VIDHI DYESTUFFS MANUFACTURING LTD (BSE CODE- 531717) THE NEXT MULTI BAGGER

VIDHI DYESTUFFS MANUFACTURING LTD (BSE CODE- 531717)

THE NEXT MULTI BAGGER 

Vidhi Dyestuff is a manufacturer of edible food colours used in Pizza, Cold drinks and in other food items. Other listed companies are in this segment are Camlin Fine Sciences and ADI Finechem. Now increasing trend of people choice of Pizza, Cold drinks, Ketchups and eating at Hotels raised the demand of edible food colours.

 Comparative position of these three companies is as under: (Amt in Crores)

Particulars	Camlin Fine Sciences	ADI Finechem	Vidhi Dyestuffs (FY 2014-15 Results Scheduled On 30.05.15)
FY	2014-15	2014-15	2013-14	2014-15 ( 9 months)	2014-15 (Estimated)
Sales	440.24	150.62	142.77	134.09	185
Net Profit	25.82	13.69	5.98	8.70	12.75
Net Profit Margin	5.9%	9.08%	4.19%	6.49%	6.89%
Capital	9.59	13.79	5.00	5.00	5.00
Face Value (Rs)	1	10	1	-	1
EPS	2.70	9.92	1.19	1.74	2.55
Dividend	45%	25%	40%	-	50%
Share Price	95	290	-	-	21
Current PE Ratio	35	29	-	-	8.24

Projected EPS for FY 2015-16 is Rs.3/- and it is a strong competitor of Camlin Fine Sciences and ADI Finechem. In view of low capital base and improving performance over past year Vidhi Dyestuff may emerge as multi-bagger stock. Trading PE valuation comparative to its peers around 30 may push share price 3x30=90 in FY 2015-16.

Disclaimer: I am not a research analyst. Please take own decision after read the results, annual reports.

NITIN SPINNERS- A CONSTANT PERFORMER, GOOD FUTURE

JAI SHREE GANESH MAHARAJ KI

I AM STARTING THIS BLOG ON GANESH CHATURDASHI. LORD GANESH MAY BLESS ALL READERS AND FOLLOWERS THROUGHOUT THE YEAR.

NITIN SPINNERS- A CONSTANT PERFORMER, GOOD FUTURE

NITIN SPINNERS making cotton yarn and also having knitting facility. Company is doubling its capacity and production from expanded capacity will start in last quarter of this FY. Company is constantly improving its performance as per given below:

	Mar '14	Mar '13	Mar '12	Mar '11	Mar '10
Net worth	131.55	100.79	86.66	86.35	79.61
Total Debt	144.17	179.18	223.81	283.94	308.51
Total Income	494.61	431.80	418.00	397.25	301.43
Net Profit	34.78	14.14	0.30	6.74	0.67
Earning Per Share (Rs)	7.59	3.08	0.07	1.47	0.15
Equity Dividend (%)	7.50	0.00	0.00	0.00	0.00

Earlier company was under CDR. Now the company is out of CDR and it has paid “right to recompense” amount approximate Rs.15 crores to its lenders.

It is reducing debts to improve profitability. Debts almost reduced 50% in last four years.  

Rating agency CARE has upgraded the rating of the Company on the basis of financial performance for the F.Y. 2013-14. This will help the company to bargain the ROI from the lenders.

Net profit margin of the company is around 7%. Now profit is increased from Rs 0.67 crores to Rs 34.78 crores in last four years.

Company will able to reduce the debts on faster way in view of increasing net profit; that will further improve Net Profit of the company.

Company has paid first time dividend this year which shows confidence of management for future.

Company will start production in Q4 of this year. Full effect of expanded capacity will be visible in next FY 2014-15. Future outlook of the company is looking good.

Price of Cotton (raw material) is stable and future price trend is downward.

Company is STAR EXPORT HOUSE exporting 75% of its production. Govt policy is favourable of the company. New govt has already announced new textile policy for increase the textile exports from India.

Promoters holding in the company is around 64% and it is increasing on quarterly basis. In non promoter category no share holder having more than 1% share. Now rally in small caps started; Mutual Funds, HNI are looking the shares which has strong fundamental available at lower price because other shares already run up and chances of apparition in those shares are limited.

Friends, these are my observations. Choice is yours to analyse the facts and BUY or not.