Undervalued mid/small cap stocks

[nganeshacs]

Hi, Hello

this is ganesh from chennai

i am a practising company secretary.

Its a pleasure chating with you thru this website

thanks

ganesh

 

[dinesh26]

thankyou for the jindal poly and srf insights. Real value pickers in this thread. I went through Chennai Petro annual report. Everything was fine but for one thing. There are tax disputes in chennai high court for past 5 financial years.And no provision has been made for these in case the court verdict is unfavorable.Please share your views after going through the report.website cpcl.co.in

 

[djsinha]

COMPACT DISC (again the name is a little misleading)

If you use Benjamin Graham's formula for calculating the intrinsic value of this stock, it comes to:
Intrinsic value = Proj EPS rate * (8.5+2*Growth rate)*(4.4/AAA)
Now using the current EPS of 17.6 in place of projected EPS rate and the 7 yr CAGR of 15.9% in place of Growth Rate, we get:
Intrinsic value = 17.6*(8.5+2*15.9)*(4.4/6.25)
= 17.6*40.5*0.704
= 510(approx)

And the scrip is currently trading at somewhere around Rs 90. So definitely it's a bargain.
On Mar2007, the company broke even and started booking profits consistently thereafter. If you look at the Net sales, PBT, Net profit all these are rising quarter after quarter.
The company's balance sheet and P&L statement looks quite strong w.r.t to its only competitor BMB Music & Magnetics Ltd. , which is still booking losses.
So looking from many directions, the company looks truly undervalued and is expected to give good returns in mid to long term.

Thank you kkseal for this wonderful pick.

 

[Fresh1043]

Surya Pharma is sure to appreciate by 40 % when the market improves.
What about Banco Product ?

 

[djsinha]

Surya Pharma is sure to appreciate by 40 % when the market improves.
What about Banco Product ?

Yeah Surya Pharma looks attractive. And Ben Graham's intrinsic value calculator gives the intrinsic value at Rs 598. Balance sheet, P&L Statement, Quarterly results seem good enough. But the debt to equity ratio is >1: this is a troubling fact.

Banco products: Attractively valued at 5.6 times Dec2007 EPS and at a Price multiple of nearly 2 times its book value when its competitors like ANG auto, Gujrat composites, Bosch Chassis, Omaxe auto are trading at 6-12 times their Dec2007 BV. Net sales, PBT, Net profit, EPS are growing year after year.
No bad debt, not much outstanding loans - overall good financials. But I don't understand one thing. Why the hell the company is decreasing its investments year after year when the Reserves and Surplus section is registering a positive and moderate growth?
Seniors please throw some light on it..

 

[DWeeP]

If you use Benjamin Graham's formula for calculating the intrinsic value of this stock, it comes to:


Thank you kkseal for this wonderful pick.

Yes, CD seems to be a perfect pick for investing for 1yr or longer.
Thank u djsinha for calculation of int. value.

Edit: just now i noticed that
Promoter's Holding 11.9% <------
Institutional Holding 0.5%
General Public 70.4% <------
Others 16.8%

how significant are these?

 

[djsinha]

Yes, CD seems to be a perfect pick for investing for 1yr or longer.
Thank u djsinha for calculation of int. value.

Edit: just now i noticed that
Promoter's Holding 11.9% <------
Institutional Holding 0.5%
General Public 70.4% <------
Others 16.8%

how significant are these?

Yeah, low promoter's holding is really an area of concern for this company. And too high % of holding among the general public will make it a trader's choice, subjecting it to high fluctuations.

 

[samy4u]

Although the name sounds like that of a pan-beeri shop, VAKRANGEE SOFTWARE nonetheless seems to have all FIIs under the sun invested in it!

dude its nat any paan beeri company its the company which provides software solutions to govt first try to read E.T. fully then judge any company..

 

[DWeeP]

Thanks djsinha.

Lets discuss more on Birla Capital & Financial Services Ltd. BSE: 512332

P/E - 100.8 (Dec 2007)
EPS - 0.06
CMP - 6.14 (FV-2) rs

ROE - 3.6%
ROCE - 5.1%

Pls share any more information.

 

[djsinha]

dude its nat any paan beeri company its the company which provides software solutions to govt first try to read E.T. fully then judge any company..

Everybody knows. KKSeal has written it in lighter mood. Any buddy, do you know whom u addressed it at? First try to understand the jokes....then do comment.