About Company: Bloom
Dekor Limited (Bloom) manufactures and sells high pressure decorative laminate sheets
and wooden doors used in the furniture industry, and in the interior decoration
of the residential and commercial buildings sector in India. The company sells
its laminate products under the brand names BLOOM and OLIVE. It has its
manufacturing facility in Sabarkantha (Gujarat).
BLOOM is India’s leading manufacturer and exporter of
decorative laminate present in 24 countries.
Company has some very innovative ways of selling directly to
customer through there website thus are actually doing eCommerce sales. Very
few companies of such size are practising such business. That reflects the
transparency of doing business
Financial
Performance:
|
Q-1-2015
|
2015
|
2014
|
2013
|
2012
|
2011
|
|
|
Revenue(Cr)
|
15.91
|
63.16
|
63.64
|
63.53
|
53.19
|
43.03
|
|
Other Income
|
0.09
|
0.9
|
0.86
|
0.3
|
0.34
|
0.47
|
|
Total Income
|
15.99
|
64.05
|
64.51
|
63.84
|
53.53
|
43.49
|
|
Expenditure
|
-13.67
|
-55.9
|
-60.76
|
-57.53
|
-48.41
|
-40.24
|
|
Interest
|
-1.26
|
-3.92
|
-4.23
|
-3.33
|
-3.3
|
-2.68
|
|
PBDT
|
1.07
|
4.23
|
-0.49
|
2.97
|
1.82
|
0.57
|
|
Depreciation
|
-0.64
|
-2.76
|
-1.39
|
-1.13
|
-1.21
|
-1.04
|
|
PBT
|
0.43
|
1.47
|
-1.87
|
1.84
|
0.6
|
-0.47
|
|
Tax
|
--
|
-0.78
|
0.22
|
-0.74
|
-0.02
|
0.04
|
|
Net Profit
|
0.43
|
0.69
|
-1.65
|
1.1
|
0.58
|
-0.56
|
|
Equity
|
6.85
|
6.85
|
6.85
|
6
|
6
|
6
|
|
EPS
|
--
|
--
|
--
|
--
|
0.97
|
-0.94
|
|
CEPS
|
1.55
|
--
|
--
|
3.72
|
2.99
|
--
|
|
OPM %
|
14.61
|
12.9
|
5.88
|
9.92
|
9.63
|
7.56
|
|
NPM %
|
2.67
|
1.09
|
-2.60
|
1.73
|
1.09
|
-1.00
|
|
Dividend
|
|
6%
|
|
8%
|
5%
|
|
.
Investment Criteria:
Apart from expected improvement in
demand of products locally export could see big jump in coming future as
laminate export business in future is going to be concentrated in India hence
all laminate manufacturers are going to see huge demand and are currently
working on expansion of manufacturing facility. Bloom being a small company
should also experience the same rise in demand.
Share Holding:
Promoters hold approx. 52% and interestingly company like Bennett and Coleman
hold 9% and other HNIS hold another 20% thus stock is available in strong hands
which reflects confidence in the future business of company.
Valuation: Stock
at current valuation looks bit expensive but in last quarter ending June-2015 Company
has come back to black by controlling cost and improving margins. If it
declares similar September quarter results stock can get rerating and easily
cross previous highs of Rs 36.65 created in July-2015 .Going forward improvement
in economic sentiments and increase in export should help company to perform
better year on year. Stock has potential to give exponential returns in next 2
-3 years.
Investors can buy at current levels of Rs 27-29 and hold for
2-3 years for multiple returns.
Got in at 30. Feels odd that Times of India guys hold shares of a wood and doors company after all, that too in such a low market cap
ReplyDeleteWhy do you recommend this, its so illiquid and hits circuit at any trade point. Its also not a value stock. Any reasons for specific recommendation sir
ReplyDeleteHi, I am happy you asked this.Share prices are not based upon the historical performance of company but it is governed by what company is going to do and deliver in future.Similarly if you look at prices of listed companies which are into laminates and ply business the price is based upon thefuture performance and growth possibility and on that basis PE gets adjusted.If you look at curent leaders in this industry Century ply and green laminates they enjoy PE of 25-30.On the other hand small other laminate companies like stylam,archid ply,rushil decor they comand high PE in range of 20-25. Such PE to similar industries indicates future business potential.I realized BLOOM dekor was also doing well and expanding looked undervalued at CMP that is why it was recommended.The stock recommended in this blog are purely on my personal research and i reserve right to be wrong in my research and judgement so investrors should do there own research before getting into any stock if one is not convinced should not get into the same.Also such on such small caps one should not buy big qunatities.Liquidity is for HNIS,FIIS and DIIs small investors normally buy 200-500 qty so any counter which is not so liquid should not be a major concern for small investors so low market cap should not be a worry. As far as Benett coleman holding is concerned you may visit bse website and check for share holding pattern to verify the same.I am personally very bullish about laminate business and ther are very few good listed midcap companies in this space.In case you are not comfortable investing in BLOOM you may consider Green lam industries which also has good potential to go up in next 2-3 years and has higher market cap.I am holding Bloom Dekor.
ReplyDeleteThanks for the reply.
ReplyDeleteI am not doubting anything, I read the previous years Annual report and this years as well. I am only asking if you have any more news on their expansion since you particularly mentioned that you are thinking its a multibgger. They are expanding, they are a good company, their management had a few issues with its promoter having parallel interests in laminate business and wood rates being higher, since all of these are solved I think its good for the overall sector. I hard on further digging that ToI has a holding for the ads they give frequently in news papers, but 10% is a big stake just for ads!! Thinking hard on this one. This company has a good market brand and understanding and is catering to the premium range, so long term it can get good margins, it turned around from -ve EPS to Rs. 1/- EPS this time on PNL. Its revenues are slowly going up over the last 5yrs. I am satisfied, yet not convinced.
http://forum.valuepickr.com/t/bloom-dekor-a-plywood-and-lamination-microcap/3205/11 there is a discussion on this after your post sir in a blog
ReplyDeleteHi Liondewarangal, My suggestion would be when you are not convinced about any stock investment please don't invest.You should be first convinced about a company performance,it's products and it's future then only one should take an investment call.
ReplyDeleteI am happy some one is taking note of my recommendations and sharing in some forums....Thanks
hi i am piyush mehta from mumbai i hold a few stocks which are giveing good returs infact very good returns (2000%) so iwnt to knw how to analyze such stocks now i just bought them with very little knowing about stocks
ReplyDelete