Friday, 31 July 2015

ARIES AGRO HIGHLY UNDERVALUED POTENCIAL MULTIBAGGER STOCK

Aries Agro Ltd  

(CMP Rs.127.10) BSE Code: 532935  |   NSE Symbol: ARIES

AAL is a leader in nutritional products for plants, manufactures a wide range of products under 65 Brands of plant nutrients crop protection chemicals. It’s diversified product portfolio and wide distribution network enables it to have an upper edge over its peers
. Its product mix with multiple products targeting various strata of farmer is a huge entry barrier.The strategy of billing only the distributors and maintaining a relation with the farmers only on non financial parameters have been working pretty well fo r AAL over the past few years. This is expected to continue going ahead and ensure smooth flow of business for the
company. AAL also has wide distribution network in most of the states in the country. The production capacity of the company is large enough for the company to grow its operations for few more years without huge capex requirements.
The key features and characteristics of its products and its importance in the farming sector helps the company see further growth in the demand for its products going ahead. With more farmers being educated towards the importance of micronutrients in farming, AAL being a large player sees the demand for its products surging in the next couple of years.
AAL tapped the capital market in December 2007 by off ering 45 lakh equity shares (of FV Rs 10 each) at a price of Rs 130/share to fund the five-fold expansion of its production capacities (Setting up of new manufacturing units at Gujarat, Lucknow and Hyderabad), purchase of plant and machinery for its Mumbai Unit, advance for existing office building
renovation/redevelopment (expected to be completed in September 2015), capex for mobile marketing, working capital needs and general corporate expenses.



Market Cap: 167.57 Crores/   Current Price: 127.10/  Book Value: 148.99

Stock P/E: 9.74/ Dividend Yield: 1.29%/ Stock is 10.00 paid up

Listed on BSE & NSE

Company website

52 Week High/Low: 164.40 / 74.80 /Interest Coverage Ratio: 1.90

Debt to equity: 0.94/  Industry PE: 13.09/ Expected quarterly net profit: -1.96Cr.

Enterprise Value to EBIT: 6.80/Sales  growth 5Years: 21.69%

Change in promoter holding 3Years: 0.00%/PEG Ratio: 0.61/ Promoter holding: 52.74%

Pledged percentage: 0.00%/ ROCE3yr avg: 14.32%/ Cash end of last year: 12.66Cr.

NPM last year: 6.30%/ NPM preceding year: 6.31%/ Price to book value: 0.87 

Technically the stock signals strong buy  forming Head & Shoulder pattern . Buy with stop loss Rs. 115 for terget @ Rs. !60 in short term.
 


SL N0
STOCK
RECOM.
DATE
CALL PRICE
(Rs.)
CMP
RETURN
%
LINK
CURRENT
STATUS
1
Sintex
10/05/15
108.35
115
+6.13
Strong Buy & Accumulate
2
Andhra Bank
14/05/15
76.60
74.10
-3.26
Strong Buy/Good Q1 Result/.Sl-68
3
Voltas
23/05/15
319
317.60
-0.44
Strong Buy
SL-300
4
Pratibha Inds.
31/05/15
39.40
47.40
+20.3
HOLD
5.
Munjal Auto Inds.
25/07/15
89.15
97.25
+9.08%
Above 97 upward nonstop journey.
6
Natural Capsules Ltd.
27/07/15
78.75
107.70
+36.76
Book 50% profit.
7
Aries Agro Ltd 

31/07/15
127.10
127.10
0
Buy any Qty. Above 115.

 

Saturday, 25 July 2015

BUY HIDDEN GEMS OF MARKET

MUNJAL AUTO INDUSTRIES LTD( CMP Rs..89.15)

STRONG BUY WITH TERGET 125 IN MEDIUM TERM

Market Cap: 445.75 Crores   / Current Price: 89.15/  Book Value: 44.87

Stock P/E: 11.72/ Dividend Yield: 2.33%/ Stock is 2.00 paid up

Listed on BSE & NSE / 52 Week High/Low: 133.50 / 68.00

Interest Coverage Ratio: 6.70/Debt to equity: 0.34/Industry  PE: 38.75

Expected quarterly net profit: 13.28Cr./Enterprise Value to EBIT: 8.60

Sales growth 5Years: 28.27%/Cash from operations last year: 38.38Cr.

Change in promoter holding 3Years: 0.00%/PEG Ratio: 0.34

Promoter holding: 74.81%/ Pledged percentage: 0.00%/ ROCE3yr avg: 35.99%

NPM last year: 5.84%/ NPM preceding year: 5.51%/Price to book value: 1.99 



Compounded Sales Growth
10 Years: 14.25%
5 Years:28.27%
3 Years:16.24%

Compounded Profit Growth
10 Years: 6.79%
5 Years: 34.08%
3 Years:24.33%

Return on Equity
10 Years:31.03%
5 Years:30.06%
3 Years:31.53%
Last year:28.06%

 
 Technically indicators shows strong buy.