This category includes a talk on different businesses, industries, etc.
I am going to explain about the cement, manufacturing process of cement, cost associated with cement, different types of cement, cement industry, consolidation to the cement industry and conclusion.
Kindly visit for detail on cement business —> YOU, ME & BUSINESS – ISSUE -1 – CEMENT
I have written on this topic is due to current market fall and fear into the mind of an investor. We are seeing many uncertainties hindering the growth of the economy, rising crude oil prices, commodity prices, fiscal deficit, banks NPA, government expenditure, rising interest rate, the success of GST, structural changes into the economy. All such events will impact the growth of business positively or negatively. If we try to put all such events into different scenarios then we can come to know what can be a probable return from SENSEX in coming 10 years.
For the calculation of probable return, I have taken a formula which is given by John P. Hussman. John P. Hussman is the U.S.A stock market analyst and owner of the hedge fund.
Formula –
| Annualized Return (%) = (1+g)(future PE or P/BV / current PE or P/BV)^(1/T) – 1 + dividend yield (current PE or P/BV / future PE or P/BV + 1) / 2 |
G = Business earning growth, P/E = Price to Earnings ratio, P/BV = Price to Book Value ratio
Return of our investment is based on –
Business Earning Growth – Our investment return will grow if particular business earning will grow. Investment return is directly related with the earning of a business. If business survives for the longer period of time with generating the higher return on invested capital with earnings growth then we will able to earn a decent return from particular business.
Dividends – Dividends comes from the earning of the company. If a company distributes dividends to shareholders with growing earnings, the dividend is an additional return for the shareholders with the appreciation of business value. As per Mr.Buffett, if the company does not have a reinvesting opportunity available or business does not able to generate a higher return than the cost of capital then management should distribute earnings in form of dividends.
Changes in the valuation – the Stock price of the particular business is also affected by the changes in the valuation such as changes into the P/E, P/BV, P/S (Price to Sales) or Market Cap to Sales, etc.
Assumptions –
We can use a similar kind of valuation matrix for the particular business itself. Here, I have also shown valuation calculation of an air cooler manufacturing company of India, I have calculated as I was at the year 2012 and what can be a probable return from particular business till the year 2022.
If we consider actual business performance then sales of the company have been grown by 17% CAGR since the year 2012 to the year 2018. But the stock price has been increased to Rs.2209 (high price and the current price is Rs.967) from Rs.130. This entire return is come to the stock only because of valuation multiple expansion such as P/E, P/BV, EV/EBITDA etc. Similar period has P/E increased to 85x (high P/E and current P/E is 46x) from 23.63x and P/BV increased to 33x (high P/BV and current P/BV is 11x) from 5.84x.
Disclosure – I am not using this valuation matrix in my investment journey till now. This is only one of the valuation matrix and we need to use a different appropriate valuation matrix for reaching to a value range.
Learn matrix from –
Stovec Industries Ltd. <—- Click here for detail
Stovec Industries Limited (SIL) was incorporated on June 5, 1973 as Stovec Screens India Limited. Stovec is a part of SPGPrints Group, The Netherlands.
Manufacturing facilities of the company located at N.I.D.C., Near Lambha Village, Post Narol, Ahmedabad, Gujarat.
Company offers products such as Rotary printing machines, Rotary screens and chemicals for textile printing, Anilox and screens for graphic printing, Digital ink and Sugar screens.
Disclaimer: This is not a recommendation to Buy-Sell-Hold. And I am not a SEBI registered analyst.
Excel Industries Ltd. <—— Click here for detail
Excel Industries Ltd. incorporated in 1941 with manufacturing plant at Maharashtra and Gujarat. Excel Industries is engaged in manufacturing of Agrochemical intermediates, phosphates, specialty chemicals, Polymer inputs, Environment & Biotech, Veterinary APIs, biocides and pharma products. Company using alliance manufacturing concept by which company become partner with customers and develop products for them. Company create synergies between customers’ product and applications expertise and company’s process development and manufacturing capabilities to drive solutions for the polymer industry.
Disclaimer: This is not a recommendation to Buy-Sell-Hold. And I am not a SEBI registered analyst.
Tokyo Plast <—– Click here for detail.
Tokyo Plast International Limited established in 1985 forms a part of the 25 year old ‘Tokyo Group’. Company having presence in worldwide Thermoware / Plastic Household Industry with brand name “Pinnacle”.
Disclaimer: This is not a recommendation to Buy-Sell-Hold. And I am not a SEBI registered analyst.
Valuation is a Science as well as an Art so use it wisely.
Don’t make any (Buy-Sell-Hold) decision only based on below calculator.
Use it on your own risk.
Disclaimer: This is not a recommendation to Buy-Sell-Hold. And I am not a SEBI registered analyst.
We are welcoming Samvat 2071 with joy and prospects. As our Samvat 2070 was rewarded us with new all-time high of the Indian stock market and give us a handsome return. Our Indian stock market has provided a highest return with 24.44% from last Diwali (03-Nov-2014) to 20-Oct-2014.
Jimit Zaveri’s Stocks Idea Diwali Festival Stock Idea – 2014 <—- Click here for detail
Jimit Zaveri’s Stocks Idea Diwali Festival Stock Idea – 2014
Detail report will be update soon.
Kindly construct portfolio as per weightage (%) recommended…..
Sharda Cropchem Ltd <—- Click here for details
Sharda Cropchem Ltd. commenced its operations through their sole proprietorship concerns, namely, M/s. Sharda International in 1987.
Crop protection chemical company engaged in the marketing and distribution of a wide range of formulations and generic active ingredients globally. Company are also involved in order based procurement and supply of Belts, general chemicals, dyes and dye intermediates. Company have, primarily, grown organically and core strength lies in identifying generic molecules, preparing dossiers, seeking registrations, marketing and distributing formulations or generic active ingredients in fungicide, herbicide and insecticide segments. Company also recently entered into the biocide segment and have acquired several registrations from the existing registration holders, primarily, in Europe.
A typical agrochemical value chain consists of the following key activities: (a) basic and applied research, (b) identification of new product and registration opportunities, (c) seeking registrations, (d) manufacture of the active ingredient, (e) formulation and packaging, and (f) marketing and distribution.
As of August 5, 2014, the company has over 180 Good Laboratory Practices (“GLP”) certified dossiers and as of July 15, 2014, the company owns over 1040 registrations for formulations and over 155 registrations for generic active ingredients across Europe, NAFTA, Latin America and Rest of the world.
Sharda Cropchem Limited is also engaged in the supplying a variety of Conveyor belts, V-belts, etc. These belts are used mainly in mining projects followed by Steel plants, quarries, grain silos, cement manufacturing facilities, ports, tunneling projects, etc.
Company providing exit offer for the HEP Mauritius whose has 15.87% stake in company and also 9.13% stake of promoters. Company has strong registration competency in generic molecules, experienced management, asset light business model, zero debt company, sound financial performance. On upper price band of Rs.156, P/E is 13.2x on FY14 EPS of Rs.11.82 which is cheap available compare to its peers.
I, Jimit R. Zaveri recommend investors to “SUBSCRIBE” to the Sharda Cropchem Ltd. IPO considering its strong registration competency in generic molecules, experienced management, asset light business model, zero Debt Company and sound financial performance. Sharda Cropchem is available at very cheap by P/E, P/BV and EV/EBIDTA.
Price Band Rs.145-156. Issue open on 5th September and close to 9th September. Market Lot 90 Shares.
I had recommended Bajaj Corp as an investment advice on 18th May,2014.
I recommended Book (50%) profit on 12th June,2014. Now, at the price of Rs. 29, I recommend to book further 10% profit in Bajaj Corp and hold remaining qty.
Return in stock : 36.79% (Recommended on Rs.212)
For detail visit:
https://jimitzaveri.wordpress.com/2014/05/18/bajaj-corp-ltd/
Lucky Idiot 