Get Magazines for free

Categories

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).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Sunday, October 4, 2009

Gujarat Gas Company Ltd and Indian Card Clothing Company Ltd:Future growth prospects and outlook,news/views/analysis

1)Scripscan:Gujarat Gas Company Ltd
cmp:200
Code:523477

Story:Gujarat Gas Company (GGCL), a 65% subsidiary of the global gas major British Gas, is India’s largest private sector gas distribution and transmission company and has a regional presence across three of the largest industrial cities in the state of Gujarat. With a pipeline network of over 2,000 kms (nearly 35% of GAIL’s gas pipeline network), the company caters to industrial (for their energy requirements), domestic (piped natural gas or PNG) and automobiles (compressed natural gas or CNG) in the cities of Surat, Ankleshwar and Bharuch. Gujarat Gas is first private player to venture into the gas distribution and marketing space. It sources gas majorly from the private players (with well diversified sourcing base). The major suppliers of gas to the company are GAIL,GSPC, CAIRN, NIKO,R-LNG and PMT. Diversified sourcing of gas enables the company to diversify the risk associated with the sourcing. Company has done well on the sourcing side, given the constraints on the supply side in the country.The gas purchased by the company is largely at the market-determined prices. The purchased gas is then sold to various user industries, majorly pharma, chemicals, textile and diamonds.Gujarat gas also supplies PNG (Piped natural gas) to the domestic consumers. Gujarat Gas has a robust business model right from the sourcing to marketing of the natural gas. However, the constraints on the lower supply of the natural gas along with revenue loss form the transmission business can affect the company.However, company is trying to increase its focus on high margin business like CNG to offset the revenue loss from transmission business. With the fall in crude oil prices, the gas prices are also likely to reduce, thus margins will continue to be good in the core business. However, supply constraint in the domestic markets will cap the growth prospects of the company over the medium-term.A bet for hardcore defensive long term investors with a perspective of 3-5 years.

2)Scripscan:Indian Card Clothing Ltd
cmp:100
Code:509692

Story:Indian Card Clothing is into metallic card clothing. Their financial performance may not enthuse any investors because the company has been constantly delivering stagnant topline and bottomline.Promoter holds majority of the stake.But the interesting part of the company is that they are very cash rich. They are holding huge chunk of listed stocks, which they keep selling every year and on which they reasonably earn an EPS of Rs 10-Rs 15 every year.Apart from this the company has huge land in Pune. In fact, some years back the Pune Municipal Corporation has acquired their part of the land for road widening purposes about 1lakh square feet for which they got a compensation of about Rs 3 crore from the Municipal Corporation. So in the near future the company is likely to develop that Pune land also which can translate to a great unlocking in the value.Apart from this if you see the metallic card clothing business world over, it is getting consolidated. In India there are only two players Indian Card Clothing and Lakshmi Card Clothing. The trend now prevailing globally is that all the textile machinery manufacturers are acquiring the card clothing companies. Lakshmi Machine being a strong presence in textile machinery probably will try to seek consolidating their position in the Indian market also.So these companies are very asset rich companies having very good cash flows and very good investments with them giving a reasonably good profits of about Rs 10-Rs 12 per share from their operations.The company pays a hefty dividend too.Altogether an asset meant for investors with risk aversion.

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: arunsharemarket@gmail.com 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.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner