Wednesday, October 19, 2011

Navin Flourine declares another stupendous results.....

Navin Flourine has come out again with excellent results and thereby keeping in line with what I have projected.
The Sep 2011 results shows a NP of 58.82 cr on 9.75 cr eq which gives an eps of 60.26 and Co declared an interim Div of 85% .Hence the first half or first 6 months eps lands at 120.
The reserve and surplus shows Rs 433 cr on an eq of 9.75 which we can say that the BV is over 450.
Even Petronet LNG which I have recomended for LT has come out with excellent results and can be accumalated now and on dips.
Tips Ind has also come out with excellent results.
Indag Rubber has also come out with an excellent results and can be looked upon for buying.

Just read about Venus Remedies getting awarded with Gold Category as "Patent Award" by Pharmexcil.

This has been awarded only to Bharat Serrum, Glenmark Pharna and Torrent Pharma.Venus is make great strides.......accumalate is my call now and on dips......


  1. hello rajiv ji,
    i am following venus for quite a long time.
    its true that when u read the annual report of the company you have a feeling that this is the company to have for long term in the portfolio. but rajiv ji , i talk to the field force of this company and i had the few negative points.
    1) the product that the comapny launches in the indian market are no doubt are first time formulation but the prob is the pricing of the product which is very expensive , and that is the main reason that they still nt able to achieve the kind of sales volume that they have touched being having the first time advantage.
    2.) the managment of the co is not employee favourable and that is the reason attrition rate is vary high in the co. and the segment they are in its all abt having the employees for the long term.
    but i am very optimistic about their foreign subsidiary and their third party licencing that now they start giving to sell their product in the foreign market.
    but still the revenue is not reflected in their books. buy what time u r expecting it is to be reflected in their books.

    and what is the reason you thk that this stk is languishing at such low p/e, whereas now co is issuing fccb holders equity.
    and dont u thk that the promoters are issuing warrents to them is bad and they keep on doing that.
    but still ur comments will further strengthen my belief in this stk.

  2. Manoj,
    I liked your query.I liked it more because you talked with the filed force of the Co.
    The reason , which I have already cited in past about market not giving good discounting is because Venus was on the verge of defaulting FCCB last year.
    There was news all over that those Insti who invested in FCCB wanted their money back and Venus was not able to pay that but as I wrote at that time, that was averted.
    The way Venus has been posting results and showing an EPS of over 50, it will be hard for the market of ignore such stock for long.
    If you have visited the plant as well and talked with management that would have given a real view where the Co is going.Sometimes emplyoees are not the right mirror of Co because some have problom with the management.
    The reason I am saying this is because Venus should have capital crunch as they were not able to pay the FCCB as FII who invested in it thinking that the price will go up but as market crashed in 2008 the price never went up and they wanted the money back and those were real big money.Still they are paying 30% Div and that is a good thing for shareholders.
    They have got numerous patents and I feel that that will give growth.
    See the cumulative sales figures of Venus from Mar 2007.
    In Mar 2007 it was 141 cr, in Mar 2008 it was 213 cr, in Mar 2009 it was 264 cr , in Mar 2010 it was 312 cr and in Mar 2011 it was 357 cr.
    So the sales has gone up from 141 cr in 2007 to 357 cr 2011 and that means that sales has gone up by over 100% in last 4 yrs and that is around 25% sales growth every year.
    So there is no sales growth is wrong way to think.
    The forieng subsidiary figures will be discounted in due course of time but the reason Venus not going up is something I gave reason above like defaulting in FCCB last year but that has been dealth with.
    The eq has gone up from 8 cr in 2007 to 9.13 cr and that is just 15% dilution of eq and that is not a big worry.....
    I am bullish on Venus.I may prove wrong...but that is what I will say.....