Morganite Crucible (India) & Disa India


(Mallikarjun) #1

Donald sir had started a thread about these two. But i think there are no discussions. I may have missed.

I am not prolific in numbers nor good in basics.

Morganite Crucible is almost perfectly valued. And Disa has huge potential.

Please bear with my out of the blue statements about stocks.

Here i like to thank Pratyush & Ayush for their exceptional work. Because of them i don’t need to worry about my numbers.

Will be happy to know more about the above stocks. Wish to add as core stocks.

Regards

Mallikarjun


(c.t.sreenath) #2
  • Morganite has a sales CAGR of 30%.

    • Its EPS growth is at 56%.

    • Has a PE of 9.

    • It has cleared most of its debt.

    • At 340 close to its 52 wk low of 320. It

looks like a healthy bet. But are we missing something? Does anybody have some inside knowledge about this industry?


(c.t.sreenath) #3

The management warns of a slowdown in second half of 2013.


(Omprakash ) #4

In all the previous annual reports also management stated that.


(c.t.sreenath) #5
  • Yes. In their ARs except their numbers everything else looks like copy and paste. Why do they say that? Just keeping expectations low?

    • *       * In october 2012 the UK parent company warned of slowdown in china and europe. Its stock ranked 33%. Is it getting reflected
      
    • This seems to be a ignored stock. I couldnt dig up much. Members Please provide your inputs.


(Mallikarjun) #6

Morganite has not paid dividend consistently. Vesuvius India has

Some info on Morganite

Extract from Director’s report- 2012;

The Company has also started diversifying activities such as trading
 and manufacturing of Foundry Consumables and refractory materials for
 which company has started first phase of testing and development
 foundry lubricant i.e. Die lube in the previous year. For the Calendar
 Year 2011 total turnover of die lube business stood at 8.99 Lacs and
 Operating Profit was (-16.71) Lacs and **for the half year from Jan 2012
 to June 2012 total Turnover stood at 25.20 Lacs and Operative Profit
 was 64 thousand, We are expecting to accelerate this are in the coming
 years.**

(c.t.sreenath) #7
  • Morganite sales 5yr Cagr- 30%
    • Vesuvius sales 5yr cagr-15%
    • Both are debt free.
    • Both have uk parent companies. Morganite has 75% pro moter holding, vesuvius at 55%. Both depend on the parent for technology transfer. How sales growth is bigger in morganite? Smaller base?
    • But vesuvius seems to be the more established player. Factories in kolkata,visak, salem.
    • Beacause of its uk promoters corporate governance issues wont be a problem?(i think so)
    • A 30% grower with zero debt and a pe of 9. And a persumed technology moat(their ar says so). Vesuvius is a attractive bet if it could maintain its growth. More needs to be learnt from the management and industry insight needed to know if this growth is sustainable.
    • Donald sir please have a look and give us your valuable opinion.

(c.t.sreenath) #8

** for years.

**This may bring in additional revenue without much capital spending.As its not some completely different sector,it seems to be within its area of expertise.We shouldnt be worried? **


**Thanks for this intresting pick.**

**


(c.t.sreenath) #9

Sorry * correction MORGANITE at 30 5yr cagr, zero debt,9 PE is the more attractive bet.(*not vesuvius as typed)


(Ayush Mittal) #10

Hi,

Have looked at this co earlier…and it does look very interesting for the reasons mentioned above. However, we can’t just extrapolate the past growth into future. It may and may not happen.

So I think the key is to find articles etc or interact with co to get insight on growth prospects.

Thanks & Regards,

Ayush


(c.t.sreenath) #11

Thanks ayush.

Found a article that Morganite and Murugappa group are in a joint venture to produce ‘steel wool’ , its for both the domestic and export market.

But the sad point is, the

joint venture comes from the UK parent company, side stepping the Indian sub completely.Why couldnt they route it though the indian sub?

It USP in Uk is its technical expertise. It does not seem to share it with its indian sub as stated in the AR. Looks like they are only intrested in UK shareholders .

This is a big turndown for the stock in my view.

Senior members please correct me if I am wrong.

Thanks for this excellent forum.


(Ayush Mittal) #12

Thanks for bringing it to notice…yes, these things do matter and show the intent of the promoters towards creating value for minority.

Regards,

Ayush


(Mallikarjun) #13

Thanku Sreenath and Ayush

Regards

Mallikarjun


#14

-the company has increased its dividends from 1rs to 4rs a share.
-company has been posting decent results from few quarters since the new MD took over.
-looks like an interesting MNC available at reasonable valuations…


(BMishra) #15

At current price levels of 1100, PE is 20, still it’s debt free, with consistent increase in ROCE since last 3 years. With healthy free cash flows and promoter holding of 75 percent, could it be a long term prospect? Am a newbie investor and would appreciate guidance and views.


(nirajshah85) #16

Any updated views on the company??


(nirajshah85) #17

Came across an article on Morganite where it is merging it subsidiary. A little consolidation. Not sure on the outake.

Article - Morganite takes the consolidation path