ValuePickr Forum

SmallCap Hunter : Trying to find the dark horses with triggers

Add shop E Retail…another interesting script.
FMCG play
Market cap less than 100 cr

Ayurvedic products
Agriculture n animal feed products
Health hyegine personal care

Sales, revenue n profit increasing
Increasing distribution network
OPM approx 14%

Gujrat based promotors
https://www.screener.in/company/541865/

Pls post ur views.

Dis: invested.

5 Likes

dont u find something fishy in their receviables at 50 % of sales

2 Likes

payables also rose, so not so worrying.
Their business model is too unpredictable though. how do you predict the success of their ‘agents’?
also why did they change the name to add shop e-retail? They get most of their revenue from offline sale.
Nonetheless looks like a fast growing company.

Annual report of the firm says it’s simply trading of ayurvedic products/medicines. What’s the moat here…just as its below 100 crore?

1 Like

Authorized Seller & Service partner for HP, Asus & Samsung which have been seeing an upward trend during the pandemic.

New partnerships with Dahua Technology,Optoma Corp, etc.

Fundamentals are good enough to sustain future growth

The stock has gone up another 10% since I posted.

1 Like

Some details about the JV I was able to find (posted on STL’s thread):

1 Like

Bajaj Healthcare.
Fastest growing small cap pharma company.
Zero FII n DII holding.
PE ratio 15
World number one producer of chorhexidine n ascorbic acid.
Trigger…NSE listing.

10 Likes

My Microinvestment idea…

  1. Add shop E Retail…personal care, ayurvedic products, animal feed, nutrients, new plant
  2. Cybertech system and security… cybersecurity
  3. ASM Technology… semiconductor technology
  4. Resonance speciality chemicals…pyridine products
  5. Ishan dye…food ingredients, pigment
  6. Sagarsoft india…microsoft, digital, mobility, few fortune 500 clients.

Disclosure… initial entry in above stocks.

Opinion from experts welcome.

7 Likes

My filter criteria also picked up Shop E Retail and Ishan Dye.

Disc: Invested in Ishan Dye.

1 Like

Same here. Add shop came in my screener and there is nothing on VP (except this thread).
Though i wasn’t able to find much information on the internet. Anyone wants to collaborate on it?

3 Likes

Off the bat looks a great pick. Any idea why it corrected so steeply in the last 3 months despite stupendous results

Lyka lab micro cap having mcap of 220cr.

As per quarter 1 21-22 result company has repaid 32 CR loan to ARC.

Promoter has released pledge share also.(source BSE disclosure by Company)

Started Job work for Remdesivir drug for reputed Indian pharmaceutical company.(source annual report 20-21) and advertisement on news paper dtd 17.04.21 https://www.lykalabs.com/

Increasing capacity by 50% and ready by second half of current financial year.
Following is abstract of last Annual Report

“To meet the increase in demand for lyophilised products the company has embarked on an expansion project of its Lyophilization Plant at its Ankleshwar factory. This Project is likely to be completed in 9-12 months with a 50% enhancement in capacity for lyophilisation.
Company has received permission to manufacture and marketing of Liposomal Amphotericin B Injection 50 mg/vial from Government of India, Directorate General of Health Services, New Dehi.”

Fail to understand how company can repay loan of 30 CR having turnover of 48 CR for Ist qtr.

If someone having deep knowledge of pharmaceutical sector can throw light on the company?

Can it be considered as fundamental turnaround story.

Invested in last month looking to momentum in the stock though still learning technical analysis.

1 Like

Pl consider Remdesivir Injection instead of Remdesivir drug in above write up.

Sorry for inconvenience

@kartiks
We have to take into account bonus shares issed in the ratio of
1:1 in early 2020.The price is more than doubled since ipo.

1 Like

The recent developments at Creative Newtech look interesting. I have a tracking position.

However, I have a couple of questions. I recently found that the company allotted a substantial number of preferential shares (400K equity shares and 600K warrants) for Rs 110. The approval from board was received on 1 July when the share price was around Rs 186.

Why was such a huge discount given? Is such low pricing even legal? Even if legal, such low pricing is against the interest of the minority shareholders. I am not very familiar with the regulations. Even though the company has notified a CA certificate saying that the preferential issue follows the ICDR regulations, I have my doubts. I would like to understand this issue.

1 Like

There is already a separate thread on Vertoz:

Super results by Creative last week and management sounded very honest about their plans for future. Key highlights:-

  1. Q1 FY22 impacted by lockdown and represents around 2 months of sales. They did 69crs and 70crs of biz in June and July 21 - best performing months in the history of company

  2. Console margins are depressed because Honeywell expenses have started flowing but revenue is yet to kick in. The management has guided for a launch in middle of September for Honeywell products and are sticking to 80 to 100cr revenue guidance for FY22. That makes INR 17cr EBITDA just from the Honeywell licensing business. Rest of the INR 600crs (conservative number) business could contribute another 5% EBITDA margin so another 30crs. So a total of 47crs EBITDA expected in FY22.

  3. Ckart - Independent director on board from IIM who teaches platforms and social networks. So they’re seeking guidance from the board in terms of the skillset, direction and how to play this business. Tentative plans would be revealed in the next 2 months. Could include a demerger of ckart too.

  4. Guidance for Honeywell business - INR 200/250 crores by FY23. The agreement is till FY25 and they’re in very early stage talks with other brands as well for licensing business.

  5. Numbers: INR 135cr revenue; 4cr EBITDA and 1.23cr profit.

Per the guidance by management, Honeywell business should contribute ~35cr EBITDA by next year and rest of the business could contribute a similar amount. Overall 70cr EBITDA in FY23.

Currently the stock is trading at a mcap of around 315cr which is 4.5x FY23 EBITDA.

4 Likes

Is anyone tracking Libas Consumer products?

This issue was spoken of in the Q1FY22 con-call and I have myself been critical of the move but here’s the perspective of management:-

  1. We were talks with these for last 1/2 years;
  2. Not sure if the rights would have been subscribed (management sounded skeptical)
  3. Said they’ll consider rights in future fund raising requirements
  4. No further immediate funding requirements, so no further dilution.

And yes, the pricing is as per SEBI norms, it looks very low because the stock had a sharp upmove from 130 levels.

Not very satisfied, but then, not every thing is perfect. One has to weigh risks / rewards here.

2 Likes