Jun 25, 2015

NCL Industries: Value and Growth Stocks

NCL Industries manufactures Cement and PreFab material. NCL Industries is the only manufacturer of Cement Bonded Particle Boards (CBPB) in the country, marketed under the brand name Bison Panel.
The board is used for false ceiling, Wall, and partition.
Board division is doing good and with increase demand in construction activity, board business will improve.

78% of Turnover comes from Cement.
Board business gives 13%.
Hydel Power contribute 2% of total turnover.

Before Bifurcation of Andhra Pradesh, business was hit due to agitation etc. After bifurcation of state, lots of construction work need to be done. Both states are trying to do good in business front. This company has done very good in recent quarters. In past, it was in loss.

Recently, insider buying has happened aggressively. Kalidindi Ravi is Managing Director of NCL Industries has acquired major chunk recently (Mar and Apr). He hold 6.8% of shares now. May 26, 2015:
Recently Promoters has allotted 17 Lakhs equity shares at premium of Rs 12 according to resolution passed in Apr 2014.

CMP: Rs 76.25,
PE = 35,
P/S = 0.46,
P/B = 1.66.

Risk: Pledged shares and if it cannot deliver good quarters as it done recently.

Talwalkars Better Value Fitness Ltd: Value and Growth Stocks

Buy Talwalkars Better Value Fitness Ltd for consistent growth. Talwalkars has brand value and it is growing at healthy growth rate of 23-24% in Sales from past many years. Profit is also on rise at the rate of 29% from past 3 years.

In India, there is immense scope of expansion in Gym market. Indian are still far behind in running to Gym. This is going to rise. Enrollment is going to rise due to many factors. Health issue due to lazy lifestyle or say bad lifestyle, stress in day to day life, growing income of Indian families. India is a young country.

CMP: Rs 299.

PE = 18.

Currently it is on decline on price front. So, wait and let it stabilize first before buy.