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 : 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.