Recent Buy : Grauer & Weil (India) Limited

October has been a very busy month for me as I had to travel to Mumbai to take care some my work commitments.

I was in Mumbai for almost a month and In that stay on one of the weekend my friend had taken me to a mall in Kandivali. This Mall was very crowded, we had some snacks and watched a movie and spent the rest of the day shopping.

I was impressed at how neat and well maintained the mall was and curiosity kicked in. So I googled the mall name ‘growel 101’ and tried to get information like ‘Who owns the mall?’, ‘Is that company in the Stock market?’, ‘Is the company good?’ ..etc

I was surprised when I read that this mall is part of  Grauer & Weil (India) Limited.  coz I am under assumption that it is a Chemical sector company. After doing my due diligence I felt like I need to have this stock in my portfolio.So I pulled the trigger and bought the stock of “GRAUER & WEIL(India) Limited“.

Before going into the details I bought

160 Shares of GRAUER & WEIL(India) Limited on Oct 23rd 2017 for Rs 62.56 per Share

I am not going into any kind of analysis here, I will just highlight some key points mentioned in their Annual report that impressed me and led me to buy this stock.

Before doing that I want to give you guys a suggestion, Please do not buy stocks on reading some blogs or newspapers or financial TV shows. Please do your own research or take help from certified financial Analysts before starting to invest your hard earned money into stock market.

OVERVIEW

Grauer & Weil (India) Limited or Growel is the only company in India and one of the few in the world that offers complete corrosion protection solutions on all types of substrates across various industry segments.  Growel became the first Indian surface finishing solution company to be AS 9100 certified in 2016. The manufacturing activities consist of four divisions – Chemicals, Engineering, Paints and Lubricants. Growel’s 101 mall is the retail & real estate division of Grauer & Weil (India) Limited.

Growel strength lies in its six plants, a countrywide sales network of over 100 dealers and distributors, supported by over 35 branch offices, depots and technical service centers.

OUTLOOK & PERFORMANCE

The highlights of Financial Performance of the Company for the year under review are:

  • The Net Profit after Tax for the year grew by 31.22% to Rs. 512.37 Million.
  • The Company spent Rs. 159.37 Million in Capital Expenditure.
  • The Long Term Borrowings increased marginally by Rs. 0.95 Million to Rs. 3.87 Million.
  • The Working Capital (Net Current Assets) increased by Rs. 426.78 Million.
  • The Debt Equity Ratio of the Company further improved to 0.07 from 0.10. The Company has repaid all its long term debt and is operating at a very low or nil level of working capital utilization with its consequential savings in interest costs.

Below are pictures I have taken from Grauer & Weil (India) Limited’s Annual Report from 2016-2017

Income Distribution

 

 

 

 

Gross Sales and Operating Income for Past 5 years

 

 

 

 

Debt To Equity Ratio for Past 5 years

 

 

 

 

Profit After Tax (PAT) for Past 5 years

 

 

 

 

Networth for Past 5 years

 

 

 

 

 

Finally After looking at the stats and Annual reports for past 5 years I felt like Grauer & Weil (India) Limited is a quality company and should be part of my portfolio. I would love to see a dip in its stock price to increase my stake in the company.

I will be adding this scrip to my portfolio as I invested Rs 10009.49 for 160 Shares of Grauer & Weil (India) Limited.

P.S: Please click on Grauer & Weil (India) Limited to download the annual report for year 2017

 

 

Disclaimer : I am not a financial professional. I’m just a regular guy that is self-taught about investing. I am responsible for my decisions and you for yours. Any information received from this website is for informational/entertainment purposes only and should not be taken as investment advice. This site and author are not responsible for losses of any kind by readers. Investments can lose money. Please do your own due diligence and consult a financial/investment professional before investing any of your money.

Recent Buy : T.V. Today Network Ltd.

I have been working on few stocks to narrow down the best stock to put my money in for month of September 2017. In this month, market has been volatile and I have been watching the price of stocks going up and down erratically.

As an Investor I want to invest my hard earned money into High Quality Businesses. In my opinion good companies should be profitable every year and should be sharing their profits with the shareholders.

I am fortunate enough to find the company T.V. Today Network Ltd. for an attractive price after significant price drop recently, So I pulled the trigger and bought

37 Shares of T.V. Today Network Ltd. on Sep 6th 2017 for Rs 266.76 per Share

I just want to highlight some of the important stuff that is mentioned in their Annual report which helped me to pull the trigger.

Overview

T.V. Today Network Ltd. (TVTN) is an India-based Company engaged in broadcasting operations. Part of India Today group, the Company operates mainly in two segments namely television and radio broadcasting.
The Company operates four news channels namely

1. Aaj Tak
2. India Today
3. Tez
4. Dilli AajTak.

The Company also operates three FM radio stations under brand ISHQ 104.8 FM in Delhi, Mumbai and Kolkata.

OUTLOOK & PERFORMANCE

  • For year 2016-2017, Aaj Tak has maintained its Leadership among Hindi News Channels in the new Audience Measurement System BARC with a Market Share of 16.8%
  • India Today TV channel has consistently grown to become the No. 2 English News Channel with a Market Share of 22.7%
  • The Hindi News channel “Tez” from the Network has already left behind
    established news channels like NDTV India, India 24×7 and DD News with
    5.4% share in 2016-2017.
  • The Delhi focused channel from the Network – “Dilli Aaj Tak” is also delivering good ratings with a market share in Delhi of 3.1%
  • On standalone basis your Company’s revenue from operations for FY 2016-17 at `572.77 Crores has been higher by 5.67 % over last year (`542.02 Crores in FY 2015-16).
  • Profit before tax has been `162.02 Crores as compared to `113.75 Crores
    in the last year.
  • Profit after tax has been `107.88 Crores as compared to `60.84 Crores during the last year.

 

I don’t want to delve into any kind of analysis here as I am not SEBI certified Analyst. So I just highlighted some stuff the company mentioned in their Annual report.

Finally I felt T.V. Today Network Ltd. has solid free cash flow generation and good balance sheet and available for good price.I would love to add more shares from the company if the price comes down.

I will be adding this scrip to my portfolio as I invested Rs 9,868.98 for 37 Shares of T.V. Today Network Ltd.

 

P.S: Please click on T.V. Today Network Ltd. to download the annual report for year 2017

 

 

Disclaimer : I am not a financial professional. I’m just a regular guy that is self-taught about investing. I am responsible for my decisions and you for yours. Any information received from this website is for informational/entertainment purposes only and should not be taken as investment advice. This site and author are not responsible for losses of any kind by readers. Investments can lose money. Please do your own due diligence and consult a financial/investment professional before investing any of your money.

Why middle class Indians are scared to invest in stocks?????

I have a question to the people who are between age group 25-35 years, Have you ever tried to tell your parents that you would be investing your hard earned money into Stocks???

I bet 99% of your parents would straight away think you are crazy or you are being conned by some stock broker who will usurp your savings. In the year 2006 I faced the same issue, I saved around Rs 100000 and wanted to invest that amount.

Then I asked my Father if I should invest that amount in stock market. He told me about some scary incidents where his close friends who traded stocks lost around 20-30 Lakh Rupees.

After hearing that, I didn’t even do due diligence on stock market. I simply came to a conclusion that if you invest your money into stock market then you will simply loose your money.

In India I guess there are 3 reasons why people lost their money in Stock Market.

  1. Lot of People Traded Stocks instead of Investing into them.
  2. Most of the people traded on rumors and tips, rather than facts.
  3. Lack of education on Stock Market and its instruments.

Later in 2010 I came to US on an onsite assignment. This event has changed my perspective on the stock market. My project Manager who is an American told me in a conversation that 52% of Americans invest their savings into stock market.

Then I was surprised and then I raised my apprehensions on investing savings in stock market. Then he asked me few simple questions.

  1. Are you a trader or investor?
  2. Why do you want to trade or why do you want to Invest?
  3. Did you learn about fundamental Analysis?
  4. Did you read an Annual report of a company?
  5. Do you have any idea on reading Profit/Loss statement, Balance sheet or cash-flow statement?

I told him I don’t know or I don’t have an answer to those questions. He smiled and told me that I am a lucky guy coz without any knowledge about stock market If I tried to trade or invest I would have lost my money.

So my guess is, we got scared of stock market because we didn’t know what we are going to face. So most of my parents generation stayed away from stock markets due to this and instead invested into Fixed deposits or Life insurance or Real estate.

I guess now is the time we need to overcome the fear of investing in stock market. We can overcome the fear only through education. There are lot of free articles on google who can educate on understanding stock market, Analyzing an Annual report etc.

One good example is StockEdge app. This is an excellent source for education on stock markets and analysis of a stock. They have very good videos which can give basic information on stock markets.

Feel free to include any other free Education links on stocks in comment section.

So, These are my thoughts. What about you guys? do you feel the same way????

 

Income/Expenses for month of August 2017

This is my attempt to track each and every rupee I earn and spent. I would like to be accountable and this will help me to identify where I am spending more and see If I can try to reduce my spending and try to invest the balance amount.

Income for Month of August 2017

IncomeAmount
Job PaycheckRs 86,200
Other IncomeRs 0
Total IncomeRs 86,200

 

Expenses for month of August 2017

ExpensesAmount
RentRs 25,000
Apartment MaintainanceRs 3000
Washing Machine EMI (12 months)Rs 4376
ElectricityRs 1100
DiapersRs 3840
PetrolRs 6000
MaidRs 3000
MilkRs 4000
GroceriesRs 8000
CableRs 250
Entertainment (Movies/Restaurants/Pubs)Rs 6000
School FeeRs 2500
InternetRs 1700
GymRs 1300
MobileRs 700
Wife'y Parlor expensesRs 2000
Misc. ExpensesRs 4000
Total ExpensesRs 76,762

 

So Total savings for this month comes to Rs 9438. In this I am planning to invest all the savings into Stock market. I am planning to buy a Stock in next 2 to 3 days and I would be posting the details of it in coming weeks.

When I deep dive into my Income/Expenses details, I am able to save 9.1% of my Total Income. Which I consider pretty bad, My Ideal target of saving’s percentage would be 20%.

Entertainment and Misc. Expenses are the categories where I can try to spend less. I will make plans in reducing the spending in coming months.

As my Maid is pretty inconsistent in attending the chores daily, wife’y and me thought It would be a good investment to buy a washing machine. So In August I bought a LG 9 kg Fully automatic Front load washing Machine . We bought this on my credit card for Rs 49,000. I have taken the option of EMI for 12 months.So I would be paying off around Rs 4376/month.

I guess these numbers reflect the expenses for most of the aam Junta. Overall I guess I made good choices in month of August, For e.g Starting the Blog, Investing in SUNPHARMA,etc..

So Guys how did you do in August??

Recent Buy : SUNPHARMA

From last one month, I have been trying to zero on a stock to kick-start my portfolio. First thing I did was, I logged onto www.moneycontrol.com  and went to a subpage called “Sector Scan” and filtered the result set by selecting ‘Quarter to Date’.

 

Then I observed 2 sectors were badly hit in this quarter.

  1. Tobacco
  2. Pharma

Tobacco sector is down by 13.41% and Pharma Sector is down by 5.52%.

So I thought let me begin my portfolio with Pharma Sector and started filtering pharma stocks based on the Market Cap. and Below are the Top 2 stocks I have on my screener.

  1. Sun Pharma  (1,18,333.82 Cr)
  2. Cadila Healthcare  (51,386.76 Cr)

I selected SUNPHARMA as it has highest Market Cap. and I started looking into the company’s annual reports and went through news feed about their quarterly results etc.

SUNPHARMA had a bad June Quarter and its stock price took a dive and from the reports I read I understood that one of the US subsidiary didn’t do well in their sales dept.

On bright side SUNPHARMA has good sales this quarter in India and rest of the world.

I read in their annual report that their specialty drugs are yet to bring profits.

I am gonna stop here coz If I deep dive into this then it will be another Stock analysis on SUNPHARMA.

So bottom-line,  I felt SUNPHARMA is a quality stock with quality products in pipeline and it is compelling enough for me to initiate a small position here and lets see how things move from here.

I purchased 10 Shares of Sun Pharmaceutical Industries Ltd.(SUN PHARMA) on Aug 11th 2017 for Rs 457.74 per share.

So what are your thoughts on SUNPHARMA? is it undervalued? 

Thanks for reading!!!

 

 

 

Disclaimer : I am not a financial professional. I’m just a regular guy that is self-taught about investing. I am responsible for my decisions and you for yours. Any information received from this website is for informational/entertainment purposes only and should not be taken as investment advice. This site and author are not responsible for losses of any kind by readers. Investments can lose money. Please do your own due diligence and consult a financial/investment professional before investing any of your money.

 

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