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Dear Reader,
We are glad to inform you that our equity analysts published Hidden Gem - Feb 2012 research report and shared it with all Hidden Gems members. Research report was published last year on 29th Feb 2012. Hidden Gem stock of Feb'12 was Superhouse Ltd and our team recommended buy at price of Rs. 48.20 for target of Rs. 110 in period of 18-24 months.
Today, our members are holding Superhouse Ltd with overall profits of 118%. We will suggest our members to do partial profit booking by selling 50% of their holdings in the range of Rs. 105 to 110. Superhouse stock price is closed at Rs. 104.85 today giving absolute returns of 118% to our members within 2 years.
There are 10 more Hidden Gems out of 30 published by our equity analysts in last 3 years which gave more than than 100% returns to our members within 12 to 24 months time period. We suggested partial profit booking in many of these stocks and our members en-cashed more than 100% returns and are now holding remaining quantity for free in their portfolio.
We also like to share that there are Hidden Gems which gave negative returns but downside was limited. We suggested our members to exit some of these non performing companies like National Plastic, Sumedha Fiscal etc to ensure that they utilize their capital in the most optimum way. We strongly believe that as an smart investor, we should keep on nurturing the best seeds (companies generating free cash flows and utilizing it effectively and rewarding share holders with regular dividends) and erode off the weeds (non performing companies) from our equity portfolio.
We also like to share that there are Hidden Gems which gave negative returns but downside was limited. We suggested our members to exit some of these non performing companies like National Plastic, Sumedha Fiscal etc to ensure that they utilize their capital in the most optimum way. We strongly believe that as an smart investor, we should keep on nurturing the best seeds (companies generating free cash flows and utilizing it effectively and rewarding share holders with regular dividends) and erode off the weeds (non performing companies) from our equity portfolio.
Below is the summary of Superhouse Ltd recommended by our team under Hidden Gem research report - Feb'12.
Company Background
Superhouse Ltd is a group of several companies engaged in manufacturing and export of finished leather, leather products and textile garments. The parent company, Aminsons Leather Finishers Pvt., was incorporated as private limited company on January 14, 1980. It was converted into a public limited company on December 22, 1984 and its name changed to Aminsons Limited on February 21,1989. In addition, five group companies - Super House Limited, Super Garments Limited, Sharp Leathers Limited, Super Footwear Limited and Allen Shoes Limited - were merged with Aminsons Limited in 1994, 1995 and 1996 as per the orders of the Hon’ble High Court of Judicature,Allahabad . The name of the company was changed to Superhouse Leathers Limited on March 4,1996 and finally Superhouse Limited on November10, 2006 with the approval of the Registrar of Companies, Kanpur (U.P.).
From a single tannery in the 1980’s
producing finished leather, Superhouse Group has emerged as one of the largest
players in the industry. It started with a commitment to excel, achieve and
deliver the very best. Towards this end, company engineers, optimizes and
controls every phase of the manufacturing process from raw material to finished
products to ensure that end products are of the highest quality and also the
best value for money for their clients.
The Superhouse Group has four overseas companies in theUK , the U.S.A. , the U.A.E. and Romania Kanpur , Unnao, Agra
Recent Developments (Feb 2012)
However, Allen Cooper has not rested on its laurels. It is acquiring the best of Indian patterns and is continuously innovating products with imagination and realism, leaving competition miles behind. Indian customers have taken very well to Allen Cooper products and the demand is growing daily among quality conscious customers demanding international class. The response has been overwhelming and Allen Cooper will soon be spreading its wings acrossIndia
The Research and Development facilities of the Group:
C) Participation in International Fairs
Financial Performance
Superhouse net profit rises 30.71% in the December 2011 quarter
For the audited full year, net profit rose 25.86% to Rs. 171.8 million in the year ended March 2011 as against Rs. 136.5 million during the previous year ended March 2010. Sales rose 24.68% to Rs. 4432 million in the year ended March 2011 as against Rs. 3554.7 million during the previous year ended March 2010.
The Government of India had identified the Leather Sector as a focus sector in its Foreign Trade Policy 2004-09
in view of its immense potential for export growth
prospects and employment generation. Accordingly, the Government is also
implementing various Special Focus Initiatives under the
Foreign Trade Policy for the growth of leather sector. With the implementation
of various industrial developmental programmes as well as export promotional
activities, and keeping in view the past performance, and industry’s inherent
strengths, the Indian leather industry aimed to augment the production, thereby
enhance export to US$ 7.03 billion by
2013-14, and resultantly create additional employment opportunities for
overall one million people.
Saral Gyan Recommendation (29th Feb 2012)
1. With government plans to focus on leather exports with special initiatives, Indian Leather & Leather goods companies are expected to post good growth in coming years. Superhouse Ltd being one of the major leather export company is expected to achieve double digit growth in sales & profits in next 2 years.
2. Stock is currently trading at a price to earning ratio of 2.5, which makes the stock valuations cheap when compared to its peers. Most of the peer companies PE is in the range of 7 to 18 with lesser top line and bottom line growth, this makes Superhouse a best buy in leather & leather goods segment.
3. As per our estimates, Superhouse can deliver bottom line of 300 million for full financial year 2012 – 13, annualized EPS of Rs. 25.2 with forward P/E ratio of 1.9 X for FY 2012-13, which makes stock of the company an attractive bet at current market price.
4. Company has paid regular dividend from 2006 onwards. The last dividend paid was 15% in last month. Dividend yield at CMP is at 3.1%.
5. On equity of Rs. 114.11 million the estimated annualized EPS works out to Rs. 25.2 and the Book Value per share is Rs. 114.55. At a CMP of Rs. 48.20, stock price to book value is 0.42. The scrip is trading at 19. X FY 2012-13 estimated earnings which make it an attractive buy when compared to its peers.
Superhouse Ltd is now 1 of those 11 Hidden Gems which gave more than 100% returns to our subscribers in last 3 years. Team of equity analysts at Saral Gyan put lot of efforts & smart work to identify Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) which not only grow your capital at a healthy rate but also ensures protection of your capital during market downturn.
An opportunity missed an opportunity lost. Start building your equity portfolio by investing in Hidden Gems and Value Picks of stock market. Avail discounts upto 40%, freebies and new year suprise gift under our ongoing Merry Christmas - Happy New Year 2014 offer, click here for details. Hurry! Last few hours, offer will disappear on 31st Dec'13 at 11.59 pm.
In case of any queries, simply write to us. We will be delighted to assist you!
Regards,
Team - Saral Gyan.
Superhouse Ltd is a group of several companies engaged in manufacturing and export of finished leather, leather products and textile garments. The parent company, Aminsons Leather Finishers Pvt., was incorporated as private limited company on January 14, 1980. It was converted into a public limited company on December 22, 1984 and its name changed to Aminsons Limited on February 21,1989. In addition, five group companies - Super House Limited, Super Garments Limited, Sharp Leathers Limited, Super Footwear Limited and Allen Shoes Limited - were merged with Aminsons Limited in 1994, 1995 and 1996 as per the orders of the Hon’ble High Court of Judicature,
The Superhouse Group has four overseas companies in the
Recent Developments (Feb 2012)
A) Superhouse Brands entry
in Indian Markets
1. Allen Cooper
Until now, Allen Cooper had been enjoying the
prestigious patronage of British and European markets. The brand has now
stepped into the Indian market and is catering to the requirements of corporate
and institutional customers, creating a niche image for its fashion leather
products adhering to the high standards that the British have set, Allen Cooper’s range of products boasts
of an array of international designs through its Italy, UK, China and India
based design studios.
However, Allen Cooper has not rested on its laurels. It is acquiring the best of Indian patterns and is continuously innovating products with imagination and realism, leaving competition miles behind. Indian customers have taken very well to Allen Cooper products and the demand is growing daily among quality conscious customers demanding international class. The response has been overwhelming and Allen Cooper will soon be spreading its wings across
2. Double Duty
Double Duty is a brand owned by Superhouse Ltd for
marketing safety footwear and garments mainly to Gulf countries and European
countries.
Double duty is the only brand in export market
under which we produce safety shoes with Direct Injection PU, PU/TPU, Goodyear
welted and Direct vulcanizing process meeting to all international safety
norms.
B)
Up-gradation in Research & Development
Superhouse Group is committed to continuous Research and
Development, technological innovation, up-gradation and improvements to achieve
ever-higher standards of quality.
The Research and Development facilities of the Group:
* Separate Research and
Development Departments for every factory.
|
|
* Separate Design Centers for
Shoes, Bags, and Garments.
|
|
* Specialized design center in
|
|
* Renowned designers from
various countries.
|
|
* CAD-CAM facilities at shoe
factories.
|
|
* CAD-CAM facilities at fashion
garment units.
|
|
* State-of-the-art laboratories
at the tanneries.
|
|
* R & D and design centers.
|
C) Participation in International Fairs
Superhouse net profit rises 30.71% in the December 2011 quarter
Net profit of Superhouse rose 30.71% to Rs. 51.5 million in the quarter ended December 2011 as
against Rs. 39.4 million during the previous
quarter ended December 2010. Sales rose 3.16% to Rs. 1065.1
million in the quarter ended December 2011 as against Rs. 1032.5
million during the previous quarter ended December 2010.
FY 2010-2011
Result Updates:
For the audited full year, net profit rose 25.86% to Rs. 171.8 million in the year ended March 2011 as against Rs. 136.5 million during the previous year ended March 2010. Sales rose 24.68% to Rs. 4432 million in the year ended March 2011 as against Rs. 3554.7 million during the previous year ended March 2010.
Future Outlook
Leather & Leather Products Exports – 2005 - 2010
Leather & Leather Products Exports – 2005 - 2010
The Government of India had identified the Leather Sector as a focus sector in its Foreign Trade Policy 2004-
Saral Gyan Recommendation (29th Feb 2012)
1. With government plans to focus on leather exports with special initiatives, Indian Leather & Leather goods companies are expected to post good growth in coming years. Superhouse Ltd being one of the major leather export company is expected to achieve double digit growth in sales & profits in next 2 years.
2. Stock is currently trading at a price to earning ratio of 2.5, which makes the stock valuations cheap when compared to its peers. Most of the peer companies PE is in the range of 7 to 18 with lesser top line and bottom line growth, this makes Superhouse a best buy in leather & leather goods segment.
3. As per our estimates, Superhouse can deliver bottom line of 300 million for full financial year 2012 – 13, annualized EPS of Rs. 25.2 with forward P/E ratio of 1.9 X for FY 2012-13, which makes stock of the company an attractive bet at current market price.
4. Company has paid regular dividend from 2006 onwards. The last dividend paid was 15% in last month. Dividend yield at CMP is at 3.1%.
5. On equity of Rs. 114.11 million the estimated annualized EPS works out to Rs. 25.2 and the Book Value per share is Rs. 114.55. At a CMP of Rs. 48.20, stock price to book value is 0.42. The scrip is trading at 19. X FY 2012-13 estimated earnings which make it an attractive buy when compared to its peers.
Saral Gyan Team recommends “BUY”
for Superhouse Ltd. at current market price of 48.20
for a target of Rs. 110 over a period of 18-24 months.
To Read / Download Saral Gyan Hidden Gem - Feb'12 Research Report - Click Here
Superhouse Ltd is now 1 of those 11 Hidden Gems which gave more than 100% returns to our subscribers in last 3 years. Team of equity analysts at Saral Gyan put lot of efforts & smart work to identify Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) which not only grow your capital at a healthy rate but also ensures protection of your capital during market downturn.
An opportunity missed an opportunity lost. Start building your equity portfolio by investing in Hidden Gems and Value Picks of stock market. Avail discounts upto 40%, freebies and new year suprise gift under our ongoing Merry Christmas - Happy New Year 2014 offer, click here for details. Hurry! Last few hours, offer will disappear on 31st Dec'13 at 11.59 pm.
In case of any queries, simply write to us. We will be delighted to assist you!
Regards,
Team - Saral Gyan.
