Update on FY 15 -16 Results & Next Stock

Dear Readers, 

We have received the FY 15 -16 results for all stocks suggested in this blog. Most of the companies have posted good results as compared to peers and sector average. There is no change in fundamentals of any company and all are moving forward in line with our expectation. 

Pondy Oxides 

Company has posted very good results with significant improvement in top and bottom line. There is lot of scope of further improvement with better utilization installed capacity of new plant. Need to hold strictly for decent return in future.

Waterbase 

Company has given results below expectation initially due poor monsoon and later heavy rain, floods and disease breakout. It has interrupted production for more than two months. It has given the opportunity to re- enter in the range of 60 -70. Company has posted detailed update along with results. It is well set to perform better in coming quarters.

http://www.bseindia.com/corporates/anndet_new.aspx?newsid=2eae21c4-aa93-4c60-957a-aa41a50675c7

Donear Industries

Results are just below expectation, profit before tax is 73% higher than previous year but higher tax for FY 15-16 has brought net profit down. Textile sector continue to perform better in future due to increase in brand awareness and disposable income of middle class population. It will further increase with implementation of 7th pay commission. Company is expanding the retail chain with specific focus on sub-urban area and towns. It is decent stock to hold for long term.

Technocraft 

Results were better than expected. There is no growth in topline but due to drum closure segment company able to post 20% growth in bottom line. Other segments have also shown some sign of recovery, hopefully some can make turnaround in coming quarters. Company has not declared final dividend due this reason stock corrected after recent rally. 

TCI

Company has posted very good results with 12% growth in bottom line. Demerger of XPS is near to completion. Company has started the operation in Bangladesh and cold chain warehouse in Gurgaon, these steps to compensate the revenue and profit loss due to demerger of XPS. Central government is very hopeful of passing GST bill in upper house of parliament within this year. TCI will be major beneficiary of GST rollout. 

Insecticide, JK Agri, Chemfab Alkalis, Kothari petro have posted muted results due poor climatic (poor monsoon and floods) conditions. Hopefully these companies will perform better in coming quarters due to forecast of good monsoon and industrial growth. We will continue to hold Chemfab Alkalis after management has approved the scheme of amalgamation and arrangement of the Company with Teamec Chlorates Limited 

http://www.bseindia.com/xml-data/corpfiling/AttachLive/DC77B4A9_9455_4FDB_9B85_9F545A4C3C3C_181421.pdf

Xpro is the only company which is showing continuous losses but its business has given sign of recovery in Q4, hopefully it will show positive results in coming quarters. Surprisingly stock is sustaining price level above 40 even after continuous posting very negative results from several quarters. 

Domestic business of DTIL has shown decent growth in top and bottom line. Subsidiary companies have posted muted results due to drought in Malawi. Hopefully within year its FMCG business start contributing significant revenue.

Talbros Auto, Kamdhenu and Surana Solar  have posted weak numbers but these sectors are  well set to make good turnaround in FY 16 -17. These companies are very good for long term investment.

In the  series of 'Best Stock Picks' next stock will be posted before  06.06.2016.