Delta Magnets Ltd - 504286

 

Name of Company	Delta Magnets Ltd
BSE Code	504286
NSE Code	DELTAMAGNT
ICICI Code
Established
My Take	Dislike
Headquarters	Nashik
Promoters	Mody family (Delta Corp)
Story	Formerly GP Electronics. Attracting a lot of buying because Jhunjhunwala has a stake in Delta Corp.
Sector	Electrical equipment
Sub-sector	Arc magnets and isotopic rings
Website	http://www.deltamagnets.com/
Positives
Negatives	No dividends after 2001. Not a regularly profitable company. FY10 reserves at 3 Cr.
Peers
News
Price @ blogged	73 (11-Nov-10)
Cost of company	35 Cr for a FY10 profit of 13 lakhs, which translates to 263 times.

 

Delta Corp Ltd - 532848

Name of Company	Delta Corp Ltd
BSE Code	532848
NSE Code	DELTACORP
ICICI Code
Established
My Take	Dislike
Headquarters	Pune
Promoters	Mody family
Story	This counter has been bought by almost everyone who follows Jhunjhunwala's investment blindly. The company views real-estate oppurtunities in Kenya, Unganda, Tanzania (a 40:60 partnership with a wholly owned subsidiary of Reliance). Owns Highstreet which has some gaming businesses. Jhunjhunwala says this counter is attractive because of the gaming licenses.
Sector	Miscellaneous
Sub-sector	Real-estate, Gaming, Aviation, hospitality
Website	http://www.deltacorp.in/
Positives	48% promoter holding – none pledged. Listed in 2007, regular dividends from 2008(not much yield at current prices). Good reserves at 239 Cr reported in FY10 for a 54 Cr revenue.
Negatives	Unexplainable valuations, very near its 52 week high. Moving to new highs with huge volumes everyday. 175 Cr debt (FY10) seem high for 54 Cr revenue, but this can be managed by the 239 Cr reserves.
Peers
News
Price @ blogged	121 (10-Nov-10)
Cost of company	2021 Cr market cap for 13.57 Cr FY10 profit makes it 148 times.

Dividend payers

Company	Market cap	Expected Yield %
Wheels India Ltd	286  Cr (30-Oct-10)	>1 (Expecting Rs. 3 or more)
Unichem Labs	2033 Cr (20-Oct-10)	>1.3%
Berger paints	3400 Cr (20-Oct-10)	Less than 0.5%
Asian paints	25K Cr (20-Oct-10)	Less than 0.5%
Praj Industries	1300 Cr (19-Oct-10)	Around 2%
Meghmani Organics	560 Cr (13-Oct-10)	1.5%
Paper products	375 Cr (9-Oct-10)	Around 3%
Diamines and Chem	55 Cr (30-Oct-10)	Around 1.5%
Wim Plast	130 Cr (30-Oct-10)	>1.3%

All yields are conservative estimates

Dunlop India Ltd - 509130

Name of Company	Dunlop India Ltd
BSE Code	509130
NSE Code
ICICI Code
Established
My Take	Dislike
Headquarters	Kolkata
Promoters	Ruia group (owns other tyre companies and some others)
Story	Was loss making and bought by Ruia group in 2005.
Sector	Tyres
Sub-sector
Website	http://www.dunlop.co.in/ http://www.ruiagroup.co.in/index.php
Positives
Negatives	Shares pledged by promoters amount to 54% - effective control is around 20%. Too costly for the profits made and NPMs.
Peers
News
Price @ blogged	85.5 (30-Oct-10)
Cost of company	615 Cr for a 1.3 Cr net profit makes it really costly almost 500 times.

Wheels India Ltd -590073

Name of Company	Wheels India Ltd
BSE Code	590073
NSE Code
ICICI Code
Established	Early 60's
My Take	So-So
Headquarters	Chennai
Promoters	TVS group
Story	Has plants at Padi(TN), Pune, Rampur, Bawal, Sriperumbudur, Pantnagar and employs 1900 people. It has an annual capacity of 10 million wheels. 2/3rd market share in domestic market. 18% of revenue is from exports.
Sector	Auto anciliary (wheels)
Sub-sector	Steel wheels for commercial vehicles, cars, tractors & construction equipment
Website	http://www.wheelsindia.com http://wheelsindia.com/WILAR0910.pdf
Positives	Reserves of 190 Cr as of FY10. Regular dividend payer – can expect more than 1.3% at current prices.
Negatives	NPMs of just 1-2%(Bosch has NPM of 12-15%, TI and Sundaram at 5%, Motherson Sumi around 10%). Promoter holds 85%
Peers	Bosch, Sundaram Fastners, TI, Motherson Sumi
News
Price @ blogged	297.50 (3-Nov-10)
Cost of company	293 Cr market cap for a FY10 net profit of 13 Cr seems costly for a 1% NPM and moderately growing company. Sure buy at lesser prices.