We personally love to keep a track of small, interesting and growing companies with a market capitalization of under 100 crores. But we are rarely able to talk much about these small companies as they come with their own set of troubles including low liquidity, low visibility, lesser information, chances of corporate in-governance etc.
It is interesting to go through their annual reports and valuations even if one does not invest in them.
[Companies with ** mark are classified under PCAS (call-auction mechanism)]
Acrysil** (M.Cap 53 Cr): Acrysil is the “only company in all of Asia – and one of just a few companies worldwide ” manufacturing quartz kitchen sinks.” The company posted a good June quarter. The management talks about big ambitions in the annual report. If they actually end up delivering what they are aiming for, this stock can give fantastic returns.
Alicon Castalloy** (M.Cap 55 Cr): This company is “one of the largest integrated aluminium casting manufacturing units in India.” Interestingly, the company has posted a growth of 25% in the revenues over last 3 years, when the whole auto ancillary industry has been witnessing a slowdown. The margins have fallen significantly though (from 18% to 11%). CRISIL report provides a good history of the company. The book value is Rs.96 and the stock is at 3.5 times earnings at Rs.50. Continue reading Few interesting micro caps
FY 2012 results are now out and the focus will shift towards earnings for FY13. Despite a very challenging market and weak economic conditions, we are happy with the financial results of the companies we track. Most of them have been able to report healthy growth and maintain their leaderships. Many of the companies have raised dividends and are now trading at very low PE (price to earning) and Price to Book (P/B) ratios. Although the macro environment and prospects remain uncertain, there is an opportunity for stock pickers to do their home work and build a quality portfolio.
Some of the noticeable results of the companies we track are: Continue reading Updates for Financial Results 2012
“Don’t judge a book by it’s Cover”
This seems to be an apt quote in the case of Piccadily Agro (PAL). I had a look at this stock idea about a year back and was stupid to give it a go thinking it to be just another Sugar company. Since then the stock has tripled and yet looks to be a very interesting stock idea with lot of potential.
Piccadily Agro Limited started off as an Sugar company in Haryana and the performance paralleled to the cycles of Sugar Sector. In 2008, the company ventured into Country Liquor business and the same seems to have done wonders for the company. Have a look at the financial performance till 2007 and then since 2007:
Financial Performance till 2007:
Continue reading Piccadily Agro