Its worth looking at Narmada Gelatines.
A 50 year old company, is a leading manufacturer of Gelatine. Gelatine is a natural animal protein and is composed of various essential amino acids required for human nutrition. It is mostly used in food industry - as a gelling agent for various desserts, clarification of juices, fining agent for wine/beer, stabilizer/thickener/texturizer for jams, yoghurt, cream cheese and margarine.
It has seen a steady growth over the last 5 years; from Rs. 50 crore revenue in 2006 to Rs. 88 cr revenue in 2011, and consistently profitable. It is debt-free, and had an EPS of around Rs. 23.50 for FY11. At a market price of 100, it is available at a P/E ratio of around 4.5, which is pretty cheap given that it is a good candidate of acquisition. Note that it is a Shaw Wallace group company.
So, recommend buying at around 100 price levels, with limited downside, but good possibility of upside.
A 50 year old company, is a leading manufacturer of Gelatine. Gelatine is a natural animal protein and is composed of various essential amino acids required for human nutrition. It is mostly used in food industry - as a gelling agent for various desserts, clarification of juices, fining agent for wine/beer, stabilizer/thickener/texturizer for jams, yoghurt, cream cheese and margarine.
It has seen a steady growth over the last 5 years; from Rs. 50 crore revenue in 2006 to Rs. 88 cr revenue in 2011, and consistently profitable. It is debt-free, and had an EPS of around Rs. 23.50 for FY11. At a market price of 100, it is available at a P/E ratio of around 4.5, which is pretty cheap given that it is a good candidate of acquisition. Note that it is a Shaw Wallace group company.
So, recommend buying at around 100 price levels, with limited downside, but good possibility of upside.
