By IE&M Research
JB Chemicals and Pharmaceuticals Ltd.
BSE Code/ NSE: 506943/JBCHEPHARM; Face Value: Rs2; CMP: 304
52 Week H/L: 363.05/255
JB Chemicals and Pharmaceuticals is a pharmaceuticals company manufacturing and marketing a range of specialty products. The company exports to over 55 countries across the world earning almost half of its revenue from its international business. The company’s US sales contributes around 8% to the total sales. One important aspect is the strengthening of the domestic currency against the US dollar in recent times which will increase its margins. This could be another trigger. On a year-on-year basis in FY17 the company’s net sales increased 11.55% to Rs1368.32 crore which is expected to be maintained this FY also but PBT is expected to increase. There seems to be no looking back for the investors. This is a new entrant in pharma sector, which shrewd investors are zeroing.
LT Foods Ltd.
BSE Code/ NSE: 532783/DAAWAT; Face Value: Rs10; CMP: 85
52 Week H/L: 109.90/56.75
There has been strong buying at this counter lately as the board has approved increasing stake in its arm, Raghunath Agro Industries. Right now the stock is at its optimum level so the current level provides a good entry price. On a year-on-year basis in FY17 the net profit of the company witnessed a slight decline of 0.79% to `30.14 crore, but this FY it is expected to make a huge difference.
LT Foods is aggressively moving towards becoming a Global Speciality Food company with the launches of non-rice products along with the value added products in rice varieties. It is a leading integrated basmati rice producer, enjoying top two market position in 7 countries, including India & US with well known brands including Daawat, Heritage and Royal. Its manufacturing facilities are located in Haryana, Punjab and Madhya Pradesh with a combined milling capacity of 82 tons per hour (TPH). Having Amitabh Bacchan as the brand ambassador gives better visibility in Indian and European market. The company is expected to clock `3600 crore revenue in FY18, and its current EBITDA margin is expected to go up to 20% in the next 3 years with better realization. It has aimed to become a USD 1bn company by 2022. However, this is a long term story and a sharp investor has been accumulating this stock.
Shiva Mills Limited
BSE Code/ NSE: 540961/SHIVAMILLS; Face Value: Rs10; CMP: 47
52 Week H/L: 100.80/42.65
If market watchers are to be believed then Shiva Mills is going to announce good numbers which will again put the counter back to its earlier position when it was trading in three digits. It is a small company listed on both the exchanges having only `47 crore market cap but no financial information is available. So it is very difficult to comment on its finances. However, promoter’s 74.92% holding assures that the stories making rounds might be true. Shiva Mills Limited (formerly STYL Textile Ventures Limited) was incorporated in 2015 as a wholly owned subsidiary of Shiva Texyarn Limited to take over the assets and liabilities of Spinning Unit I and certain windmills under the Scheme of Arrangement (Demerger). The spinning unit was started in 1989 with a factory in Dindigul, Tamilnadu. The unit has a capacity of 39072 spindles with a production capacity of 20 tonnes of cotton yarn per day. The unit specializes in production of 100% cotton yarn for knitting. The Company exports around 20% – 30% of cotton produced to far east countries. The unit has been modernized by availing Term loans under Technology Upgradation Fund (TUF) scheme. The unit is equipped with some of the sophisticated machinery and has also installed sophisticated testing equipments to test the quality parameters of cotton as well as yarn so as to maintain high quality standards. Only high risk takers should involve on this counter. However, it is a stock that should be watched.