Andrew Yule & Company Limited

Dear Readers,

Equity research report on "Andrew Yule & Company Limited".

To read  full report click on

http://kamleshstockfayada.com/term_details.php?id=26

Positional / Swing Trading Call for tomorrow 20/12/2017

Dear Readers,

Positional calls..........For tomorrow 20/12/2017

Click on below link

http://kamleshstockfayada.com/trading_details.php?id=45


Happy Investing!!

Today target achieved (61%) - Fineotex Chemical Limited

Dear Reader,

Today Fineotex has closed 76 Rs and was recommended to buy at 47 on 12 Dec 2017 for the target of 70 Rs.

within 17 days it is giving 61% return......Fantastic return

Book the profit as my given target 70 Rs achieved today.

Happy investing!!

Kamlesh
==============================

Dear Readers,

Equity research report on Specialty Textile Chemical Stock.

To read  full report click on

http://kamleshstockfayada.com/term_details.php?id=25

Today 50% Return - NELCAST LIMITED

Dear Readers,

Nelcast was recommended at 71 Rs in July and before two days (27/11/2017) it touched 107 Rs and giving 50% Return within 4 months..

Today closed 98 Rs.

Superb Return

Happy Investing!!

Keep visiting website

Regards,

Kamlesh

================================

Equity Research Report- Castings & Forgings

Recommendation: Buy

Hold for 3 years

Target: 150 Rs.

Date: 15/07/2017

NELCAST LIMITED

             By Kamlesh Bavrva

CMP - 71

Company Name: Nelcast Limited

BSE Code: 532864

NSE Code: NELCAST

Market Capital: 623 Cr.

Face Value: 2

52 Week Low / High: 76/44

Book Value: 38

Price/Book Value: 1.89

Dividend (%): 45%

Promoter Share pledge: Nil

Company Overview:

v Established in 1985.

v Nelcast is having two plants in India at Gudur (A.P) and Ponneri (Tamil Nadu).

Plant-I Gudur

Location: Andhra Pradesh

Specializes in the manufacture of casting and machining made of ductile iron

Specialization: Ductile Iron Parts

Functions: Manufacture of casting and machining

Capacity: 90000 MT per annum.

Plant-II Ponneri

Location: Tamil Nadu

Specializes in the manufacture of casting and machining however specializing in Grey Iron and ductile parts

Specialization: Grey Iron Parts and Ductile Iron Parts

Functions: Manufacture of casting and machining

Capacity: 60000 MT per annum.

Total Capacity: 1,50,000 MT of Ductile and Grey Iron.

v Nelcast is the largest ductile iron producer in India.

v Today, Nelcast is one of India's largest suppliers of the finest ductile iron and grey iron castings ranging from 0.5 Kg to 260 Kg in weight. 

v Nelcast manufactures parts are used in various applications in

§  Automobiles such as the engine, transmission, suspension, axle, brake and steering.

§  Tractor industry for their requirement of various housings as well as engine, transmission and axle components.

§  Railways & the pipe fittings industries.

v Nelcast is a ferrous casting industry, producing superior quality castings for many an industry.

v Nelcast has got ISO 9002, QS 9000, and TS 16949 certification.

v Nelcast has also been awarded with the ISO 14001 & ISO 18001 certifications in 2010 in recognition of its commitment to the Environment as well as Health & Safety.

Manufacturing: Foundry

v Nelcast is having foundry with manufacturing units located in Gudur, AP and Ponneri, TN, both in South India with

Ø Moulding Shop

Ø Melting Shop

Ø Core Shop

Ø Quality Control’

Ø Machine Shop

Machining Division:

Horizontal Machining Center

Vertical Machining Center

Carl Zeiss CMM

Zoller CNC

MCV400S VMC

LT20C Turning Centre

Products:

1.Automobile

Wheel Hubs

Brake Drums

Differential Carriers & Axle Housing

Slide Support

Shackles

Brackets

2.Trailers

Foot Mounting & Torque Rod

3. Engines

Cylinder Blocks

Heads

Fly Wheels

Crank Shaft

Bearing Cap

Engine Support

Exhaust Manifolds

4. Tractors

Transmission Case

Centre Housing

Rear Axle Housing

Hydraulic Lift Cover

5. Railways

Inserts/Shoulders for Concrete Sleepers

6. Pipe Fittings

Ductile Iron Fittings - Size4" & Above

7. Machining of cast iron driveline components

Export:

Nelcast is exporting his products to USA,AUSTRALIA,EUROPE Countries.

Customers:

Nelcast Ltd Shareholding Pattern:

Share holding Pattern
Description	Percent of Share (%)
Promoters	74.53
Public Share	25.47
Total	100

Focus on - Financial Results March 2017:

v Nelcast Limited, has recorded standalone revenue from operation Rs 146.7 crore for the fourth quarter, ending on March 31 2017 compare to previous year 144.4 crore ending on March 31 2016.

v Nelcast Ltd, has recorded standalone profits up to Rs 8.5 crore for the fourth quarter, ending on March 31 2017 compare to previous year 6.4 crore ending on March 31 2016 up by 32%.

v For the year 2017, ending on March 31, the standalone net profits surged to Rs 34 crore from the Rs 31.8 crore registered last year 2016 up by 7% on YOY basis.

Nelcast Limited (Rs. in Lakhs)
	Quarter Ended		Year Ended
Particulars	31.03.2017	31.03.2016	31.03.2017	31.03.2016
Revenue from Operations	14671.02	14447.0	63764.34	62460.48
Other Income	nil	nil	nil	nil
Total Revenue	14671.02	14447.0	63764.34	62460.48
Profit from operation before other income, finance cost and exceptional items	993.42	909.56	5060.82	5106.6
Net Profit	849.25	642.04	3398.39	3186.93
EPS	0.93	0.74	3.91	3.66

Nelcast Limited
Particulars (Cr.)	Mar-16	Mar-15	Mar-14	Mar-13	Mar-12
Net sale/Revenue	574.55	560.69	544.89	515.16	507.6
Other Income	4.55	2.09	1.73	2.43	1.91
Total Income	579.1	562.79	546.61	517.59	509.51
Total Expenses	530.1	516.59	517.06	481.3	488.81
Interest Expense	6.15	6.96	4.68	1.85	3.05
Depreciation & Amortization	13.42	12.86	12.65	12.84	11.11
Total Tax	15.02	14.32	7.6	13.8	6.79
PBDIT	68.57	66	46.88	50.98	34.85
PBT	49	46.18	29.55	36.29	20.69
Net Profit	33.98	31.87	21.94	22.5	13.91
Operating Profit	64.02	63.91	45.15	48.55	32.94
NPM Margin%	5.68	4.02	4.36	2.74	0.26
Debt to equity Ratio	0.26	0.29	0.29	0.34	0.35
Current Ratio	1.4	1.46	1.69	1.54	1.43
EV/EBITDA	7.82	6.74	3.81	6.05	2.87
ROE	10.44	7.79	8.42	5.52	19.06
ROCE	9.1	6.48	6.57	4.38	17.21
Equity	17.4	17.4	17.4	17.4	17.4
EPS	3.66	2.52	2.59	1.6	5.32

Financial Chart:

Investment Rational:

1.Cash rich company with low debt to equity ratio < 1.

2.Constant revenue growth of company with moderate profit

3.Nelcast is the largest manufacture of ductile and Grey cast iron company in India

4. Due to India economy growth, Automobile industries will boost up and due to that Nelcast will be benefited in future

5.Indian government is focusing more on agricultural so tractor demand will boost and due to that Nelcast will be benefited in future.

6. As company raw material is west iron and others metals so due to GST low rate (5%) on iron and steel industry, company profit margin will be increased.

7. The company is exporting product to USA,Australia and Europe countrie and export customers include Arvin Meritor, ZF Lemfoder, Caterpillar, Dobbie DICO, etc

8. The company had installed the Kunkel Wagner High Pressure Moulding Line at Ponneri in 2001 and Inductotherm Pouring Tundish  with Visipour at Gudur in 2013 which will boost the company production and quality and will be benfited in future.

9. Over the years, Nelcast has successfully focused on updating technology, improving skills, increasing productivity and augmenting infrastructure. These strengths have helped the Company gain a distinct edge over competition.

10 Nelcast Ltd current P/E is running below Industry P/E.

11. Peer company’s Stock price in same business is running above 150 Rs. and Nelcast is available at only 71 Rs which is reasonable due to low P/B – 1.89.

Recommendation: Stock CMP is 71 Rs. and stock is trading at P/E 18 & TTM EPS 3.91, based on all above investment points , stock may double within a 3 years’ time horizon.

Please note:

v Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure:It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.