A few more investment ideas which have passed through the initial filters.
Alembic – A mid cap pharma company. Revenues have gone up from 550 Crs to around 750-800 Crs for the current year. Net profits in the same period has gone up from 30 odd crs to 80-82 Crs. The margins have doubled in the same period, however the ROE continues to around 20% due deterioration in inventory and fixed asset turns. The valuation at around 7-8 times PE looks interesting. Definitely worth further investigation.
Infomedia – The company is valued at around 20 times normalized earnings. The bottomline has been more or less stagnant. The reason for looking at the stock was it has appeared in rakesh jhunjhunwala’s portfolio recently. However I cannot see the value in it (and also I am not as smart as the big man to be able to see the value, so need to study the company more)
Gruh finance – A subsidiary of HDFC and selling at almost 6-7 times the latest quarter earnings. Seems to be a well managed company and worth a closer look. Diffcult to conclude from looking at the numbers alone in case of an HFC. However the company is defintely worth a closer look.
update : 06/26
Had a look at gruh finance again. It is selling at around 20 times annual earnings and 3 times book value. At this price the stock may not be over-valued, but does not look like a bargain too. A good company to track and wait for the valuations to come down a bit
Manugraph and VST – I will be posting detailed analysis for these companies in later posts.