P G Foils Ltd - 526747

Name of Company	P G Foils Ltd.
BSE Code	526747
NSE Code	PGFOILQ
ICICI Code
Established
My Take	So-So
Headquarters	Ahmedabad
Promoters	Pankaj Shah, Abhay Shah,  Atika Shah, etc along with promoter companies hold 51%
Story	Aluminium companies need a lot of electricity. They buy part of the energy and have installed diesel power generators and wind mills. Out of the 130 Cr spent, 112 Cr is for raw materials.
Sector	Aluminium
Sub-sector
Website	http://www.pgfoils.com/
Positives	PE is at 4.64 considering trailing 4Q NP. Dividend yield is 1%. Promoters hold 51%, with no pledges. Sales have increased from 116 Cr to 153 Cr from FY07 to FY11.
Negatives	Dividend is not regular – paid 1 rupee in 2005, 2008, 2011.  Website is still under construction. Company has manageable but big debt which can bring down profitability. Suddenly in FY11 balance sheet they have a bank cash balance of 37 Cr. Profits have not been consistent.
Peers	Hindalco, Nalco, Century Extrusion, Maan Alum
News
Price @ blogged	95.7 (22-Jan-12)
Cost of company	77.52 Cr market cap for a 10.05 Cr NP in FY ending Mar ' 11 makes it 7.71 times. This is for a company with 56.04 Cr debt and 68.72 Cr reserves
Group	Cyclicals
Growth	Bottomline is wavering due to variations in Aluminium prices. They are a normal growth, wavering profits company.

Heavy Debt companies

Company listed below are Debt/sales ratio greater than 2.

company	BSE CODE	nse code	marketcap	debt/sales
Coal India Ltd.	533278	COALINDIA	217157.83	3.312137471
Cairn India Ltd.	532792	CAIRN	65828.23	564.8535565
Power Grid Corporation of India Ltd.	532898	POWERGRID	47014.6	4.873552517
DLF Ltd.	532868	DLF	45055.73	5.16431305
Reliance Power Ltd.	532939	RPOWER	25624.59	42.71715228
NHPC Ltd.	533098	NHPC	25031.92	3.44814153
Adani Power Ltd.	533096	ADANIPOWER	19118.6	8.234814354
Reliance Communications Ltd.	532712	RCOM	18668.88	2.593020313
Jaiprakash Power Ventures Ltd.	532627	JPPOWER	10735.43	14.72651474
GMR Infrastructure Ltd.	532754	GMRINFRA	10684.64	3.266524608
Unitech Ltd.	507878	UNITECH	7142.5	3.083905086
Bhushan Steel Ltd.	500055	BHUSSTEEL	7076.11	2.370219957
Reliance Natural Resources Ltd.	532709	RNRL	6883.52	5.099366601
Jaypee Infratech Ltd.	533207	JPINFRATEC	5881.99	2.278806636
IRB Infrastructure Developers Ltd.	532947	IRB	5381.56	4.637355656
Pipavav Shipyard Ltd.	533107	PIPAVAVDOC	4752	2.32909948
Godrej Properties Ltd.	533150	GODREJPRP	4515.19	2.419164517
Housing Development & Infrastructure Ltd.	532873	HDIL	3293.34	2.327371674
HMT Ltd.	500191	HMT	3148.06	2.9928018
Indiabulls Power Ltd.	533122	IBPOWER	2917.63	791.2533333
Core Projects & Technologies Ltd.	512199	COREEDUTEC	2912.5	2408.636364
Indiabulls Real Estate Ltd.	532832	IBREALEST	2576.55	10.04481458
Gujarat Pipavav Port Ltd.	533248	GPPL	2520.42	2.80819216
Strides Arcolab Ltd.	532531	STRIDES	2267.67	2.345610456
GVK Power & Infrastructure Ltd.	532708	GVKPIL	2184.03	2.433461909
Aban Offshore Ltd.	523204	ABANOFFSH	1918.79	2.43754304
KSK Energy Ventures Ltd.	532997	KSK	1833.19	5.33254008
Ackruti City Ltd.	532799	HUBTOWN	1503.8	3.685420618
Electrosteel Steels Ltd.	533264	ELECTROSTEE	1355.11	553.1292059
Puravankara Projects Ltd.	532891	PURVA	1351.89	2.681967451
Hotel Leela Venture Ltd.	500193	HOTELEELA	1277.8	7.232779278
GTL Infrastructure Ltd.	532775	GTLINFRA	1251.19	10.27560051
Television Eighteen India Ltd.	532299	TV18	1129.31	2.631342847
Gammon Infrastructure Projects Ltd.	532959	GAMMONINFR	1000.27	3.391015625
Prime Focus Ltd.	532748	PFOCUS	812.57	2.479079035
Orient Green Power Company Ltd.	533263	GREENPOWER	562.66	78.99107143
United Breweries (Holdings) Ltd.	507458	UBHOLDING	513.69	5.94063543
Advanta India Ltd.	532840	ADVANTA	489.85	4.345348837
Karuturi Global Ltd.	531687	KARUTGLOB	458.33	7.347593583
Reliance MediaWorks Ltd.	532399	RELMEDIA	381.71	3.6442751
Sterling Biotech Ltd.	512299	STERLINBIO	345.59	2.300758349
Shree Ashtavinayak Cine Vision Ltd.	532793	SHREEASHT	344.72	3.771264928
Sundaram Multi Pap Ltd.	533166	SUNDARAM	339.01	7.171666667
Great Offshore Ltd.	532786	GREATOFF	338.33	3.422852377
Ruby Mills Ltd.	503169	RUBY	335.94	3.482557726
Asian Hotels (North) Ltd.	500023	ASIANHOT	335.89	2.44903982
Binani Industries Ltd.	500059	BINANIZINC	330.34	18.66096866
3i Infotech Ltd.	532628	3IINFOTECH	315.84	3.348750568
Shree Ram Urban Infrastructure Ltd.	503205	SHREERAM	313.12	13.15508792
Varun Shipping Company Ltd.	500465	VARUNSHIP	273.75	3.230746251
Assam Company (India) Ltd.	500024	ASSAMCO	271.08	2.873670963
Bharati Shipyard Ltd.	532609	BHARSHIP	264.7	2.217237868
Entegra Ltd.	532287	ENTEGRA	260.55	667.3076923
Nirlon Ltd.	500307	NIRLON	244.12	5.342754275
Kamat Hotels (India) Ltd.	526668	KAMATHOQ	213.75	3.639924609
Andhra Cements Ltd.	532141	ANDHRCM	168.05	7.022317334
Elpro International Ltd.	504000	ELPRO	149.5	2.1733603
Rollatainers Ltd.	502448	ROLLT	135.95	3.01194332
Aksh Optifibre Ltd.	532351	AKSHOPTFBR	100.03	8.691759919
Satra Properties (India) Ltd.	508996	SATRAPROP	94.42	2.993669239
Viceroy Hotels Ltd.	523796	VICEHOT	91.16	15.07209536
SIL Investments Ltd.	521194	SILINVEST	79.34	5.130413625
Marksans Pharma Ltd.	524404	MARKSANS	71.35	2.557599287
Terai Tea Company Ltd.	530533	TERAI	68.66	2.105392157
Arcotech Ltd.	532914	ARCOTECH	62	4.513583441
Duncans Industries Ltd.	590063	DUNCANSIND	57.72	6.298044504
Pioneer Distilleries Ltd.	531879	PIONRDIS	54.34	3.412773173
Kerala Ayurveda Ltd.	530163	KERALAYUR	53.53	2.692076229
Pentamedia Graphics Ltd.	500329	PENTAGRAPH	51.46	10.59641256
Indowind Energy Ltd.	532894	INDOWIND	49.87	3.637607592
Sezal Glass Ltd.	532993	SEZALGLAS	47.04	2.206141437
Prajay Engineers Syndicate Ltd.	531746	PRAJAYEN	44.04	2.656353465
Bheema Cements Ltd.	518017	BHEEMACEM	41.87	3.518711311
Grabal Alok Impex Ltd.	532909	GRABALALK	40.5	25.58596838
Kinetic Motor Company Ltd.	505190	KINETIC	37.15	6.91011236
Jayshree Chemicals Ltd.	506520	JAYCH	35.16	3.591759003
Cranes Software International Ltd.	512093	CRANES	34.4	32.54104211
Sancia Global Infraprojects Ltd.	532836	SANCIA	34.29	2.819234995
Agro Dutch Industries Ltd.	519281	AGRODUT	33.73	2.953918362
KLG Systel Ltd.	531269	KLG	32.26	2.701328117
Ganesh Benzoplast Ltd.	500153	GANESHBE	31.6	2.990514905
Harig Crankshafts Ltd.	500178	HARCR	31.55	2.268824306
Teledata Informatics Ltd.	532358		30.49	12.88675022
Store One Retail India Ltd.	532679	STOREONE	29.1	113.6781609
TCM Ltd.	524156	TCMLMTD	29.09	14.23602484
Euro Ceramics Ltd.	532823	EUROCERA	29.04	2.025763161
Roselabs Industries Ltd.	526753	ROSEIND	25.88	2.333333333
Dujodwala Products Ltd.	514418	DUJODPRO	25.75	35.70114943
Broadcast Initiatives Ltd.	532816	BROADCAST	25.43	13.31529657
HB Estate Developers Ltd.	532334	HBESD	24.42	63.12386707
Piramal Life Sciences Ltd.	532979	PIRAMLIFE	23.56	30.47169811
Syschem (India) Ltd.	531173	SYSCHEM	23.07	2.365714286
Indo Pacific Software & Entertainment Ltd.	531565	INDOPACIF	22.11	7.156959526
Jaykay Enterprises Ltd.	500306	JAYKAY	21.56	52.39393939
NEPC India Ltd.	500301	NEPIN	21.41	591.6538462
Shree Rama Multi-Tech Ltd.	532310	SHREERAMA	20.76	3.840236686
Sea TV Network Ltd.	533268	SEATV	20.04	2.295887663
Riba Textiles Ltd.	531952	RIBATEX	17.01	2.764186633
Jhagadia Copper Ltd.	504920	JHAGCOP	16.39	13.64941888
Euro Multivision Ltd.	533109	EUROMULT	14.95	2.371347269
NRC Ltd.	503780	NRC	14.69	498.6969697
Eastern Gases Ltd.	590080	EASTERNGAS	14.53	105.0909091
Unimers India Ltd.	524264	UNIMERQ	14.44	6136
XL Energy Ltd.	532788	XLENERGY	13.47	5.410759724
Parekh Platinum Ltd.	500323	PAREKHPL	13.39	46.25104603
Abhishek Corporation Ltd.	532831	ABHICOR	13.2	5.69605475
Asit C Mehta Financial Services Ltd.	530723	ASITCFIN	12.48	4.418918919
Ras Propack Lamipack Ltd.	500361	RASPRO	12.22	2.228832952
Martin Burn Ltd.	523566	MARBU	11.97	4.858024691
Jagsons Airlines Ltd.	520139	JAGSONAI	11.62	4.156378601
Jenson & Nicholson (India) Ltd.	523592	JENSONIC	11.48	8.177339901
Blue Bird (India) Ltd.	532781	BLUEBIRD	10.89	67.63721805
Hanil Era Textiles Ltd.	500177	HANILERA	10.46	3.77093207

A2Z Maintenance and Engineering Services - 533292

BSE: 533292 

NSE: A2ZMES

Sector: EPC, Engineering, Power


Jhunjhunwala stock, very volatile. Has been falling since listing in Dec 2010. Now at 12 times PE. This company was established in 2002. Serves state Ebs, State distribution companies and transmission companies. EPC company focussing on power.


http://www.a2zgroup.co.in/

The group lists the following companies as group companies:

A2Z Maintenance & Engineering Services Limited

A2Z Infraservices Limited

A2Z Infrastructure Limited

A2Z Powercom Limited

A2Z Powertech Limited

A2Z Water Solutions Ltd

A2Z E Waste Management Ltd

As this has listed only for a year, it is better to wait to understand the regular dividend payout. 

Pledged shares - Promoters have 42% shareholding. 17% is pledged. So essentially promoters hold 25%.

Amit Mittal the major shareholder himself has pledged 40% of his shareholding.

This share is case of major fall in prices and great loss to public who just invested because of Jhunjhunwala, engineering and power. It is not right to pay 30-40 times earnings for new companies listing in BSE comparing them to Areva and Alstom which are MNC companies. Now Areva and Alstom trade at 15-20 PE. Now A2Z is trading at 12 times. I feel there is even more downside. can buy at 10 times.

If you had bought this is IPO at Rs. 400. you have 25% of your money remaining. This is why I stay out of unknown companies in IPOs.

Spicejet - is it a good time to buy?

Maran buys more stake in Spicejet putting in 130 Cr and making his stake 43%. Does that mean it is profitable to buy Spicejet at this time?

I dont think so. I always am not a fan of airline companies. Or any companies which do not make profits.

the company just shows 85 Cr of debt and 90 Cr of negative reserves. For a 1000 Cr market cap and FY11 earnings of 100 Cr seems like around 10 times and hence attractive. Until 2 years back this company made heavy losses. these have still not been recovered.

But the negatives are that, this is a very competitive industry with Air India, Jet and Kingfisher taking most of the costly tickets. So called no-frills airlines are also very competitive with JetLite, KF(delta), Paramount, GoAir, etc.

With crude prices at more than $100, airlines cannot be profitable as they need to competitive, i.e. low revenue.

As it is seductive to own an airline, a lot of people try to own an airline. Richard Branson (Virgin) and VIjay Mallya are of that breed. They own an airline and that is a style statement.

Worldover, airline stocks have been the most speculative, they have never made continuous profits.

Some people say Maran has put in 2G money into Spicejet. To me, what matters is, can Spice pull off?

I appreciate Maran for the way he built Sun (though with political connections) - it was a well run company. But can he make this a sucess story? Can putting money into a loss making enterprise, buying more airplanes, improving customer service, introducing more routes really help a faltering company? I dont know.

let us watch and see. To me, I dont know, but I feel it is too difficult a task.

KSB Pumps Ltd - 500249

Name of Company	KSB Pumps Ltd.
BSE Code	500249
NSE Code	KSBPUMPS
ICICI Code
Established	1960 (KSB Pumps, India)
My Take	So-So
Headquarters	Mumbai
Promoters	German group KSB pumps and valves
Story	The Germany based parent group (KSB group) is one of the world’s largest producer of pumps and valves. In India, they produce water pumps, chemical pumps, air conditioning pumps, etc. Plants in Pune, Nashik, Ahmednagar, Coimbatore and Mala. FY is calendar year. Stock split 1:1 in Apr 2011.
Sector	Pumps
Sub-sector
Website	http://www.ksbindia.co.in/ http://www.ksb.com/ (Global parent company
Positives	Promoters are global leaders. Near zero debt. ROCE is greater than 18% in the last 5 years and greater than 30% in 3 of the 5 years.
Negatives	Parent group does not share technology, example pumps that are not manufactured in Indian plants would be bid by parent company and Indian company would only come in for fitting, etc. 16 times seems costly for a moderate growth company. Net profit has not moved anywhere. Valves division is facing issues with profitability. NPMs have come down from 12 to 8% in the last 5 years.
Peers
News
Price @ blogged	242 (18-Jul-11)
Cost of company	842.7 Cr market cap for a 51.57 Cr NP in FY ending Dec ' 10 makes it 16.34 times. This is for a company with 13.73 Cr debt and 345.92 Cr reserves
Group	Dull
Growth	Revenues have grown from 406 Cr to 615 Cr (50%) from FY06 to FY10. NP has remained flat at 50 Cr.

Saraswati Industrial Syndicate Ltd - 533033

Name of Company	Saraswati Industrial Syndicate Ltd.
BSE Code	533033
NSE Code	SARASWATI
ICICI Code
Established
My Take	So-So
Headquarters	Yamuna Nagar (Haryana), Noida
Promoters
Story	This company manufactures boilers and sugar machinery. Order book is from domestic front and from China, South east asia, Central America, etc. This company also has machine building division, process equipment, steel castings, etc.
Sector	Sugar
Sub-sector	Sugar machinery manufacturing and sugar subsidiary
Website	http://www.isgec.com/index.html
Positives	This is a cyclical industry and orders go good when the economy is good. Has been positive NPMs (though 2-3% only).
Negatives	I feel it is difficult to manage all these diverse manufacturing – so, need to drill more into the working of order management and managing slowdowns. Has been listed for 3-4 years, so cannot comment on dividend or how interested the promoters are.
Peers
News
Price @ blogged	870 (07-Jul-11)
Cost of company	643.8 Cr market cap for a 82.03 Cr NP in FY ending Sep ' 10 makes it 7.85 times. This is for a company with 179.42 Cr debt and 407.7 Cr reserves
Group
Growth

Gujarat State Fertilizer & Chemicals Ltd - 500690

Name of Company	Gujarat State Fertilizer & Chemicals Ltd.
BSE Code	500690
NSE Code	GSFC
ICICI Code
Established	1962
My Take	So-So
Headquarters	Vadodara
Promoters	Gujarat State govt
Story	Manufactures Urea, DAP, APS, NPK, bio-fertilizers, and more.
Sector	Fertilizers
Sub-sector
Website	http://www.gsfclimited.com
Positives	Regular dividend payer. Yield > 1% can be expected at current prices. Can expect 15 to 20% ROCE based on previous year’s numbers. 38% promoter holding, 36% institutional holding. Profits and sales are averagely half that of the biggest player Coromandel’s, but market cap is one third. Market leaders do get a better valuation. As Coromandel seems cheap right now, this seems cheap as well.
Negatives	Gujarat state run undertaking, which can face political pressure at times – including pricing & labor issues.
Peers	Coromandel Int, National Fetilizer, Rashtriya Chem, FACT, GNFC, Zuari Inds
News
Price @ blogged	362.05 (07-Jul-11)
Cost of company	2885.54 Cr market cap for a 749.37 Cr NP in FY ending Mar ' 11 makes it 3.85 times. This is for a company with 687.58 Cr debt and 2064.43 Cr reserves. 750 Cr is not the kind of profits we can expect for this company, so the PE makes it look small.
Group
Growth	Not a huge growth oriented company. Was a 2000 Cr revenue company in FY01, it is now a 4000-6000 Cr revenue company (FY10 and FY11).  Even 3 times in 10 years is not so great.

Finolex Cables Ltd - 500144

Name of Company	Finolex Cables Ltd.
BSE Code	500144
NSE Code	FINCABLES
ICICI Code
Established	1958
My Take	So-So
Headquarters	Pune
Promoters	PP Chhabria(Chairman & founder), DK Chhabria (MD)
Story	The company has manufacturing capacities in Pune, Goa and Roorke - Uttarakhand.
Sector	Cables
Sub-sector
Website	http://www.finolex.com/index.aspx
Positives	Regular dividend payer, can expect a dividend of around 1%. Finolex has very good brand recall value. 35% promoter holding, None pledged. Finolex industries also owns 14%.
Negatives	Visionary founders are aged, not sure of the next generation of promoters. Around 3-5% NPMs except for a negative NPM in FY09. No growth
Peers
News
Price @ blogged	48.05 (07-Jul-11)
Cost of company	734.68 Cr market cap for a 86.78 Cr NP in FY ending Mar ' 11 makes it 8.47 times. This is for a company with 275.12 Cr debt and 612.52 Cr reserves
Group
Growth