10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Tuesday, September 15, 2009

Goodricke Group Ltd:Future growth outlook and prospect

Scripscan:Goodricke Group Ltd

Story:Goodricke Group Ltd., established in 1977, is into cultivation and manufactureof tea and currently owns 17 tea estates in Darjeeling and Dooars in North Bengal and Assam, each having its own processing factory, one Instant Tea.At this moment, there is a world crop shortage of about 70 million kg and is expected to be short over 110 million kg by the end of the year. As a result of this prices of tea have gone up by 25-30%. This would result in better realization for tea manufacturing companies like Goodricke Group.Company also attracts higher prices in the respective tea districts in which they are located and this would be beneficial for the company in the rising price scenario.The recently rebuilt modern factories at Meenglas and Danguajhar have contributed both to higher quantum and enhanced quality.Gross sales in CY08 improved by 24% to Rs. 294.1 crore from Rs. 237.4 crore in the previous year. The higher turnover was contributed by firmer prices for all the three tea growing regions in which the Company operates. Net profit increased by 127% to Rs. 17.6 crore in CY08 from Rs. 7.7 crore in CY07.Net Sales improved by 28%, operating profit increased by 77% y-o-y. Net profit increased by 128% y-o-y. OPM improved by 500bps and NPM improved by 600 bps. EPS for Jun09Qtr was Rs. 4.0.At current price of Rs 164.0 the stock is trading at 20.3x CY08 EPS of Rs. 8.14.We recommend a “HOLD” on the stock with a 12 month target price of Rs. 190 giving an upside potential of 15% from current level.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner