Everest Kanto - Firing on all Cyllinders
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Emerging companies - Mid caps that can become large cap
Forum Discription: These are companies operating in growing markets having have certain niches or specific attributes like new sector plays. These are emerging multibaggers with high risks and high rewards.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=295
Printed Date: 28/Apr/2024 at 9:51am
Topic: Everest Kanto - Firing on all Cyllinders
Posted By: go4lalit
Subject: Everest Kanto - Firing on all Cyllinders
Date Posted: 08/Sep/2006 at 1:55pm
| Everest Kanto Cyllinder - Looked like an interesting company to me. It can become a proxy to play CNG/Energy sector. Basant, Have you analyzed this company? |
Replies:
Posted By: basant
Date Posted: 08/Sep/2006 at 6:16pm
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Excellent concept. Will try and fill in with the details. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 13/Sep/2006 at 10:02am
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Everest Kanto – Firing on all cylinders We talked about Everest Kanto when it was around Rs 380 – Rs 400. The stock seems to have gone up a bit from there and is presently trading at Rs 437.This Company is another great play on the Indian CNG/LPG market. Earlier we had discussed about http://www.theequitydesk.com/forum/forum_posts.asp?TID=249 - Indraprastha Gas and Everest Kanto is a logical extension of that. The new Supreme court orders and the rising differentials between crude and gas has led to a rapidly expanding CNG & LPG market. Everest is the largest producer of cylinders in The company has launched a capacity expansion. set up a plant at Gandhidham ( The company is setting up
Post the Inspite of being short with CNG gas stations The CNG auto cylinder market is the fastest growing. The scale of opportunity is huge and Everest is already supplying to various countries across the globe. Exports make over a third of the company’s sales. The company is consistently trying to tap the overseas market and growth will come from both the domestic and international markets. On the other hand the industrial segment which is another consumer of cylinders is showing buoyancy as manufacturing activities increase. Recommendation: The huge scope of opportunity and the near dominant monopoly status of Everest Kanto makes it a very interesting investment bet. At a market cap of about Rs 771 crores and a price of Rs 437 investors should think of adding this scrip at current prices and declines with a long term perspective. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
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Posted By: Equity Buff
Date Posted: 13/Sep/2006 at 11:38am
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Dear Basant, I agree with you. This stock can give very good returns in the long term.
A leading brokerage also has come out with a buy report on the stock recently. Eps for FY 08 Rs. 35. It think the market can give it a p/e of 20 times atleast. I a years time this stock can be at Rs. 700.00. Expected ROE
for FY 08 is also healthy at 23%.
Rgds
Equity Buff
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Posted By: PKB2000
Date Posted: 14/Sep/2006 at 7:53pm
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Alas Looking at short term view I have just sold Partially after the market returned from 12K mark and the CLSA bala bla bla----. though have the money preserved for that only in future! If it gives me opprtunity to reenter at lower price! Excuse me for that.
SIR WHY DID U NOT POST UR VIEW LAST NIGHT AT LEAST! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: kulman
Date Posted: 14/Sep/2006 at 8:05pm
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PKB2000 Saab
I would seriously suggest you to change your TV set, buy a second-hand set with NO VOLUME function. Just watch stock tickers.....use it as a display, no sound. Never ever listen to those "analysts" either firangis or our own.
This way you will make/save lots of money!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 14/Sep/2006 at 8:10pm
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PKB Sir - time and not timing is the key to making money. Look http://www.theequitydesk.com/forum/forum_posts.asp?TID=177&PN=5 - what happened to the investors who had gone into 30% cash after the fall in June.
http://www.theequitydesk.com/philip_fisher.asp - Fisher says that once good stock has been bought the time to sell it is NEVER! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PKB2000
Date Posted: 14/Sep/2006 at 8:21pm
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Sorry!
Wish to change my deeds of doing the same things and expecting different result! ------------- I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso |
Posted By: RITESHKAMANI
Date Posted: 14/Sep/2006 at 11:06am
| CONGRATULATIONS MR BASANT EKC IS UP BY 6%.SIR I FEEL U R GOIN TO CREATE A LANDMARK OF UR OWN.UR STOCKS HAVE BEEN DOIN VERY WELL. |
Posted By: basant
Date Posted: 15/Sep/2006 at 5:05pm
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It did close 8% up but just as I say we have been extremely lucky with all this. No one can time the market. But as long as the members are making money buying these stocks we should be enjoying! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 24/Sep/2006 at 12:15pm
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Everest Kanto announced the allotment of 18,96,900 shares to Brightwill Ltd a subsidiary of CLSA at a price of Rs 485 per share.This dilutes the
equity by 9.72%. WHile the EPS estimates would be affected by an equivalent amount it would be made up by as these funds get deployed
in the company's China operations. These shares will carry a lock in of one year
It would make sense for investors to get in on declines.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: investor
Date Posted: 29/Sep/2006 at 3:57pm
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past few days i am seeing lot of recomendations on moneycontrol and CNBC about buying this stock on dips...so i think this would create an small rise in short term. So its probably better to wait for some time, when it comes back down and consolidates, and then we can start adding positions in this. |
Posted By: basant
Date Posted: 29/Sep/2006 at 4:02pm
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They are now begining to get interested once CLSA has taken a stake but we have been discussing it since it was Rs 380!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 23/Oct/2006 at 6:25pm
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For the September quarter 2006 Everest kanto reported an increase in net profit of 33% (y-o-y) to Rs 13.61 crores from Rs 10.21 crores. The growth in profit on a q-o-q basis was almost 19.3%. Revenues for the same period grew by 24.8%(y-o-y) to Rs 100.1 crores while the growth on a q-o-q basis was higher at 25.78%. The operating margins did see some kind of a slow down as it slipped a little to 25.1% from 27.6%. Maybe the start up costs of the new faciolity could be a reason for this decline. The stock looks a good solid long term bet. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: basant
Date Posted: 08/Jan/2007 at 9:48am
No one seems to be folowing this company on this forum but this has created some serious wealth over the last 6 months. Stock has been up a cool 100% since we started discussing it.  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 08/Jan/2007 at 10:39am
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Yes true! Hopefully, TEDdies should NOT become "frog in the well" cases, where the frog thinks the world is the well and there is nothing outside of it. So, let's all stay open-minded and think beyond the TV18s and Educomp else there may be a small chance of a transformation into Mungerilals. I would say remove that chance too, even though it may be a very very small chance.
Just some random thoughts, so posted it. If not related to this thread, admin may remove it. Thanks very much. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 08/Jan/2007 at 10:49am
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Pearls of wisdom strewn all across the well I suffer from a closed myopic view and do try to broaden that each time I look at a new stock but unfortunately I am still in the process of learning. WHile investing I cannot see beyond two or three sectors now Buffet calls it circle of competence and I say this opportunity might never come again so bet on it with full strength. .An open mind reduces the chance to get in love with one stock. This is quite unlike what a married person does but in investing an open mind (looking at new ideas - greener patures always help) not so much elsewhere ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 08/Jan/2007 at 11:13am
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Yes sir, I know what you mean. An open-mind has to be balance with a closed-mind. We have to be close-minded enough to stick with our stocks for the long-term(after having researched it thoroughly) BUT also be open-minded enough to know that there could be another stock outside our well, that maybe a good if not better candidate for our long-term wealth creation. The idea is to do a thorough research on anything outside the well and then get it inside the well. The mind should not be totally open-minded but it should be open-minded enough to research a stock outside the well thoroughly. If it doesnt fall inside our circle of comptence, then it may fall into someone others' and we can take their detailed research and view on the stock. That is the greatness of having a forum. Many people with many circles of competence. Some stock or the other may fall into someone's circle or another's. The idea is NOT to blindly believe a stock idea, but to ask the person who follows the "stock outside our well", to provide his detailed view on it and then follow it up with questions and research.
I also believe that too much of an open-mind leads to scattering of energies, like for example someone jumping from Nucleus to then Educomp and then something else...maybe FT.
Statutory Warning: Too much jumping could be injurious to your wealth
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Ah!! Almost forgot...  ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: BubbleVision
Date Posted: 08/Jan/2007 at 11:20am
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Om - your last two posts on this thread are Excellent! ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: omshivaya
Date Posted: 08/Jan/2007 at 11:32am
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Thank you Bubble ji. It is the wisdom that I have gained thru all you forum members' knowledge, that is writing all these and I am just the messenger. So, thanks to you all NOT me. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 09/Jan/2007 at 12:08pm
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The idea is to do a thorough research on anything outside the well and then get it inside the well
_________________________________________________________
Very well said.It is strange how two lines carry so much message (wisdom). ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 09/Jan/2007 at 12:13pm
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Yes, the well should be made out of springs and not bricks. That way it is elastic and flexible to expand and contract as required. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: investor
Date Posted: 09/Jan/2007 at 1:33pm
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Missed this discussion today morning, so just need a small clarification... Was this a generic statement on investing fundas or was it implying specifically to get into Everest Kanto? 
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Posted By: omshivaya
Date Posted: 09/Jan/2007 at 1:39pm
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I would think generic investor ji. However, I'll let Basant ji reply as you asked him. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: basant
Date Posted: 09/Jan/2007 at 2:37pm
This was general. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kulman
Date Posted: 09/Jan/2007 at 10:22pm
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All I can say is Ever Kanto was a great stock pick, it really was!
And about Om jee's wonderful well-written "Well" thesis:
Om jee ki nikli sawaari
Om jee ki leela hain nyaari!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: omshivaya
Date Posted: 09/Jan/2007 at 11:10pm
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Hahaha! L(u)k man...you are just too k(u)l man ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: Rinku
Date Posted: 11/Apr/2007 at 11:44pm
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Any views on Confidence Petroleum.One of my IIM analyst friend is bullish on this stock.Has the target of Rs.15.Same space as Everest kyoto(Leader).
I have seen fundamentals are not very good because they have recently mereged one company.
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Posted By: basant
Date Posted: 11/Apr/2007 at 11:50pm
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Everest is the leader I guess and leaders always outperform all other companies nomatter what happens but at these valuations Everest Kanto seems to be on the top of Mount Everest but as with growth comapnies they get dear and cheap the question is to wait for a few months as earnings catch up with price. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 12/Apr/2007 at 3:05pm
| Are you suggesting a wait before buying? |
Posted By: basant
Date Posted: 12/Apr/2007 at 3:29pm
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No, what I am saying is that it makes sense to buy leaders in new sectors. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 12/Apr/2007 at 5:55pm
| Ok thanks |
Posted By: shivkumar
Date Posted: 09/Oct/2007 at 12:43pm
| what is your take on everest kanto? it has slipped so far from 52-week high |
Posted By: basant
Date Posted: 09/Oct/2007 at 12:55pm
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It has had a great run.Almost 2.5 times in one year but this is the split adjusted price. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: DHIRAJKANT
Date Posted: 13/Oct/2007 at 6:33pm
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Basant ji,
everest kanto is in my portfolio.is it good for long -term?why do Cos.split their stocks and what are the consequences thereof?
RGD
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DHIRAJKANT
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Posted By: shivkumar
Date Posted: 13/Oct/2007 at 6:43pm
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are there any updates on the fundamentals of everest kanto. after the bartronics expose, one needs to go back to the basics everytime
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Posted By: TCSer
Date Posted: 24/Apr/2008 at 11:47pm
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I think everest kant is one of teh safest buy at todays price .As the petrol price is increasing worldwide switchers will move to cheaper CNG like already happening in Pakistan,China,Iran and other countries.
This is acompany with big moat around it.
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Posted By: KACHAM
Date Posted: 25/Apr/2008 at 5:26pm
Shivkumar ji... sorry to bug you on this after so long time..but i saw this just y'day...
can you please explain what is this bartronics expose??
------------- Jai Telangana, Jai Jai Telangana |
Posted By: kanagala
Date Posted: 25/Apr/2008 at 9:14pm
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EKC is pick and axe story on growing city gas distribution.
------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: TCSer
Date Posted: 25/Apr/2008 at 9:27pm
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I am holding this share since its IPO in 2005 and I had invested in it after checking up with top brass of its client Indraprastha Gas Ltd in Delhi.
They had assured me huge growth for tor this sector n the company in particular.
Entire world is it market n it cud be the pick for 2008 .With huge Reliance gas becoming operational there wud be huge indian gas market to cater to.Its alongwith GSPL one of Citi group favorite stock.
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Posted By: India_Bull
Date Posted: 25/Apr/2008 at 4:51am
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COntrolling input costs is the main challenge before the company else everything is in line.
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: deveshkayal
Date Posted: 27/May/2008 at 8:11pm
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From a report by Citi
4Q below expectations, marred by forex losses - EKC's 4QFY08 net profit of Rs277m was up 5.4% yoy but below expectations. Though operationally strong, performance was marred by derivative losses of Rs86m in Dubai and other one-offs. The company mentioned that China operations have commenced from May-08 and the CPI acquisition has been concluded in Apr-08.
Realizations improved sharply - Average blended realizations were up qoq at Rs8.6K/cyl (~Rs8K/cyl in the first 3 quarters). This, combined with higher sale volumes in the quarter (0.19m cyl vs. 0.16m in 3Q), drove the 31% qoq increase in revenues. CNG cylinders accounted for ~64% of volumes, with increased contribution from Dubai and Gandhidham helping boost realizations. Margins decline due to one-offs, but core margins robust - EBITDA margin of 22% was lower than expected and down from ~30% levels in 9MFY08. Primary reasons for the decline: (1) Rs86m derivative losses and (2) Rs26m reclassification of bank charges. Excluding their impact, core margins were much higher at 29%, which mgmt believes are sustainable in FY09 due to strong pricing power. Mgmt also guided towards ~50% profit growth in FY09. Thesis intact; highest leverage to impending city gas wave - City gas distribution in India is set for explosive growth over the next few years, spurred by increasing gas supplies. As a result, CNG enablers like EKC - despite being indirect beneficiaries - are most levered to more cities coming under the CGD net, which will facilitate rapid vehicle conversions to the cheaper, cleaner CNG. Reiterate Buy with a Rs404 TP, well-supported by a 47% 3-year EPS CAGR. ----------------------------------------------------------
Goldman Sachs initiated coverage with a target price of Rs.464 ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: shivkumar
Date Posted: 29/May/2008 at 4:38pm
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Is anyone tracking Nitin Fire? Goldman Sachs has come out with a report predicting huge upsides: Excerpts: Nitin Fire Protection Industries (NIFP.BO; Buy, TP: Rs763) Dominant company in fire protection business; targeting strong performance in the cylinder exports segment Investment thesis • We initiate coverage of Nitin Fire with a Buy rating and a 12-month DCF-based target price of Rs763, implying 74% potential upside from current levels. We believe the market has not priced in this high-growth, stable margin scenario (we estimate EPS growth of 74% over FY2008-FY2010E). • Nitin Fire is one of the largest fire protection service providers in the organized sector in India. The company installs and maintains fire protection and security equipment in facilities such as malls, offices, plants, etc. The nature of this business is sticky; clients once serviced tend to continue through annual contracts (segment sales CAGR of 32% over FY2008-FY2010E). • With projected sales of 243,000 cylinders in FY2009E, the company is set to become one of the largest producers of seamless cylinders (primarily for CNG) from India. With a global market demand of close to 5 mn cylinders, the company has current capacity of about 0.25 mn and plans to double it by FY2009-end. • We believe operating margins are sustainable at 18% underpinned by an evolving business mix towards higher-realization CNG cylinder exports (66% of incremental growth over FY2008-FY2010E). Valuation • Our target price is derived using a DCF methodology (WACC 11.1%, terminal growth 4%) with a cross check against three shorter duration ratios (P/E, EV/EBITDA and PEG). Nitin Fire trades at a one- year forward multiple of 11.1X and offers an EPS CAGR of 74% over FY2008-FY2010E. • Under our blue sky scenario, the stock has the potential to deliver 93% EPS growth over FY2008E-FY2010E (vs. 74% base case) and return 92% upside this year. Catalysts • Higher-than-expected share from the Indian Railways’ order, which is worth Rs22 bn in total; we factor in Rs700 mn from this order over the next two years and expect an announcement of the order by July 2008. • Contracts from the Commonwealth Games to be held in Delhi in early 2010 (none accounted for in our numbers). Risks Mostly concentrated in the cylinder segment: 1) execution delays at new SEZ plant, 2) substantially higher steel prices, and 3) liquidity risk. |
Posted By: valueman
Date Posted: 18/Sep/2008 at 9:45pm
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PINC puts ‘buy’ on Everest Kanto for target Rs 385 17 Sep, 2008, 1743 hrs IST, ECONOMICTIMES.COM http://economictimes.indiatimes.com/Stocks/PINC_puts_buy_on_Everest_Kanto_for_target_Rs_385/articleshow/3495049.cms MUMBAI: PINC Research has initiated ‘buy’ on Everest Kanto Cylinder for a target price of Rs 385. The company is a leading manufacturer of high pressure seamless cylinders for both industrial and compressed natural gas (CNG) uses. Besides serving domestic market, it also exports to countries across S.Asia, M.East and CIS. Spiraling fuel prices and emission concerns have spawned a vibrant market for CNG vehicles, and vehicles using CNG as fuel have registered CAGR of 30 per cent and 50 per cent in India and Asia respectively (for 2002-2007). This growth is likely to witness traction due to sustained governmental support and operational economics of CNG based operations. To tap the anticipated surge in demand, emanating from CNG use, Everest Kanto Cylinder is doubling its production capacity to 2.3 million cylinders per annum by 2011-12. Adopting the inorganic route for growth, it acquired CP Industries, USA in April 2008. The above initiatives have the potential to propel Everest Kanto Cylinder’s net sales by a CAGR of 47 per cent, over the next three years, with sustained margins and improved operational metrics, says PINC. By virtue of its operations in India and overseas, Everest Kanto Cylinder’s business model is de-risked on the manufacturing and revenue fronts. The company is targeting the lucrative European and US markets with new products. Everest Kanto Cylinder is modifying its existing sales mix by concentrating on products that offer higher realisations and better margins viz. CNG and jumbo cylinders. It is also enhancing its capacities for specialised products viz. jumbo cylinders, which could generate significant revenue and margin expansion. With expansion underway, Everest Kanto Cylinder is set to benefit from economies of scale and operating leverage in the near future. In addition, new domestic facilities with plate and billet technology will garner cost savings and target new markets which should provide Everest Kanto Cylinder an edge over its competitors and lead to earnings growth. At the market price of Rs 291, the stock trades at a P/E of 19.9x & 12.2x and an EV/EBIDTA of 12.7x and 8.9x FY09E and FY10E earnings respectively. ------------- To achieve satisfactory investment results is easier than most people realize ; to achieve superior results is harder than it looks . Benjamin Graham. |
Posted By: kanagala
Date Posted: 18/Sep/2008 at 10:04pm
Hi Shiva, I am also following the stock and thinking of investing small amount. I am waiting for share price to go down. Nitin is trading at huge discount compared to EKC. EKC is a market leader. But it is trading at decent valuations. Nitian is very small cap. So far, whenever i invest small amounts in some promising mid cap/smal caps, i am loosing money. Kinda, still stinking about it. ------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: abhishekbasu
Date Posted: 22/Sep/2008 at 3:22pm
| Can one invest in EKC now? HOw are the valuations wrt Nitin Fire? |
Posted By: shivkumar
Date Posted: 27/Oct/2008 at 2:38pm
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A collection of reports on Everest Kanto has been uploaded here: http://groups.google.com/group/informed-investor/web/Everest%20Kanto.zip You may need to sign up to access these reports. I will approve your membership on request. Due to shortage of space on the group, I will have to delete the report to accommodate newer material after a few days. So please hurry and alert your friends and colleagues interested in the stock to hurry up as well. |
Posted By: abhishekbasu
Date Posted: 29/Oct/2008 at 1:02pm
Thanks.Got that. They have done pretty well this time around. ------------- |
Posted By: venkym2000
Date Posted: 29/Oct/2008 at 12:30pm
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HI All,
I know this is not related to current thread, but I thought at least a few could go throught this list.
http://economictimes.indiatimes.com/quickiearticleshow/3646482.cms - http://economictimes.indiatimes.com/quickiearticleshow/3646482.cms
Any thoughts on these small growing companies?
Thanks,
Venkat
|
Posted By: deveshkayal
Date Posted: 10/Dec/2008 at 11:37am
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Least discussed stock is the one which is performing very well. Management guides for 50% earnings growth with 29-30% EBIDTA margins and ROE of 30%+ in FY10. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: shivkumar
Date Posted: 10/Dec/2008 at 11:39am
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devesh, is there any report or any other documentation that cud be forwarded? |
Posted By: arunshah2k
Date Posted: 11/Dec/2008 at 1:01pm
Hasn't this already be discounted by markets in the price. I feel that markets have discounted and have great foresight in pricing companies. Pantaloon's same store growth fell in Nov and markets had great foresight about that !!! |
Posted By: venkym2000
Date Posted: 29/Jan/2009 at 4:10am
| I think I am not convinced that markets discount is applicabele for all stocks |
Posted By: abhishekbasu
Date Posted: 29/Jan/2009 at 10:55am
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Everest Kanto and Nitin Fire would be doing fairly good as businesses in the next 5 years as there is going to be a surge of gas distribution through cyclinders in India. The stock price will probably turn around only when the market takes itself out of this slump. ------------- |
Posted By: basant
Date Posted: 29/Jan/2009 at 10:57am
|
Isn't falling petrol prices a disincentive to switch to gas? I know court orders have made it mandatory in some areas but still for an argument petrol prices should effect gas usage by the auto companies.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: subu76
Date Posted: 30/Jan/2009 at 4:41pm
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Sales grew 5 times between 04 to 07 but has not really done much ever since.
Mar07- 356 Mar08 - 381 till dec08- 280 (in cr)
But then this is probabily a futuristic story.
One question I had last time i looked at this one is that while sales hardly increased between Mar07 to Mar 08 the inventory doubled from 81 cr to 166 cr.
Is this sort of thing a red flag for an investor?
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Posted By: Hitesh Shah
Date Posted: 19/Feb/2009 at 9:45am
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The market seems to have taken note of the previous two posts!
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Posted By: subu76
Date Posted: 19/Feb/2009 at 11:01am
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At 19 P/E the stock is still neither here nor there. At 20+ P/E it was expensive IMO.
At 12-13 P/E is might look attractive to some.
Hoping the story gets settled one way or the other.
Infoedge has really pained me by continuing at 16-20 type of P/E forever.
|
Posted By: subu76
Date Posted: 19/Feb/2009 at 11:04am
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I think one phenomenon which we are seeing is that high P/E stocks are getting butchered after one bad quarter.
Long term story is fine.....but hey this is not the bull market any more.
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Posted By: Hitesh Shah
Date Posted: 20/Mar/2009 at 8:58pm
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http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=389701&special=today - The Goldman Sachs effect ? The Everest Kanto stock is up 11% in today's trade on the back of a Goldman Sachs report.
It has been down about 42% over the last three months at a time when
the markets have remained more or less flat. Goldman
Sachs has put a buy rating on the company with a cut in the price
target to Rs 242 as against Rs 286. It forecasts an EPS estimate of Rs
20.09 and Rs 25.70 for FY10 and FY11 respectively. "Revised estimated
FY10 EPS lower by 8% but has revised estimated FY11 EPS higher by 2%.
The revisions are based on revised expansion plans. The company can
deliver above 27% return on equity over FY09 and FY10," the brokerage
said.
------------- |
Commenting
on the findings of the report, Prem Khurana, CMD, Everest Kanto, said
the company can achieve about 50% revenue growth in FY10. "The way the
markets are looking today, we will be growing quite fast in our large,
jumbo cylinders and the other industrial segment. In the Indian CNG
segment, we don’t see large growth. It maybe around 20-25%. But total
growth will be quite higher."Posted By: subu76
Date Posted: 05/May/2009 at 8:40pm
| Everest kanto will not be publishing results this quarter. |
Posted By: chimak10
Date Posted: 05/May/2009 at 8:43pm
| good |
Posted By: somu0915
Date Posted: 05/May/2009 at 1:12am
| is it so bad ? |
Posted By: abhishekbasu
Date Posted: 05/May/2009 at 11:43am
Any indication on how they have done this quarter? Their medium to long term story still looks pretty strong, specially with the domestic gas distribution opportunity in calcutta. ------------- |
Posted By: subu76
Date Posted: 18/Jun/2009 at 12:20pm
|
Everest Kanto declared losses in the last quarter and is now quoted at a whopping 51 PE. Some stocks sure do defy gravity.
In the meantime they are raising funds.
|
Posted By: basant
Date Posted: 18/Jun/2009 at 10:28am
|
Does anyone know how and why did they get into the red? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: subu76
Date Posted: 22/Jul/2009 at 10:40pm
|
Not sure about the last quarter.
As per moneycontrol the bottonline is almost same as last year.
Inventory went up by about 50%. So over 2 years inventory tripled while toplines increase was much lower.
Company to raise 100 cr.
|
Posted By: TCSer
Date Posted: 29/Jul/2009 at 12:25pm
| The comments on latest results please.Seems its golden days are over |
Posted By: Hitesh Shah
Date Posted: 15/Nov/2009 at 3:41pm
|
Reminds one of the Mary Celeste.
------------- |
Posted By: TCSer
Date Posted: 15/Nov/2009 at 7:43pm
| Poor results again this quarter.Seems dubai & china operations are loss making only operations. |
Posted By: Hitesh Shah
Date Posted: 15/Nov/2009 at 8:08pm
|
The promoter sounds hopeful. And one promoter actually bought some shares. If one believes it's darkest before the dawn, it may be worth a small bet! http://www.moneycontrol.com/news/business/dont-plan-to-raise-funds-now-everest-kanto_423970.html - Link ------------- |
Posted By: subu76
Date Posted: 15/Nov/2009 at 12:10pm
|
Hitesh, do you have an opinion on either this one or on V Guard?
|
Posted By: Hitesh Shah
Date Posted: 15/Nov/2009 at 11:08am
This is not the first time. Think too long and others act  . EKC up ~7%.
------------- |
Posted By: Hitesh Shah
Date Posted: 16/Nov/2009 at 7:10pm
|
Everest Kanto Cylinder surged 9.61% to Rs 155.10 after Suman Khurana, a
promoter of the company, hiked her stake in the company from 13.87% to
13.88% after acquiring 10,000 shares through open market purchases on 3
November 2009. The company made this announcement during trading hours
today, 16 November 2009. The scrip topped the gainers in the BSE's 'A'
group. This news was known even before today. ------------- |
Posted By: TCSer
Date Posted: 26/Nov/2009 at 11:22pm
| Can EKC recover its lost glory after its foolhardy forays abroad? |
Posted By: shivkumar
Date Posted: 25/Feb/2010 at 7:12pm
|
everest kanto is still falling. how much before it reaches its intrinsic value? anyone tracking this stock. disclosure: no exposure. |
Posted By: bearish
Date Posted: 25/Feb/2010 at 8:50pm
| wondering exactly the same thing...anybody with an insight on if / how this can be played for the shorter term? |
Posted By: youandme
Date Posted: 26/Feb/2010 at 7:07pm
|
The systematic fall in company's share price started when the Dubai debacle occured. The company's Dubai facility was providing more than 40% of its turnover in 2008-09. Though EKV's indian operations are quite remunerative, coupled with favourable Indian regulatory changes, it is the performance of Dubai facility of the Company in the days to come will determine the fate of the share prices, I think. ------------- What man of you, having a hundred sheep,if he loses one of them,doth not leave the ninety and nine in the wilderness, and go after that which is lost, until he find it? -Luke 15:4 |
Posted By: photophobic111
Date Posted: 26/Feb/2010 at 8:04pm
| What are its biggest competitors and how much EKC can guard its Indian arm operations from these guys? |
Posted By: EMANI
Date Posted: 08/Mar/2010 at 10:00pm
|
http://myiris.com/newsCentre/storyShow.php?fileR=20100308193146200&secID=creditrating&dir=2010/03/08 - CRISIL downgrades rating on Everest Kanto Cylinder
------------- esn |
Posted By: TCSer
Date Posted: 08/Mar/2010 at 8:48am
| same crisil had given it topnotch rating as a best stock to buy from secondary market a few months back. |
Posted By: subu76
Date Posted: 11/Mar/2010 at 9:27pm
TCSer Sir...are you still holding this stock.
Maybe you can share some insight.
Rgds.
Subu
|
Posted By: subu76
Date Posted: 11/Mar/2010 at 2:53am
There is a disconnect between Crisil's repot and from what the company has published..
Crisil
The downgrade also factors in the expected pressure on the Everest Kanto group`s liquidity because of the possible redemption of Everest Kanto`s Rs 2.3-billion foreign currency convertible bonds (FCCBs) in September 2012
EK's update
FCCB balance has come down to Rs 163 cr.
Can anyone please help me understand the difference between 230 cr in crisil's report and 163 cr in the company's update?
|
Posted By: subu76
Date Posted: 11/Mar/2010 at 2:58am
This is so true...the main difference between the performance of the last year and this year has been the revenues earned from Dubai.
One interesting update in this context is this:
EKC International FZE, the wholly owned subsidiary of the Company in Dubai has received orders for the supply of CNG cylinders aggregating to about USD 20 Million. The execution of these orders has already started and planned to be completed by May, 2010.
This single 80 cr order looks large when one considers that over 9 months it has earned only 105 cr from Dubai
|
Posted By: subu76
Date Posted: 11/Mar/2010 at 3:00am
Have you heard about the advent of any new competition.
The surprising thing about this company is that despite all the pessimism understandable due to bad numbers I'm unable to figure out any change in it's competitive position.
Does someone have a better idea?
|
Posted By: EMANI
Date Posted: 11/Mar/2010 at 8:24am
|
Sir, The Govt.Panel has given its nod for the introduction of FIBRE TRANSPERANT LPG CYLINDERS which will be test marketed in some centers like MUMBAI,CHENNAI,BANGALORE etc, and then all the OMCs will call global tenders for such cylinders for fullscale replacement of the existing cylinders. This has today been the reply of Shri Murlideora to Rajyasabha.Hence the role and market share of traditional cylinders will get reduced.
------------- esn |
Posted By: subu76
Date Posted: 11/Mar/2010 at 8:40am
| Emani, so you're saying that EKC faces the risk of obsolescence if it's technology. Sounds interesting....thanks for posting...helps me a lot. |
Posted By: photophobic111
Date Posted: 11/Mar/2010 at 8:55am
|
Would you consider shifting to CNG vehincle? How much are cost savings? Saftey issues and general public view about safety? |
Posted By: subu76
Date Posted: 11/Mar/2010 at 9:20am
It's really strange....i don't find any specific reference to this threat in the Challenges section of EKC.....though it contains vague references to Govt standards, BIS etc.
Surely folks in the company would know about it during 2009.
|
Posted By: subu76
Date Posted: 11/Mar/2010 at 9:22am
Some of these questions are answered in the company's annual report in Page 9.....offcourse we cannot treat everything which they publish as gospel truth.
|
Posted By: subu76
Date Posted: 13/Mar/2010 at 1:14pm
| This company yet again demonstrates the pitfalls associated with projecting the current good times of a company too far to the future. |
Posted By: subu76
Date Posted: 13/Mar/2010 at 8:17pm
|
Hard to believe this one.....
A July 2008 article in Outlook Profit by Priya Pandya on Everest Kanto is titled
Firing on all Cylinders
This thread started in 2006.
|
Posted By: subu76
Date Posted: 13/Mar/2010 at 8:23pm
This stock got listed at Rs 201 when it went for IPO.
Price now Rs 120.
In the meantime...it diluted equity as well as issued FCCBs
|
Posted By: subu76
Date Posted: 13/Mar/2010 at 8:29pm
My inventory question of about a year back got answered in one of the interviews of the company MD. Inventory kept on getting costlier since they had entered into some fixed constracts which proved dear
|
Posted By: subu76
Date Posted: 13/Mar/2010 at 12:55pm
|
BTW Everest Kanto's story has been eerily similar to some of the other recent IPOs .........
Earnings grew at about 80% just before the IPO.
Eager investors thought the same growth rates can be sustained due to the Scale of opportunity....From Rs 200 on IPO day the stock went upto Rs 1200 at it's peak
|
Posted By: hit2710
Date Posted: 14/Mar/2010 at 7:37pm
Dont write this one off though. It is the no.1 in cng cylinders by a wide margin still. Once the mess it is in is sorted out, it could be considered for investment. Although I haven't looked too much into its details or problems. But my feel is once crude starts moving up, the dubai economy is also going to pick up(one of the reasons of its problems probably is setting up a unit in dubai) and again demand for cng cylinders is also expected to move up. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: TCSer
Date Posted: 14/Mar/2010 at 8:20pm
yes i am still holding onto ekc from ipo .but i hv already sold majority n these r my free stocks.due to non india foray the company seems to be on a difficult path but india it self has tremendous potential n sector is still highily promising thanx to abundant availability of gas all round the world .the promoters khuranas hv been in these field since last 30 years n will navigate . for me its still a hold. |
Posted By: subu76
Date Posted: 14/Mar/2010 at 10:18pm
|
I agree with you....btw they seem to be in business for 60 years..
The foray in foreign countries by big ticket spending is something that is kind of hard to explain.....esp trying to sell in US when it is essentially an India opportunity story.
Also the company has extremely high fixed asset investment requirements. .... it has spent 600 cr in the last 5 yrs......which means they need to inevitably dilute equity holdings at regular intervals and raise capital....
However, for a stock which can fly should it become a hot theme...the stock does look cheap
|
Posted By: subu76
Date Posted: 14/Mar/2010 at 10:24pm
Not writing it off.....just saying that pitfalls happen and it's worth considering
|
Posted By: subu76
Date Posted: 16/Mar/2010 at 12:53pm
|
After reading the annual reports of the last 3 years i realized the following:
Keeping financials aside....
1. Company has been struggling to grow in India....in terms of volume it has been stuck at the same number for the last 3-4 years. Sales volume in India has been consistently below it's production capacity.
It is the number 1 player in India anyway so there isn't a lot of headroom
2. To offset this lack of growth in home turf it has expanded abroad. (a la bharti)
It opened up operations in China, Hungary and USA via organic and inorganic means.
The catch though is:
Though it's sales abroad is about 3 times the sales in India...profits from India and via exports is almost similar.
The expansion costs abroad has been expensive and has resulted in accumulated debt of about 600 cr in about 2 years.
I think the period of hypergrowth is now over unless it borrows more money and expands.
It's India production is going to double up once the expansion efforts in Gandhidham and Kandla complete. My guess is that the output from these plants will be used for exports given that the Indian plants are anyway not working at full capacity.
The long term prospects can not be ruled out. India still has a pretty low penetration of LPG verhicles and utilities as compared to countries like Iran/Pakistan etc. While there are threats in the horizon we all know competition in infra heavy industries cannot come in overnight. Also, let's not forget that being the number 1 player this company can really attract investor money should a LPG craze take off.
 Personally, what really dissapointed me is the mindless expansion in low margin foreign countries which did not really add value to it's shareholders. This is what talking to Wallstreet does to you.....My guess is CLSA folks not only funded some of these transactions bug also adviced them to go down this path.
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