HIDDEN GEM (INFRA SECTOR GOOD DAYS AHEAD) :::::::::: ACTION CONSTRUCTION EQUIPMENT (ACE) TECHNO-FUNDA PICK

Scripscan:Action Construction Equipment Ltd
CMP:55
Traded in:Nse-bse

Story:ACE manufactures mobile cranes, mobile tower cranes, loaders and backhoe loaders,Tractors.Action Construction Equipment: The company is engaged in the manufacturing of mobile crane in India. It has entered into series of marketing tie-ups with leading foreign companies like Autogru PM-Italy, Zoomlion-China, Maber-Italy, Tigieffe SRL-Italy, which facilitate the availability of latest technology and machines from around the world.

 The material handling and construction equipment industry is witnessing substantial action with a thrust on the infrastructure sector. As per the Construction Industry Development Council, construction equipment accounts for up to 22-24% of the total project cost in sectors such as roads, power, dams etc.ACE derives 50-60% of its revenues from repeat orders and maintains an order book. Since this is not a long gestation business, orders are placed only 3-4 months prior to the expected requirement and hence, the order book does not accumulate like in other equipment sectors like power plants.While the company has a decent market share of 60% in the domestic market.The outlook for the company and the sector is quite strong. However, rising raw material prices remain a cause for concern.The company is expected to maintain its current growth rate and can improve its margins further, as revenues from tax-free zones add to its bottom line.

FUNDAMENTAL ANALYSIS 

Infrastructure activities are picking up quite rapidly. As Modi Goverment Main focus is on Infrastructure development. We are optimistic that the company would be able to maintain its numero uno position within the domestic pick-and-carry cranes segment. Further, the company's wide range of product offerings, wide pan-India distribution network, and recent cost cutting initiatives, put it in a strong position in comparison to its peers. Given the backdrop of strong earnings growth and RoE expansion potential, Financial Performance improving QOQ 2016-17E earnings per share of Rs 2.40 and arrive at a Price target of Rs 75-90 for the stock. (45-65% UPSIDE)
 

TECHNICAL ANALYSIS 

 Investors can Buy the stock, given good prospects of the infrastructure sector.

STUDY OF YOUR OWN ......... IF U BULLISH ON INFRA SECTOR AND HAVING FAITH MODI JI WILL DO FOR INFRA GROWTH YOU CAN'T IGNORE THIS LEADER.

HIDDEN GEM :::::::::::: PILANI INVESTMENT (VIRGIN STOCK)

Pilani Investment and Industries Corporation Limited is an Investment Company registered with Reserve Bank of India as a Non- Banking Financial Company without accepting public deposits.

Share Capital 7.54 Cr......Reserves 878 Cr. Book Value Rs.1450 (approximately)

Hold Many blue chip investments listed and in unlisted space worth 11000 Cr as per Current Valuation. Pilani Investments if we calculate its Investments Valuation that comes around Rs.13000-13500 per Share. Which Makes this share attractive. 

PILANI INVESTMENT HOLDS HINDALCO 29185398 SHARE WORTH 525 Cr

PILANI INVESTMENT HOLDS CENTURY TEXTILES 34220520 SHARES WORTH 3250 Cr

PILANI INVESTMENT HOLDS KESORAM INDUSTRIES 27338750 SHARES WORTH 400 Cr

PILANI INVESTMENT HOLDS GRASIM 4324668 SHARES WORTH 430 Cr

PILANI INVESTMENT HOLDS ULTRATECH 2457309 SHARES WORTH 920 Cr

PILANI INVESTMENT HOLDS MANGALAM CEMENT 1120000 SHARES WORTH 33 Cr

PILANI INVESTMENT HOLDS 187098 SHARE WORTH 28 Cr

PILANI INVESTMENT HOLDS 187098 SHARES WORTH 3 Cr

#LISTED INVESTMENTS VALUATION 5500 Cr
#UNLISTED INVESTMENT VALUATION 4500 Cr

#RESERVES 900 Cr

NETWORTH AROUND 11000 Cr

ONE CAN STUDY THIS STOCK IF WE GIVE 75% DISCOUNT AS HOLDING COMPANY MEDIUM TERM TARGET AROUND Rs.3400-3550+ (100% UPSIDE) CMP Rs.1810

SHAPING INDIA TOWARDS SUPER POWER :)

DREAM TO SEE INDIA NEXT SUPER POWER --- " DREAM Is Not What You See In Sleep ..... Is The Thing Which Dosen't Let You Sleep "

Many FII Brokerage Houses See GDP may be hit Due to DEMONETISATION .....But We don't see More then 0.50-1% impact on GDP .....That is also For Shorter Span Of Time 2 Qtrs Maximum ..... We always Forget We Are Developing Nation ..... Our Demand may Halt For 2-3 Months Once Money Circulation Will Be okay We will Be Again Back On Track. Being a Fundamental Analyst we see Growth Prospects, Earnings of the Company.....Right Now in One or Two Qtrs We might see some Halt in Revenue Growth as well as Bottom Line due to Lack of Demand, But once money cycle will be okay again they Come Back with Full Force.

Whatever Money Government is Going to Collect as Taxes on Black money is Going to be Spent On You ..... In the Form Of Good INFRASTRUCTURE, MEDICAL FACILITIES etc.

We See Government will Boost Our Economy By Giving different types of Sops to Industry as Well as Business Community in Forthcoming Budget. TAX BENEFITS.

Public and industry at Large Can also be Benefited due to Lower Interest rates .... Easy Finance availability .....which will ultimately Boost the Demand. 

When I was in MBA ..... FIRST lesson is FINANCE is the LIFE BLOOD OF ANY BUSINESS & COUNTRY LIKE INDIA WHICH IS DEVELOPING AND GROWING FASTER ..... DEMAND IS LONG LASTING.

BUY QUALITY ..... ALREADY MANY BLUECHIPS CORRECTED 30-40% ...... We don't See Nifty Below 7500 and Sensex Below 24500 .....Buy In slots don't buy in one Go. 

WE SUPPORT PM ......NYC STEP TO PROVIDE CLEAN ECONOMY TO OUR FUTURE GENERATIONS. 

SMALL CHANGE TODAY ....... BETTER FUTURE TOMORROW 

CHANGING ENVIRONMENT....... FUTURE IS BRIGHTER FOR GAS COMPANIES

TODAY NO ONE SEE BIG GAME CHANGER GAME IN GAS SECTOR .............WITH TIME WHOLE INDIA WILL RUN FOR THIS SECTOR!!!

EDUCATIONAL PURPOSE ------ Can OPTIEMUS INFRACOM LIMITED Will Be INDIAN FOXCON In Making ????

Optiemus infracom Bse code 530135

India's Foxcon in making Optiemus infracom

Best and profitable business

History

The company was involved in distribution of Samsung mobiles however due to drop in sales for Samsung and low margin in distribution company, they decided to manufacture handsets in India .

They have tied up with wistron the fortune 500 company, who manufactures mobile for Apple, Google etc.

Best part is that the company got breakeven within the 1st month of manufacturing mobile.

One can refer to

http://m.focustaiwan.tw/news/aeco/201608200010.aspx

The margin on manufacturing would be around 12-18% as compared to 2% earned earlier as they would be also making PCB printed circuit board.

The results from manufacturing would be announced in September quarter. The share price is expected to be big in Future.

Initially company have capacity of 6 lakhs handset per month which is expected to grow around 10 Lacs by end of March 2017 and 20 lacs by mid of 2018.

Key cliental

HTC, Oppo, one plus and LG

Additional facts

Besides manufacturing they also have a plan for single service center for all major mobile brands.

One can refer to management speak below

It is a matter of great pride for us to actively contribute to the growing manufacturing ecosystem in the country. Embarking on this new journey, we intend to emerge as one of the top three contract manufacturers in the country in the next years. Our collective expertise in design, manufacturing, distribution, retail and after sales services will provide a holistic solution for brands in India.

Soon company will also be exporting mobiles from India .

http://economictimes.indiatimes.com/tech/hardware/chinese-korean-smartphone-companies-look-at-sourcing-from-india/articleshow/52950245.cms

Company Subsidaries & Business

Promoter holding 75% 

Ganpati Bappa Morya :)

Ganpati Bappa Morya  

CONSUMPTION THEME & GOOD MONSOON BENIFICARY .............HIDDEN GEM "LT FOODS"

We feels that food product companies has got good potential in India and LT Foods is a company which is available at PE multiple of 10, which is very reasonable valuations. LT Foods has its rice mill factory at three locations which is Sonipat, Amritsar and Bhopal. The brands of the company are Daawat and Heritage. This company has a strong distribution network not only in India but also overseas. About six years back this company acquired a US company called Kusha Inc, which has got a 48% market share of the US rice market. This has been a big positive for LT Foods.If we see financials of the company, EPS of about Rs 22-24. So the stock is currently trading close to Rs 242, which is available at a PE multiple of 10. Recently the India Agri-Business fund advised by Rabo Equity advisors has taken a stake not just in LT foods but also in one of the subsidiaries of LT Foods which is Daawat Foods Ltd. Given all these factors the food product companies have got good potential in India and LT foods is a company which is available at PE multiple of 10 and this is available at very reasonable valuations compared to its Peers. Big Players also Invested in this sector because consumption is ongoing Process.

Note-- Study this company of Your own Before Investing .......Educational Purpose