Wednesday, December 31, 2014

Aarti Drugs

The Company  was formed in 1984 and has established a strong presence in the Anti-diarrhea, Anti-inflammatory therapeutic groups. With its manufacturing facilities at Tarapur and Sarigam, the Company manufactures Vitamins, Anti-arthritis, Anti-fungal, Antibiotics, ACE inhibitors, besides its range in , anti-diabetic, anti-cholinergic, sedatives and anti-depressant drugs.
The manufacturing-units of ADL are GMP certified. The Company is also in the process of acquiring an ISO 9002 compliance for all its units and one of the units has already been approved. The Company aims at becoming the first choice of this expanding market through better products, ensuring quality and timely delivery.



The company is able to deliver constant good results throughout. The QoQ and YoY results have been beating the previous numbers and creating new highs every time. The profits have increased by 35% over the year due to increase in their operating and net profit margins. With huge acquisition of the stock by promoters in recent times, it seems the next quarter results are going to be outstanding. The company has given hefty amount of dividends at regular intervals which indicates the quality of the management. The liquidity ratios are stable but the only concern is the high debt of the company which will be resolved by company as they are making strategies to reduce it. The P/E ratio is 12 and there is a lot of potential left if we compare it to company's P/E and the EPS is also very high. With CMP, it is looking good for a buy and one can enter at dips. 

Friday, December 5, 2014

Simmonds Marshall

SIMMONDS MARSHALL LIMITED was incorporated in 1960 as a Private Limited Company in technical and financial collaboration with Firth Cleveland Fastenings Ltd., U.K. holding 51% of the equity of the company. This shareholding was diluted progressively and the balance of foreign holding was purchased fully by the promoters in 1987. In 1986, the company went public and is now a quoted company on the Stock Exchange.

The company manufactures a range of Specialised Nylon Insert Self Locking Nuts and other Special Fasteners. The company has been augmenting its cold forming capacity and can produce over 500 million nuts per annum in a wide range from M4 to M48 diameter and equivalent imperial sizes. These nuts are manufactured either to American, British, Japanese, ISO or Indian Standards in a variety of thread forms and protective finishes.
The company also has a battery of multi-spindle automatic bar turning centres capable of producing related automotive components as well. The company is fully equipped to supply a wide range of Bolts from our associated companies ranging from M5 to M70.

They usually caters to the Automotive and Industrial sectors and supplies to almost all the major Automobile Manufacturers in India as OE Suppliers. Their client list is very strong. Some of the world's finest companies like General Motors, TATA, Ford, Fiat, Honda, Caterpillar, JCB, Mahindra, Swaraj Mazda, Suzuki, Leyland, Dana, New Holland.

The financials of the company are looking good and there is a lot of scope for the company to grow. The NPM and OPM has increased from previous years which is a good sign and in the recent quarterly result, the NPM increased to very high levels from previous quarters. The quick ratio and current ratio has also improved which reflects the liquidity of the company. The only concern is the increasing debt which is due to expansion activities of the company. The QoQ and YoY results have been constantly good as their client list is also expanding. With a boom expected in Auto industry in India, it has a lot of potential to grow. Please do your own research before investing. I just expressed my views about the stock which may be incorrect also.