Prolife Industries...Niche industry ...a Potential Multibagger

By -

Prolife Industries

CMP: 159.7

Current market cap: 63 Cr


 1. Company engaged in mfg of Dyes, Pigments, pharma and agro chemicals

2. After the demise of previous MD, his son taken over the responsibility of MD – He is just 28 years old but has extensive experience in R & D

3. Future growth

a. Mgt planning for 150-200 Crs topline as the company invested in capex in the last 3-5 years from their cash flows

b. New products added with better margin joining

i. Violet acid which has world wide demand – they are tapping eurpoean markets

ii. Very few players in producing this

iii. Continous spending on R&D and getting

c. Superb ROCE maintaining above 25%

d. Fantastic cash management – entire cash cycle is less than a month

e. With a net margin of 20-25 crs and higher ROCE, it can demand higher multiples of 40 times and can be a 1000 cr enterprise value (bcoz of net debt free too)

4. Deployed experienced mgt across different countries to grab more export share

5. Managemente is highly specialised in cosmetics business too – Yushika Cosmetics – Very good reviews on its products where the application is on hair colouring

a. Down the line , expecting it to integrate the same in the main business

6. Share holding

a. Promoter holding– 73%

b. Very less float – Only few individual investors and rest other are body corporates

c. Since it is in SME category, minimum lot size is 3000

7. Good margin of safety – Intrinsic Value 170

CA Jagadeesh Atukuri

Comments

  1. Ratan15 November 2022 at 21:50

    Thanks for sharing this.
    Your picks are fantastic. Let's see how this pans out.

    ReplyDelete
  2. Sridhar Reddy15 November 2022 at 22:05

    Thanks for the information and Analysis. But the problem is that it's a circuit based stock.....entry is easy and exit is the biggest risk....

    ReplyDelete
    Replies
    1. Jagadeesh A16 November 2022 at 02:25

      Just work on the analysis

      Need not invest, atleast observe what's happening in the company

      Delete

Post a Comment

Popular posts from this blog

This Pharma Stock has potential to generate 100% Return in Short term

By -
Image
In the current market scenario, the market is in downtrend and many have sectors have underperformed So one has to chose the selective sectors which are defensive enough to their portfolio So Pharma would be one sector which can help to stablize your portfolio becuase many global factors are positive for this Industry due to recent Covid-19 issue What happended to pharma industry till now?? The Pharma Index has been consolidating for almost 5 years till now, let me show you some numbers So in the above image its clear that, the pharma index has made multi year top in April 2015 at 14000 levels and now its trading at 8412 From the above, its giving breakout on monthly charts which means now entering into  bull phase back with a logical reason Coming back to the company The company which i am disussing now is Cadila Health Care .  Now Its trading at 350 levels Let us discuss some facts and interesting points about Cadila Health Care for investment pu...
Read more

How to Start Forex Trading for Beginners 2020

By -
Image
                       Forex trading is one of the largest market in the world with almost $5 trillion daily volume when you compare with the equities, it is just $85 billion and US Treasury market is $550 billion. So it is bigger than the US equitues and Treasury markets put together Where do these Forex markets operate?  We have different stock exchanges for equities like New york stock exchange, London stock exchange, Bombay Stock exchange located at their respective cities.  But for Forex - there is no physical location! You heard it right. There is no central location for Forex market, it is only the global electronic network of banks, financial brokers, financial institutions and traders who buy and sell currencies  When do these Forex markets operate? One of the interesting future for Forex market is it operates 24 hours a day except on weekends Let us consider Asia/Kolkata as the base time, becu...
Read more

Indian Metals…Raising star

By -
Image
Company Name : Indian Metals & Ferro Alloys (BSE code: 533047) Industry: Mining and Minerals Investment Horizon : 3 years (This can give a consistent return over the investment horizon) Recommendation : Allocate not more than 10% of your portfolio, at a CMP of 497 is a value buy and try to add on dips About the Company: Established in 1961 in the Eastern State of Odisha known for its rich natural resources, IMFA is India's largest, fully integrated producer of ferro alloys with 187 MVA installed furnace capacity backed up by 258 MW captive power generation and extensive chrome ore mining tracts. They are unique from the quality perspective due to comprehensive ISO 9001 Quality Management certification besides ISO 14001 Environment Management and ISO 18001 Occupational Health & Safety certification. Over the years, we have developed long standing relationships with multi-nationals like POSCO of South Korea, Marubeni Corporation and Nisshin Steel of Ja...
Read more