Thursday, 15 June 2017

BOOK 36% PROFIT - RISHIROOP LTD

Dear Readers, 

I would like to inform you that Yeasterday  Rishiroop was in 20% buyer circuit and i recommended Rishiroop at 52Rs for the short term target of 80Rs.

Today it touched 52 week high 70 Rs. Hence You can book the profit today.

Now it is fatching 36% profit within a two months.

Refer below details report.

Happy Investing 

Kamlesh

-------------------------------------------


Short & Sweet


Recommendation: Buy   Short term  target: 80 Rs.

Date: 15/06/2017


RISHIROOP LTD

     By Kamlesh Bavrva

CMP: 52

BSE Code: 526492

Market Capital: 51 Cr.

Face Value: 10

52 Week Low / High: 30/69

Book Value: 57.5

Price/Book Value: 0.92

Dividend Yield (%): 1.52%



Part – 1 Company Overview:


§  Rishiroop Ltd. formerly known as Puneet Resins Ltd.) was incorporated in 1984 in the State of Maharashtra.
§  The company has  factory at Satpur MIDC, Nasik.
§  It has received ISO 9001:2000 Certification. and has been a pioneer in introducing various grades of rubber compounds in India.
§  Currently its products are exported to various developed markets across the globe.
§  The Company has been manufacturing Rubber & PVC Compounds which have specialised properties such as oil resistance, flame retardancy, ozone resistance, fuel and solvent resistance, etc. These compounds are used to make products such as petrol hose, LPG tubes, footwear, auto parts, protective clothing, seals, conveyor belts, etc.

Product manufactured by the company:

1.Vulcanol
Vulcanised Vegetable Oils - For Natural & Synethetic Rubbers
"Vulcanol" (Vulcanised Vegetable Oils) is the trade name encompassing a wide variety of vulcanized vegetable oils. These materials are produced by the reaction of vegetable oil with sulphur or sulphur monochloride. The "Vulcanol" range offes a wide choice of grades that can perform as processing aids, extenders or as a plasticizer for rubber base formulations.

"Vulcanol" plays an important role in achieving specific set of properties in a rubber product, besides, felicitating smooth processing.


2.VinoPrene -  Vinoprene are a group of nitrile rubber (NBR) / Polyvinyl Chloride (PVC) blends. Certain grades of NBR and PVC are highly compatible at any blending ratio. The blend partners retain their critical individual properties while improving their overall properties synergestically.

3.Vinoplast  -  Vinoplast is the family name of NBR/PVC Polymer blends where PVC is equivalent or dominant blend partner. These materials are available in granule as well as sheet form and processed in the same equipment of standard plastics. Products from vinoplast blends demonstrate excellence in abrasion resistance, oil resistance and ozone resistance. Like other plastics, most of the grades are reprocessable.Vinioplast  is available in three regular grades, 510, 511 and 582. These grades differ primarily in mooney viscocity and NBR/PVC/Plasticizer blend ratio.


Financial:

In the March 2017 quarter Company
v Net sale increased from 38.54 to 46.08  Cr.
v Profit increased from 2.46 to 3.6 Cr.

(in Cr.)
2017
2016
2015
2014
2013
Equity
9.7
5.22
5.22
5.22
5.22
Reserve and Surplus
46.08
42.59
15.1
14.47
13.2
Revenue
48.2
38.54
28.64
35.55
44.24
YOY%
25.064868
34.567039
-19.43741
-19.64286

Other Income
1.63
2.67
0.67
0.72
0.25
Total Income
49.83
41.21
29.32
36.27
44.49
Expenditure
-44.41
-37.33
-27.03
-33.03
-40.53
Interest
--
-0.18
-0.08
-0.12
-0.17
PBDT
4.88
3.71
2.2
3.12
3.79
Depreciation
--
-0.61
-0.43
-0.34
-0.34
PBT
4.88
3.1
1.77
2.78
3.45
Tax
-1.39
-0.64
-0.39
-0.78
-1.2
Net Profit
3.49
2.46
1.38
2
2.26
EPS
--
4.6
2.65
3.83
4.32
CEPS
3.6
5.89
3.49
4.49
4.97
OPM %
10.12
10.07
7.99
9.13
8.94
NPM %
7.24
6.39
4.83
5.62
5.1
D/E Ratio

0
0
0
0.0010858


Rishiroop Ltd Shareholding Pattern:



Rishiroop Ltd Share holding Pattern
Description
Percent of Share (%)
Promoters
70.97
Public
29.03
Total
100



Investment Rational:


1.     Revenue up by 25% YOY basis.
2.     Profit rise 42% YOY basis.
3.     Strong point is company reserve and surplus has increased  every year which is a excellent sign.
4.     Zero debt company


Recommendation:

v Stock CMP is 51 Rs. and stock is trading at P/E 14.67 & EPS 3.6, Based on above all points stock may touch 80 Rs. within 6 months 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.








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