Indiabulls Securities - 532960

 

Name of Company	Indiabulls Securities
BSE Code	532960
NSE Code	IBSEC
ICICI Code
Established	2000
My Take	So-So
Headquarters	Delhi
Promoters	Indiabulls (Sameer Gehlaut, Rajiv Rattan and Saurabh Kumar Mittal – friends at IIT Delhi)
Story	Young entrepreneur Sameer Gehlaut established Indiabulls in 2000, after acquiring Inorbit Securities, a stock brokerage company in Delhi. The group started its operations from a small office near Hauz Khas bus terminal in Delhi.The office had a tin roof and two computers. Sameer Gehlaut completed his Mechanical Engineering from IIT Delhi in 1995 .He worked for Halliburton in the United States. He came back to India to start an earth moving and mining business ,which is presently run by his family. In 2000 Sameer Gehlaut was only 26 when he started Indiabulls with the help of Saurabh Mittal and Rajiv Rattan.Mittal and Rattan were his friends at IIT Delhi.
Sector	NBFC
Sub-sector	Securities trading
Website	http://www.indiabulls.com/securities/
Positives	At current price, it is near its 52 week low. Dividend yield at current price is 2/25.24*100 = 7.9%. Dividends have been regular for the last 3 years. Some institutional holding as well.
Negatives	Reserves, Turnovers and profits have been unpredictable. NPM's have been 40%, negative and 20%. Promoters hold less than 30% (but none are pledged). 300 Cr of debt during FY10.
Peers
News
Price @ blogged	25.40 (26-Aug-10)
Cost of company	584 Cr for a 61 Cr profit costs less than 10 times.

Insecticides India Ltd - 532851

Name of Company	Insecticides India Ltd
BSE Code	532851
NSE Code	INSECTICID
ICICI Code
Established
My Take	Like
Headquarters
Promoters	Rajesh Aggarwal, Harichand Aggarwal, etc.
Story	Has its factories in Udhampur J&K and Rajasthan, Dahej, Gujarat. IPO-ed in 2007 – allotted @ 115 and
Sector	Agri
Sub-sector	Agri chemicals – insecticides
Website	http://www.insecticidesindia.com/
Positives	Paying dividends for the past 3 years(dividend yield is just less than 1%). 74% promoter shareholding – no pledged shares. Increasing reserves, revenues and profit over the last 3 FYs. Maintaining 6-7% NPM's. 20 Cr loans seems less and interest income is 2 Cr which is less compared to 28 Cr profit and 397 Cr revenue. Planning expansion plan as well
Negatives
Peers
News	55 Cr expansion plan
Price @ blogged	225.90 (26-Aug-10)
Cost of company	286 Cr market cap at current prices. About 10 times the 28.2 Cr profit.

Kalpatharu Power transmission - 522287

Name of Company	Kalpatharu Power transmission
BSE Code	522287
NSE Code	KALPATPOWR
ICICI Code
Established
My Take	Like
Headquarters	Gandhi Nagar
Promoters	Kalpataru group
Story	Works in power transmission. Designs, testing fabrication, erection and construction of towers and sub stations.
Sector	Power
Sub-sector	Transmission
Website	http://www.kalpatarupower.com/
Positives	Regular dividend player (Can expect a dividend of 0.7%). Kalpataru group owns around 55%. Domestic and international presence. Steady growth can be expected. > 5% npms regularly. DII's hold 21%, FIIs hold 14%.
Negatives	Some 5% shares have been pledged. Promoter shareholding just recently came down from 63% to 55%.
Peers
News
Price @ blogged	990 (25-Aug-10)
Cost of company	3000 Cr market cap at current prices. For 170 Cr FY10 profit, the PE works out to be 17 times.

Greaves Cotton Ltd - 501455

Name of Company	Greaves Cotton Ltd
BSE Code	501455
NSE Code	GREAVESCOT
ICICI Code
Established	1859
My Take	Like
Headquarters
Promoters	Thapar group (once used to own BILT, Crompton Greaves, JCT, The pioneer, etc) – BILT and Crompton are now with Gautham Thapar's Avantha group. Karan Thapar (brother of Gautham Thapar and grandson of Karan Chand Thapar) is the Chairman of this company.
Story	It's one of the largest makers of light diesel engines for the three wheelers and four wheelers in the world. Over the past several years, the company has been able to invest in technology and bring about a product, which is very efficient, very cost competitive at the right price point for the client. All this have translated into higher volumes for the company. So, basically, it's a play on the emerging hub-and-spoke mode. That is there in the urban landscape wherein for the intra city transport, we are using more of light transport like three wheelers and light four wheelers, while inter city transport more of the heavy commercial vehicle. So, this kind of emergence will definitely be positive for Greaves Cotton. Apart from Bajaj Auto and Bajaj Tempo, it is selling its engine to almost all other three wheeler manufactures. So, it's a strong player in that segment, it's a debt free company, high dividend payout and the return on equity is very high, more than 25%. So, we like this company. Soon the company will also start selling its engines to Tata Motors' new product that is in the 0.5 tonne space, which is a lighter version of the hugely successful Tata Ace model. So, we see good volumes for the company in the coming quarters. The company is quite attractively priced within the sector. Name is greaves Cotton because this was started by Greaves and Cotton
Sector	Engineering
Sub-sector	Manufacturing Agri, Construction, Auto equipment, esp diesel engines
Website	http://www.greavescotton.com/
Positives	Regular dividend payer (1.25% or more(mostly more) returns at current price). Always profitable company – good management (NPM's of 8% can be believed except in years such as FY09 when NPM was 4%. 51% promoter holding with no pledging. LIC, NIC, reliance asset management, templeton, GIC, NIA, etc hold more than 1%.
Negatives	1950 Cr market cap for a company with 1350 Cr FY10 revenue seems high, especially due to 8% NPM which means profit is 118 Cr. This means 16.5 times the earnings at Rs. 400. 52 week low is at 146 which would have meant a 3% dividend yield and a great price for well run company. No great growth expected as FY06 to FY10 revenues have moved from 940 Cr to 1350 Cr.
Peers
News
Price @ blogged	400 (24-Aug-10)