Lakshmi Energy and Foods Ltd – A Company in Transition

LAKSHMIEFL is engaged in manufacturing and processing food grains and related products. The product includes rice, basmati rice (branded as Lakshmi Foods), parmal rice, rice bran edible oil, wheat flour, de-oiled cake, refined oils, and cattle feed (branded as Heera Moti). It also has 30MW biomass-based power generation business using rice husk as fuel. The company was formerly known as Lakshmi Overseas Industries Limited and changed its name to Lakshmi Energy and Foods Limited in February 2006. Last year, I came to know about this company after reading Supreme Court and agri minister’s tussle over grains rotting in FCI.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 onwards. Continue reading rest of this article…

Visaka Industries – Fairly Priced for Long Term Prospects

Visaka Industries Limited (VISAKAIND) is a Hyderabad based company engaged in two businesses viz., Building Products and Textile Synthetic Yarn. Building products include cement asbestos, accessories, non-asbestos flat sheets – used in roofing material and interiors, V board panel made from cellulose fiber and inorganic silica binders. Textile Synthetic Yarn products include blends of polyester, viscose and related material sets – used in weaving of fabric. These yarn products are used in manufacture of shirting, suiting, fashion fabrics, upholstery and embroidery laces. Recently, Visaka has also entered in power generation, but it is not expected to have any impact on results for another few years.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2001 onwards. Continue reading rest of this article…

Clariant Chemical Ltd – Good Company for Long Term Portfolio

Clariant Chemicals (India) Limited is an subsidiary of German company. It is publicly traded on Indian equity markets. The company operates in two segments, viz., (1) Intermediates and Colors which contribution 43% of the revenue; and (2) Specialty chemicals which contributes 57% of the revenues. The purpose here is to understand how it is growing, how it is sustaining high dividends, and does it meet my objectives.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2001 onwards. Continue reading rest of this article…

Cheviot Company – Good Value or Value Trap or Cigar Butt Opportunity?

Jute_cheviotCheviot Company Ltd, is a manufacturer of jute yarn and fabrics. It focuses in the niche segment of high value added products such as Fine Jute Yarn, Hessian Sacking, and Industrial Fabrics. Most recently, it has concentrated in selling its products in export market. This business unit is part of Kanoria group (a.ka. Cheviot Group).

One of the readers pointed me to this company. The factors that got my attention in Cheviot were sustained positive cash flow, continued profitability as a jute manufacturer, and dividends. It was pretty surprise for me to find that Cheviot has positive cash flow in an industry that is in perennial loss or runs on continued regulatory stimulus. Is that an indication of quality of management? Let us find out.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 to 2010. Continue reading rest of this article…

ABCIL – Is it a Turnaround Story?

Aditya Birla Chemicals (I) Limited, ABCIL, is a provider of chemical products like caustic soda, chlorine and its derivatives, and compressed hydrogen gas. Aditya Birla Group has a majority stake in this venture. Being purely in commodity business, it’s business model is to make money by operational excellence and economy of scale.

If an investor wants to buy shares in this company, it should be driven by quality of management. There is nothing unique about its business model, products, and/or market share.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 to 2009. Continue reading rest of this article…

Praj Industries Ltd – Small Cap with Good Management

logoPraj Industies (PRAJIND) provides turnkey plants and equipments for fermentation and distillation systems used in bio fuels processing (primarily ethanol related). It sells it products domestic Indian markets (about 70% market share), South East Asia (about 50% market share), and Europe (about 30% market share). It has been attempting to diversify in Brazilian and North American market but is still in very early investment/growth phase.

In addition to geographic diversification, it has also attempting at product diversification. It has begun working in other areas like Brewers, Agro Chemicals, Bio Chemicals, and Health and Wellness Products,

Praj Industries is small cap company. My objective here is to understand, if it will fit in my long term buy and hold portfolio. I like it because of very low debt.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 to 2009. Continue reading rest of this article…

Graphite India Ltd – Good Small Cap Stock for Long Term Holding

graphite_indiaGraphite India Limited (GRAPHITE) is the largest manufacturer of graphite electrodes (90% of the revenue). It also provides impervious graphite equipments and GRP/ERP pipes and tanks (10% of revenue). It end customers, and applications are in metallurgical (ferrous & nonferrous), chemical and process, and aerospace industry.

This is small cap which has potential in my long term buy and hold because it operates in niche market with high entry barriers. I want to understand its financial management and whether it meets my buying criteria.


Trend Analysis

The whole reason for any business to exist is to generate sales revenue and make more profits. At a minimum, the parameters listed below should have continuously increasing trends. All the data below is from 2000 to 2009. Continue reading rest of this article…



~