Avanti Feeds Stock Analysis

Avanti Feeds’ stock price is down ~ 50%, meanwhile the fundamentals are improving. So, we analyze the company from a long term investment perspective. The company began its operations in 1994 with a 20,000 MT unit in Kovvur. Industry and Business Shrimps are cultivated in hot weather and barring China, majorly consumed in colder weather countries. India has a climate that suits the shrimp cultivation well. Also, the 8000 km long coastline provides ample access to the brackish waters required for shrimp cultivation. Rising consumption of shrimps means more cultivation of shrimps. This leads to a growing demand for shrimp feeds. Indian shrimp exports have grown from Rs 5,700 Crores in FY11 to Rs 30,800 Crores in FY18. The country ranks second in global aquaculture production (China is ... Read Full Article

Navin Fluorine Stock Analysis

Navin Fluorine International Ltd. is a part of the Padmanabh Mafatlal group. The company is one of the largest speciality fluoro-chemical company and has a strong presence in the refrigerant gas segment in India. The business was established in 1967. Business & Industry The company’s sources of revenues and their FY 19 revenues are: Specialty Chemicals (Rs 300 Crores) Refrigerants (Rs 280 Crores) Inorganic Fluorides (Rs 197 Crores) CRAMS (Rs 178 Crores) Navin Fluorine’s client base includes companies operating in the life sciences, crop sciences, air conditioning, stainless steel and petrochemical space. Navin Fluorine’s key raw materials are Fluorspar and Chloroform. China is the leading producer of Fluorspar. Earlier, due fluorine was frowned at because of polluti... Read Full Article

Q2FY20 Portfolio Performance

The Nifty has posted a 5.17% return on a YTD basis while the midcap and smallcap indices are down by 10.44% and 13.63% respectively. Our portfolio is down 2.55% on a YTD basis. YTD Performance Portfolio Performance 5 quarter performance The Alphamultiple portfolio fell 2.03% for the quarter. We under-performed the Nifty but out-performed the midcap and smallcap indices. From its peak of Jan 2018, the portfolio is down ~ 18%. As our portfolio is primarily concentrated on smallcaps, we have maintained high cash allocation in the portfolio over the last two years. But, now our allocation equities has increased to 63% (Read: Live Portfolio). Our investments in a credit rating company and a media-entertainment company have performed dismally but other investments have balanced out those drawdow... Read Full Article

Hester Biosciences Stock Analysis

Hester Biosciences stock has delivered stellar returns over the last decade. Over the last 5 years, the revenues have grown at a CAGR of 20.8% while PAT has grown at a CAGR of 34.51%. The Bill and Melinda Gates foundation has given the company a soft loan and grant to start manufacturing in Africa. Company Overview Hester Biosciences was founded in 1987 by Mr. Rajiv Gandhi (MD & CEO). The company operates in two verticals – Poultry and animal healthcare. The company is one of India’s leading animal healthcare and second largest poultry manufacturer. Hester derives 76% of its revenues from poultry and 21% from animal healthcare. The company derives 92% of its revenues from the domestic market and just 8% from exports. The company has over 50 vaccines and 35 health products. The comp... Read Full Article

CreditAccess Grameen Stock Analysis

The CreditAccess stock price is touching 52 week highs. We are getting a lot of requests from our blog readers to do a CreditAccess Grameen stock analysis. A rapid growth in the loan portfolio and profit after tax makes it a potential growth stock. About CreditAccess Grameen Ltd., formerly known as Grameen Koota, was founded by Vineetha Reddy in 1996. Today, the company’s promoter is CreditAccess Asia. In 2008, the company moved from being an NGO to being an NBFC. The company is the 2nd largest micro-finance institution in the country. Karnataka and Maharashtra contribute ~ 60% of the gross loan portfolio. The top 10 districts make up nearly 32% of the portfolio. Also, Rural contributes 82% (vs 68% in FY15) which makes the portfolio concentrated. Industry Nearly 52% of the agricultur... Read Full Article

AIA Engineering Stock Analysis

AIA Engineering stock has delivered multibagger returns over the last five years. The company has healthy return ratios and has exhibited strong growth despite the slow economic growth globally. AIA Engineering operates in the grinding mill internal market on a global level, serving the Cement, Mining, Thermal Power and Aggregate industries. The mining industry is the major source of revenue for the company. Exports contribute 76% of the company’s revenues. Industry & Product AIA Engineering designs, manufactures and markets consumable wear parts (mill internals) which are used in the process of Grinding and Crushing. Due to impact, abrasion and corrosion, there is wear & tear on these parts and they wear away. The company makes these consumables in high chrome metallurgy whi... Read Full Article

July 2019 Newsletter – Negative Sentiments

Market Outlook As we write the July 2019 Newsletter, the sentiment on the street is negative. Investors do not want to put their money in small-caps or even mid-caps. Whoever is still sticking to equities is now talking about investing in Bajaj Finance or other large caps that are at 52-week highs. Just a simple trend analysis of the term Multibagger on Google will show you this graph: Multibagger Search Trends Even multibaggers have fallen out of trend now. Look at the peak of 2017 and compare it to the scenario now. Investors want to invest in Index funds, large caps and want to stay away from small & mid-caps. The mid-cap forward PE tracked by institutional analysts usually trades at a discount of 5% to 10% to the Nifty’s forward PE. This discount is now above 20%, a level seen wh... Read Full Article