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| Name of Company | ITC Ltd |
| BSE Code | 500875 |
| NSE Code | ITC |
| ICICI Code | |
| Established | |
| My Take | Like |
| Headquarters | Kolkata |
| Promoters | No promoters, BAT holds biggest share. LIC/UTI/other Indian insurances have a strong hold on the board as well |
| Story | |
| Sector | FMCG |
| Sub-sector | Cigarettes, oils, biscuits, hotels |
| Website | |
| Positives | Near zero debt (100 Cr). 20-22% NPMs. Around 1.5% dividend yield can be expected. |
| Negatives | No real promoters, BAT(British American Tobacco) group of UK has around 32% directly and indirectly. (Note: Tobacco Manufacturers India ltd which holds 26% is registered under Mr Murray Gilliland Charles in London UK by BAT). |
| Peers | |
| News | |
| Price @ blogged | 171 (21-Nov-10) |
| Cost of company | 1 lakh 31 thousand cr market cap for 4000 Cr FY10 profit makes it 32 times. Seems unreasonable for a moderate growth rate. Reserves at 13K Cr, near zero debt. 20-22% NPM. |
Nov 21, 2010
ITC Ltd - 500875
Kothari Products Ltd - 530299
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| Name of Company | Kothari Products Ltd |
| BSE Code | 530299 |
| NSE Code | KOTHARIPRO |
| ICICI Code | |
| Established | |
| My Take | Like |
| Headquarters | Kanpur |
| Promoters | Kothari family (Deepak Kothari) |
| Story | Strong product Pan Parag, though has strong competition recently. Diversifying into other real-estate, hospitality, oil, etc. |
| Sector | FMCG |
| Sub-sector | Tobacco |
| Website | |
| Positives | Low debt (8 Cr in FY10) – previously debt was at zero. Revenues have more than doubled from FY06 to FY10 (from 164 Cr to 395 Cr) – but certain years sales have been lesser than other years – not a gradual increase. Continuously profitable for the last 5 years. 545 Cr reserves in FY10 – these are being used to diversify the businesses into commercial building leasing, hotels/service apartments, trade, oil exploration, etc. 2% dividend yield expected regularly. 75% promoter holding (some pledged) |
| Negatives | NPMs have been between 11 and 50%. Reserve have been around 500 Cr for the past 5 years. 14% of the 75% stake has been pledged. |
| Peers | |
| News | |
| Price @ blogged | 486 (21-Nov-10) |
| Cost of company | 322 Cr market cap for a FY10 NP of 67 Cr makes it less than 5 times. 8 Cr debt and a 545 Cr makes it a cheap company. Market cap is less than its reserves minus debt. That too for a regularly profitable company. If the numbers are not cooked up, a great buy (makes me critical because of pledged shares). |
VST Industries LTD - 509966
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| Name of Company | VST Industries Ltd |
| BSE Code | 509966 |
| NSE Code | VSTIND |
| ICICI Code | |
| Established | |
| My Take | Like |
| Headquarters | Hyderabad |
| Promoters | |
| Story | |
| Sector | FMCG |
| Sub-sector | Cigrattes |
| Website | |
| Positives | Zero Debt, regular dividend – yield expected is at 3% (Rs. 20). ITC(has 9% stake), LIC, New India Assurance, NIC, OIC, etc have stakes in this company. Promoters hold 32% with none pledged. Maintaining 13-17% NPM from FY06 to FY10. Revenues have grown from 312 to 475 in the same time period. |
| Negatives | 16 times earnings is as costly as ITC which is a 40 times bigger company. Website is not well organized, though results are regularly updated. Slow growth in revenues. |
| Peers | |
| News | |
| Price @ blogged | 619 (20-Nov-10) |
| Cost of company | 955 Cr market cap for a FY NP of 62 Cr less than 16 times. For a zero debt company with 230 Cr, this seems slightly costly |
Nov 20, 2010
Great offshore Ltd - 532786
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| Name of Company | Great offshore Ltd |
| BSE Code | 532786 |
| NSE Code | GTOFFSHORE |
| ICICI Code | |
| Established | |
| My Take | Dislike |
| Headquarters | Mumbai |
| Promoters | |
| Story | |
| Sector | Oil & Gas |
| Sub-sector | Offshore services |
| Website | |
| Positives | Revenues have doubled from FY07 to FY10(4 years). |
| Negatives | NPMs have come down from 25 to 17% from FY07 to FY10. Interest cost has been rising. |
| Peers | |
| News | |
| Price @ blogged | 373 (20-Nov-10) |
| Cost of company | 1390 Cr market cap for a FY10 NP of 176 Cr which makes it less than 8 times. They have 1000 Cr in reserves, but a 2300 Cr debt. |
Torrent Cables - 523856
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| Name of Company | Torrent Cables |
| BSE Code | 523856 |
| NSE Code | Not listed |
| ICICI Code | |
| Established | 1989 |
| My Take | Like |
| Headquarters | Ahmedabad |
| Promoters | Torrent group (Torrent pharma and power) |
| Story | |
| Sector | Electrical |
| Sub-sector | Cables |
| Website | |
| Positives | 61% promoter holding, none pledged. Near 52 week low. |
| Negatives | Dividend history only for 2 years (so unbelievable) – but yield is >2%. None of the non-promoters hold more than 1%. FY08, FY07, FY06 have revenues less than 8 Cr. NPM's for FY09 and FY10 are >6%. Before that NPMs have negative or very less. |
| Peers | |
| News | |
| Price @ blogged | 112(17-Nov-10) |
| Cost of company | 96 Cr market cap for a 10.5 Cr FY10 NP makes it less than 10 times. With 122 Cr reserves and 10 Cr debt, it makes this company lowly valued. This is a value buy. |
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