COSMO FERRITES LTD - BENEFICIARY OF CHANGING TRENDS ... BSE CODE 523100 COSMOFE

THE COMPANY

The company we are trying to study is BSE listed Cosmo Ferrites .  Yes , the same company covered in this blog about 10 years back around Rs.13 .Few of my old readers  may doubt why it is again now  after more than 10 fold rise in its price. Changed business potential is my only answer for this question. This company belongs to the same business group that owned another listed company Cosmo Films (market cap of around Rs.2800 Cr) which is operating in packaging related business. This business group is perceived as clean and minority shareholder friendly one. Manufacturing plant of Cosmo ferrites located at Solan, Himachal Pradesh. Alisha Coils and transformers – a division of Cosmo Ferrites- manufacturing SMPS Transformers from 10W to 250W as forward integration. Citing better business prospects on account of emerging trends in user industries, company now enhancing its production capacity by 50% from 2400 MT to 3600 MT at a cost of Rs.30 Cr. As per company estimate contribution from enhanced capacity will start to reflect from first quarter of FY 2022-23. It is a fact that, so far company’s performance was erratic. Only in recent times it started to show improved performance with good profit margins that indicating changing fortunes of the company due to emerging business potential. In latest September quarter, Cosmo Ferrites reported a top line of around Rs.27 Cr, bottom line of Rs.3.51 and an EPS of Rs.3. Considering management’s confidence to enhance capacity by 50%, robust prospects of user industries like Electric Vehicle, Solar Inverters, Energy meters, Battery Chargers, Transformers ..etc it is expected to perform well going forward. At present company exporting its products to more than 50 countries.  Company is a government recognized export house and as a testimony of increasing export opportunities, Cosmo's export turnover reported a robust 48% growth in latest quarter. 

CMP. Rs.595

ABAN OFFSHORE LTD. ......CMP 54 /- ...Buy for long tem

 The Company is engaged in providing drilling oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad. The Company's primary segments are offshore oil drilling and production services and wind power generation. The Company possesses 20 offshore assets including 15 jack-up offshore drilling rigs, two drill ships, one floating production platform and a jack-up rig and drill ship each on bareboat charter.Aban Offshore Limited (AOL) was established in 1986 when Indian entrepreneurs were encouraged to provide offshore drilling services to the Oil and Natural Gas Corporation Ltd. (ONGC) to meet the growing needs of a vibrant economy. AOL launched its first contract drilling service to the ONGC in 1987 with two modern jack-up drilling rigs acquired from the USA.AOL currently possesses twenty offshore drilling and production units spiraling us to a prestigious position among the top ten offshore drilling asset owners in the world. Buy for long term 3-5 yrs for a appreciation of minimum 6-7 times from current levels of 54/-

Country Club India . BSE CODE : 526550 CCHHL

 

Country Club India

Country Club India Ltd is India’s largest leisure infrastructure conglomerate that offers state-of-the-art clubbing facilities, innovative family holiday packages and star-studded entertainment events. Recognized by the Limca Book of Records as ‘India’s Biggest Chain of Family Clubs’, Country Club India Ltd has 53 world-class destinations across India, Middle East, Bangkok and Sri Lanka. Also, Country Club India Ltd offers global clubbing and holiday access to 175 franchises and boasts of a massive 5100 RCI affiliated properties along with 4000 Dial-an-Exchange (DAE) ones. Known as the ‘Power House of Entertainment’, Country Club India Ltd regularly organizes various innovative entertainment events and celebrates diverse national and international festivals across every destination. During such festivities, celebrities from Indian movie industries are invited to perform for the Country Club India Ltd members and their family and friends. Country Club India Ltd offers a wide range of member centric facilities including real-time online Holiday Booking & Payment Gateway, state-of-the-art Club Houses, luxuriously furnished and fully equipped guest cottages, suites and rooms, multi-cuisine restaurants which serve some of the finest global delicacies, lounge & resto-bars, modern gyms with Spa, Massage, Steam & Sauna facilities, floating spa, jungle safari, Ayurvedic & Naturopathy therapies, Yoga facilities, banquet & conference facilities, wedding halls, swimming pools, variety of outdoor & indoor games, children play area etc. Recently, the Guinness Book of World Records has recognized CCIL’s Earth Hour social responsibility . Also, CCIL has received a personal note from former President of USA, George Bush for hospitality rendered to his team during their visit to Hyderabad.

CMP 8 ,  BUY AT CURRENT LEVELS FOR TARGET OF 40  ++  IN LONGER TERM 5-6 YRS .

MUKTA ARTS ...A STRONG BUY Mukta Arts Limited is one of India' leading production houses

 Mukta Arts Limited is one of India' leading production houses with business interests across the entertainment spectrum from Exhibition to Education. Founded by Mr Shubash Ghai, one of India' most successful film directors, the company has a library of over 35 hit films and has a brand that is globally recognized with quality and entertainment. 

Mukta Arts has been a leading film distribution company under its subsidiary Mukta Movies Distributors having its offices sector of exhibition business by being the largest content provider in the country with over 500 screens.

Mukta Arts Ltd. has created its own brand of multiplex theaters Mukta A2 Cinemas by tying up with theaters shells for development and management in malls and other complexes.

The USP of Mukta A2 Cinema' is providing Multiplex experience at affordable prices. By offering state of the art technology, comfortable seating, soothing ambience, and varied F&B options, Mukta A2 cinemas is being loved and admired by the movie goers.

he programming service business has been from April 2014 been carried over by the subsidiary, Mukta VN Films Limited, which is jointly held by the company along with VN Films Private Limited, a subsidiary of UFO Moviez. 

The company has a stake in Maya Digital Studios. The company is slowly establishing itself in the field of animation and VFX production, handling not only a number of children' animation films but also gaming projects, feature films and commercials.

Another subsidiary of the company, Connect. 1 has been entrusted with monetising all of the group' content on all digital platforms since 2012 and has primarily been working in the background. It has entered into MG-based syndication deals with Rajshri and Hungama for web & mobile respectively for the Mukta Arts' filmed entertainment content at better-than-market rates. It has also curated & syndicated the content emerging from Whistling Woods (mostly student fiction short films) on YouTube and Dailymotion. 

BUY AT A CMP OF 45 FOR A TARGET OF 200 /- +++ IN 2-3 YEARS .

DEN Networks Ltd – multi bagger stock idea

DEN Networks Ltd is a low risk high returns investment idea for theIndian markets and one of the biggest                 beneficiaries of theDigitization policy. With the Government of India (GoI) determinedly implementing the digitization policy, we believe that the turning point for the struggling cable industry has been reached. The cable industry which was characterized by  drastic  “under  reporting” of subscribers by the LCO (last mile operators) had led to substantial revenue losses not only to the  broadcasters  &  MSO’s  (multi system operators) but also the GoI (in the form of lost taxation). With  Digitization  gradually replacing the analog distribution system, the  entire universe of subscribers will now be uniquely recognized leading to a  multifold  jump in the paying subscribers for MSOs. India’s largest MSO – DEN Networks Ltd is expected to benefit the most.

Incorporated in July 2007, Den Networks is promoted by Sameer Manchanda, a veteran in the television industry. It is one of the largest national cable television companies in India, distributing analog and digital cable television services as per the MPA Report 2009. The company has analog cable presence in 76 cities across India and digital services in 37 cities across India. Den Networks currently provides cable television services in the National Capital Region of Delhi and Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. The company has obtained an all-India Internet services provider (ISP) license and recently commenced a limited roll-out of broadband internet services in select areas, which it intends to expand in all of the other cities in which it operates.

BUY AT CMP OF 92 WITH A TGT OF 500+++ IN NEXT 3-4 YRS .

GMR Infrastructure Limited

About the Company

Incorporated on May 10, 1996 as a public limited company called Varalakshmi Vasavi Power Projects Limited in the State of Andhra Pradesh, GMR Infrastructure Limited (“GMR Infra” or the “Company”) is a global infrastructure company with interests in airports, energy, highways and urban infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets.

The Company has 16 power generation assets of which 5 are operational and 11 are under various stages of implementation and 9 road assets, of which 5 are operational and 4 are under construction.

In the airports sector, it has developed and commissioned the Greenfield International Airport at Hyderabad. The Company, besides operating the existing Delhi International Airport, has also built a brand new integrated terminal T3 which was commissioned in time for the Commonwealth Games in October 2010. It has also upgraded and is operating the Istanbul Sabiha Gokcen International Airport. 

BUY AT CMP 11.50 WITH PRICE TGT OF 38 +++ IN 2-3 YRS 

GUJARAT BOROSIL LTD .... FUTURE MULTIBAGGER

Gujarat Borosil Limited (GBL) was promoted by Borosil Glass Works Limited manufacturer of well known and household “BOROSIL” range of labware, scientificware and consumerware products to setup its most modern sheet glass plant at Govali, Dist. Bharuch (Gujarat) in 1994.

GBL until July, 2010 was manufacturing finest quality sheet glass in the country and has been the largest exporter in this segment.

GBL has set up a new facility in March 2010 to manufacture for the first time in Country Low Iron Solar Glass for application in Photovoltaic panels, Flat plate collectors and Green houses.

GBL’s product is of international class and is currently significant portion of its production is being exported. The solar energy is now receiving due importance in the Country also and GBL in due course plans to expand its capacity with commitment to provide best value for money to its esteemed customers.

Gujarat Borosil Limited, hitherto engaged in manufacture of high quality sheet glass from its state-of-the-art plant at Govali village, Dist : Bharuch, Gujarat [India]) has now started for the first time in the country production of Low Iron Solar Glass for application in the fast growing Photovoltaic Cell manufacturing industry worldwide.

Its newly set up glass furnace with a capacity of 105 ton finished glass output per day feeds the production to fully automated annealing, cutting and handling lines. A completely automatic and computerized batch plant ensures perfect glass quality. High quality Low Iron Solar Glass manufactured in various desired sizes in the thickness ranging from 3.2, 4 & 5 mm to suit your requirement for Solar Panels, Solar Thermal Heaters and Green houses. The company has also set up tempering facility and offers both annealed and tempered glass to domestic as well export markets.

The glass produced has highest light transmission of over 91.5% and meets international standards including EN 12150 for solar applications in Photovoltaic panels, Flat plate collectors and Green house applications and has received U1 certification from SPF, Switzerland.

In the first year of operations the company has notched up sales of Rs 59 crores from solar glass operations major portion of which has come from exports. Company is catering mainly to the export markets in Europe, United State of America and South Korea and is exploring business opportunities in many other parts of the world. The company has got firm foothold in the domestic market and to a large extent replaced imports. The customer base includes almost all the major panel manufacturers in both private and public sector in the country. Quality of packing and prompt on-time deliveries to panel manufacturers for various solar energy projects have ensured sustained and repeated business for the company.

Domestic demand is expected to rise speedily in view of large number of projects sanctioned and lined up after the impetus provided by Government’s policy announced last year. 

BUY FOR TGTS OF 200+++ CMP 75

MOSCHIP SEMICONDUCTOR FUTURE BLUECHIP

MosChip offers a wide variety of design services, including:

• ASIC Design  - From architecture design to netlist, including synthesis, integration, design verification, power and package analysis, and pre- and post-validation functions. MosChip has extensive knowledge of the Advanced RISC Machine (ARM) microprocessor architecture, PCIe, USB, SATA, memory (SRAM, DDR, Flash) and Ethernet architectures and can seamlessly integrate these functions into any design.

• ASIC Tools - MosChip has extensive experience with multiple design platforms, including Verilog, Synopsys, Cadence, and ARM design tools, as well as Xilinx, Altera, and Synplicity FPGA synthesis tools.

 

• Software Development - MosChip can provide all types of software, including device drivers, firmware, embedded systems software, and test and debug routines. The software team incorporates multiple disciplines, including Windows, Windows CE, Linux, Android, and MAC operating systems.

 

• Product and Systems Engineering – MosChip provides complete product and systems design, including architecture definition and analysis of critical design paths, SoC development, power reduction considerations, PCB integration, form factor reduction, software, and turnkey projects.

 

• IP Development – MosChip contains a portfolio of software IP’s that can be used on any platform. Types of IP include USB server over IP, printer servers, serial servers, and numerous ARM-related functions. Moschip has expertise to develop new IP’s as well.

 

• Off Shore Design Center (ODC) – MosChip Semiconductor contains off-shore design facilities in Hyderabad India and Singapore. The design is typically modeled at the customer’s site. Once the modeling specifications are met, the design is transferred to one of MosChip’s offshore design facilities.

BUY @ CMP 16 FOR TARGETS OF  50+++ IN 2 YRS 

INVESTMENT PICKS FOR MAHURAT TRADING

ORCHID CHEMICALS , DELTA CORP , OMKAR SPECIALITY CHEMICALS , RELIANCE COMMUNICATIONS , GMR INFRA , RELIANCE CAPITAL , UNITECH , SBI , L&T FINANCE , RIL , BIOCON , ZEEL , DISH TV , DEN NETWORKS , MARATHON REALTY , GEECEE VENTURES , LYCOS INTERNET , DALAL STREET FINANCE , RELIANCE INDUSTRIES , RIIL .

One can buy the above stocks keeping  a view of  24-30  months  , for a returns of minimum 150 % ++.

MIC ELECTRONICS......multibagger

This is one company whose IPO oversubscribed by a whopping 50 times and the shares listed at a premium of 120 % to the offer price. Once it was a darling of investors including top institutional and foreign investors and stock price hits a high of Rs.1088 ( Before stock split from Rs.10 to current Rs.2) .From 2012 , company concentrating in two business verticals – True Colour LED Displays and LED Lighting Solutions . True colour LED Display business consists of Passenger Information Displays for Railways,Mobile Displays fitted on Trucks or Trailers,LED Advertisement Boards...etc .LED lighting solution business consists of Solar Street Lights , Solar Lanterns, Railway Coach Lighting ..etc. Company’s performance badly affected due to weak order flow from Railway because of  Indian Railway’s pathetic financial situation, Severe recessionary situation in over all economy ..etc. Company’s promoters pledge their shares and on account of non repayment these shares invoked and sold in market which resulted in sharp decline in promoter holding from 40% to less than 10 % .

Last year company received an order from Nashik Municipal Corporation (NMC) to replace 69,541 street lights. This order is the largest such order so far in India cost close to Rs.150 Cr . Company faced lot of legal challenges to execute this order and finally it got permission to do the same. As a note to latest financial result   , company clarified that they started execution of the same during the end of the September quarter. This order should be completed in next six months. In another  recent development from company is its introduction of   3-D hologram technology using  LEDs .This technology widely used by Telugu Desam party in the recently concluded elections.The most important development happened in MIC in recent times  is the allotment of 74,462,070 share warrants to promoters and others 

It is true – its future is really uncertain , but still some hopes are reviving . As I said at the beginning  its products came before its time . Ten years back usage of LED was limited in various applications .But now people well aware about it and accepting as a good option for energy saving . One of its major customer was Railway and after a long time Railways’ financial health is expected to improve going forward . Our prime minister recently indicated green signal for privatization and renovation of railway stations

.MIC is the only company approved by RDSO for 13 types of Railway Coach lighting products to be used in Air conditioned coaches. Any improvement in Railway’s financial health and renovation of coaches and stations may augur well for MIC going forward  . Prime minister’s prestigious smart city projects and  Andhra Government's decision  to build world class capital city for the state may  increase the use of LED based products as a best alturnative for energy savings . If company can successfully complete the ongoing Nasik municipality street light project , it will surely  referred as a testimony for company’s ability to execute similar type large projects. I believe , after a long gap  promoters are confident about the future of company and that is why they are hiking their stake from current 8 % to a decent level by pumping substantial amount. Company also decided to sell one subsidiary in an effort to reduce its debt level.