Vulcan Engineers Ltd : From A Frog To A Prince ?
“The Frog Prince” is an ancient but popular fairy tale. In the tale, a princess befriends a frog who is later magically transformed into a handsome prince, after being kissed by this princess.
Unlikely as it sounds, our very own local stock exchanges churn out such frog princes on a fairly regular basis.
Don’t believe me ? Well , let me explain …
Every year , for many years now, dozens of listed companies have been changing hands on the bourses . A majority of the companies taken over – though there are notable exceptions - are those doing little business & making limited profits.
The companies & persons taking over these companies come in various hues , ranging from people in the same line of business who think they can do a better job, to people who want to pursue a different line of business all-together, to people who simply want to list their existing businesses by way of a reverse merger , without taking the IPO route.
But a common characteristic of this lot is that they have an agenda & want to get the myriad benefits that come with being a public listed company.
If one is willing to put in the effort to separate the wheat from the chaff in such takeovers, one may be lucky enough to identify the next frog prince - a company whose fortunes are likely to improve dramatically as a result of being taken over.
Is the effort worth it ? To illustrate , let me throw you a figure – 60245.
That’s the number of times appreciation that a person would have earned by investing in a company called Jaybharat Sarees Ltd (JSL) - now Jaybharat Textiles & Real Estate Ltd - in December 2003, when it started trading following a takeover by Mr. Saurabh Tayal of the Tayal Group of companies in Jan 2003.
Yes, 10 shares of JSL purchased at Rs 12.25 per share on 24th December 2003 would have become 15375 shares as of today & each worth Rs 480/- at the close of trade on 3rd February, 2010 !! Giving a value of Rs 73,80,000 / - for the investment of Rs 122.50, a 60245 time’s appreciation , not even accounting for dividends received over the years.
Not every frog turns in to such a rich prince. Not even in 7 years time. Not even after being kissed by a princess.
But practically every year there are several companies taken over that give a 3-5 times appreciation over the next few years. And this is taking into consideration just those companies which are quoted daily (many more promising frog princes are suspended for trading due to past non-compliances, and some are simply not traded on a regular basis).
To quote more recent examples , consider Peerless Abasan Finance (now Shristi Infrastructure) which was taken over in 2006 by the Kanoria group, which gave multifold returns over the next 2 years, and Mewar Industries (now Brahmaputra Infraprojects), taken over in mid-2008 by the Brahmaputra group, which has already given 5 times return in about 18 months time.
And so, to repeat, if one is willing to put in the effort to separate the wheat from the chaff in such takeovers, one may be lucky enough to identify the next frog prince, and chance one's luck.
The author looks at these takeover / reverse merger stories with some interest, and in the past few months has tried to identify future princes from among the frogs. The author belives he has identified one such company that merits further due diligence – Vulcan Engineers Ltd.
Vulcan Engineers Ltd
Vulcan Engineers Ltd (VEL), a BSE listed company is in the business of designing, manufacturing & commissioning industrial furnaces, kilns & gas plants. For several years now it’s performance has been distinctly lackluster before a relative turnaround in the current financial year.
The company has now been taken over by Terruzzi Fercalx Spa (TFS), an Italian firm. A closer look at TFS would give the reader an idea of what is possibly in store for VEL.
Terruzzi Fercalx Spa
This company was incorporated in 2007 in Italy by the Terruzi group, a 113 year old group founded in 1987 by Daniele Terruzzi.
The company's website is : http://www.terruzzi.fercalx.com/
The company has been organised into 3 divisions :
Terruzzi Division – into autoclaves (sterilisers) for glass , aerospace , pharmaceutical industry , as well as erection of complete plants
Fercalx division – primarily into designing, manufacturing & commissioning of lime kiln plants for steel, ferroalloy, cement industries etc
Terruzzi Foodtech Division – the food & confectionary division
The company as a whole is a comprehensive engineering group involved in all phases of plant realisation , right from design to manufacture to commissioning, catering to various industries such as :
Steelmaking industry
Cement industry
Aerospace & Aircraft industry
Pharmaceutical industry
Food Industry
Lime industry
Paper & Pulp industry
Glass industry
Rubber Industry
Mining & Metals / Ferroalloys Industry
Environmental / Waste treatment Industry
The potential market for a company catering to the above industries is humungous, not just in India but the world over. Moreover, TFS has several patents & pending patent applications in it’s field of operation.
It is therefore no surprise that since commencing operations in 2007 , Terruzzi Fercalx Spa, despite it’s small size, has already grown in revenues by 25% in 2008 & a further 40-50% in 2009 (exact annual figure as of Dec 2009 not available) .
And no wonder that in it’s offer letter to VEL shareholders, TFS has given as it’s reason for the takeover, the “great growth potential” in emerging markets such as India.
It is not unlikely given the size of the market opportunity, that once TFS completes it’s takeover, planning, reorganisation & knowledge transfer to VEL, that VEL will itself follow a similarly scorching growth path.
In fact, over the next decade (yes, when the potential is so vast, investors need to think long term & not just short to medium term), it is not inconceivable that VEL will morph itself into a large engineering company, and the fulcrum of TFS's overseas operations.
To the author, the main risk appears is not in the business itself, results of which should start becoming visible in 18-24 months, but rather in the attitude of the new Italian promoters towards minority shareholders. After all, the Terruzzi Fercalx group is a private group run by the Terruzzi family, so this aspect will bear close watching.
Vulcan Engineers Ltd – Quick Facts
Bse Code : 522080
CMP : 22.65 (Closing on BSE, 3rd Feb , 2009)
Website of promoter (TFS) : http://www.terruzzi.fercalx.com/
Recommendation :
While it is impossible to say whether this frog will turn into a prince eventually, one can see from the facts presented above that it is certainly a possible candidate .
Keeping the above in mind, the author recommends investors to research VEL in greater detail, and keenly track the company going forward. Over the next decade this stock could transform not just it's own fortune, but an investor’s fortune too.
Disclaimer/Disclosure :
At the time of writing this article the author has a position in the stock covered by this report. The author or any of his dependent family members may make purchases or sales of the securities mentioned in the report while the report is in circulation. Readers/recipients of this report are strongly advised to do their strict due diligence, and should be aware that the value of investments can go down as well as up. The author shall not be liable for any direct or indirect losses arising from the use of the contents of this report, and readers are therefore cautioned to use the information contained herein at their own risk. In fact, readers would do well to seek the advice of a qualified independent advisor. The author certifies that all of the views expressed in this report accurately reflect his personal views about the subject company at the time of writing this report. Feedback / brickbats may be hurled at the author at jainsanam2020@gmail.com .
Revisions :
10th Feb, 2010 -> Revised my figures for appreciation in JSL from 94000 times to 60245 times.
Reasons : Bonus in 2004 was 31:10 and not 31:1 shown on BSE website ("Filing & Other Info" tab) + Stock Splits also considered.
Saturday, February 20, 2010
All about Edserv >>
EdServ launches ‘VIDHYADHANA’, the Academy of Excellence for schools
* To provide Fun filled learning content with gaming tools
* Leading Educationists to govern the Academy to monitor and improve learning methods
Chennai based Education Services Company EdServ, which had recently announced a three phased expansion into the Schools Segment, has launched VIDHYADHANA, an Academy of Excellence in K-12 for schools that encompasses fun-filled learning for primary-secondary education.
EdServ is in talks with a Chennai based Gaming company to develop and implement multimedia and animation based games that will assist in creating the much needed interest and skill-sets for students in some of the tough subjects at school. The multimedia based gaming content is expected to facilitate quicker learning and easier understanding of subjects at primary level.
5 year Joint Venture with Schools
EdServ, through the Vidhyadhana Academy, will enter into a 5year renewable Joint Venture with owners of schools, whereby the company will adopt the existing schools along with the management and students.
As part of the JV, the School owners will get an upfront interest-free refundable deposit as well as a share in the School’s revenue. In addition, each school will get between Rs.15 and 20lakhs for investments on technology tools and systems. The company will also assure profitability to school owners while retaining their ownership. Also, as part of its JV, Vidhyadhana Academy will look to improving the quality of schools, teachers’ skills and the academic performance of students, apart from imparting them with career orientation.
Vidhyadhana Academy shall be governed by Educationists, Correspondents and Deans of some of the leading schools to monitor and improve the quality of learning methods. All Heads of Schools adopted by Vidhyadhana shall be members of the Academic Council.
S. Giridharan, CEO, EdServ said `We believe learning is incomplete without a metrics and assessment model. The ‘Vidhyadhana Academy’ education model is an integrated learning model - a hybrid of manual and automated learning system- with the metrics entirely automated and the outcome of the assessment being ploughed back to learning systems in order to achieve the individual student learning progress. Thus, more than just an academic subject wise learning, we will bring a progressive learning model that seeds the career of each student to his individual interest and traits. Based on our study, we are of the view that this can happen as early as 6th or 7th standard.`
Highlights of Vidhyadhana Academy
* To adopt and run schools with successful educationists governing the Academy
* To provide quality teachers, improve admissions and also support academic performance of students
* To provide career seeding and industry orientation at Primary and Secondary level
* To offer affordable online tuition services for these school children
Upgrading Schools’ Technology Infrastructure
Vidhyadhana Academy will invest in upgrading the school in size and facilities such that the students find the environment much better. Fees shall continue to be affordable while the number of students admitted to schools is expected to increase.
Vidhyadhana Academy will invest in Technology enabled EdLabs, LCD TVs for all class rooms, introduce Smart Learning tools and Internet connectivity with video conferencing facilities in every school to help students improve their academics and understand the industries, domains and the orientation to take up right Careers based Groups at the higher secondary levels.
On the vision for Vidhyadhana, Giridharan said, `Our long term plan is to implement our IDEA (Industry Demand Alignment) based education programme at the primary education level so as to seed careers at a young age in students and to map each student to their apt ‘Career based Group’ of subjects and UG programmes as they move up to higher secondary education.`
* To provide Fun filled learning content with gaming tools
* Leading Educationists to govern the Academy to monitor and improve learning methods
Chennai based Education Services Company EdServ, which had recently announced a three phased expansion into the Schools Segment, has launched VIDHYADHANA, an Academy of Excellence in K-12 for schools that encompasses fun-filled learning for primary-secondary education.
EdServ is in talks with a Chennai based Gaming company to develop and implement multimedia and animation based games that will assist in creating the much needed interest and skill-sets for students in some of the tough subjects at school. The multimedia based gaming content is expected to facilitate quicker learning and easier understanding of subjects at primary level.
5 year Joint Venture with Schools
EdServ, through the Vidhyadhana Academy, will enter into a 5year renewable Joint Venture with owners of schools, whereby the company will adopt the existing schools along with the management and students.
As part of the JV, the School owners will get an upfront interest-free refundable deposit as well as a share in the School’s revenue. In addition, each school will get between Rs.15 and 20lakhs for investments on technology tools and systems. The company will also assure profitability to school owners while retaining their ownership. Also, as part of its JV, Vidhyadhana Academy will look to improving the quality of schools, teachers’ skills and the academic performance of students, apart from imparting them with career orientation.
Vidhyadhana Academy shall be governed by Educationists, Correspondents and Deans of some of the leading schools to monitor and improve the quality of learning methods. All Heads of Schools adopted by Vidhyadhana shall be members of the Academic Council.
S. Giridharan, CEO, EdServ said `We believe learning is incomplete without a metrics and assessment model. The ‘Vidhyadhana Academy’ education model is an integrated learning model - a hybrid of manual and automated learning system- with the metrics entirely automated and the outcome of the assessment being ploughed back to learning systems in order to achieve the individual student learning progress. Thus, more than just an academic subject wise learning, we will bring a progressive learning model that seeds the career of each student to his individual interest and traits. Based on our study, we are of the view that this can happen as early as 6th or 7th standard.`
Highlights of Vidhyadhana Academy
* To adopt and run schools with successful educationists governing the Academy
* To provide quality teachers, improve admissions and also support academic performance of students
* To provide career seeding and industry orientation at Primary and Secondary level
* To offer affordable online tuition services for these school children
Upgrading Schools’ Technology Infrastructure
Vidhyadhana Academy will invest in upgrading the school in size and facilities such that the students find the environment much better. Fees shall continue to be affordable while the number of students admitted to schools is expected to increase.
Vidhyadhana Academy will invest in Technology enabled EdLabs, LCD TVs for all class rooms, introduce Smart Learning tools and Internet connectivity with video conferencing facilities in every school to help students improve their academics and understand the industries, domains and the orientation to take up right Careers based Groups at the higher secondary levels.
On the vision for Vidhyadhana, Giridharan said, `Our long term plan is to implement our IDEA (Industry Demand Alignment) based education programme at the primary education level so as to seed careers at a young age in students and to map each student to their apt ‘Career based Group’ of subjects and UG programmes as they move up to higher secondary education.`
ITL est le name . . .
ITL Industries (BSE CODE 522183) is a small but rapidly growing company from Industrial Machinery sector. In addition to its sales points across India, it has representative sales offices in US and Germany. Company started its operations in 1986. In 1996 company entered a technical coll.agreement with KASTO Maschinenfabrik GmbH Germany for manufacturing state-of-the-art High Speed Power Hacksawing Machines in India, with a buy back arrangement.Its product list includes Band Saw Machine, Circular sawing Machine,Tube and Pipe making machine,Blades,special purpose machines ..etc.
In the year 2004, ITL introduced India’s first indigenously designed and developed CNC Carbide Tip Circular Sawing Machine and displayed the same in EMO Show at Hannover, Germany in September 2005 & 2007 with very good global response. Today ITL offers wide range of Circular Sawing Machine for cutting ferrous and non-ferrous Bars, Sections, Profiles and Tubes. In a growing economy like India, there is large scope for company`s products.
ITL is located at Plot of approx. 4 Acres having covered area of about 108,000 square feet and additional land available for shed expansion approx. 44,000 square feet. To cater overseas requirements ITL has acquired additional land in Special Economic Zone and expects to start production by end of 2009. Company`s Customers include Steel Plants, Forging Industries, Defense Establishments, Railways Workshops, Bharat Heavy Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI and HINDALCO etc.
On a tiny equity base of just 3.25 crore ITL is expected to post an EPS of Rs. 9 + in the current fiscal. In the first half itself ITL posted an EPS of Rs.4.35 which is higher than the last full year EPS of Rs.3.64.It also declared a dividend of 10%. Considering the growth of the company there is fair chances for good appreciation. ITL is trading at Rs.38 which is at a P/E multiple of just 4 to the expected EPS of current year which is really a valuepick.
In the year 2004, ITL introduced India’s first indigenously designed and developed CNC Carbide Tip Circular Sawing Machine and displayed the same in EMO Show at Hannover, Germany in September 2005 & 2007 with very good global response. Today ITL offers wide range of Circular Sawing Machine for cutting ferrous and non-ferrous Bars, Sections, Profiles and Tubes. In a growing economy like India, there is large scope for company`s products.
ITL is located at Plot of approx. 4 Acres having covered area of about 108,000 square feet and additional land available for shed expansion approx. 44,000 square feet. To cater overseas requirements ITL has acquired additional land in Special Economic Zone and expects to start production by end of 2009. Company`s Customers include Steel Plants, Forging Industries, Defense Establishments, Railways Workshops, Bharat Heavy Electrical Units, Steel Tube Plants, Research Organizations like BARC, NFC, DMRL, ISRO, MIDHANI and HINDALCO etc.
On a tiny equity base of just 3.25 crore ITL is expected to post an EPS of Rs. 9 + in the current fiscal. In the first half itself ITL posted an EPS of Rs.4.35 which is higher than the last full year EPS of Rs.3.64.It also declared a dividend of 10%. Considering the growth of the company there is fair chances for good appreciation. ITL is trading at Rs.38 which is at a P/E multiple of just 4 to the expected EPS of current year which is really a valuepick.
Duke >>>>
This is a niche company in oil exploration allied services.There is only one company other than this one in listed space ie, Dolphin Offshore. Since oil price is lower now , nobody is paying much attention to the companies in this sector at present. But things may change any time when there is clear sign of recovery in world economy.
Keep an eye on this >>>
Mr.Ashok Hiremath, main promoter of Astec Lifescience is the brother of Mr.Jai Hiremath(Promoter of HIKAL).He was also a co promoter of HIKAL in its early stage and then he dissociated from his brother and promoted Astec.Product line of Astec is almost similar to HIKAL ,and world leader of agrochemicals -Syngenta- is its major customer. Company is expected to post an EPS in between Rs.15 to Rs.20 in FY 2011.Keep an eye on it.
Buy this gem ..
Simmonds Marshall is a micro-cap company from auto ancillary sector .It is a 50 year old company originally promoted by U .K based Firth Cleveland Fastening Ltd in 1960’s .Later Indian promoters bought out the company from the foreign promoters. Its main products include Cap Castle and Coupling nuts ,Cleveloc self locking nut Cold forged automotive Components and Bolts ..etc. A number of automobile leaders are the customers of the company which include GM,MAHINDRA,LEYLAND ,TATA,SUZUKI,FIAT,SWARAJ MAZDA,HONDA..etc. Company’s equity capital is just 2.1 crore and majority of this held by the promoters. In last FY company posted an Eps.of Rs.5.But due to the revival in auto sector in this half year itself company already posted an EPS of Rs.10.5. and expected to post an EPS around Rs.22/- in this full year .An entity named Clover Technologies Pvt Ltd is aggressively buying its shares from the open market and they now hold around 12 % in this company .Eventhough they are in non promoter category , they may be an associate of the promoter itself . Company has declared a dividend of 12% .Considering all the facts it is a value BUY at current market price of Rs.106
Nile >>>
NILE is a Hyderabad based multi division company.It is in the field of Glass lined equipments,Pressure vessels and lead and lead alloys. In glass lined equipments company is competing with GMM Pfaudler and won a hostile takeover attempt by GMM.Major chemical and pharma companies including Cydus,Cipla,Aarti,Atul ..etc are company`s customers in this segment.Now company is paying much attention to lead and lead alloy segment and commissioned a new plant at Thirupathi in last qtr.
Comapny is making lead through recycling method and Amar Raja Battery is the major customer of NILE in this segment.Now company is going to start commercial production in its new lead plant in Republic of Georgia which is a joint venture with a local company.
It has an equity capital of just 3 crore and promoters are holding 46 %. Recently main promoter is actively buying from open market to increase his share holding. Due to sharp crash in lead prices company has posted a loss of 2.2 crore in FY 08-09,whre it had posted 6.5 crore profit in 07-08.Now lead prices improved sharply and due to this company posted an EPS of Rs.7/- in september qtr.Adding the small loss loss posted in first qtr company posted H1 EPS of 4.75 and expected to continue the perfomance of September qtr (EPS of Rs.7/) in the coming two qtrs.Considering the companys recent capacity addition and improving the price of it products it is expected to post excellent results ahead.
Comapny is making lead through recycling method and Amar Raja Battery is the major customer of NILE in this segment.Now company is going to start commercial production in its new lead plant in Republic of Georgia which is a joint venture with a local company.
It has an equity capital of just 3 crore and promoters are holding 46 %. Recently main promoter is actively buying from open market to increase his share holding. Due to sharp crash in lead prices company has posted a loss of 2.2 crore in FY 08-09,whre it had posted 6.5 crore profit in 07-08.Now lead prices improved sharply and due to this company posted an EPS of Rs.7/- in september qtr.Adding the small loss loss posted in first qtr company posted H1 EPS of 4.75 and expected to continue the perfomance of September qtr (EPS of Rs.7/) in the coming two qtrs.Considering the companys recent capacity addition and improving the price of it products it is expected to post excellent results ahead.
Stocks 2 watch - 2010 ...
GROUP - A
1)YES BANK
2)FORTIS HEALTHCARE
3)CAIRN INDIA
4)BIOCON
5)THERMAX
6)OPTO CIRCUIT
7)TORRENT POWER
OTHERS
1)YUKEN INDIA
2)BALAJI AMINES
3)TASTY BITE EATABLES
4)GREAVES COTTON
5)NUCLEUS SOFTWARE
6)SETCO AUTOMOTIVE
7)EDSERV SOFTSYSTEMS
8)WPIL
9)SUBEX AZURE
10)SIMMONDS MARSHAL
11)SELAN EXPLORATION
12)NILE LTD
13)WEBSOL ENERGY
14)RANE ENGINE VALVES
15)FEDERAL-MOGUL GOETZE (INDIA) LTD
16)KIRLOSKAR OIL ENGINES
17)SPICE MOBILES
18)INTERLINK PETROLEUM
19)ITL INDUSTRIES
20)VESUVIUS INDIA
Management is Questionable >>>
Punj lloyd creates a lot of expectation among investors and called even as the second L&T .But always it disappoints by all means and expected to continue so in future. Quality of management is really questionable and
one can`t blame the investors even if they think this management is diverting funds from the company to somewhere they have personnel interest.Better to avoid Punj Lloyd and buy rewarding companies like Madhucon Project
one can`t blame the investors even if they think this management is diverting funds from the company to somewhere they have personnel interest.Better to avoid Punj Lloyd and buy rewarding companies like Madhucon Project
Tasty Bite
The first part of the mission statement answers the question, what is the purpose: to be a values-driven organization that will make Tasty Bite a household name. Vasudevan elaborated to say the company has a value ecosystem with three pieces: the employees, the consumers, and the community.
The value provided to the consumers comes from the rest of the mission statement, which says Tasty Bite is a manufacturer and marketer of natural, convenient, specialty foods and promises consumers great taste, good value, and a range of cuisine through product innovation, low-cost manufacturing practices, customer partnerships, and a knowledge-driven, energetic, and fun work environment.
For the employees, the value program is broken into health and wellness, which refers to the company’s complete healthcare coverage and a unique practice: every meeting in every department starts with a minute or two of deep breathing. The second piece is learning and growth, which means Tasty Bite will help financially with any employee interested in going to school to further their knowledge base and will offer flexible schedules without reducing pay. The third piece, rewards and recognition, refers to Tasty Bite’s Spot Award, which is given to an employee to recognize a significant achievement that he or she recently pulled off.
The result has been that both current and pervious employees of Tasty Bite are ambassadors for the company, and the positive, creative environment at the company attract the best and the brightest.
The third facet of Tasty Bite’s value system refers to the company’s goal of positively impacting its community in any way possible. For example, because food manufacturing uses hundreds of thousands of liters of water per day, Tasty Bite recently installed a water conservation system that saves at least 10%, nearly 40,000 liters, every day. Enough, Vasudevan said, to sustain a village. Also this year, the company switched the fuel for its water boiler from fuel oil to sugar cane waster briquettes; 100% of all Tasty Bite products are thus manufactured with renewable resources.
This year also saw the beginning of a new partnership with the University of Wisconsin in Madison, which won a grant from the USAID organization to launch a farming outreach program. The school chose to work with Tasty Bite, and now the company’s farm is a demo site for teaching local farmers advanced techniques.
Tasty Bite has a few other longstanding traditions that better its community. For one, whenever there is a natural disaster, the company finds a way to send its food packets free of cost. Often, employees in the factory voluntarily choose to work a shift without pay to donate to the disaster relief. Since the products are healthy and don’t require refrigeration, they are perfect for the task. The company also matches every dollar the worker’s cooperative at the factory in India raises to put toward scholarships that will keep employee’s children in school from elementary all the way through post-graduate.
’We are not a large company, but we don’t think that matters,’ Vasudevan said. ‘We feel success is more than the profit at the end of the quarter; it is also the smiles we bring to the people we touch.’
The value provided to the consumers comes from the rest of the mission statement, which says Tasty Bite is a manufacturer and marketer of natural, convenient, specialty foods and promises consumers great taste, good value, and a range of cuisine through product innovation, low-cost manufacturing practices, customer partnerships, and a knowledge-driven, energetic, and fun work environment.
For the employees, the value program is broken into health and wellness, which refers to the company’s complete healthcare coverage and a unique practice: every meeting in every department starts with a minute or two of deep breathing. The second piece is learning and growth, which means Tasty Bite will help financially with any employee interested in going to school to further their knowledge base and will offer flexible schedules without reducing pay. The third piece, rewards and recognition, refers to Tasty Bite’s Spot Award, which is given to an employee to recognize a significant achievement that he or she recently pulled off.
The result has been that both current and pervious employees of Tasty Bite are ambassadors for the company, and the positive, creative environment at the company attract the best and the brightest.
The third facet of Tasty Bite’s value system refers to the company’s goal of positively impacting its community in any way possible. For example, because food manufacturing uses hundreds of thousands of liters of water per day, Tasty Bite recently installed a water conservation system that saves at least 10%, nearly 40,000 liters, every day. Enough, Vasudevan said, to sustain a village. Also this year, the company switched the fuel for its water boiler from fuel oil to sugar cane waster briquettes; 100% of all Tasty Bite products are thus manufactured with renewable resources.
This year also saw the beginning of a new partnership with the University of Wisconsin in Madison, which won a grant from the USAID organization to launch a farming outreach program. The school chose to work with Tasty Bite, and now the company’s farm is a demo site for teaching local farmers advanced techniques.
Tasty Bite has a few other longstanding traditions that better its community. For one, whenever there is a natural disaster, the company finds a way to send its food packets free of cost. Often, employees in the factory voluntarily choose to work a shift without pay to donate to the disaster relief. Since the products are healthy and don’t require refrigeration, they are perfect for the task. The company also matches every dollar the worker’s cooperative at the factory in India raises to put toward scholarships that will keep employee’s children in school from elementary all the way through post-graduate.
’We are not a large company, but we don’t think that matters,’ Vasudevan said. ‘We feel success is more than the profit at the end of the quarter; it is also the smiles we bring to the people we touch.’
Changing Lifestyles = Changing Fashions
Cravatex (BSE CODE 509472) is a company immensely getting benefit from the changing lifestyle of youth in India.It is one of the largest seller of Fitness and sports equipments under the brand name Proline Fitness. Now Company also offers a range of advanced international beauty therapies within spas across the country.
Proline is the pioneer in introducing the personal range of fitness equipments and it has 50 showrooms across the country. Nowadays our youth is paying much attention to their health and the financial result of this company is a testimony for this fact. Company is also running commercial gyms for companies like SBI. L & T, Microsoft….. etc . It is expanding very rapidly Pan India.
In December qtr company posted an EPS of Rs.12.56 v/s Rs.3.22 last year same qtr. For the nine month ended EPS is Rs.28.52 and full year is expected close to Rs.45/- Cravatex has a tiny equity of just 1.29 crore and out of this 75% is held by the promoters. Company is a unique one in the listed space and the business has huge potential . It is now trading just a P/E of 5 on the full year expected EPS.Buy for decent return in six months time.
More details are available from their website : http: //ww w.prolinefitness. in
Proline is the pioneer in introducing the personal range of fitness equipments and it has 50 showrooms across the country. Nowadays our youth is paying much attention to their health and the financial result of this company is a testimony for this fact. Company is also running commercial gyms for companies like SBI. L & T, Microsoft….. etc . It is expanding very rapidly Pan India.
In December qtr company posted an EPS of Rs.12.56 v/s Rs.3.22 last year same qtr. For the nine month ended EPS is Rs.28.52 and full year is expected close to Rs.45/- Cravatex has a tiny equity of just 1.29 crore and out of this 75% is held by the promoters. Company is a unique one in the listed space and the business has huge potential . It is now trading just a P/E of 5 on the full year expected EPS.Buy for decent return in six months time.
More details are available from their website : http: //ww w.prolinefitness. in
Sell Compact Disc ...
So many times I have warned about the quality of this management.Everytime supporters of Compact disc claims that this is another infosys in making and it is recommended by this analyst or that analyst.Now everybody is convinced the real picture of its promoters by today`s announcement by the company which is reproduced below:
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Compact Disc - Clarification on Dividend for the year ended Mar 31, 2009
Announcement: Compact Disc India Ltd has informed BSE that:
`The chairman informed the members in the Extra Ordinary General Meeting held on November 30, 2009 that the Company was granted working capital limits by The Hongkong Shanghai Banking Corporation Ltd. The bank has charged excess interest and other expenses which were not in conform to the sanction letter, hence a dispute arises with the bank. The Company was expecting a settlement with the bank on or before the Extra Ordinary General Meeting. The dispute with the bank could not be resolved. The Company requires prior bank`s consent for payment of dividend.
The chairman requested the members to defer the proceedings of Extra Ordinary General Meeting in view of ongoing dispute with the bank. The members considered the request favourably and deferred the proceedings of Extra Ordinary General Meeting unanimously without taking any agenda item. The members also authorized the Board of Directors to hold another General Meeting to consider the agenda item.
Resultantly the dividend was not considered in the Extra Ordinary General Meeting held November 30, 2009, as the proceedings of Extra Ordinary General Meeting were deferred.`
=============================
Where is all the advocates now ?????
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Compact Disc - Clarification on Dividend for the year ended Mar 31, 2009
Announcement: Compact Disc India Ltd has informed BSE that:
`The chairman informed the members in the Extra Ordinary General Meeting held on November 30, 2009 that the Company was granted working capital limits by The Hongkong Shanghai Banking Corporation Ltd. The bank has charged excess interest and other expenses which were not in conform to the sanction letter, hence a dispute arises with the bank. The Company was expecting a settlement with the bank on or before the Extra Ordinary General Meeting. The dispute with the bank could not be resolved. The Company requires prior bank`s consent for payment of dividend.
The chairman requested the members to defer the proceedings of Extra Ordinary General Meeting in view of ongoing dispute with the bank. The members considered the request favourably and deferred the proceedings of Extra Ordinary General Meeting unanimously without taking any agenda item. The members also authorized the Board of Directors to hold another General Meeting to consider the agenda item.
Resultantly the dividend was not considered in the Extra Ordinary General Meeting held November 30, 2009, as the proceedings of Extra Ordinary General Meeting were deferred.`
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Where is all the advocates now ?????
Buy Tasty Bite !!!
Media and analysts are often give publicity to a company only after it has grown substantially and leave very little on the table for retail investors. We have seen this many times in the past like in the case of TRF , Bajaj Electricals .etc. Tasty Bite Etables (TBE) seems to be such a story which is yet to be unfold. TBE (BSE CODE -519091) is now promoted by Preferred Brand Foods India Pvt.Ltd which is the Indian arm of US based Preferred Brand Foods Inc. Promoters hold close to 75% share in this microcap (total equity is just 2.56 crore) Two Hyderabad based investors also holding another 6% in this company.Total share holders of this company altogether is only 1648 as per December share holding pattern ,which makes it a low liquid counter.
The company is based in Pune, India.
manufactures and markets a range of shelf stable, all-natural, ready-to-serve ethnic food products under Tasty Bite brand name. The company offers Indian and Thai food products, including entrees, meals, rice, and sauces. It also produces special diets, such as vegetarian, gluten-free, kosher, and vegan foods.95% of its income coming from exports . In India the company markets its products to institutional users, including hotels, quick-service restaurants, and other retail and corporate customers. .
Company is performing exceedingly well in recent years and its product getting very good response from US customers. Now ,Tasty Bite is the largest selling Indian Ethnic Food Brand in US.
Even in a difficult qtr for almost all export companies due to unfavorable $ value ,company could post more than Rs.7 /- EPS in December qtr v/s a loss in last year same qtr. For the nine months ended December ,company posted an EPS close to RS.20 v/s a loss of Rs.2/- in last year.
At a time of rising food prices world over ,cost of raw materials is playing a major role in food companies profit. Tasty bite is procuring more than 60% of vegetables from company’s own farms which is located in Pune , is an added advantage for the company.
Company is expected to post an EPS more than Rs.25/- in the full year v/s Rs.5.5 in last year. Tasty Bite is lead by Ashok Vasudevan and Ravi Nigam both having vast experience in this field and headed companies like Pepsico and Britannia in India. Considering the pace of its growth and commitment shown by the management it should be a dark horse and should touch atleast Rs.400 – 500 in future.
More details about the company is available from :
For US operations : ww w.tastybite dot com
For Australian operations : ww w.tastybite dot com dot au/
The company is based in Pune, India.
manufactures and markets a range of shelf stable, all-natural, ready-to-serve ethnic food products under Tasty Bite brand name. The company offers Indian and Thai food products, including entrees, meals, rice, and sauces. It also produces special diets, such as vegetarian, gluten-free, kosher, and vegan foods.95% of its income coming from exports . In India the company markets its products to institutional users, including hotels, quick-service restaurants, and other retail and corporate customers. .
Company is performing exceedingly well in recent years and its product getting very good response from US customers. Now ,Tasty Bite is the largest selling Indian Ethnic Food Brand in US.
Even in a difficult qtr for almost all export companies due to unfavorable $ value ,company could post more than Rs.7 /- EPS in December qtr v/s a loss in last year same qtr. For the nine months ended December ,company posted an EPS close to RS.20 v/s a loss of Rs.2/- in last year.
At a time of rising food prices world over ,cost of raw materials is playing a major role in food companies profit. Tasty bite is procuring more than 60% of vegetables from company’s own farms which is located in Pune , is an added advantage for the company.
Company is expected to post an EPS more than Rs.25/- in the full year v/s Rs.5.5 in last year. Tasty Bite is lead by Ashok Vasudevan and Ravi Nigam both having vast experience in this field and headed companies like Pepsico and Britannia in India. Considering the pace of its growth and commitment shown by the management it should be a dark horse and should touch atleast Rs.400 – 500 in future.
More details about the company is available from :
For US operations : ww w.tastybite dot com
For Australian operations : ww w.tastybite dot com dot au/
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