Unichem Laborataries Ltd - 506690

Name of Company	Unichem Laborataries Ltd
BSE Code	506690
NSE Code	UNICHEMLAB
ICICI Code
Established
My Take	Like
Headquarters	Mumbai
Promoters	Established by Amrut Mody – now Prakash Mody
Story	Has 6 drug manufacturing facilities in the country. R&D facility in Mumbai. Niche Generics is a wholly owned UK subsidiary – currently loss making and this is expected to turn a profit in FY12.
Sector	Pharma
Sub-sector	Formulations. Also API's
Website	http://www.unichemlabs.com/
Positives	High NPM's 16 to 19% except in FY08 when it was 13%. Low debt (interest cost is 51 lakhs in FY10, 22 Cr loan for a 134 Cr FY10 profit) – it has been historically debt free as well. Can expect to make around 33 Cr profit every quarter-very dependable company. Regular Dividend payer- yield expected is > 1.3%. 48% Promoter holding. US business is also picking up (CRAMS) – this can lead to heavy business growth.
Negatives	No reserves for FY10- earlier had good reserves. Revenues have grown from 455 Cr to 690 Cr from FY06 to FY10. At the same time profits grew from 82 Cr to 134Cr.
Peers
News
Price @ blogged	226 (21-Oct-10)
Cost of company	2033 Cr for a FY NP of 134 Cr makes it 15 times.

Berger Paints - 509480

Name of Company	Berger paints
BSE Code	509480
NSE Code	BERGEPAINT
ICICI Code
Established
My Take	So-So.
Headquarters	Kolkata
Promoters	Dhingra brothers
Story	Berger paint India ltd uses the brand name in India. In some other countries- this brand-name is owned by Asian paints.
Sector	Paints
Sub-sector
Website	http://www.bergerpaints.com/
Positives	Regular dividend payer. 75% promoter owned(none pledged). Very Low debt (24 Cr in FY10 for 119 Cr profit).
Negatives	Revenue Growth from FY06 to FY10 has been from 987 Cr to 1688 Cr. Profit grew from 70 Cr to 119 Cr. 5-7% NPMs. Can buy at lower PEs as this is not huge growth player. Reserves are not shown in FY10.
Peers
News
Price @ blogged	98.45 (20-Oct-10)
Cost of company	3400 Cr for a 119 Cr FY10 NP which is around 28 times.

Asian Paints - 500820

 

Name of Company	Asian Paints
BSE Code	500820
NSE Code	ASIANPAINT
ICICI Code
Established
My Take	Like
Headquarters	Mumbai
Promoters
Story	Largest paint company in India. One of the largest in the world. Operations in 17 countries. Subsidiaries include Berger International (SE Asia, Caribbean and Middle east), SCIB Paints – Egypt, Apco coatings,  Taubmans.
Sector	Paints
Sub-sector
Website	http://www.asianpaints.com/
Positives	Regular dividend (assuming Rs. 15) expected dividend yield is 0.5%. Zero debt company(around 72 Cr for a 774 Cr profit). 50% promoter holding. Huge institutional holding as well. From 2300 Cr to 5100 Cr revenue increase from FY06 to FY10. Profit has grown from 186 Cr to 774 Cr. Regularly profitable company. NPMs have been between 8-10% except for FY10 when it was 15%. 1461 Cr reserves in FY10.
Negatives	High PE's.
Peers
News
Price @ blogged	2603.40 (20-Oct-10)
Cost of company	25K Cr for a FY10 profit of 774 Cr, which translates to 34 times.

Marg Ltd - 530543

Name of Company	Marg Ltd
BSE Code	530543
NSE Code	MARG
ICICI Code
Established	1994
My Take	Dislike
Headquarters	Chennai
Promoters	GVK Reddy (Marg group)
Story	GVK Reddy is a first generation entrepreneur.
Sector	Construction
Sub-sector	Ports, roads, residential buildings, SEZ
Website	http://www.marggroup.com/
Positives	Has shown good growth in revenue and profit over the years. NPM at 10%, but has come down. Many road projects and residential projects in execution in the south.
Negatives	Shareholding has come down to 42% and some shares have been pledged.
Peers
News
Price @ blogged	215 (16-Oct-10)
Cost of company	706 Crore for 80 Cr FY10 profit is less than 10 times.

Praj Industries - 522205

Name of Company	Praj Industries
BSE Code	522205
NSE Code	PRAJIND
ICICI Code
Established
My Take	Like
Headquarters	Pune
Promoters	Pramod Chaudari (An IIT B alumni)
Story	This is a knowledge based company with expertise in bio-processes and engineering. Main stay of this company is bio-fuels esp ethanol. Geographical presence in 40 countries with direct presence in India, Thailand, Netherlands, USA, Brazil and UAE. Company could use the 500 Cr reserves for acquisitions and building the business. We don't know the revenue growth would come, but when it comes, the growth would be huge. New innovations are important growth engines. The Praj-Matrix innovation center in Pune is working for that reason.
Sector	Energy/Bioprocessing
Sub-sector	Bio ethanol, waste-water treatment, water treatment, brewery plants
Website	http://www.praj.net/
Positives	Shares held by major players- Vinod Khosla (4%), Rakesh Jhunjhunwala (6%), major MF's (SBI, LIC, Credit Suise, Tata Capital). Price near the 52 week low of 70.10.Can expect a dividend yield of around 2%. Debt free company (see the company makes no interest payments). Reserves have been building up – FY10 reserves at 495 Cr, it is close to the 600 Cr revenue. NPMs greater than 15% from FY08. Reserves divided by total shares is greater than Rs. 25.
Negatives	23% promoter shareholding, but none pledged. Revenue has been 600 to 775 Cr between FY07 to FY10 (4 years). Q1 FY11 revenue was reported at 93 Cr which is very less compared to earlier quarters. FY11 Q1 margins were at 11%.
Peers
News
Price @ blogged	70.35(19-Oct-10)
Cost of company	1300 Cr market cap for a 113 Cr FY10 NP which is 11.5 times. FY11 revenues and profit may be less than FY10 by initial figures.