Sunday, April 4, 2010

IFB Ind...cmp..91.30....Value Pick...

Friends,
I have recomended IFB Ind 3-4 times here in a list of my pick but never wrote on it..I think it is time for me to write today on it....
IFB Ind is in white goods sector and a MNC .....and with standard of living going up for Indians ,I feel this can be a decent bet at this rate and on declines.....
When we compare its peers Co like Whirpool , 126 cr eq, eps-around 4...and price at 165....Panasonic Home Appliances..eq-8 cr...eps around 4 and price at 153.....
I feel IFB Ind is on better ground then both of them...and can say that IFB Ind is on the verge of a breakout to go higher like Whirlpool -Panasonic and more then that....
The standard of living is going to go up and hence white goods sectors are supposed be get the rerating which we are already seeing in Whirlpool and Panasonic Home Appliances....I remember Whirpool was lying dorment for years togather, maybe 10-20 yrs, around 17 and now it is 10 times from that.....
I think everyone knows the brand IFB as it can be seen at any showroom which have white goods demonstarted there......along with Whirpool and Panasonic.
Marc Faber's( owner of Gloom, doom and bloom,the one which use to come frequently on CNBC) Co, named "Winstar India Investment Co Ltd PCC -V"....has invested in IFB Ind since 2-3 yrs and they have not sold it out ..so that is an added trigger for me....This is the only Co perhaps where Marc Faber has invested in India....
So with an eq of 35 cr but eps coming to anywhere near to 12 to 15 this year...IFB Ind is going damn cheap on valuation front....I maybe wrong in understanding it...so DD is a must before anyone wants to go ahead and buy.....
But I personally feel that IFB Ind at this rate is a BUY......

9 comments:

  1. monty,
    I never came out with indepth analysis on IFB Ind and that is what I wrote in my post....
    Even in this post I have not given indepth analysis just discussed the sector and compared some parametres...more over it is almost a debt free Co...as I am not seeing any Int outgoing in results...IFB Ind has even come out of BIFR..recently and see what market is giving discount..it is already 90...the promoters have also pumped in some money for making this Co coming out from BIFR.....and that is why we are seeing eq has gone up...

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  2. Hi, you seem to have good opinion regarding the essar oil. Do you think the Ruia's have changed?.They have tried to delist essar oil in the past and what is their to stop them from trying to delist again?

    Regards,

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  3. deneb,
    Yes Ruia's are not good promoters as they never cared for shareholders and I agree with it.But the catch here is they are on buying spree and adding more and more stake of Oil fields.
    And we never know when the mind change but seems to me a great bet....

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  4. This comment has been removed by the author.

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  5. Dear Rajeev

    JSW Energy or Toreent Power which power stock is
    the best bet for long term

    1) Jsw Energy (big expansion programme during 2010-11) CMP 115
    2) Torrent Power ( Big Carbon crdit) CMP 300

    Eagerly awaiting for your advice

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  6. nirash,
    Both r excellent picks...one can't afford to lose any...

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  7. how about Adani power for long term?

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  8. mosavni,
    U saw the Mcap of Adani Power?It is 25332 cr and the sales for last qr was 233 cr,means for the whole year it can be 1000 cr max....now imagine what time Adani Power will take to touch a sales of 25332 cr?I am writing this because only when Sales will touch 25,000 cr the Mcap/sales ratio will come at par....and remember we use to find stocks which have less Mcap then sales....here the Mcap is 10 timers bigger then sales.....I know power Co have bigger Mcap but then 10 times sales seems to me much bigger...

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  9. thank you, didn't realize that.
    last thing are u tracking "prime focus"?

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