Kothari Products Ltd - 530299

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	http://www.panparag.com
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).