A Brief summary of the Micro/Small/Midcap Carnage

Some companies that seem worth investigating at current juncture:

MAS Financial Services. Very conservative management as can be seen from AR, concalls, presentation. And inspite of all that they have managed to grow their aum from 2 crores to 4000 crores plus over the past 20 or so years. And decent asset quality as well. And few instances of dilution.

Multibase seems interesting. Its a subsidiary of Dow Chemicals. Last few years growth has been very good and sales have been growing with improving margins. Net profits have grown at a clip of 35-40% CAGR over past few years. I think improving margins have come about with higher percentage of speciality products as compared to commodity products. Opportunity size for the company’s products viz. thermoelastomeres seem to be good with substitution of traditional products like rubber and plastics with thermoelastomeres. Good back up in terms of new products and R&D from parent should see the company continue to grow. At PE of around 38-39 based on cmp of 600 and EPS of 15.5 for fy 18 seems fairly priced/expensive. But looking at opportunity size and market cap of 770 crores for an MNC company it looks linteresting.

TCI Ltd has been posting decent numbers since past few quarters and management seems confident of growing profitably going forward as well. One of the few players in logistics space which has shown consistent numbers.

disc: invested in all the above and adding.

29 Likes