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Wonder, Wealth & Abundance

Sandalwood Oil 100,000 INR or 1,500 USD / Kg TFS Corporation Australia

with 22 comments

Written by amitdipsite

June 14, 2015 at 5:18 am

Posted in Uncategorized

22 Responses

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  1. Hi Amit, I had purchased atul auto you had recommended at 350 levels and it went up to 700 levels and again now came back to 380 levels, are you having a positive view on it for next 5 years on it, now After the recent correction in markets do you find any new stocks a good buy at current levels, thanks in advance, shailesh

    hrithik

    June 14, 2015 at 5:52 am

  2. The business Model is not Soil to Oil, rather Tree on the Land TO Lotion on your Hand.

    Amit Arora

    June 14, 2015 at 7:39 am

  3. Dear Amit,
    I am going to buy 20 acres of land for planting sandal wood and compete with Aus….🙂

    Karthikraja K

    June 14, 2015 at 12:20 pm

  4. Dear Karthik

    Make sure your trees grows fast and yes, glad to see you bring India back in the game🙂

    Amit Arora

    June 14, 2015 at 9:43 pm

  5. Hi Karthik,

    Would like to join you seriously !!!

    totalview

    totalview

    June 15, 2015 at 6:47 am

  6. CFS is providing 6 weeks of Annual Leave ! Fully paid, on top of sick/casual leave. I though New Zealand was top country with 5 weeks annual leave.

    Sandalwood is the new frontier, don't 🙂

    http://www.seek.com.au/JobSearch?SearchFrom=quick&Keywords=Sandalwood&nation=3000

    Amit Arora

    June 15, 2015 at 7:52 am

  7. Hi Amit,

    How do you like Timex ? With Company going aggressive in Indian market do you think it worth considering ?

    totalview

    totalview

    June 24, 2015 at 8:48 am

  8. Nice find,
    It seems red sanders is another product with such great potential but needs specific soil and climate conditions.

    Like sandalwood , even this product is getting effected because of Indian laws

    dasekhar

    June 28, 2015 at 6:06 pm

  9. Dear Sir,

    I have a little query regarding the stock Kovai Medical. A few days earlier Prof Bakshi has tweeted a video https://www.youtube.com/watch?v=v34NqCbAA1c where he has mentioned in comments that calculate your return & compare it with available resources. In this stock, I couldn't see it going more than 3 times by 2018. With due respect I wanted to ask can you elaborate your thoughts on its return in the next 3 years.
    After completion of chennai project they will have a 1200 bed facility with a 650-700 cr revenue. Accordingly I expect it to give Cash from operations of 140 -150 cr @ present rate. After considering its pricing power they may get 200 cr Cash from operations. At this point its market cap is 750 cr with a cash from operations of 80-85 cr. Implementing that I find its market cap 3 times from here with additional debt.

    I have read in one of your comments where you have mentioned that you don't get interested in a company where 5 times is not achieved in 5 years. As my experience is low, my visibility after 2018 is very dull in this case that's why I am asking your opinion up to 2018.

    Regards,

    Sarvdeep Malhan

    sarvdeep malhan

    July 1, 2015 at 7:08 pm

  10. Garware Wall rops are in to geo textiles? Are they making any sales progress in this area? Their AR2014 is not showing any such segment.

    Pradeep Kumar

    July 23, 2015 at 12:45 pm

  11. Hi Amit,

    Gulshan Polyols has announced it's June 2015 quarterly results. How do you look at it?

    http://www.bseindia.com/corporates/ann.aspx?scrip=532457&dur=A&expandable=0

    totalview

    totalview

    August 1, 2015 at 2:38 pm

  12. Dear Total

    Excellent is the word. Though other income means net profits have been unusually high. I have bias I am in it since 2011, for a year the train went backwards actually. It came down from 82 to 62 in 2012.

    No institution knows it, no institution owns it, so staying put it best idea. It could double and then double again easily even from 350 levels.

    On the negative side, if they show aggression in liquor segment, it could be bad, as its full of headwinds in India.

    Disc: invested

    Amit Arora

    August 1, 2015 at 8:41 pm

  13. Hi Amit,

    Could not agree more on price targets !!! Now I expect 320/340 range to be the base price. Some more inputs on Gulshan Polyols

    – New website gulshanindia hosted. Very informative and signalling the approach of Management.

    – Presently two very important projects under implementation and likely to be completed by March 2016 so as to take the benefit of depreciation and other taxation angles

    – Greenfield grain based ENA distillery project of 60 KLPD at Chhindwara costing Rs.80 crores. It is noteworthy that bottling plant is already operational and two brands have been launched in the market and feedback is positive. Sale should not pose any problem both as branded and bulk.

    – Rice based grain processing plant at Muzaffarnagar is undergoing for 200% capacity expansion costing Rs.40 crores. First one which became operational last year has turned around and giving profits.

    -Company had Rs.70 crores in cash and equivalint as on 31st March 2015. Minimum cash generation from operation activities during 2015-16 is expected around Rs.60 crores. After paying for dividend and DDT a minimum of 55 crores comes to kity. Total cash as on March 2016 is Rs.125 crores.

    -Therefore, no borrowing for these two very very substantial asset additions. Total assets as on March 2015 Rs.141 crores and these two assets alone are going to add 120 crores in Assets.

    – Antara Fund has taken a total pie of 9.35 lakh shares @ Rs.175

    -Reliance MF has bought 5.95 lakh shares from promoters @ Rs.250. These two entities hold more than 13% holding leaving promoters with 62%.

    -Any institutional buying has to come from market floating stock only.

    -No interest cost burden arising out of such a vast commissioning and expansion.

    -All existing businesses they have leadership position.

    -Business bouquet is scalable and sustainable.

    Expect split of scrips to ensure liquidity in 2015-16 and dividend to be atleast maintained @ 70%.

    -Promoters and Top Management are technically competent and capable of creating world class assets within given timeframe.

    totalview

    Disc : Invested since 2013.

    totalview

    August 2, 2015 at 10:43 am

  14. Thanks for the wonderful analysis. One personal matter I was concerned was promoters son in laws who needed money for growth if their own in established businesses, as he has two daughter as directors. So far, no issues there.

    Amit Arora

    August 2, 2015 at 7:27 pm

  15. Absolutely no issue on this count. Three deaughters – One married to a very wealthy family. Other two are thorough professionals and son-in-laws are nowhere in the picture-frame of Gulshan Polyols rather it's Dr.Jain who calls the shots. Hope this reinforces your conviction😀

    totalview

    totalview

    August 3, 2015 at 4:48 am

  16. Hello Sir,

    Can you share the story of Blue Chip Tex, your name and blogger of dalal-street.in (Pratyush Mittal's) name is in bulk deals

    http://www.bseindia.com/stock-share-price/stockreach_bulkblock.aspx?scripcode=506981&expandable=9

    Thanks

    vishalkaushik294

    August 3, 2015 at 7:09 pm

  17. This is what I responded to friends:

    I bought it for trading. If you want to buy for trading, and book loss if thing go pear shaped.

    I will not recommend this for investment, just momentum/trading activity for myself.

    The promoters do have some experience in this field and their sons are also in this business.

    Pure commodity business, they sell in open market, do not have pricing power over output.

    Input is also based on Oil

    Beekaylon is the parent company and has debt equity ratio of 2:1 (see link below)

    PAT marging 1.5% meaning with 400 Crore revenues they could do 5-6 Crores of PAT, 20-30 EPS in next 3-4 years, but risky as it will always be laden with debt and may go down to Zero on the other hand.

    Spenta International and Vinyl Chemicals are good microcaps for investment purpose

    With regards

    Amit

    Amit Arora

    August 23, 2015 at 4:45 am

  18. Hi Amit,

    Gulshan Polyols going strong in the range of 380/400 !!! 200% capacity addition to their latest plant for rice based grain processing plant for MD, DMH and Animal feeds AND grain based ENA plant to add a topline of 250 crores in 2016-17. Plants will be operational by March 2016. 2015-16 minimum expected turnover is 460 crores. 2016/17 expected turnover is around 800 crores. Operating margins around 15% will yield a operating surplus of Rs.120 crores. With interest liability being very minimum (within Rs.5 crores) as Company continues to be huge cash surplus. As on 31st March 2015 Company had a Cash of Rs.70 crores which is entirely being deployed for capex. 2013-14 and 014-15 cash accruals were 40 crs and 48 crs respectively. A real multi-bagger waiting from CMP !!!

    totalview

    totalview

    August 23, 2015 at 5:25 am

  19. Dear Amit

    Had a look at Spenta international.
    I think Virat industries is the better pick from the similar space.
    Spenta is cheap but Virat has better margins and dividends.20-30 div.pay out is amazing for a below 50cr market cap company.
    Promoters are doing creeping acquistion for both the companies but long term how these companies will stand out is a thing to watch.

    One query…brand pull have any impact in the sales of socks abroad.In India I never find a socks brand.

    Many thanks Amit.

    shanid

    August 23, 2015 at 8:25 pm

  20. Spenta did buyback last year, I found it at 9 Rs in 2009 and spoke with management, they said they will pay dividends when expansion starts saturating. Never bought it, it was too unpredictable.

    Socks do have some brand power not as much as stockings, UGs.

    Thanks

    Amit Arora

    August 23, 2015 at 9:41 pm

  21. Thanks for sharing your insights on Gulshan!

    Amit Arora

    August 23, 2015 at 9:42 pm


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