Hi,
I was receiving few queries about ACP, during the last month or so, but I restrained from replying. Just because I don't want to make anybody speculating over it.
Finally I think its time to give my few points towards ACP on the eve of Q3 result publication.
NOTE : This is not a BUY / HOLD / SELL recommendation. [As per SEBI guide lines, you have to register as an research analyst to do that; and I am not intending to do that :-) , but I am trying to build/ implement a generalized portfolio approach majority can follow, and working towards that in present days]. So this is just my reflections based on the latest developments and result.
Major events happened during the last two months:
1. Promoters sold shares above Rs. 500/-
2. One HNI invested in the same and his other holdings are decent and futuristic
3. Company increased its borrowing limit to Rs. 100 Cr
Now based on the Q3 result
Only standalone result is published.
But it shows an increasing trend based on revenue and profit.
That's all for now from the present results.
There may not be any need to analyse the next result I think, since it will be on a consolidated basis and stock may find its proper value based on that result.
I was receiving few queries about ACP, during the last month or so, but I restrained from replying. Just because I don't want to make anybody speculating over it.
Finally I think its time to give my few points towards ACP on the eve of Q3 result publication.
NOTE : This is not a BUY / HOLD / SELL recommendation. [As per SEBI guide lines, you have to register as an research analyst to do that; and I am not intending to do that :-) , but I am trying to build/ implement a generalized portfolio approach majority can follow, and working towards that in present days]. So this is just my reflections based on the latest developments and result.
Major events happened during the last two months:
1. Promoters sold shares above Rs. 500/-
2. One HNI invested in the same and his other holdings are decent and futuristic
3. Company increased its borrowing limit to Rs. 100 Cr
Now based on the Q3 result
Only standalone result is published.
But it shows an increasing trend based on revenue and profit.
That's all for now from the present results.
There may not be any need to analyse the next result I think, since it will be on a consolidated basis and stock may find its proper value based on that result.
No dear mvpp, you might have misunderstood that disclosure. It may exceed 5% of avg three year profit or 50000- which ever is greater,,, but can't exceed 1 crore. Even they donated 1 crore last year fy14 too. Was the eps 17 in fy14? No. Please look into it again, i might be wrong too.
ReplyDeleteOk,
Deletelet me look in to the detail, again..
Actually we can't judge even minimum eps based on donation. My understanding, please correct if wrong
ReplyDeleteWhats your portfolio holding of ACP after the result?
ReplyDeleteNo change..
DeleteDear mvpp,
ReplyDeleteHave you ever visited arrow coated office or plant? I mean when we are so much talking and liking arrow in each parameter, a visit can open new dimensions in our thought process.
Regards.
Dear Naam,
ReplyDeletethank you for pointing the error. I read it wrong, as may not exceed 5% instead of may exceed 5% :-(
Also int he annual report 2013 - 2014, note no.43 (page number 76 ) indicated Rs 50 Lakh as donation (may be a typo error) as now I checked it again in detail and it is shown as 1 Crore in page number 73.
So thanks again for pointing the error. Also the article is also modified.
rgds
Dear mvpp, no error in AR. That 50 lac donation was done in q2(September) and remaining 50 lac in q4- check standalone q4 other expense published on 5/5/2014. Now next standalone will not have extra other expense. And consolidated results will depend on sustainability of consultancy income. My personal views. Thanks
ReplyDeleteREUTERS Analyst report on Arrow Coated Products released on 10.2.2015. The highlights are:
ReplyDelete(1) A strong Buy in Arrow Coated Products
(2) Based on earnings, fundamentals, relative valuation, risk and price movement, Arrow coated products gets a score of 8 out of 10- which is very good.
(3) Five years returns 3060% and one year return 1117%
(4) Profitability in Q1, Q2 Q3 and Q4 of FY14 are 9,9,10 and 10 (score out of 10)
(5) Score for debt is 9 out of 10
(6) Earning quality – a score of 8 out of 10
(7) Arrow fundamental rating improved from 3 (FY13) to 10 (FY14)
(8) The companies gross margin is at 5 years high
(9) Risk score had come down from 10 (FY12) to 2 (FY14) and currently is 4 out of 10- on average basis
(10) ACP currently has risk rating off 4 which is significantly below S & P BSe Sensex index average rating of 9.5
(11) Over the last 90 days ACP standard deviation has been 4.5 while S & P BSE Sensex index has only 0.9
(12) ACP price 295 is 33.1% below 52 week high and 1106% above its 52 weeks low
(13) CMP is 70% above 200 DMA of 232.37.
(14) Finally- A STRONG BUY RATING