When the majority were bearish, the markets surprised them by giving a strong upwards swing. Most of the stocks prices have improved by about 20%+ in less than a month. This is why it is always advised not to time the markets. Rather than remaining on sidelines, one should target companies doing well and yet available at sane valuations. The Q3 results look good till now. Here is an update on some of our existing ideas:
1. Indag Rubber: The company has posted yet another good set of results. Top-line grows @ 55% and Net Profits @ 85%. Yet the stock is still available at less than 5 times earnings. It looks to have good potential ahead.
| Particulars | Dec 11 | Dec 10 | % Variation | FY 2011 |
| Sales | 57.45 | 37.17 | 54.60% | 149.47 |
| PBIDT | 7.77 | 4.44 | 75.00% | 16.69 |
| Tax | 1.59 | 0.85 | 87.10% | 2.89 |
| PAT | 5.31 | 2.88 | 84.40% | 10.75 |
| EPS | 10.12 | 5.48 | 20.48 |
*All Financial figures are in crore rupees (except EPS).
2. IFB Agro: The company has posted steady results with strong improvement in margins from the liquor business. The stock seems cheap as it is trading at just 4.5 times the earnings. Technically too the stock seems to be heading for new highs.
| Particulars | Dec 11 | Dec 10 | % Variation | FY 2011 |
| Sales | 120.97 | 106.80 | 13.30% | 422.82 |
| PBIDT | 14.82 | 7.73 | 91.70% | 36.27 |
| Tax | 4.14 | 1.86 | 122.60% | 8.40 |
| PAT | 8.23 | 3.47 | 137.20% | 17.82 |
| EPS | 10.28 | 4.33 | 22.26 |
*All Financial figures are in crore rupees (except EPS).
3. Gujarat Reclaim: The company remains to be our favorite with its repeated stellar performance. If one considers the superior business quality of the company, superior ratios, management quality etc., we feel this company deserves much higher valuations. Over next one year, the company is in process of expanding its capacity by about 40%+. This stock should get a high allocation in the portfolio.
| Particulars | Dec 11 | Dec 10 | % Variation | FY 2011 |
| Sales | 62.68 | 46.20 | 35.70% | 185.04 |
| PBIDT | 15.23 | 7.43 | 105.00% | 33.19 |
| Tax | 3.96 | 1.56 | 153.80% | 8.14 |
| PAT | 8.53 | 3.97 | 114.90% | 17.62 |
| EPS | 63.98 | 58.12 | 132.16 |
*All Financial figures are in crore rupees (except EPS).
4. Nesco:The results are ok with steady performance though the growth has been nominal. Given the upcoming prospects, Nesco remains a fantastic long term stock idea.
5. Apcotex: The results are decent and it remains a safe and steady stock idea with good dividend yield. Further buying might be done either on declines or growth ahead.
6. Smruthi Organics: Company has continued to deliver growth of about 30% year on year and it remains a very good choice in the pharma sector. The company still seems under-researched and is trading at attractive valuations.
7. Avanti Feeds: The company has posted very good results though the stock price has corrected by about 20%; perhaps due to higher expectations as the Q2 results were exceptionally good. We should remember that due to seasonal nature of the business, H2 is always weaker when compared to H1. Stock is trading cheap at CMP of about 100 and as the company is expected to continue growing @ of 20-25% for next couple of years. It continues to be a good stock idea.
| Particulars | Dec 11 | Dec 10 | % Variation | FY 2011 |
| Sales | 75.86 | 49.21 | 54.20% | 199.62 |
| PBIDT | 8.34 | 3.07 | 171.70% | 12.38 |
| Tax | 2.30 | 0.04 | 5650.00% | 1.69 |
| PAT | 4.71 | 1.23 | 282.90% | 3.42 |
| EPS | 5.89 | 1.50 | 4.24 |
*All Financial figures are in crore rupees (except EPS).
8. Poly Medicure: The company has once again posted solid growth and very good operating margins but the net profit is down due to forex loss of 4.25 Cr. As per update, this loss is on the existing-open forward contracts done during 2008-09 maturing over the next 6 months. So If the stock corrects due to this short term negative, it might be an excellent chance to accumulate this gem.
Other new ideas which are attracting us, as we dig them further are – Ansal Property, Avantel & Mayur Uniquoters.
As always, we are loving the views of our readers and encourage them to keep sharing their ideas too.
Happy Investing!
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