Wednesday, March 3, 2010

DHPIndia Ltd...cmp..Rs 22.05......value buy....

I have been tracking this Co since last 15 days.I was thinking it to put it here at appropriate time but seems times will runout if I do not put today and hence it is here on front page........When I saw 15 days back it was something around 18 and it is now 22.Hence I thought before it starts runnning up,I need to put at my blog so that my readers getin early.........
DHP India Ltd is in hot sector.They are making Regulators of various types like

Propane Regulators

Butane Regulators

LPG Regulators

Hose Assemblies

Brass Fittings
The best part I see is promoters are holding 75% stake and pri corp bodies holds 7% and hence 82% is closely held.The earnings are also coming good and suppose to end at over 4 eps for the whole year.The Vol is very thin but that is because floating stock is very low and still it is not discovered by investor community.
What I liked about the Co is , they make regulars which are very essential for gas bottles and also in Gas kit in cars etc.
Try to look into this stock and if find comfortable then buy it........


  1. Rajeev,

    Glad you liked it, bought 3k @ avg rate 17.5.

    I liked their product which made me to buy stock. Its a good stock and their product is must have in household

  2. Rajeev,

    take a look @ Pee Cee Cosma Sope

  3. Mahesh,
    I remember u asked me about Shirpur Gold Refinary.
    I think Subash Chandra of ZEE has already taken substaintial stake in it but gold refining is in very nascent stage here in India and so I do not follow it so well.
    I will look into Pee Cee Cosma and revert back....

  4. Mahesh,
    On Pee Cee Cosma...
    Looking at the earnings it looks a value buy.The eps can end around 8-10 and hence at 55 it offers value.
    While going through the annoucement they have invested in UTI and other securities and that says that they have surplus money , means it is a cassh rich Co.
    What I do not understand is instead of expanding the capacity why they are deploying money in securities?
    If they will not expand the capacity how they will grow?Where will the scalability come from?How will the bottomline expand....and maybe that is the reason market is not discounting it high...The growth should come...that is what market wants...and hence the bottonline expands...but it is not visible....

  5. Amit,
    Nifty crossed ask that guy what you need to do?Ask him you sold everything as per his view and now market is over 4950 which he never said will be seen....
    I know when I write against technicals and charts readers don't like it but it is a fact that they are good for nothing....I will never believe in charts and technicals.....never..

  6. News From Financial chronicle

    MAVERICK investor Rakesh Jhunjhunwala has picked up 12.5 lakh shares, or 1.07 per cent stake, in Kolkata-based non-banking finance company Srei Infrastruc- ture Finance for about Rs 8.4 crore in two open market transactions.

    The move comes on and after the budget day after the finance minister announced plans to pro- vide banking licences to eligible NBFCs and also provide a thrust to infra- structure development.

    As per the bulk deal data on the NSE, Jhun- jhunwala's wife Rekha Jhun-jhunwala had picked up 6.25 lakh shares each on Friday and Tuesday at Rs 65.11 and Rs 69.31a share, respectively. The sellers were not known.
    The shares had closed at Rs 64.50 on Friday, up 2.78 per cent, after the budget.

    Jhunjhunwala, consid- ered one of India's most successful stock investors and dubbed by the media as India's Warren Buffett, is known to make invest- ments in companies in early stage and hold them for long durations.

    The big bull's investment in Srei Infrastruc- ture came at a time when the company is planning to merge its unlisted arm Quippo Infrastructure, a deal that has been seen skeptically by some ana- lysts and minority in- vestors.

    Ever since the an- nouncement of the merg- er plan on January 28, the Srei stock has fallen 19.08 per cent till Febru- ary 25, the day before the budget. The shares have gained 10.1 per cent in the last two sessions.

    The company posted a consolidated net profit of Rs 44.20 crore in the third quarter of financial year 2010 compared with Rs 8.77 crore in the com- parable period last year.

    After the merger an- nouncement, Pruden- tial's India Infrastructure Equity Open had sold its entire 1.67 per cent stake in Srei on January 29 in the open market for Rs 13.48 crore. "We are happy about Jhunjunwala picking up the stake and this is an endorsement of our future prospects," Hemant Kanoria, chair- man and managing direc- tor of Srei Infra, said

  7. rajeev ji please check gujrat appolo as a value gem and waiting for your comments

  8. With a very low capital base of 3 Crs and a 82% promoter & closely held shares, there is hardly anything left for the ordinary investors.

    The company has announced a 50% increase in the capacity to be completed within the current financial year. EPS for this year could be around 4 - 5.

    This company will surely be a good bet for long term investors.

  9. and sir hws murudeshwar ceramics having book value 120 and sparc any opinion

  10. Hi Rajeev

    Investing is a learning process and I have learnt my lesson. Apart from Fortis I covered up all my shares which I sold. Fortis has run up a bit. Anyways no complaints.



  11. rajeev bhai
    why is laffens petro going down???
    any particular reason

  12. sandeep,
    Nothing wrong with the fundamentals.Chance to buy at lower levels.........

  13. Hi Rajeev
    Can you please suggest if I can add more of Petron Engg consultants and Tata chemicals at this level ?
    i already hold few quantity

  14. Om,
    Tata Chem still looks excellent....not sure about Petron Eng..

  15. rocky,
    I do not track Mudreswar Ceramic...

  16. RejeevSir, you are great at picking up value buy. I invested in DHPIndia at 24 and today it is almost 29. Thanks again for your excellent guidance for small investor like me..

  17. I am holding this share for the last 3 years and there is no big return in this stock when compared to the general market. The only difference I have seen is the company's future looks more bright now than 3 years ago. Look at the volumes traded in this share in the past and then decide.

    Small stocks like this gets battered when the market takes a hit. With less than 5 lac shares in the hands of general public, there is no place for small investors to make big bucks in this stock in the short term. But long term investors entereing at current levels will stand to gain.

  18. Guru,
    I forget to look at DHP after I gave a call here and am surprised to see it is already gone up to 29.75 making a 52 week high.
    Fortunate to keep faith in my pick and buying it...

  19. The total buy & sell order qty is almost same for the last few trading sessions, suggesting someone is trying some dirty games to control the price movements.

    The company is good no doubt, but poor investors can get trapped when the price is manipulated by few maniacs.