Monday, 3 November 2014

EPC Industrie: SIP (NOV 2014)

The past month was very good for equities, and we are at all time high, based on broad market. Even though the market may move to any levels, the comfort zone we had during a bear market is slowly disappearing, and finding a pure value buy or extreme undervalued stocks are becoming highly challenging.

 

Adding to this, we should not become blind due to the past success and need to stick it on our basics.

 

This time so we are opting for an already picked one. EPC Industrie, which is available as a decent buy (but not an extreme value buy) due to the present quarter bad results.  But I believe this stock has lot of promise going forward in long term.

Key reasons

1. It’s a Mahindra & Mahindra subsidiary

 2. Is a micro-irrigation system & component manufacturer

3. EPC has recently ventured into the greenhouse & agri pumps segment with the aim of becoming a total agri solutions player catering to the needs of the Indian farmer.

 

In short EPC is a long term play which can be purchased around these valuation or lower to the desired portfolio allocation targets gradually.

 

Bought 30 Numbers at 167 /- per share and now total number is increased to 120.

PS : Remember, It’s not a short term or medium term buy.

Present Portfolio



Company

No. of shares
(Quantity)
Avg Buy Price
Initial Investment
CMP
Value at CMP
Gain in %
Arrow Coated Pro
299
83.06
24,834.70
274.75
82,150.25
230.79
Ashapura Min. Lt
80
61.50
4,920.00
72.95
5,836.00
18.62
Bambino Agro Ind
160
62.50
10,000.00
80.20
12,832.00
28.32
Camphor & Allied
20
217.00
4,340.00
364.75
7,295.00
68.09
EPC Industrie Ltd.
120
124.25
14,910.00
165.50
19,860.00
33.20
Granules India L
32
305.00
9,760.00
809.00
25,888.00
165.25
Kopran Ltd
96
52.00
4,992.00
62.75
6,024.00
20.67
Liberty Shoes Li
56
178.00
9,968.00
282.45
15,817.20
58.68
MarathonNextgenRea
27
182.00
4,914.00
190.10
5,132.70
4.45
Nath Bio-Genes
123
81.00
9,963.00
130.50
16,051.50
61.11
Nitco Ltd.
330
15.00
4,950.00
28.70
9,471.00
91.33
Orchid Chem & Ph
55
54.00
2,970.00
77.70
4,273.50
43.89
Simran Farms Lim
215
13.80
2,967.00
21.20
4,558.00
53.62
Tata Chemicals
35
284.00
9,940.00
415.10
14,528.50
46.16
V2 Retail
330
15.00
4,950.00
34.00
11,220.00
126.67







Free Cash


5000

5000

 Total


1,30,000


245,937.65

89.18

5 comments:

  1. Hi MVP,

    I checked some numbers of EPC Industrie of moneycontrol..where, I don't know why it is still mentioned as EPC Irrigation...

    It has got a very high PE, the cash flow discrepancy between net profit and operating cash flow is high, with operating cash flow negative for the last2 of the 3 years..the company has diluted equity almost every second year...

    What are the factors that give you confidence in this scrip??

    Thanks,

    Manish

    ReplyDelete
    Replies
    1. By conventional parameters it may be overpriced.
      But future share price will be a factor of future earnings and future potential of the company and not past.
      On similar lines Sequent is also expensive.
      Adding to this EPC is almost debt free and that adds me more comfort on this bet.
      rgds

      Delete
  2. Hai MVP
    Many thanks for supporting and guiding small investors.
    It is really very useful as you publish and explain the future prospectus of scripts you suggest.
    I hope EPC has started a momentum after your publish and now take positive journey.

    please update time to time on the market conditions and if any to be exit from your portfolio.

    best regards

    ReplyDelete
    Replies
    1. :)
      Sure. If I find any stock in the portfolio has any issue, it will be updated.

      Delete
  3. Sir can you pls express your view on a company called Kilitch Drugs listed on both exchanges which did very well two yrs ago but than sold its plant and gave a dividend of 300% to shareholders but after that for almost six quarters had negligible results but last two quarters showing some turnaround but i believe it has not seen the advantage of this bull run yet. should i invest in it now, pls guide?

    ReplyDelete