Background –
Taparia Tools (TT) is over 4 decade old hand tools manufacturing company. Co. formed an alliance with Swedish collaborator in its early days to absorb their technology. It is an ISO-9001 accredited company.
Products and application –
TT is hand tool manufacturer. Some of the tools include – screw driver, sockets, tool kits etc.
Its products are available online on Flipkart also. Online customer reviews are good. TT has bagged awards for export excellence several times since 1977 till 2007. It showcases its products in International fairs.
Manufacturing facility –
2 plants between Nashik and Goa. Out of the total of 1200 work force of this, the number of people engaged in direct production is 1000.
Market data (Key positive) –
Promoter holding is 70% with no pledge. Market cap is ~16 crs. + FY2015 sales of Rs. 300 crs. (P/sales = 0.5x) + FY2015 PAT of Rs. 9.7 crs. (TTM P/E = 1.6x) + FY2015 CFO of Rs. 2.07 crs. (CFO yield = 12.5%) + Debt/Equity = 0.35x (Debt = 23 crs. and Equity = 67 crs.)
Financials (Key positive)
Financial seems mighty enough for a micro-cap company like this. ROE is backed by high asset turns.
Information gaps / concerns - 1. My broker informed me that shares of this company are available only in physical form (no demat form). So in case if anyone chances upon a way to buy the shares of this company, please let know here…. As my broker could be wrong! Company sells its products online but equity shares available only in physical form
2. Not much information available on client profile
3. Promoter holding is 70%. However, top 10 shareholders list also seem to have Promoter shareholders. Couldn’t reconcile same
4. Doesn’t pay dividend in-spite of no expansion plans and healthy cash flows.
Disclosure – My broker is still struggling to find the way out to buy the stock of this company
Pratik, thanks for collecting & publishing data. The basic question I have is why to BUY such a thing, when you & your broker are struggling to find the source to buy it… You may struggle to SELL it too. The difference from current situation will be…, your capital will be blocked till you find the source & BUYER for your holdings… We have many attractive options available so I will prefer not to run behind such things
I have been in the same situation before. Researched Taparia tools for its cheap valuations and then was unable to figure out a way to buy. Do let me know if you’ve figured it out.
PS. Will a discount nline brokerage like Zerodha be able to buy you physical shares?
& those listed in the public share-holding group., do also belong to some relatives of the promoters.
There is no trading of shares on the stock exchange., as no one wants to sell. ( makes me think why on the first place did they list the company )
I analysed the volume of stocks traded pattern & found that a minimum no. of shares ( eg. 100 nos.) were traded once in every 3 months., probably just to ensure with Sebi guidelines & keep their listing alive.
Almost all of their shares (even the ones with the promoters ) are in the physical form., & cant be traded in the electronic format.
All in all., the price doesnt indicate much., as there is no trading taking place in it.
This company available only PE of 0.11, while its peers De Neers Tools Ltd available Pe of 23. Its available at very low valuation any reason behind it.
