.    Valves

3.    General Engineering product

4.    Manifolds

 Forged Flanges.

Forged Flanges are widely used in all types of industries. These products are connecting to pipelines where different kinds of fluids/liquids are conveyed.

Valves & Components

In this category company have different kinds of valves ex. Ball valves Check valves etc.

General Engineering Products

Company manufactures different kinds of clamps, fittings in this segment.

Manifolds

These are pipe fittings products are used in piping manifolds. Manifolds products are also used in gear transmissions.  

USA FACILITY

Company is having its manufacturing facility in USA, named as Dimensional Machine works.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 72.2 % as on sept qtr.

Company posted 36.22 Cr top line in sept Qtr.

Net profit is 1.75 Cr bottom-line in sept Qtr.

Operating margins were improved

Stock is trading at Rs 96

PE is low as compared peers as well as industry.

Company is mainly engaged in the business forged and engineered metal products for various industries. The domain segment is in the rapid growth phase, will be a huge positive for the company.

By considering above, and performance of the company over QOQ in both topline & bottom lines have shown significant growth. With this company investors will enjoys handsome returns in 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”

MAKAR SANKRANTI WISHES......

Dear All,

                I wish you a Happy Makar Sankranti......

#VALUEPICKSTOCK