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

Saturday, June 15, 2013

Acrysil Ltd:-One of my high conviction small cap hidden gem idea

Stock idea:-

Scripscan:Acrysil Ltd
Bse code:524091
Cmp:100
Target:135rs
Duration:6-9 Months
Return percentage:35%

Story:Hawkins and TTK Prestige were gigantic multibaggers of the past few years.Yet at valuations of 30 odd, people clamour for  further northwards movement.While am not sure of the vindication ,I definitely can say the one which got picked today posses all the ingredients to follow suit of the mentioned multibaggers duo.Read on to know more about it.

Business:Acrysil ltd manufactures and sells kitchen sinks/centers(installed capacity of manufacturing 2,20,00 sinks per annum). It offers granite sinks, stainless steel sinks, and Vetro Inox sinks, as well as faucets and food waste disposers. The company exports its products to approximately 30 countries, including the United States, France, the United Kingdom,Greece as well as various European markets, Far East, Gulf countries.The company started through a technical collaboration with Schock & Co of Germany(it owns 10.15% stake in acrysil) which is a leading decorative mouldings company in the world.The company has been predominantly an exporter with more than 75% of its revenues coming from exports.But now the management has started putting much thrust on the domestic markets.Acrysil has also entered into manufacturing of stainless steel kitchen sinks to cater to the domestic market, through its subsidiary Acrysil Steel Private Limited.

Why to buy:From launching more kitchen based products to expanding new geographical areas,the company is doing everything possible to catapult itself in the top global league.Its probably the only company in Asia to have such an unique business model.Now one may question what is unique or different in a mere kitchen sink company?The uniqueness lies on its products which are made from 75-80% mineral Quartz, cast by means of a special computer controlled polymerization casting process, making it ideal for designers and home owners to perfectly fit in versatility with functional attributes of a smooth and a hard-working kitchen sink.These exquisite Kitchen sink of rock hard material in beautiful colours look great, are simple to clean and reveal nothing but lasting beauty that can resist scratches and safe in contact with food.With higher disposable income and luxury "show offs", people are getting more fashionable in  way of living.Bang on-There's the potential of this 40crs marketcap company.

Results:Acrysil ended fy12-13 on a great note.Consolidated Sales went up to 80crs from 62crs(fy11-12) while PAT jumped to 4.8crs from 1.6crs(fy11-12).On an equity of 4.4crs- EPS stood at around 11rs.The management of acrysil has guided a growth of 30-35% in both topline as well as bottomline for the present financial year. At present price of around 100 bucks,its trading at a forward multiple of 6.6 times on its expected fy14 earning per share of 15rs.

Conclusion:Its getting increasingly tougher to find saplings of the oak tree in the small cap fraternity as in most cases corporate governance is not in vogue.From corporate malpractices to siphoning of funds,its getting bad to worse.Acrysil is one such counter which has really pleased me.Not only it hinted about its business confidence by issuing a liberal bonus but also it has been consistent in its high dividend policy for the last several years,even when it posted flat numbers.The company should deliver 15rs earning for this financial year.Assigning a PE multiple of 9(historical average been 7-12 for the last few years)helps me in arriving at a price target of 135 bucks within the coming three quarters.The company with increasing revenues and higher profits well stand a chance to quote even at higher multiples,as people fancy unique business model with high growth potential.Not to forget its dividend yield of 3 odd%.Go for it folks.

btw:The company falls under the "Call Auction" category.Volumes are a big issue here.Cant sacrifice a quality company just for Sebi's eccentric acts.People looking for midcap/smallcap positional call professional service may rush a mail at my mail id arunsharemarket@gmail.com to know more about it.

2 comments:

SK ASIF Rahaman said...


Excellent call on Acrysil...could the stock price follow La Opala RG?

Arun Mukherjee said...

No idea about it.This too much movement is such a short notice scares me.Though seeing huge profit in a good counter is a good feeling but still slow moves is wht i prefer

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