Wednesday, 21 February 2018

MULTIBAGGER PENNY STOCK


Sanwaria Consumer Limited; A FMCG Food Processing association of the Sanwaria Group; BSE-NSE Listed; was merged in April 1991, by Lt. Shri Ram Narayan Agrawal and started its exercises in 1993. It is one of the greatest facilitated sustenance processors in India and is possessed with the matter of gathering and offering of Rice, acceptable oil and staple support things like Pulses, Sugar, Soya Chunks, Wheat Flour, Rice Flour, Salt, Suji, Maida, Besan, Daliya, Soya Meal et cetera.

The Company started its voyage with the little Solvent extraction cutoff of 200 TPD in Itarsi and from that point it investigated every possibility. At present the Company is having the limit of 2500 TPD of Solvent Extraction Plant, Soya Refinery of 250 TPD and 500 TPD of Rice Milling Plant. It's all units are masterminded in Madhya Pradesh; the center of India; Registered Office is arranged in Bhopal and It's the place Soyabean, Paddy, Wheat are available in abundance close by Skilled, semi-gifted and inept work. It is ISO 14001, 22000, GMP and Halal Certified and Government Recognized Export Trading House. The Company has a strong scattering interface with respectable brands like Sanwaria, Narmada, Sulabh and Nashira.

The Company has wandered into coordinate retail by opening up ATM measure retail outlets under the brand name ' Sanwaria Consumer Shoppy ' to achieve the end client specifically.

The Group has supported introduction in assembling/handling/exchanging of Soya Products, Rice and rice related items, sustenance grains and heartbeats. In Addition, the Company has denoted it's essence in universal market for Import and Export for its different items and has a 100% Subsidiary in Singapore.

The Company has fabricating units at 3 area - Mandideep, Itarsi and Betul, deliberately situated in the nourishment creation and utilization belt in India.

As of late, the Company was positioned 336th in among 1000 India's finest Companies based on Turnover by "The Financial Express
Company’s premium products basket consist of:
Basmati Rice (Exotic • & Premium- Raw/Sella)
Refined Soyabean Oil, Refined Rice Bran Oil/ Fortified with vitamins,

Chakki fresh Atta fortified with Soya Flour

Chakki fresh fortified Protein
• & Iron rich Atta
Maida, Suji, Rawa, Besan, Daliya, Pulses (Dals),

Soya Flour, Soya Chunks (Bari)

Salt, Sugar, Poha

Soya Meal, Soya Meal High Protein

Rice Flour, Lecithin

Aqua Feed

Poultry Feed and others
The Company is foraying into direct retail by opening up company owned retail outlets under the brand name ‘Sanwaria Kirana’ to reach the end customer directly. The Company has already opened up 11 stores at different locations of Madhya Pradesh and another 10 retail stores are in pipeline. It is venturing into different geographical locations through Franchise Route. It has a plan of opening 100% subsidiary in Dubai to get the overseas market business of Middle East & Africa and initiate the business in Singapore through 100% Subsidiary which will get business from rest of the world along with cheaper finance facilities.
Post rebranding, Sanwaria is standing at the cusp of growth. The increase in product portfolio, backing of strong FMCG players (like Patanjali, Dmart and ITC), direct retail selling plans and global expansion sounds like all growth levers have been unleashed simultaneously. If they play their cards well, the business could see exponential growth in next 4-5 years. Also if the margins improve in coming quarters, as has been claimed by the company, quite surely the rerating in company’s Price to Earning multiple would happen. From a single digit levels (9.82), it can grow to more comparable PE valuations with its peers like KRBL (28.87), LT Foods (13.8) and Chamanlal Sethia (12.23).

SANWARIA CONSUMER LTD – KEY FUNDAMENTALS

  

Market Cap.: 1489 Cr.        

Stock P/E: 18.48                 

Dividend Payout Ratio: 4.18%  

Face Value: 1                      

Listed on BSE and NSE   

52 Week High/Low: 34.40 / 3.55 

PEG Ratio: 0.89                 

Debt to equity: 2.4              

Interest Coverage Ratio: 2.46          

Current ratio: 7.25              

Promoter holding:66.68%

Price to Sales: 0.31            

Pledged % : 7.46%           

Enterprise Value: 2392 cr

NPM last year: 1.12%   

SANWARIA CONSUMER LTD – FINANCIAL RESULTS

Sales Growth:

Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
1,968.66
2,458.64
2,644.67
2,695.25
3,512.44
4,793.39


The Patanjali Effect:
Sanwaria Group was producing many products for Patanjali Trust.
In the company’s AGM proceedings  has formally disclosed that they are supplying to Patanjali and are increasing the extent of their association with more products and Pan-India presence as we speak.

It is good to buy shares of Sanwaria Agro @ Rs 16 to rs 20 & Good to hold for Long Term.






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