4X Multibagger Stocks India · Narmada Gelatine · Jul15

Narmada Gelatine

Value Pick : Summary

About Business :

The company is one of the leaders in manufacturing of Gelatine in India, company also manufactures Ossein(Bone), Bone Meal Products and Animal Feed Grade – Di Calcium Phosphate which are chemicals of industrial grade.

Gelatine is virtually indispensable in the Medical and Pharmaceutical field and is specifically processed for extensive use in hard capsules, soft capsules, micro capsules, tablets and other coating applications.

Narmada Gelatine’s main production is in Pharmaceutical with range expanding to edible food grade gelatine, industrial manufacture of several coated and bonded abrasives.

SWOT Analysis :

Strengths

  • High demand of gelatin in food, beverages, pharmaceutical & cosmetics.
  • Growing health concerns and the ageing population is acting catalyst in growth of this company which will keep on rise since india is highest number of Young population

weaknesses

  • Good quality raw material is having steep rise in prices because shortage of raw material due to lower meat exports and strict implementation of Ban on cow slaughtering in some states of the country.

opportunities

  • Narmada Gelatine has R&D in place which is helping it to meet increased environmental pollution control norms.
  • As more of Young India gets medically insured & fast food industry keeps rising it will directly benefits Narmada Gelatines turnover & profitability.

threats

  • Imports from China at prices well below the domestic price can have a major effect on the margins in the near future.
  • Raw material price fluctuations.

Business Verdict :

By looking at quality of business of Narmada Gelatine a maker of essential part of healthcare industry makes it an awesome Value pick.

With short term raw material price fluctuation & cheap chines counterpart competition which is under government vigilance btw Narmada Gelatine is available undervalued value picks which is like Multibagger opportunity such a fantastic industry.

Official Website

Quality Analysis
Value Matrix


What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

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Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

regards,

jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

DISCLAIMER

This analysis is my personal opinion shared on public media (Blog) & is not a recommendation of any sort in any manner. I am currently not registered with SEBI in any capacity but in process of being a registered Research Analyst with SEBI. I have no financial interest in aforesaid company & don't hold any stock on the date of writing this post.