Post on 06-Jul-2018
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Opening Note:
Welcome dear friends and fellow investors. At the outset, we
invite you to our newly started blog which has a single most
objective of identifying and discussing high potential
investment picks in Indian Listed equity space. alue investing
is the core of our investing philosophy and we will stick to it in
any market situation ! "ull or "ear,
our e#perience has made us $rmly believe that no matter what,
value investing has always paid o% for the patient and
disciplined investors.
As a matter of introduction, we are two friends with a passion
for equity !amateur but e#perienced, We $nd any and every
e#cuse to discuss about Indian markets no matter how tied up
we are in our professional and personal lives. &ave learnt the
good, the bad and dirty in Indian equity markets, and have
learnt it hard way. 'he notion that has always stood out is,
sooner or later market does recogni(es the potential in the
deserving ) in the long run ! the froth subsides and only
substance shines. As the famous quote of Warren bu%et says !
only after the tide is gone, you $nd out who was swimming
naked.
*o this is the place for intelligent discussion, and for that
matter serious discussion on Indian equity markets. +ont
e#pect any so called -tip, dont e#pect the stocks discussed
here as any recommendation or endorsement or dont e#pect
any miracle to happen with the stocks on this blog, or in the
equity market as a whole for that matter. "e realistic, you are
buying share in a business and not a lottery ticket /quity is
just an asset class, which o%ers potential for high returns
against higher risk, and most of the time investments made in
equities rationally, with right basics in place, right
diversi$cation and right discipline ! it has outshined everything
else in the longer run.
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+o ask questions, discuss your opinions and do give your
suggestions. /veryone is invited in this e#citing journey of
building wealth.
We are also found visiting sometimes at the famous 0Adda1 of
Indian /quity investors, 2oney3ontrol.com with the user name
of 'hee#pertadvise and A4uentinvestor5.
+isclaimer6
Blog 1
'he recent sudden crash in the market has many stories, china,
7ussia, oil, wars and all doom and gloom about the collapse,
downfall, recession, stagnant growth and many such di8cult
sounding words, but in our opinion ! it has done a wonderful job
of separating the wheat from the chu% and throwing many
attractive opportunities to enter into some really good bargains
on o%er by 2r. 2arket.
9ne such opportunity that we believe is 3ords 3able industries
Limited. 'here are some very generic ordinary factors which are
all coinciding at the same time which is making it very
attractive at current prices.
Key highlights:
An over :; year old Industrial 3abling company,
established name in "
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perform, there is an opportunity in the budget and there is
a clear focus on developing infrastructure.
'hey are also into growth sectors like > solar cables,
2etro ? highway, o%ering a lot of pent up demand and
good order book.
9nce among the @orbes list of Asias best small
companies, the performance of the company went
stagnant for past few years due to sluggishness in the
whole sector and the company seems to be at the right
in=ection point to take the advantage of huge boost to
Infrastructure ? positive $scal situation of Indian ovt.
3urrent valuation o%ers a great margin of safety and
limited downside risk. 'he company o%ers a right balance
between limited =oating stock and liquidity in the trade.
A large and respected name in Indian equity investor
fraternity has acquired new equities recently in the
company on a preferential basis.
Introduction:
3ords 3able Industries Ltd. manufacture and salescommunication, control and instrumentation cables fordomestic and industrial use. Its product includes Low 'ension3ontrol 3ables, Low 'ension >ower 3ables, Instrumentation,*ignal and +ata 3ables, 'hermocouple/#tensionB3ompensating 3ables, >anel Wires, &ouse &oldWires, @le#ible 3ables and *pecialty 3ables mainly for industrial
use. 'hese products cater to a wide spectrum of cable users invarious industries like power, steel, cement, fertili(ers andchemicals, re$nery B petroleum, Water +esalination, 2etro 7ail,Airports, solar and many others. 'he 3ompanyCs clients include"&/L, D'>3, &indalco, A33, &>3L, AIL, 'A'A *'//L, *iemens,&oneywell, L?', 27>L and others
In Eanuary 9 G >riced at7s. 5:H per share and on 5: @ebruary
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India. @or the purpose of *etting up of the production facilitiesand 'o meet the long term working capital requirements of the3ompany.
•In aci$c 7egion to be listedby @orbes maga(ine in its CAsiaCs *s, ? 7ailways as their customers.
'hey are active in all major infra developments into cables for
power transmission, airport, railway, re$nery and even *olar
>ower etc.
Basic financials and growth parameters.
https://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Asia-Pacifichttps://en.wikipedia.org/wiki/Forbeshttps://en.wikipedia.org/wiki/International_Business_Timeshttps://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Asia-Pacifichttps://en.wikipedia.org/wiki/Forbeshttps://en.wikipedia.org/wiki/International_Business_Times
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LATEST 12 MONTHS VALUATION
THREE-YEAR AVERAGE
PRICE/SALES 0.8 SALES GROWTH 67%
EV/EBITDA 1 NAEPS GROWTH !8%
PRICE/EARNINGS !0
DEBT/EQUITY 2 ".0% RETURN ON EQUITY 3 "%
M: and MN re historically good.
if u read.. th prices hv come down...un line wth commodity ..
thts y sales =at
'he company is promoted by 2r OOOOO and they have been in the sameline of business since) 3ompany has been posting positive >A' numbers
since last many years and they have been rated """ e#ternally by 3A7/.Although there has been a dip in the topline of the company, but still thecompany has been able to maintain stable /"I+'A margins of appro#. 5;Pin the last : years.@or year endedB ending 2arch :5
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Control
&
Electric
alWiring
Cables
(upto
1.1 KV)
LV Power
Cables
(upto 1.1
KV)
Instrumentati
on !ignal and
"ata Cables
#$ermocouple Cables%
Control
CablesUse
d ininterconnection ofprocess
control,communication and
panelcontrol
systems.Electrical
Wiring
Cables
Used forelectricpower,
lighting &internal
wiring.
Used inconnection of
power supplyto residential,commercial &industrial units.
Used in dataacquisition
systems,computernetworking,PA systems,
digitalcontrol /measuring &
communication systems.
Speciallydesigned totransmitsignals
without anyexternalinterference.
Used toextend
thermocouple circuitsfrom thesensor to
referenceunit.
Products Tested and approved by below establishedAgencies India and worldwide – eectively !a"ing#ords$ products saleable anywhere%
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#anufacturing units.
3hopanki unit
Sahrni unit
Pro&le o' #usto!ers: (stablished na!es inB)B
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Pro!oter *uality
+is"s:
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2acro risk
Limited capacity
+elay in infra projects
2argins very low
+ecent (ntry o' ,ar*uee investor ,u"ulAgarwal%
Last : mo nths dtelivery status in cords. 9ut of only N; lac odd
available =oat.. there was a detlivery based trade fr 5F lac
share in last month.9nce the /2 happens for allotment of share.. thn more
people will know abt who he is and his investments successes..
Any major succes story u can think of ... arrow coated,
cambridge, shreyas, intellect, 2 breweries, S++L
people like him dont make loss making deals... especially in
markets like current...when capital is so scarce.. he is putting
aside RF crore in lock in.. so de$nitely he hs big plans.
>ortfolio of 2ukul Agarwal of >aram 3apital !
http6BBalphaideas.inB
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levels and the price is safe to enter. With each up move, the
price is settling at a higher base and not retracing back, this
suggests entry of more long term investors rather than traders.
-u!!ary:
.ere are so!e insights on why this co!pany is going to
be a 'uture !ega winner 'ro! the structural changes
that India and world is going to see in years to co!e%
Degligible debt ! D9 pledging, 2arket cap only J; 3r. , J;Pstock held by promoters , N;P =oating stock is concentratedamong few long term investors, and current price at veryreasonable level without any e#pensive valuation of the bullrun! 'here is every recipe in it for a safe and successfulinvestment for medium to long term.
@or a premium 2D3 subsidiary with RHP promoter holding , fast
growing industry , a turnaround candidate and with fast
increasing turnover ? capacity tili(ation, products with
established brand and entry barriers, a market cap of 5
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/actors which !a"es it an attractive play at current
price%
• Low =oat
• 3ords cable has only N; lac share in mkt... out of which
almost 5F lac traded delivery based in last one month
since mukul agarwal news..nd at least 5; lac sud hv gone
into strong hands
• 7easonable valuation 'he stock has not gone down
signi$cantly below N; in last one year ... /ven I>9 was at
5:H
• &igh sales to 2cap ratio
• /ndorsed by a big investor and an established name 'he
ne#t egm is ne#t week when his allotmemt wll be
approved.
• @und raising for working capital and meeting >ent up
demand'hey need working capital to e#ecute the order
pipeline.
• &ealthy order book 7ead the management interview on
moneycontro 'hey hav 5;; crore order pending Another
5;; crore in pipeline
• Attractive sector Last : years hv been bad fr infra sector
anyway... hw will u see the growth'hey supply cables to
railway, airports, power transmission, re$neries,
households.. *o a good pro#y to Infra nd consumer
spending. Dd they re very old company in e#istience..With
good relatiosnhip wth govt... *o must be bene$ciary of
huge govt spending on Infra in ne#t
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• 2anagement interview Link6
http6BBwww.moneycontrol.comBnewsBbusinessBfreshorders
worthrs5;;cre#pectedqNfy5JcordsONRJ