Below five small cap company promoters have increased their stake. I will do a review of the stock price after 1 year. These stocks are fundamentally strong stocks. Though, these are not recommendation to buy, readers can consider this post as an initial point for further analysis. Disclosure: Invested in Bhansali Engineering Polymers@Rs.40
1. Fairchem Speciality Limited
ADI Finechem Ltd. is a speciality chemical manufacturing company situated near the city of Ahmedabad in the western region of India. Company utilises state of the art technology with critical equipments acquired from Germany and Switzerland. By-product fractions of natural oils and fats generated during refining of Sunflower and Soyabean oils are company’s raw materials. Fine chemical products portfolio has applications in manufacturing of resins for Paints, Inks adhesives etc. We also manufacture specialised products for neutraceutical industry. Our hallmark has been consistent supply of products of superior quality in India, USA and Japan.
Percentage Increase: 62.77% in December 2016 to 75% by March 2017
Market Cap (Rs Cr): 1,839.31
Face Value (Rs): 10.00
How They Did: By conversion of Compulsorily Convertible Preference Shares (CCPS).
2. Bhansali Engineering Polymers
Bhansali Engineering Polymers (BEPL) is a leading name in the petrochemical sector in India. BEPL is a vertically integrated petrochemical company that is into manufacturing of ABS (Acrylonitrile Butadiene Styrene) – a raw material used extensively across industries like automobiles, home appliances, telecommunications, luggage and other sectors.
The company manufactures and produces variety of specialty grades and 1200 different colour shades meeting customers requirements in different applications. The company has dedicated R & D team that helps to develop its application in shortest possible time.
Percentage Increase: 52.60% in December 2016 to 55.69% by March 2017
CMP (Rs): 42
Market Cap (Rs Cr): 1,839.31
Face Value (Rs): 10.00
How They Did: In the last quarter the promoters acquired nearly 28 lakhs shares from open market.
3. West Coast Paper Mills
West Coast Paper Mills Limited (WCPM) is one of the oldest and the largest producers of paper for printing, writing, and packaging in India. Established in 1955, the Mill is located at Dandeli in Uttara Kannada district in Karnataka. The global quality paper produced by the Company serves the needs of innumerable industries in printing, writing, publishing, stationary,notebooks and packaging sectors in India, in the process contributing to the development of the nation.
Percentage Increase: 55.71% in December 2016 to 55.80% by March 2017
CMP (Rs): 195
Market Cap (Rs Cr): 1280
Face Value (Rs): 2
How They Did: During the last quarter promoters acquired 63000 shares from open market
The Waterbase Ltd. is a leading manufacturer of high quality shrimp feed in India. The company also processes shrimp in IQF, Block Frozen and Cooked form from its own captive farms, and exports its produce to global markets, predominantly Japan, Europe and the United States. The company’s processing plant is FDA listed and EU approved, and processing is done as per HACCP guidelines. The company was founded in 1987 as Thapar Waterbase Limited and was promoted by Mr Vikram Thapar, Chairman of the KCT Group, a diversified Indian conglomerate with business interests in logistics, coal and commodity trading, capital goods, real estate and renewable energy.
The planned amalgamation with Pinnae Seeds will lead to increase in capacity. The current capacity for the company stands at 35,000 tonnes which would go up to 1,10,000 tonnes post-amalgamation. The capacity utilisation which is around 50 percent is also expected to go up. Over 90 percent of revenues comes from the shrimp feed business but going forward company expects the new shrimp processing and export business to also start contributing towards revenues.
Percentage Increase: 60.90% in December 2016 to 61.01% by March 2017
CMP (Rs): 88.1
Market Cap (Rs Cr): 340.09
Face Value (Rs): 1
How They Did: During the last quarter promoters acquired 41586 shares from open market
5. Asian Grantino
Established in the year 2000, the AGL has emerged as one of the largest ceramic companies of India within a short span of 16years. Its leadership is marked by many successful challenges our incessant pursuit of excellence. Today it has emerged as one of India’s largest groups, with a global footprint across 50 countries. Its capacity has grown 40 fold in a span of just 16 years, it is India’s fastest growing Ceramic Wall & Floor Tile, Glazed Vitrified Tiles, Polished Vitrified Tiles, Composite Marble and Quartz Company and among the world’s 50 most profitable Ceramic tile Companies.
Percentage Increase: 28.16% in December 2016 to 33.10% by March 2017
CMP (Rs): 382
Market Cap (Rs Cr): 1150
Face Value (Rs): 10
How They Did: During the last quarter promoters acquired 512000 shares from open market. The recent anti-dumping duty is positive for vitrified tiles segment. Company is also optimistic on the margin front because of better product mix.