Investment Idea : APL Apollo Tubes Limited

APL Apollo is the fastest growing steel tube manufacturer in India. It manufactures a range of steel products ERW black tubes and pipes. Hot-dipped galvanized and pre-galvanised tubes, hollow sections, and structurals. The Company markets its product under the brand APL Apollo which covers MS Black, G.I. round pipes and hollow sections both in rectangular and square quality rolled on high frequency induct weld (HFIW) mills.

The Company is headquartered in NCR, Delhi with five manufacturing facilities –two units in Sikandrabad (UP) and one unit each in Bengaluru (Karnataka), Hosur

(Tamilnadu) and Murbad-Mumbai suburb (Maharashtra). The Company has created a vast distribution network across India, warehouse-cum-branch offices in 15 Indian cities and an international distribution network in all continents (exporting to more than 35 countries).

The Company is doubling its installed capacity from 500,000 TPA in 2011-12 to 1,000,000 TPA by 2015. Company aims to achieve US$1 bn revenue by 2015

Invest for long term.

Consolidated financials (Rs in Crore)

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.

Weak market: selective cherry picking

In previous blog on 25^th Jun 2012, we covered market “Positive Side of Crises - Opportunities Unlimited” stating valuation is looking attractive and recommended investment in market. Sensex has risen from 16882 levels to 20000+ in Jan-13, & Friday closing at 19468.

Budget-2013

There are lots of hopes from budget 2013 that it will focus on growth.

Looking back, in Sep-12  Government allowed FDI in multi brand retail with lot of big bang to revive growth. Ikya is planning to make 10500 crore investment. Not many big foreign retail company had shown great interest.

We always expect positive things for future. Things will evolve over a period of time. It will take time & lot of efforts by Government to revive economy. It may not happen overnight.

There are selective sectors / companies which come out with outstanding numbers for quarter ending dec-12. Present market valuation is not cheap as it was in early 2012 especially considering slow down in economy. 

We feel market is weak at this moment, we may see correction in coming time and or side-way movement. Do selective investments in intervals.

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.

Investment Idea : Talwalkars Better value Fitness Ltd

Talwalkars Better Value Fitness Limited, commonly known as Talwalkars, is one of India's largest chain of health centres. Pan India market presence with 137 fitness centers in 73 cities across 18 states of India, offering complete bouquet of fitness services through new initiatives like Nuform, Zumba® program, Reduce- diet program, Talwalkars David Lloyd Leisure consulting along with gymming

Company launched Zumba® Fitness Programme in Jun-12 & Reduce program in July-12.

Current pricing for Nuform (`36,000-42,000p.a.), Zumba® program (`2,000-2,500p.m.), Reduce program (`15,000-20,000p.q.) is significantly higher than the basic gym membership sold at `14,000 - `20,000p.a. Company expect by FY14 the company is confident of opening  100 Zumba® centres from 15 centres as on Dec-12 and Reduce program in 75 fitness centres from 5 fitness centres as on Dec-12.

In Dec-12 company has entered in to collaboration with David Lloyd Leisure, Europe’s leading health sports for consulting, execution, management and operations of leisure and sports clubs in India

In Dec-12 company has successfully raised Rs 423.74mn through QIP at Rs 205.18 per share.  Promoter holds 54.78% stake.

Invest for long term.

Consolidated financials (Rs in Crore)

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.

Investment Idea : Sun Pharmaceutical Industries Ltd.

Established in 1983, Sun Pharmaceutical Industries Ltd. is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, the United States and several other markets across the world. In India, the company is a leader in niche therapy areas of psychiatry, neurology, cardiology, gastroenterology, nephrology, orthopedics and ophthalmology. Sun Pharma has strong skills in product development, process chemistry, and manufacturing of complex API, as well as dosage forms.

Recently Sun Pharma and Taro had terminated the merger stating it in the best interest of the respective companies and shareholders. Sun pharma will continue to hold 66% in Taro.

In FY 2012-13 Sun Pharmaceutical acquired

a)  U.S.-based DUSA Pharmaceuticals for around $230 million (about Rs.1,250 crore). DUSA Pharmaceuticals, Inc. is a market leader in photodynamic therapy (PDT), marketing products to dermatologists.

b)URL pharma’s  “generic business” from Japanese drug-maker Takeda for an undisclosed amount.

Invest for long term.

Consolidated financials (Rs in Crore)

Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.