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Archives : Old artciles

Monday, March 17, 2014

Ratnamani Metals and Tubes Ltd:-My birthday gift to the paid members(Turning 26 years on 20th of march).Enjoy the metal multibagger

Quote: Ratnamani was recommended to paid members just hardly a couple of weeks ago.

Guys it has been a great blogging journey for me since the last 7 years.The blog has got tremendous response and accolades from all over the world.It has been visited over 1.7 million times since its inception.I am quite determined of doing the same work of guiding you people till eternity.Anyways being my well wishers and admirers, I feel great to let you folks know that I am turning 26 years of age on day after tomorrow,i.e,20th of march.You can send all your blessings and wishes by either mailing me or texting me on my number.Please put your name folks so that I can figure you out.

 Stock tip:-

A high conviction bet:-

Scripscan:Ratnamani Metals and Tubes Ltd
Traded in:Nse-bse
Buy range:150-162rs
Target:10% in short term,20% in medium term and 40-50% in a year's time
Long term target:25-30% CAGR for coming 5 years

Business:Ratnamani Metals and Tubes Ltd produces carbon steel welded pipes and stainless steel welded/seamless tubes and pipes.It got a stainless steel capacity of 27,000 metric tonne (20,000 for welded pipes and 7,000 for seamless pipes) and 350,000 tonne of carbon steel.Ratnamani provides high frequency welded pipes, electric resistance welded pipes, saw pipes, seamless tubes and pipes, welded tubes etc. The company serves various industries including power plants, refineries, water distribution, petrochemicals, fertilisers, irrigation, process industries and oil and gas sector.Ratnamani has an impressive clientele comprising major public, private and joint sector Companies in the country who are leaders in their respective segments.The company exports its products to around 16 countries.Over the years company has expanded its capacities to handle more critical grades and specialty tubes for the stainless steel division along with increasing capacity of carbon steel pipes on the other. Ratnamani's manufacturing facilities are located at Chhatral and Indrad on Ahmedabad – Mehsana Highway and at Bhimasar, Kutch, on Bachau – Anjar Road.

Fiscal 12-13:Despite the challenging scenario,the Company continued to be successful and has performed well.The major factors attributable to this include strong business initiatives strengthened with the sound domain knowledge, consistent product quality aligned to customer expectations, product mix, captive skills partnered with cost consciousness and persistent focus on efficiencies.During the year 2012-13, revenues from operations were Rs. 1200crs though reduced marginally but PBT increased by 44.80% from Rs. 139 crs to Rs 201 crs and profit after tax surged 44.15% from Rs. 94 crs to Rs. 136 crs.EPS went up by 21.92% from Rs. 23.90 to Rs. 29.14,strengthening shareholder''s value.Company basically capitalized on the interest front as its debt came down from 275crs in fy12 to just 120crs in fy13.

What I like the most:Ratnamani with over 50% market share is the leader in production of stainless steel pipes.It also got the distinction of India's only company to be approved by Nuclear Power Corp to supply pipes for heat exchanges in nuclear reactors and instrumentation tubes.Its diversified clientele insulates it from the vagaries of any sectoral slowdown.On words of the management,"We have consciously turned conservative, concentrating on only those segments where we see good potential for growth. We are now focusing on the stainless segment and high-value products to ensure that returns stay healthy".The company enjoys one of the best operating margins in the industry,thanks to its initiative of buying inputs on bulk only when the orders are ready to be executed.There's not much inventory to talk about either.Sales have grown at an amazing speed of 29% in the last 10 years,from 118crs to 1200crs in fy13.Profits too have galloped at a superior pace of 48% CAGR,4crs to 136crs.Company has managed the slowdown perfectly and has been able to grow its profits year after years.It will continue to grow 15-20% for the coming few years,ones the cycle picks up Ratnamani may even grow at say 40-50% CAGR.

Conclusion:Net profit of Ratnamani Metals & Tubes rose 13.59% to Rs 35.94 crore in the quarter ended December 2013 as against Rs 31.64 crore during the previous quarter ended December 2012. Sales rose 28.09% to Rs 334.41 crore in the quarter ended December 2013 as against Rs 261.08 crore during the previous quarter ended December 2012.The business model is one of its kind.With manageable debts and signs of a revival in the cycle-Ratnamani looks all set to perform extravagantly again.The company will end the fiscal with revenues of around 1320crs and a PAT of 145crs.Its trading at just 5 times its fy14 earnings(fy13-14 EPS expected to be 33 bucks).So how to value a company which has grown by leaps and bounds,survived the down cycle and managed its profits well,got ROE and ROCE of over 20% backed by a visionary pedigree and investors like Nalanda and IDFC?Buy it for any term folks.As soon as the market realizes the potential and the story,scrip would get heavily rerated in the bourses.The company has never skipped a dividend in the last ten years.Ratnamani over the last 12 years has seen its stock price moving over 100 times.With its business model and sound strategies in place,it looks to be another 10 bagger in the coming 7-8 years.Huge upsides and limited downsides to make the quintessence.


Btw: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.

 Regards,
ARUN 

9804589299

91 comments:

comnet said...

Any comment on gulshan polyols.,national peroxide

comnet said...

Any comment on gulshan polyols.,national peroxide

Arun Mukherjee said...

I like them a lot,both the bets.Market leaders with good management in place.

Anonymous said...

Hello sir, Should exit from jai balaji or wait?

Arun Mukherjee said...

Back up your reasons and post here.If you want to exit,say why?Dont say coz prices are falling or not moving up.Till you learn to respect stocks as businesses,you wont earn anything.

Anonymous said...

Sir what is your view upon blue star is buy at cmp

Anonymous said...

Arun,

Anil Ltd, though the business seems to be doing well & the numbers are scaling up.. their debts on the other hand is sky rocketing & their profits are being sucked out by interests.. Do you still feel that there is further scope for this stock to buy at current price? Can you please let us know why it is still a value stock? Curious to know & learn..

Arun Mukherjee said...

At some point of the time,interest rate would see a cut.Factor in 2 notch points and you get a booster.Am pretty bullish on the efficient highly leveraged bets,without doing anything they will save a lot of money in the next couple of yrs.

Arun Mukherjee said...

I prefer symphony over bluestar.Bluestar a good branded bet too.

Anonymous said...

Can u please suggest for kamdhenu ispat?

Anonymous said...

Hi arun

any change in views for jhs suven
looking to purchase a small quantity at CMP

regards

Mudhal Muttham said...

Dear Mr. Arun,

Wish you a Very Happy Birthday to you... God will gives you for Healthy and Wealthy with the long lives... God Bless you...

Senthil Kumar
00974 66609181

Amitha said...

Hi,
Wish you a very happy birthday.

Amitha

Bassu said...

Many many happy returns of day

Saravanan V said...

Happy Birthday Arun.. Hav a wonderful year ahead!!

Anonymous said...

Happy birthday Arun.. Have a great future ahead. All the best

Regards,
R Balaji

Anonymous said...

Your stand on MCX @cmp pls

Anonymous said...

Hi Arun, First of all let me wish u a Belated Birthday wishes... I am investing a specific amount every year with a horizon of 15-20 yrs.. Please let me know 3-5 stock in which i can stay invested for such long run with fantastic return of around 20-25 % per year...

Anonymous said...

wish you many happy return's - God Bless You

Anonymous said...

Hi Arun,
First of all happy birthday. Thanks of the wonderful scrip. I would like to ask why the price is falling day by day even after your recommendation. Secondly, there is no movement in BDH Industries. Please share your view on Hatsun Agro and Heritage Foods in terms of financial prospective and long term too. Thanks in advance. Your advice is very much useful for me.

Thanks

Anonymous said...

Can you buy 10000 concurrent shares @ 26. I am sure you will get once in a life time along with Sudhir Babu.

Anonymous said...

Should I hold Magnum Ventures, Apple Finance and Twinstar Industries

Anonymous said...

Happy Belated B'day Arun!
Pls share your thoughts on Manjushree tecnopack. Is it worth to bet for long term?
Thanks

Arun Mukherjee said...

Thanx for the wishes folks.

1)No Ideas in Kamdhenu.But if you are dealing in metals,better to be with the leaders,say jsw or tata steel.

2)No change in views on jhs.

3)Positive on MCX.It just needs a visionary new owner.

4)Nothing left in apple finance.Twinstar an operator bet.Magnum is worth a lot if it demerges its hotel biz.

5)For 15-20 years buy the hdfc twins,godrej group counters,any quality media company.

6)Price is falling?Ratnamani gave 50% return in 15 days.I must admit in my own portfolio I look for 25% CAGR,so ratnamani even if stays here for next 2 years,I would have no complains.Bullish on heritage and hatsun.Dairy has some way to go.But better to own one of the two.Read the story of bdh and you will get your answer.

7)Very bullish on manjushree.Recommended to paid counters at 90 bucks last year.

Anonymous said...

Hi arunji, request if you could share ur views on Kirloskar Oil Eng Ltd. Thanks

Anonymous said...

Sir no any rally have seen sofar in Jain irrigation system and jsw energy now what is view upon both can i buy at cmp thanks

Anonymous said...

Sir please your view upon mafat lal ind. And panaceabiotech ltd as both are looking cheap valuation am i correct please suggest

Anonymous said...

Hi Arun, Can I buy Orient Green Power and EPC irrigation?

Anonymous said...

Sir , What is your opinion on Asahi Songwon Colors Ltd. ?

Anonymous said...

Sir , What is your opinion on Lnc Pen & Plastics Ltd.

Arun Mukherjee said...

1)Very positive on kirloskar oil engines.

2)Jain irrigation is a huge company with some issues which its tackling in a good way.Remains a hold.Power sector is not being fancied presently,ones the theme plays out jsw will rally.

3)panacea debt is a big issue.But company else is in strong area and will perform well.No idea about mafatlal.

4)Orient green power and mahindra epc both are buy candidates for me.

5)Very bullish on asahi songwon and linc pen.Market cant oberlook this value buy for long.

Anonymous said...

Dear Arun, do still hold positive views on Dynemic Products as suggested earlier. Just want to confirm.

Thanks,
Mayur

Anonymous said...

Very disappointed by looking your tweat your winners and losers portfolio list. Is this your portfolio or PMS ones because my portfolio consists only laggards not any returns or good ones. Just digesting hard my emotions.

Anonymous said...

Arun ji, What is your view on IT midcap shares like Geometric and Infotech Enterprise ?I have a time frame of 6 months - 1 year. Your feedback will be appreciated.

Arun Mukherjee said...

1)Even am very very disappointed with those two counters.But they posses so much even a bit of good news can propel them 5-8 times within no time.Buying both of them,jhs and balaji in bits.

2)Very bullish on geometric.Company would be sold and new takers would atleast pay 150 bucks.

3)Ya positive on dynemic products.

Anonymous said...

Hi Arun, can I buy A k capital @ current level?

Vijay said...

Are you positive on arrow coated?

Anonymous said...

Sir
Whats your call on Swarnajyothi Agro and first object technologies?Is it still hidden gem for you?

Anonymous said...

Can anyone recommend few sectors which have great potential in future( 2 - 4 years)?

Anonymous said...

* Can you recommend few sectors which have great potential in future( 2 - 4 years)?

Anonymous said...

Hey arun,

A belated Happy bday, sorry I couldnt wish u on 20th march.
May god bless you with health and all the happiness you seek for.

I am huge fan of ur recommendations.

Thanks
Preeti K

Anonymous said...

what are prospect of microsec financial ltd ...can forseegame.com be success ?

Anonymous said...

Hi Arun, Does RK Damani has exited from AK Capital?

Anonymous said...

Hi Arun ji, can you suggest any target for epc irrigation?

Anonymous said...

sir wts about aditya birla chemical...in my point it can be multibeggar....its revenue keeps on increasing on every quarter after doing some acquisition........wts ur view..please share

rahul said...

Bhai what's your view in few of these stocks .. Have already invested n wishing to invest more
Hinduja ventures
Empire industries
National peroxide
Forbes company
Tide water oil
TRF
Everest industries
HSIL
Apcotex


And is oricon enterprises and SPARC the next multibagger in the making ??

Arun Mukherjee said...

1)Nopes RK damani still owns AK Cap through his company damani estates.AK capital will only move once the interest rate softens.Read about the bond and interest rate relation in google.

2)Nobody can predict any targets,we can only value it through historical valuations but that too wont work as Mahindra group now owns epc and a great group deserves premium valuations.

3)Its easy to check whether foresee is a hit or flop.Go to alexa.com and check its ranking.

4)Sector with potential,well Media is terribly under owned.TV today can do wonders.

5)Not tracking swarnojyoti or firstobject anymore.Lots of better bets available.

6)Positive on arrow coated but auditor qualification puts a redmark.

7)Ya definitely Aditya Birla chemical has got massive potential.Scrip already rocking and may definitely move up much more.

@Rahul,

Very interesting bets mate.I like most of them.

Anonymous said...

Hi Arunji,

What do u mean by auditor qualification on Arrow Coated?

Their auditors (Prithes j Rajani (B.Com, FCA, DISA)).

Can u pls elaborate?..

Anonymous said...

Arunji,

Why microsec sales come down below 1 crore for the last 3 quarters. is it worth to buy at CMP 25.50. pls advice

Anonymous said...

When concurrent infra will list?

Anonymous said...

sir..is mirza international a good buy....also share your view on educomp...thanks for your kind reply

Anonymous said...

Sir your view on Rungta Irrigation ?

Anonymous said...

Hi Arun, what is your view on haldyn glass. Can I buy this at cmp?

Arun Mukherjee said...

1)Well even BJP comes there's hardly any coal block left to be cancelled.Also the block awaiting final stage clearence may eventually get cancelled if the blocks fail to secure stage 2 clearence by nov31.8 months is a long time though considering Mr Moily is in charge who has been pretty fast in giving the clearences.Let c how the matter pans out.

2)This is what arrow coated auditor statement says,"FY13 :Basis for Qualified Opinion : a) The company has not made provisions for overdue debts aggregating to Rs. 13720.57
(‘000) and advances aggregating to Rs 31500.92(‘000).Had this observation made by us been considered Loss after
Tax would have been Rs. 28459.05(‘000) ( as against the reported figure of Profit of Rs.16322.44 (‘000)); reserves and
surplus would have been surplus of Rs. 1316.90(‘00 0) ( as against the reported figure of surplus of Rs. 46098.40
(‘000)):trade receivable would have been Rs. 17755.23 (‘000) ( as against the reported figure of Rs. 31475.80 (‘000)):
long term loans and advances would have been Rs.28449.01 (‘000) (as against reported figure of Rs 59949.93 (‘000)),
b) As more fully explained in note 41 to the financial statements the Company has not complied with Accounting Standard 24 Discontinuing Operations.In our opinion, there is scope of strengthening internal audit system, commensurate with the size and nature of its business.

3)Rungta needs to perform quarter after quarter to have some valuation.

4)Mirza looks good but as have said I prefer Relaxo,already been a 5 bagger though for me.Liberty too should do well.

5)Stock split been a spoiler for Haldyn.Else it would been a multibagger.Good counter to be in though.

6)You check through the notes to account section of microsec and you will get the answer.

Anonymous said...

Your valuable view on Piccadilly agro pls

Anonymous said...

Where do you see Dena bank in next 1 month or before election. After the re rating in PSB whether it can add another 15-20% or fizzle out? Struck with huge money. Pls help.

Anonymous said...

Bro what is the future of Bajaj finserv. Whether it will get bank license. Holding around 770. Do you advise me to exit when it reaches?

Anonymous said...

Tata global a multibagger?

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

Sir what is your view upon bilcare is it buy at cmp and also your view upon dishtv it is not performing

Arun Mukherjee said...

1)Very positive on Tata global.If you see on the MCAP to sales,its the cheapest fmcg counter.Generally fmcg companies trade at 5 times plus marketcap to sales.Over time it should narrow out.

2)Bajaj finserv again a great bet.No idea about short term stuff.Till you learn to keep your businesses for the longer term,you wont have the taste of big money.

3)Again 1-2 month movement,whats the fuss?I lack the caliber to predict such short term stuff.Else dena is an outperformer.

4)Piccadily too am pretty positive on.Company to see better days ahead.

Anonymous said...

Sir i am holding Maxwell industries shares since long but sofar not performing now will i hold or sell and recommend any one stock if i sell this one

Anonymous said...

Holding vbc ferro is it making sense for next few years or crap. Move out with huge loss?

Anonymous said...

Arunji,

What is your view on patidar buildcon the scrip has moved from 67 to 276 and nowdays it will have LC daily is it buy at CMP. pls advice.

Anonymous said...

Hi Arun,
What do you think about 1. Mangalam Cement & 2. IFGL Refactories
Buy/Hold/Exit?
Thanks,
Mayur

Anonymous said...

What are your views on Ybrant digital? Thanks in advance. regards, Yash.

Anonymous said...

Sir,What are your views on Ybrant digital? Thanks in advance. regards, Yash.

Arun Mukherjee said...

1)Ybrant digital,great business operated by chor promoters.Operators paradise so not for retail investors.

2)Patidar buildcon classic operator trap for a crap company.Not even worth 10 bucks.

3)IFGL is a wonderful company.A buy at dips.Mangalam is good but prefer orient cement to it.

4)VBC,maxwell hold candidates.

Anonymous said...

Dear arun sir ji what about bilcare ltd. I have 50 shares of it at the rate of 650 can i buy more now at cmp

Anonymous said...

Sir i want to buy dishtv is it buy candidate now

Abhijeet Singh said...

Thanks for your suggestions Arun.
Is it still beneficial to hold Symphony and Selan at current market price?

Arun Mukherjee said...

1)Never sell your winners.Symphony am holding since 42rs.Selan holding since last 5 years.Both would multiply with time.

2)Bilcare has been a massive disappointment.A quality company eroding huge amount of shareholder wealth.Cant suggest a sell,lets give them some more time to perform.

3)Dish tv can be a mini bharti.Say a 4-5 bagger in the next 5-6 years.

Anonymous said...

Will spicejet go kingfisher way? Holding huge quantities @30. How much time it will take the sector or this one to revive?

Anonymous said...

Hi Arun, can I buy maithan alloys @ cmp. Please suggest your view on stock

Anonymous said...

We would love to have another tata elexsi type of stock. Can ratnamani fit into that?

Anonymous said...

Pls suggest on good luck tubes and ahluwalia contractors

Anonymous said...

What to do with Patels airtemp @ 76?

Anonymous said...

Arun sir,iam holding alembic pharma 75 no.s @300.i will wait for 6 months.now cmp 280.what to do hold or book loss.thanks in advance.

Arun Mukherjee said...

1)With Air asia on am really not sure about the aviation sector.Potential is huge undoubtedly but I wont fancy any airline stock.

2)Maithan is a good bet but again stick to the leaders in this sector.

3)Ratnamani has been a 150 bagger in the last 12 years.Probably in the next 10 years it would be another 8-10 bagger.

4)Ahluwalia would only get fancied ones the infra theme plays back and interest rates sees deep cuts.Good luck is a small company,need to show some consistency to have a higher valuation.

5)I have always liked the business and management of patel airtemp.Though they are very conservative but on good times,stock will roll.

6)Alembic pharma is a world class company with terrific business model.Why did you buy and why will you sell?Kab sikhoge yaar.

Anonymous said...

Sir Your view on GMM pfaudler - good b/s , 0 debt, good results,good dividend history ..can it be multibagger ?

Anonymous said...

Hi Arun, can I buy tata cofee? Please Suggest ur view.

Anonymous said...

Arun, what is capital infusion? How it help PSU bank. So all will rally some more or rally over!

Anonymous said...

Arunji pls advise on basant agro and ion exchange can it be a value buy

Anonymous said...

Pls share ur views on Godrej Properties & Aeigis Logistics

Anonymous said...

sir wts about ksk energy for 3-4 yrs view....please comment

sidhant mansinghka said...

dear sir
one of the stock guru suggest to buy chd developers @cpmp it will be 1000 times at current levels multi beggar according to him. after elections it will zoom
whats urs views abt this script?

sidhant mansinghka said...

dear sir
one of the stock guru suggest to buy chd developers @cpmp it will be 1000 times at current levels multi beggar according to him. after elections it will zoom
whats urs views abt this script?

Anonymous said...

Hi Sir,
What are your views on SPML Infra & Usher Agro? Multibaggers from CMP?

CHINMOY GHOSH said...

dear sir would think hanung toys to be worth taking position ? how is its fundamentals?

Arun Mukherjee said...

1)Very positive on GMM pfaudler.Ya can be a big counter in the long run.

2)Ya TATA cofee can be bought provided you got a horizon of 2-3 years.

3)Well since GOVT is the owner of those PSU banks they will provide more liquidity which will lower the borrowing cost and increase their capacity to lend,besides promoting investment.

4)I do like a lot of Ion exchnage.Management has been bit conservative though.But stock posses all the potential to be a multibagger.I hate penny stocks splitting their FVs,if basant agro wouldnt have done that,company could have been already a multibagger.

5)I recently bought and recommended Godrej properties to the members at 170 odd bucks.Over a period of 8-10 years,this company will be a massive multibagger.Very bullish on the entire logistics sector.Also watch out for gati and TCI.

6)Was reading about KSK the other day.Terribly underowned and undervalued.Looks to be a very safe bet which will make lot of money for the stakeholders.

7)You can read my views on CHD in these blog itself.Search in google CHD arunstock.

8)Mr Kalidas Mukherjee,an uncle of mine was the former CEO of Subhash projects.Would ask him about the company and get back to you.Usher agro lacks consistency.Till it shows that company to be a market performer.

Bhuvan Sehgal said...

I have bought Jammu & Kashmir Bank at 970/-. Today the results were out, and were disappointing. Should one continue to hold?

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