JOCIL
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2594
Printed Date: 21/Apr/2025 at 7:09pm
Topic: JOCIL
Posted By: hit2710
Subject: JOCIL
Date Posted: 31/Dec/2009 at 11:02am
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JOCIL listed only on NSE.
The company is into manufacture of Oleochemicals • Stearic Acid • Fractionated Fatty Acids • Distilled Fatty Acids • Refined Glycerine • Soap Toilet Soap • Soap Noodles • Special Products • Contract Manufacturing CUSTOMERS INCLUDE HIND UNILEVER, RECKITT, JYOTHY LABS, ITC, MRF, BIRLA TYRES, MARICO, EMAMI, ELGI, ALEMBIC, SUN PHARMA, ASIAN PAINTS, BERGER PAINTS, HENKEL, JOHNSON & JOHNSON ETC. The Company is engaged in the manufacture of Stearic Acid Flakes, Fatty Acids, glycerine, Soap Noodles, Toilet Soap, Industrial Oxygen and in the generation of Power from biomass and wind. Non-edible oils and fatty acid distillates, both indigenous and imported are used as raw materials for manufacturing the finished products. The products manufactured are marketed directly from the factory as well as through Depots and C&F Agents located in major cities in the country. The Company also manufactures Fatty Acids, Soap Noodles and Toilet Soap on jobwork for reputed customers. Biomass Power Plant is a captive power plant and surplus power is sold to AP Transco. Power generated from Wind Energy Generators (WEG) set up in Tamil Nadu is sold to Tamil Nadu Electricity Board. FINANCIALS (in crores) YEAR 05 06 07 08 09 H1FY10 SALES 89 84 96 130 216 147 NP 11 2.9 5.6 8.7 9.7 12.25 EPS 25 6.6 12.5 18.7 21.8 27.5 DIV 6 5 6 7 8 (Rs per share) RONW 13 3.5 6.3 9.3 9.7 EQUITY 4.44 CRORES PROMOTERS STAKE 55 % BOOK VALUE AS ON MARCH 09 is 224 DEBT 6 CRORES CASH AND CASH EQUIVALENTS (FD) 23 CRORES MARKET CAP AT CMP OF 272 IS AROUND 120 CRORES. RESERVES 84 CRORE POSITIVES: Stock available at close to book value with good business prospects High dividend paid out since many years Low debt High growth trajectory since past few quarters Cheap valuations, trading at 5 pe based on expected fy10 earnings. NEGATIVES Fluctuations in raw material prices could affect the profitability Poor return on net worth Low liquidity – stock listed only on nse and has very low volumes. TECHNICALS: Not too much data since the stock was listed on nse since oct 08 in the thick of turmoil and low was around 40-50 and high was around 295 in last few trading sessions. ACKNOWLEDGEMENT: I would like to acknowledge Jaishrikrishna for bringing this scrip to my notice. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Replies:
Posted By: manish_okhade
Date Posted: 01/Jan/2010 at 2:18pm
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Hi Hitesh,
How strong is business model, I mean do you able to figure out why business is flourishing for past 4 years?
This info will give some confidence to decide on future. Though looks like good cheap bet.
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Posted By: Jaishrikrishna
Date Posted: 01/Jan/2010 at 5:09pm
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thanx for the acknowledge hit.
to add: Jayalakshmi Oil and Chemical Industries Limited Became a Subsidiary of The Andhra Sugars Ltd (ASL) on 27 October 1988.Dr. Mullapudi Harischandra Prasad is the Chairman who is also the chairman and md of andhra sugars, beside the following are the board members: P. Narendranath Chowdary M. Thimmaraja Y. Narayanarao Chowdary V.S. Raju K. Srinivasa Rao M.Gopalakrishna Subbarao V. Tipirneni some of the above are also acting members of The Federation of Andhra Pradesh Chambers of Commerce & Industries nobody following this stock, will watch this qtr results. kindly anybody following jocil post whatever info available. rgds ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Jaishrikrishna
Date Posted: 01/Jan/2010 at 5:15pm
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Icici Securities Primary Dealership Ltd holding 237096 shares 5.34 % and Icici Bank Ltd holding 387484 shares 8.73 % as of 30 sep 09 as per nse data.
------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: hit2710
Date Posted: 01/Jan/2010 at 6:22pm
Business model is mainly focussed on the supply to soap manufacturers and profitability to some extent depends upon the input costs which include non edible oils imported from Indonesia and Malaysia. They have also started supplying toilet soaps to hotel chains etc on their own which could be a growth driver going forward. Management seems to have got its act together in the last few years because there is some consistency in earnings. Earlier in fy 2000-2005 they had good growth in profits, but had bad years in 06 and 07 and then things are now back on track and 09 could be a blockbuster year based on first half results. My view is this one could be medium term trading stock where on good earnings, one can sell it if it gives you 50-70% returns and then buy again on dips when results may not be so good. Looking at the 10 year data available in AR, it is difficult to make a call on consistency in earnings. But valuation wise, currently it is cheap. So for me currently it is a buy for next 2-3 quarters and one may take the call after that whether to hold on or sell as per further results. Regards, Hitesh. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: manish_okhade
Date Posted: 01/Jan/2010 at 6:27pm
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Hiteshji,
Aaap to sachmuch small cap gems ke champion ho :-).
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Posted By: TCSer
Date Posted: 01/Jan/2010 at 10:22pm
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Andhra Sugar group is one of the oldest business group in the country but somehow the shareholders have never been rewarded. It seems that Fire in belly from the current 3rd generation promters is missing.Look where Renuka sugars a similar south based sugar company but led by a first generation entrepreneur has reached & where Andhra group is languishing. |
Posted By: smartcat
Date Posted: 01/Jan/2010 at 10:49pm
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I had taken a look at Jocil sometime back and had given it a pass.
Net profit of Rs. 11 cr in FY05 and a net profit of Rs. 10 cr in FY09 implies that a 5 yr bank FD offers better rewards for a lot lower risk.
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Posted By: hit2710
Date Posted: 27/Jan/2010 at 4:52pm
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http://www.nseindia.com/marketinfo/companyinfo/eod/resHistory.jsp?symbol=JOCIL - JOCIL Q3FY10 RESULTS
9MONTHS ENDED FY10 DEC EPS AT 39.11  ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: manish_okhade
Date Posted: 27/Jan/2010 at 5:01pm
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Good bet!
Jara JK Paper par bhi apani opinion de dijiye :-).
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Posted By: TCSer
Date Posted: 10/Sep/2010 at 2:06am
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HDFC SECURITES HAS TURNED POSITIVE ON JOCIL. What shud be the price target for thsi fairly old co? http://www.hdfcsec.com/CMT/Upload/ArticleAttachments/Jocil%20Ltd%20Stock%20Note.pdf |
Posted By: Ravenrage
Date Posted: 12/Sep/2010 at 8:45pm
| Nothing less than 500 i believe. |
Posted By: Ravenrage
Date Posted: 18/Sep/2010 at 7:44pm
| Sushil Finance has turned bullish with a target of 540 . |
Posted By: Ravenrage
Date Posted: 09/Dec/2010 at 9:58am
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Posted By: SK1076
Date Posted: 12/Dec/2010 at 1:12pm
I think this stock may take a route of VIP industries in coming years. Its becoming more & more popular in home consumer space. Its surely one of the stocks which will ride india cosumption story. The home consumer printer market is growing it will surely benefit this co. Moreover, Jab aapko kisi brand ka product sadak pe aate-jaate, aur choti moti stationary shops pe nazar aane lag jaaye to samjho ki woh ghar ghar mein ghus gaya hai. ------------- Patience PAYS/- |
Posted By: tejas.k
Date Posted: 10/Apr/2011 at 7:57pm
| anybody tracking jocil? looks a good bet. |
Posted By: hit2710
Date Posted: 10/Apr/2011 at 8:20pm
The current correction to below 300 levels does offer good entry point. I think most of it is due to the margin pressure experienced in last couple of quarters. JOCIl 9M sales is around 275 crores and net profit is at around 16.34 crores and market cap of 131 crores. EV is also around 140 crores and EBIDTA is around 40 crores. So EV/EBIDTA is around 3.5. I think it is a good proxy play on the consumer theme being an ancillary company to the consumer companies. Raw material prices will play out in this company and one will have to time entry/exits based on these factors. Current levels seem to indicate a good chance to accumulate the stock. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: tejas.k
Date Posted: 10/Apr/2011 at 8:50pm
| thanks hit ji |
Posted By: Ravenrage
Date Posted: 10/Apr/2011 at 10:28pm
| Agree totally .. |