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

Friday, February 3, 2012

Sita Shree Food Products Ltd:-Buy/sell/growth prospects and recommendation,news and results,target and analysis,view and outlook,multibagger

Scripscan:Sita Shree Food Products Ltd

Story:The promoters of SSFPL are in the business of food grains trading since last 35 years. This helps the Company to procure its raw material at competitive prices throughout the year. It is benefited due to the past track record of the promoters in sourcing commodities as well as running existing business. Also By virtue of the presence in the industry for a considerable period of time, the Company has been able to develop a customer base which can be leveraged for the expanded operations as well as new products manufactured through proposed project.Sita Shree Food Products Limited engages in the processing, manufacture, sale, and export of wheat and pulses in India. The company manufactures various wheat products, such as chakki atta, maida, rava, suzi, and daliya. It also offers gramdal, upma, chiroti pasta, and chic pieces. The company offers its products under the SITA SHREE, SITA SHREE GOLD, and REGULAR brand names. Operating profit margins in this business, however, have been thin, hovering in the 3 per cent range in recent years.Margins would continue to be wafer thin, given competition from much larger and unorganized players in the flour milling segment.Much of the Indian food processing industry is unorganized and fragmented with many small and medium-sized companies. The Company is facing competition from around 5-6 mid-sized flour mills in Indore region for its existing products. Besides small unorganized sectors the Company also faces stiff competition from major players like Ruchi Soya Industries Ltd, Gujarat Ambuja Exports Ltd, K S Oil etc. for marketing of products manufactured i.e. Soya Oil, lecithin.The Company at present does not have much marketing network. The Company will face difficulties to market its existing as well as proposed manufacturing products particularly in branded segment which has higher margins.It delivered 136crs of topline and mere 94 lakhs in bottomline fy11.That gives an EPS of less than 50 paisa.Based on the valuations the company its still expensive as compared to its peers. Keeping in mind the competition faced by the company, seasonality nature of the business and valuations,I suggest investors to avoid and if already possessed,to dispose it off at rallies.

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