Update 14 oct 2016: Now i have got lot of other Microcap (you may call it my Microcap mania) which are lot more promising and scalable business. with better retrun ratios and visibiilty. To keep number of scrips under control. I will exit from this fully. Learning is : not to enter unless business is scalable and clear growth triggers are available. Business which are small and depedns on weather should be avoided or picked at right point.
Update 31.08.16- with news of valuation froth in midcap and lack of price rise after good financial numbers and keeping in mind seasonal nature of this stock I will cut down and move it to microcap portfolio. will keep watching and will add when there is 50% fall.
Exporter of Grapes to European counteries. Seasonal business and prone to cyclicalilty and weather vagaries.
Trigger to purchase:
Business standard article by Mudar Patherya.Dark Horse
Positive
- At 13 PE stock is fairly value.
- Low debt and good debt service capacity.
- Expestec to give good quarter as India’s grpae export during this season was double of previous season.TOI article
- Food processing business has turned around and is expected to do better. Though globally its not a worthwhile business as per one writer on value pickr.
- Promoter is honest
- During July 2015-March 2016 there was heavy insider buying, Though promoters have a track record of trading in their own shares within given window of 5%. Otherwise promoter owned company with high stake.
- No institutional holding
- microcap with 110 Mcap
Key points to watch at result time and after that:
- processed food segment performance
- insider activity around that time
- higher sales in line with bumber grape seaosn
- Add if results are good and price does not move. But not aggresively as its so far a seasonal compnay and any mass correction will give more opportunity to buy
- Sell if price moves ahead of fundamental
alphanotebook 