Saturday, October 24, 2015
POCL Enterprises 539195 :A good Fundamentally strong undervalued stock available at CMP 43-47 1 year Target Rs 70
About Company: POCL Enterprises Limited is a demerged company originated from Pondy oxide chemicals limited –A BSE Listed company .The demerged company POCL got listed on 25-6-2015 after the de-merger. POCL specializes in manufacturing and trading of various metals, chemicals and their oxides. The company has manufacturing units in Puducherry , Kakkalur – Thiruvallur, Maraimalai Nagar, Tamilnadu.
It has 4 manufacturing verticals catering to different industries
Metallic Oxide Division,
Plastic Additive Division: Application: PVC Pipes
Zinc Refining Division: Tires, Ceramics, floor tiles
Lead Alloying Division: Batteries, pigments and paints
Financial Performance. Company has recently got demerged so historical financial performance is not available. However from 2014-15 Annual report of Pondy Oxide and Chemicals Limited the approx. revenue of the demerged division (POEL) was 165 crores with PAT of 1.49 crores.
Company has declared formal results for first quarter ending June-2015 with revenue of Rs 47.5 crores and EPS of Rs 1.16 for quarter. Company has delivered 10% dividend for year 14-15.Going forward the revenue performance of company should improve with increase in demand from sectors such as tires, PVC pipes, Batteries, ceramics,
Valuation: Based upon Q—1-2015 financial performance the company is expected to deliver revenue of 200 crores in year 15-16 with expected EPS of 6- 7.Stock at current price of 42-46 is available at forward multiple of 6-7. Long-term investor can buy this stock at current levels with 1 year target of 70 and 2 year target of Rs 100. With Increase in PE multiple the target price could be achieved earlier as happened in past with lot of my recommended scrips.
Long term investor could safely enter in this fundamentally undervalued stock for decent returns,
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can i subscribe to ur paid service
ReplyDeletecan i subscribe to ur paid service
ReplyDeleteHi dharmesh I have not decided to go for paid services this blog is an effort to guide and encourage small investors to invest in stock market .with my experience and knowledge of stock market I will be delighted if my recommendations help investors to make money in stock market . Best wishes
ReplyDeletesir superb, by reading ur feedback
ReplyDeletemore proud of u......
thanks again again.....
Sir...thanks and all of us do appreciate your efforts. Could you please give some insight abt what are d fundamentals one shd check in a company before investing into it. I know its very subjective but some basic tips for starters pl. It wld help us in understanding the company better b4 investing......rather than getting trapped.
ReplyDeletehad blindly followed someones advice n did not check on companys value b4 investing . Hav lost abt 4 lacs this yr alone. Hope u wld not my mind getting troubled to advice for some specific stocks that I hav already invested
Any view on shree hari chemicals export
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