Kemrock-Suppliers to wind power companies
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=854
Printed Date: 21/Apr/2025 at 12:07pm
Topic: Kemrock-Suppliers to wind power companies
Posted By: kulman
Subject: Kemrock-Suppliers to wind power companies
Date Posted: 15/Apr/2007 at 1:25pm
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Doctor Saab, pick axe theme in Wind Energy sector reminds me of a gentleman I met last year. He made huge money by investing in http://www.bseindia.com/price_finder/stockreach.asp?scripcd=526015 - KEMROCK very early, vadodara based company which makes High Performance Reinforced Polymer Composites, and a comprehensive range of Unsaturated Polyester & Phenolic Resins which are also used to make Windmill towers/rotor blades among other industrial applications.
SKF is truly a global leader in Bearings for almost all the sectors.
------------- Life can only be understood backwards—but it must be lived forwards |
Replies:
Posted By: tigershark
Date Posted: 15/Apr/2007 at 1:34pm
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at first instance looks good mkt cap220 cr sales 120 crs full yr 07 eps 30+ pe ratio 10.the future looks good as finally climate change is being taken seriously imp to consider raw material costs and who are their competitors besides wind farming do they have any other application for their product ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: kulman
Date Posted: 15/Apr/2007 at 1:44pm
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I haven't had a close look at Kemrock because by the time that gentleman told me he had moved out of this stock after making a cool 35~40 times multibagger in less than 3 years!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: tigershark
Date Posted: 15/Apr/2007 at 4:19pm
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will keep an eye on it but def no jumping in ------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: us121
Date Posted: 15/Apr/2007 at 6:41pm
I entered in Kemrock at around 90 and came out at around 360.
the selection was due to:
-pick axe theory being sole supplier to wind mill supplier for few items
-replacing conventional mettle components with high grade/ high quality composite material
-monopoly item
-lots of possibiility of finding applications where they can replace conventional parts with this new tech items
-very low equity and turn over company, providing enormous opportunity for growth.
-the cost of its supplies in overall product is very marginal and hence vendors may be very less sensitive to premium pricing (remember mainsh dave's comment on uranium ' atta me namak')
- prmotoers were buying and increasing stake continuously at/ very close to prevailing market rates.
As such i was thinking of visiting their mfg facility, but as they have recently shifted it from baroda to near by GIDC could not do so. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: basant
Date Posted: 15/Apr/2007 at 6:46pm
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Very useful insight on how to go about looking at companies especially the atta me namak theme - Thanks to Manish for that. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Rinku
Date Posted: 15/Apr/2007 at 6:58pm
| Financials of Kemrock looks solid.I have taken small exposure to it.Pls let me know if you know more about the company |
Posted By: basant
Date Posted: 15/Apr/2007 at 7:44pm
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At first shot the financials look attractive operating margins have expanded to 24.84% from 16.32%; Net profit margins have gone upto 7.58% from 3.98% and the http://www.theequitydesk.com/forum/forum_posts.asp?TID=119 - RoE is at 30.03% from 12.82% whereas the http://www.theequitydesk.com/forum/forum_posts.asp?TID=119 - RoCE has just moved from 9.18% to 13.57%. The main problem which seems to be is that the company is highly geared. Debt equity ratio is over 4 times and the company seems to have a RoCE which is just below the prime lending rate of most of the banks.
So what could have done this trick. It seems that the company has borrowed heavily and then invested that money in its business. The total debt has increased by 8 times in the last 4 years from Rs 11.41 crores to Rs 90.47 crores. So that though the net profit has gone up increasing the RoE the RoCE has not shown an equal ioncrease.
http://www.theequitydesk.com/forum/forum_posts.asp?TID=119 - It is better to analyse companies by looking at both RoE and RoCE because it indicates whether the company is growing naturally by efficient use of capital or growing just because of leverage.
I am not suggesting that this company is bad but just trying to provide a perspective of financial engineering which in case of a rising interest rate environement could hit some of these highly leveraged companies.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manishdave
Date Posted: 15/Apr/2007 at 8:54pm
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I also made quick bucks on Kemrock thanks to US121. He pointed out this company, I liked story bought @140 and sold @390.
Disclosure: US121 is close friend of mine.
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Posted By: Rinku
Date Posted: 16/Apr/2007 at 12:51pm
basantji very good analysis.You are really something
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Posted By: Rinku
Date Posted: 16/Apr/2007 at 12:54pm
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Dave bhayya which are top picks of US121?
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Posted By: us121
Date Posted: 29/Jun/2007 at 1:04am
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Rinkuji, i missed your post at that point of time. Asian Electronics i liked a lot. Has gone up heavily in last few days. two good stock i liked but failed in terms of performance are: unichem laboratory and patel engineering. slowly moving out of them still has interest in kemrock. see the result declared today: Sales rise 128.34% to Rs 47.38 crore
Net profit of Kemrock Industries & Exports rose 177.88% to Rs 2.89 crore in the quarter ended March 2007 as against Rs 1.04 crore during the previous quarter ended March 2006. Sales rose 128.34% to Rs 47.38 crore in the quarter ended March 2007 as against Rs 20.75 crore during the previous quarter ended March 2006. For the full year, net profit rose 311.48% to Rs 18.64 crore in the year ended March 2007 as against Rs 4.53 crore during the previous year ended March 2006. Sales rose 146.93% to Rs 147.64 crore in the year ended March 2007 as against Rs 59.79 crore during the previous year ended March 2006BASANTJI: WHAT IS YOUR TAKE FROM THIS RESULT. EAGERLY AWAITING YOUR COMMENT. ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: Rinku
Date Posted: 29/Jun/2007 at 6:13am
| thanks US121 bhaya ji.I have small position in Asian ele and Kemrock |
Posted By: catcall
Date Posted: 29/Jun/2007 at 10:27am
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I too have a small poistion in Patel Engg. and agreed, it has not moved on expected line, but am holding positions. The company has excellent order bookings and on very good margins am hopeful that the company will outperfom in comming quarters... ------------- There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing! |