We are pleased to inform you that our Hidden Gem stock of June 2015 - Visaka Industries Ltd (BSE Code: 509055, NSE Code: VISAKAIND) which was released on 05th July'15 is a 5-Bagger stock for our Hidden Gems members who invested in it 2 years back. Our team suggested Buy on Visaka Industries Ltd at price of Rs. 128.15 on 05 July 2015 with a target price of Rs. 240. Stock has already achieved its target price and we informed our members to continue to hold it. Moreover, we informed our Hidden Gems and Wealth-Builder members to add the stock again at higher levels few months back. Visaka Industries stock has recently made its 52 week high of Rs. 713.80 on NSE and closed at Rs. 669.40 on Friday giving absolute returns of 422% to our Hidden Gems members in period of 2 years and 2 months.
In Jun'17 quarter, net profit of Visaka Industries rose 37.65% to Rs 22.96 crore against Rs 16.68 crore during the previous quarter ended Jun 2016. Sales rose 0.18% to Rs 340.72 crore in the quarter ended Jun 2017 as against Rs 340.10 crore during the previous quarter ended Jun 2016.
Visaka Industries stock has rallied by almost 180% over last 6 months mainly on account of improved fundamentals and strong growth forecast in coming years. The new business of the company, fiber cement boards is doing extremely well. The company offers its fiber cement board range under V-Next products (V-Board, V-Designer Board, V-Plank, V-Premium, V-Panel) which are gaining good acceptance. The strong portfolio of advantages makes the products widely endorsed and appreciated by arhitects and customers worldwide, many of them are replacing plywood which is a 20,000 crore industry. This provides a great long term opportunity to the company which is a pioneer in this segment.
Promoters of the company have increased their shareholding by ~3.6% to 41.22% in March quarter compared to 37.63% in Dec'16 quarter and further increased it marginally by 0.01% to 41.23% in Jun'17 quarter, promoters increasing their stake in the company gives confidence in terms of future growth prospects of the business.
As per management, V-Next range of products can make a huge impact on the construction industry. With building material like V-Boards, the way of constructing homes, furniture will be changed. It will be faster, economical and more energy efficient. Recently, the company has launched a new roofing product called ATUM, a new age eco-friendly, energy efficient and energy generating roof. It is an integrated solar roofing system that serves as roof and also generates energy (a hybrid product). The set up of ATUM manufacturing unit will be done at Miryalguda, Telangana. Capacity of 60 MW per annum will be added in next 3 months with investment of Rs. 10 crores which will be funded through Internal accruals
Moreover, value investors like Dolly Khanna and Anil Kumar Goel have also invested in Visaka Industries over last 12 months. Both of them have accumulated Visaka Industries in huge quantity. As mentioned in the annual report of the company, Dolly Khanna holding in Visaka Industries stands at 1,15,968 shares where as Anil Kumar Goel shareholding is higher at 2,20,000 shares (as of Mar'17). At current market price of 669.40, their investments is valued at whopping Rs. 7.76 crores and 14.72 crores respectively.
Below is the summary of Visaka Industries Ltd shared by our team under Hidden Gem stock of June'15 released on 05th July 2015.
- 70% at current market price of 128.15
- 30% at price range of 100-110 (in case of correction in stock price in near term)