BOOK 36% PROFIT - RISHIROOP LTD
DATE: 15/08/2017
  • COMPANY NAME : BOOK 36% PROFIT - RISHIROOP LTD
  • Description :

     

     

    Dear Readers,                                                             Date - 15/06/2017

     

    I would like to inform you that Yeasterday (15/06/2017)  "Rishiroop Ltd" was in 20% buyer circuit and i recommended Rishiroop at 52 Rs for the short term target of 80Rs.

     

    Today it touched 52 week high 74 Rs. Hence You can book the profit today.

     

    Now it is fatching 36% profit within a two months.

     

    Refer below details report.

     

    Happy Investing 

     

    Kamlesh

     

    ________________________________________________________

     

     

    Recommendation: Buy  

    Short term target: 80 Rs.

     

    CMP: 52

    BSE Code: 526492

    Market Capital: 51 Cr.

    Face Value: 10

    52 Week Low / High: 30/69

    Book Value: 57.5

    Price/Book Value: 0.92

    Dividend Yield (%): 1.52%

     

     

    Part – 1 Company Overview:

    • Rishiroop Ltd. formerly known as Puneet Resins Ltd.) was incorporated in 1984 in the State of Maharashtra.
    • The company has factory at Satpur MIDC, Nasik.
    • It has received ISO 9001:2000 Certification. and has been a pioneer in introducing various grades of rubber compounds in India.
    • Currently its products are exported to various developed markets across the globe.
    • The Company has been manufacturing Rubber & PVC Compounds which have specialised properties such as oil resistance, flame retardancy, ozone resistance, fuel and solvent resistance, etc. These compounds are used to make products such as petrol hose, LPG tubes, footwear, auto parts, protective clothing, seals, conveyor belts, etc.

     

    Product manufactured by the company:

    1.Vulcanol

     

    Vulcanised Vegetable Oils - For Natural & Synethetic Rubbers

     

    "Vulcanol" (Vulcanised Vegetable Oils) is the trade name encompassing a wide variety of vulcanized vegetable oils. These materials are produced by the reaction of vegetable oil with sulphur or sulphur monochloride. The "Vulcanol" range offes a wide choice of grades that can perform as processing aids, extenders or as a plasticizer for rubber base formulations.

     

     

    "Vulcanol" plays an important role in achieving specific set of properties in a rubber product, besides, felicitating smooth processing.

     

     

    2.VinoPrene -  Vinoprene are a group of nitrile rubber (NBR) / Polyvinyl Chloride (PVC) blends. Certain grades of NBR and PVC are highly compatible at any blending ratio. The blend partners retain their critical individual properties while improving their overall properties synergestically.

     

    3.Vinoplast  -  Vinoplast is the family name of NBR/PVC Polymer blends where PVC is equivalent or dominant blend partner. These materials are available in granule as well as sheet form and processed in the same equipment of standard plastics. Products from vinoplast blends demonstrate excellence in abrasion resistance, oil resistance and ozone resistance. Like other plastics, most of the grades are reprocessable.Vinioplast  is available in three regular grades, 510, 511 and 582. These grades differ primarily in mooney viscocity and NBR/PVC/Plasticizer blend ratio.

     

     

    Financial:

    In the March 2017 quarter Company

    • Net sale increased from 38.54 to 46.08
    • Profit increased from 2.46 to 3.6 Cr.

     

    (in Cr.)

    2017

    2016

    2015

    2014

    2013

    Equity

    9.7

    5.22

    5.22

    5.22

    5.22

    Reserve and Surplus

    46.08

    42.59

    15.1

    14.47

    13.2

    Revenue

    48.2

    38.54

    28.64

    35.55

    44.24

    YOY%

    25.064868

    34.567039

    -19.43741

    -19.64286

     

    Other Income

    1.63

    2.67

    0.67

    0.72

    0.25

    Total Income

    49.83

    41.21

    29.32

    36.27

    44.49

    Expenditure

    -44.41

    -37.33

    -27.03

    -33.03

    -40.53

    Interest

    --

    -0.18

    -0.08

    -0.12

    -0.17

    PBDT

    4.88

    3.71

    2.2

    3.12

    3.79

    Depreciation

    --

    -0.61

    -0.43

    -0.34

    -0.34

    PBT

    4.88

    3.1

    1.77

    2.78

    3.45

    Tax

    -1.39

    -0.64

    -0.39

    -0.78

    -1.2

    Net Profit

    3.49

    2.46

    1.38

    2

    2.26

    EPS

    --

    4.6

    2.65

    3.83

    4.32

    CEPS

    3.6

    5.89

    3.49

    4.49

    4.97

    OPM %

    10.12

    10.07

    7.99

    9.13

    8.94

    NPM %

    7.24

    6.39

    4.83

    5.62

    5.1

    D/E Ratio

     

    0

    0

    0

    0.0010858

     

     

    Rishiroop Ltd Shareholding Pattern:

     

    Rishiroop Ltd Share holding Pattern

    Description

    Percent of Share (%)

    Promoters

    70.97

    Public

    29.03

    Total

    100

     

     

     Investment Rational:

    1. Revenue up by 25% YOY basis.
    2. Profit rise 42% YOY basis.
    3. Strong point is company reserve and surplus has increased every year which is a excellent sign.
    4. Zero debt company

     

    Recommendation:

     

    • Stock CMP is 51 Rs. and stock is trading at P/E 14.67 & EPS 3.6, Based on above all points stock may touch 80 Rs. within 6 months time horizon.

     

    Please note:

    • Note: The articles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

      Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

      Disclosure:It is safe to assume that I might have the discussed companies in my portfolio and hence my point of view can be biased. Readers should consult registered consultants before making any investments.