PONDY OXIDES & CHEMICALS LIMITED - POCL

CMP - Rs 61

COMPANY PROFILE

The metallic oxides industry in India is synonymous with Pondy Oxides & Chemicals Ltd POCL. It is one of the India's leading metallic oxides producers. Incorporated in 1995 as a Public limited company. POCL is doubling its lead metals smelting capacity to ~57,000 TPA through a greenfield expansion in Andhra Pradesh. The plant, with a capacity of 28,000 TPA is expected to be commissioned in April 2015. The capex has been funded through `5 crore in debt, with the remaining being met through internal accruals. We expect the new plant to average at 50% utilization in the first year of operations and gradually ramp up to 70-75% from the second year on wards. The expansion comes after a period of five years and its timing could not have been better given that macro economic factors have turned favorable. Further, the plant is located near Amara Raja Batteries’ unit which is POCL’s largest domestic consumer. Indian Lead Zinc Development Association has forecasted a gradual deficit in lead supply over the coming years. The automobile sector is the major consumer of lead ingots and oxides, which is the key raw material for its batteries. A large part of the demand for automotive batteries stems from replacement demand, since the typical life of a battery is 2-3 years depending on the extent of usage. Given that 3-3.5 mn vehicles are sold annually in India, the replacement demand will remain robust.  The demand for industrial batteries will remain strong given the world-wide impetus on solar energy, batteries for back-up power and telecom. 

Recently POCL de-merged its metallic oxides and plastic additives segments into a different entity- PEL. Post the de-merger major equity reduction happened in POCL, for every 2 shares of POCL, 1 share of POCL (de-merged entity) and 1 share of PEL will be allotted.

KEY FACTORS THAT MAKES IT A COMPELLING BUY 

QoQ  Results

• Investor friendly company, it paid continuous dividend for last 12 years.
• Reduction in equity and expansion in production capacity will create big boost in the EPS.
• NILE is in similar business and sales turnover, it is trading around Rs 300.
• Its quarterly result trend tells the actual growth story.
• Promoters are buying the stock continuously from open market.

Listing of POCL will happen within 10 days. Try to catch it early at lower price on the day of listing.

Disc: I have vested interest in POCL.

WATERBASE

January 06, 2015




WATERBASE - High potential stock  CMP-60




Company Profile


The Waterbase Limited is an aquaculture unit located at Nellore, Andra Pradesh 170 KM North of Chennai, India.

Waterbase is promoted by ‘Thapar Group’, a well known business conglomerates in India.

Our mission is to give customers the best value for money with our quality feed and processed Products.

Waterbase started operations in 1993 and have stood committed to following and disseminating the best aquaculture techniques. Today, we are one of the leading entrepreneurs in India with facilities that comprise a Shrimp feed plant, grow-out farms and a Shrimp processing facility.

Waterbase has played a key role in dissemination of scientific shrimp farming in India and provided training and support in farming techniques for successful crops.

Waterbase is equipped with shrimp feed mill which produces world class shrimp feed. Our latest achievement is in the production of organic feed.

Waterbase exports shrimps in different forms to quality conscious markets of Japan, USA and Europe - IQF, Block Frozen and Cooked. We also supply value-added shrimps to the customer needs. Our process plant is FDA listed, EU approved and Processing is as per HACCP guidelines.


FARMING

Waterbase is well known as pioneers in Indian Aquaculture Industry.

Model ponds are developed in Nellore for all kinds of Shrimp Farming.

Training is provided to farmers and general awareness programmes are conducted to disseminate the farming techniques:

* Pond Preparation
* Maintenance
* Water Management
* Feeding Cycles
* Use of Probiotics
* Harvesting Method

Research and Development


The Company gives great emphasis to Research and Development to ensure that farmers are provided with tested quality of Inputs to obtain Optimum Food Conversion Ratio (FCR) and help in good farm management.

Waterbase has dedicated Research and Development Farms to study the growth of Shrimps under various conditions.

Applied trials are conducted on:

* New Ingredients
* Advanced formulations
* Application of Probiotics and additives
* Ascertain ideal feeding cycles

FEED MILL

The Shrimp Feed Mill Started its commercial production in 1993. The Feed was well received by the Shrimp growing farmers in Coastal Districts of India. The salient feature of Feed Mill is

 ISO 9001 Certified Shrimp Feed Mill.
 Capacity 30,000 T.P.A.
 Feeds for Black Tiger, White (Vannamei), Macrobrachium Rosenbergii (Scampi)
 Continuous Research and Development to enhance quality of the Feed.


Waterbase believes that Shrimps growth is directly related with quality Feed. Our research facilities is engaged in creating highly nutritive Feeds with quality ingredients sourced from all over the world. Waterbase employs internationally renowned nutritionists to ensure that farmers get quality feed to suit variety of farming techniques such as extensive, modified – extensive and intensive.

Quality Assurance
* Exclusive Shrimp Feed producer with ISO certification.
* Raw material sourced from World / Indian renowned suppliers.
* Strict raw material inspection and purchase norms as per ISO Standards.
* Imported raw material certified by World-renowned certification agencies.
* Feed production is monitored at every stage to meet aquaculture needs of farmers.
* Unique method to test and ensure optimum Water Stability and Durability.
* Special equipments to test digestible proteins.
* Ensures excellent Feed Conversion Ratio (FCR)
Feed Marketing Network
Waterbase has a Feed distribution network of over 100 distributors and dealers, along the Coastal belt of India. The distribution network is supported by qualified and trained personnel who provide 24x7 services. They also assist farmers in farming techniques and advise the farmers on various developments in the Industry.

Organic Feed
The Government of India through MPEDA is planning to develop Indian Aquaculture Industry as a major ‘Organic Aquaculture Industry’ in Asia. Waterbase has been selected as the Indian Partner in implementing the ‘Organic Feed Programme’ . Our Feed Mill is certified for Organic Feed Production by Naturland, Germany, the only one company to produce Organic Feed in India at present.

PROCESS PLANT

Processed Under HACCP guidelines
FDA Listed
EU Approved

Conveyorised washing and Grading lines.
Plate Freezers - APV Baker, UK.
IQF Freezers - Koppens, Holland.
Cooking Line - Frigoscandia - Seamac, Denmark.
Quality Control Laboratory staffed with skilled and approved inspectors.
Effluent Treatment Plant for waste water disposal.
Processing Capacity 20MT - per day.
Cold Storage capacity - 400MT.
Product Range

Head on - Shell on - Block Frozen
Headless shell - on Block Frozen
IQF
Peeled Deveined Tail - on (PDTO)
Cooked value Added Products

CONCLUSION

Company is in evergreen business and  all factors are in favor of good future growth of the company. It has all required elements to become big multi-bagger stock. Investors can buy around cmp 60 and hold for long term.

Disc: I have vested interest in WATERBASE.