Top 5 Fundamentally Strong stocks | Stocks that can change your life




No. 1: Ksolves India Ltd

 Details :

·         Market Cap₹ 1,313 Cr.

·         Current Price₹ 1,108

·         High / Low₹ 1,448 / 356

·         Stock P/E45.1

·         Book Value₹ 24.3

·         Dividend Yield2.12 %

·         ROCE171 %

·         ROE128 %

·         Face Value₹ 10.0

·         Free Cash Flow₹ 19.5 Cr.

·         Debt₹ 0.00 Cr.

·         Profit after tax₹ 29.1 Cr.

·         Promoter holding58.9 %

·         Change in Prom Hold0.00 %

·         Return on equity128 %

·         EPS₹ 24.6

·         Sales₹ 92.3 Cr.

·         Return over 3years240 %

·         Return over 5years%

·         PAT Qtr₹ 8.26 Cr.

·         Return over 1year152 %

·         Sales growth54.0 %

·         Book value₹ 24.3

·         Industry PE36.6

·         Price to Earning45.1

·         Debt to equity0.00

·         FII holding1.88 %

 

 

ABOUT

Ksolves India Ltd, incorporated in 2014, is engaged in software development, enterprise solutions, consulting & providing IT solutions to companies across sectors such as Real Estate, E-commerce, Finance, Telecom and Healthcare etc. Ksolves curate & develop the best possible software solutions. It is servicing clients across several counties with 410+ in-house technology experts.
Ksolves is a 360-degree software solution provider, known in the industry for its expertise in Big Data (Apache Kafka, Apache NiFi, Apache Spark, Apache Cassandra), Data Science (Artificial Intelligence & Machine Learning), Salesforce, DevOps, Java & Microservices, OpenShift, Penetration Testing etc.

KEY POINTS 

Services
The company provides software services such as Salesforce, Machine learning, Javascript, and Penetration Testing, and also provides development of Odoo apps, Magento apps, Salesforce apps, and other iOS/Android apps. The company’s big data division provides services such as Apache Nifi, Spark, Kafka, and Cassandra. 

Revenue Split FY23

Segment Wise Breakup
Services: 97%
Products & Customization: 3% 

Technology Wise Breakup
Mobile & Open-Source Technologies - 10%
Artificial Intelligence - 11%
Salesforce - 32%
QA & Automation - 4%
Big Data - 13%
Odoo- 14%
Dev Ops- 13% 

Geographical Split
India: 23%
Europe: 7%
North America: 66%
Rest of the World: 4% 

Clientele
The company’s clientele includes Onpoint Group, Sharemeister, Knight Broadband, Ekogenio, CountAbout, Cut Yeti, and Hardy Nutritionals among others.  During FY23, the client base remained widely diversified, with 40+ IT services clients across 25+ countries with a top 5 client contribution of 33%. 

Subsidiaries
In FY23, the company acquired shares equivalent to 100% of the total capital of Ksolves LLC, USA. As a consequence, Ksolves LLC, USA, has become the wholly owned subsidiary of the Co. from June 11, 2021. 

Partnerships
The company has entered into strategic partnerships with Salesforce, Adobe, Odoo, and Drupal Association. 

Promoter Holding
The promoter holding in the company has reduced from 68% in March 2021 to ~59% as of the financial year ending 31st March 2023. 

Migration
During FY23, the company has proposed the agenda for the Migration of equity shares of the company from the Emerge platform of the National Stock Exchange of India Limited (NSE) to the mainboard of the National Stock Exchange of India Limited (NSE) AND BSE Limited (BSE) through the postal ballot dated July 14, 2022. 

Focus
Its key focus areas are Data Sciences/Big Data/Al & ML as well as the Onshore presence of Sales and Client Management teams. 


NO. 2: Nicco Parks & Resorts Ltd

 Details:

·         Market Cap₹ 709 Cr.

·         Current Price₹ 152

·         High / Low₹ 166 / 95.1

·         Stock P/E31.2

·         Book Value₹ 12.9

·         Dividend Yield1.09 %

·         ROCE55.1 %

·         ROE42.2 %

·         Face Value₹ 1.00

·         Free Cash Flow₹ 21.9 Cr.

·         Debt₹ 0.00 Cr.

·         Profit after tax₹ 22.7 Cr.

·         Promoter holding68.4 %

·         Change in Prom Hold0.06 %

·         Return on equity42.2 %

·         EPS₹ 4.86

·         Sales₹ 78.6 Cr.

·         Return over 3years66.2 %

·         Return over 5years30.0 %

·         PAT Qtr₹ 10.0 Cr.

·         Return over 1year52.1 %

·         Sales growth45.4 %

·         Book value₹ 12.9

·         Industry PE27.5

·         Price to Earning31.2

·         Debt to equity0.00

·         FII holding0.00 %

 

 

ABOUT 

Incorporated in 1989, Nicco Parks
& Resorts Ltd operates theme based
parks

KEY POINTS 

Comapny Formation Details
NPRL was formed as a joint-sector company
with Nicco Corporation and the Government
of West Bengal, and represented by West
Bengal Industrial Development Corporation (WBIDC) and West Bengal Tourism Development Corporation Limited (WBTDC) with technical advice from Blackpool Leisure and Amusement Consultancy Ltd, UK.

Business Profile Company is in the business of theme-based entertainment including a 40-acre theme park, water park, and associated activities including retail merchandising and food and beverages. It operates as a family entertainment cum amusement destination and helps in organizing Musical Programmes, Stage Events, Corporate Get Togethers, Private Parties, Training Sessions, Product Launches, etc. in its venue.

Theme Parks Company has set up 7 amusement and water parks in India and a water park in Bangladesh

Services Offered:
a) Technical Consultancy:
Company created a separate Project Consultancy and Implementation division to provide technical know-how to help other similar organizations set up theme parks, amusement or water parks on a turnkey basis
b) Rides manufacturer:
Company designs manufactures, and implements rides, horror house projects, etc.

Associates:
Company has 3 unlisted associate companies
viz. Nicco Jubilee Park Limited, Nicco Engineering Services Limited & Nicco ParksLeisure Projects Private Limited. It continues to be invested in Nandan Park Ltd, operating an amusement park in Dhaka, Bangladesh

Revenue Breakup - FY22:
Sale of Services ~79%, Sale of Products ~13%, Other Operating Revenues ~1%, Other Income ~7%

Bifurcated Revenue - FY22:
Entry Fees ~16%,
Rides, Games, and Other Related Items ~44%
, License Fees ~8%,
Components for Rides-Project ~2%, Recreational Facility Income ~8%,
Food ~5%,
Food Items ~1%,
Soft Drinks, Ice-Cream etc. ~3%,
Beverages ~2%,
Sponsorship and Branding ~1%,
Interest Income ~2%,
Other Non-Operating Income ~5%

Segmental Revenue - FY22:
Park Operations ~80%,
Consultancy, Contracts & Sale of rides components ~3%,
F & B and other Recreational Facilities ~17%

Cessation:
a) West Bengal Tourism Development Corporation Limited (WBTDC) withdrew the nomination of Mr. Kaushik Bhattacharya, IAS, Nominee Director of WBTDC from the Board of Directors of the company on February 11th, 2022
b) Ms. Nandini Chakravorty, IAS - Chairperson & Nominee Director of Tourism Department, Government of West Bengal, tendered her resignation on June 20th, 2022

Acquisition by Bandhan Employee Welfare Trust:
On Nov 21, Bandhan Employee Welfare Trust
and promoter of Bandhan Bank acquired a 25% stake in the company from Nicco Corporation
Ltd (erstwhile promoter) which was under liquidation for many years. It acquired
the stake for ~35 crores

 

NO.3:Tanfac Industries Ltd

 Details:

·         Market Cap₹ 1,923 Cr.

·         Current Price₹ 1,928

·         High / Low₹ 2,114 / 810

·         Stock P/E28.1

·         Book Value₹ 208

·         Dividend Yield0.34 %

·         ROCE47.7 %

·         ROE34.4 %

·         Face Value₹ 10.0

·         Free Cash Flow₹ 28.1 Cr.

·         Debt₹ 0.00 Cr.

·         Profit after tax₹ 68.4 Cr.

·         Promoter holding51.8 %

·         Change in Prom Hold0.00 %

·         Return on equity34.4 %

·         EPS₹ 68.6

·         Sales₹ 402 Cr.

·         Return over 3years123 %

·         Return over 5years44.6 %

·         PAT Qtr₹ 11.4 Cr.

·         Return over 1year118 %

·         Sales growth26.4 %

·         Book value₹ 208

·         Industry PE29.6

·         Price to Earning28.1

·         Debt to equity0.00

·         FII holding0.00 %

 

 

ABOUT 

Incorporated in 1972, Tanfac Industries Ltd is amongst the leading producers of Hydrofluoric Acid and its derivatives.

KEY POINTS 

Product Portfolio:
Tanfac is engaged in the manufacture of inorganic fluorine based chemicals like Anhydrous Hydrofluoric acid, Sulphuric Acid, Oleum, Aluminum Fluoride, Potassium Fluoride, Potassium Bifluoride, Boron Trifluoride Complexes, Calcium Sulphate (Gypsum), IsoButyl Acetophenone, Acetic Acid, Peracetic Acid and Poly Aluminum Chloride, etc.

Manufacturing Capacity:
The company's manufacturing facilities are spread over 60 acres in the chemical complex of SIPCOT, Cuddalore. Currently, the company has an Androus Hydrofluoric Acid capacity of 15,600 metric tons per annum (MTPA), 15,600 MTPA of Aluminum Fluoride82,500 MTPA of sulphuric acid and 8,400 MTPA of specialty fluorides

User Industries:
The company's products find applications in industries such as aluminum smelting, petroleum refining, refrigerant gases, steel re-rolling, glass, ceramics, sugar, fertilizers, and heavy water.

Revenue Breakup:
The Company operates in a single segment i.e., Fluoro-chemicals in India. In FY22, the company did sale of manufactured goods to the tune of Rs. 314Cr.  Company derived 95% from domestic sales and 5% was from exports

The company’s operating performance improved in FY 2022 over FY 2021 due to sales of its value added product (Potassium Fluoride), which had increased significantly during Covid-19 pandemic as Potassium Fluoride was a critical ingredient in the Covid-19 vaccine.

Technology Tie-Ups
Davy Process, Switzerland - for Aluminium Fluoride (Know-how and equipment)
CHENCO,Germany - for Hydrofluoric Acid (Know-how and equipment)
Grasim Industries Limited - for Sulphuric Acid / Oleum (Design and Erection)

Acquisition by Anupam Rasayan India Limited
Anupam Rasayan India Limited acquired 24.96% from Birla Group Holdings Private Limited in March 2022. The acquisition is in a form of backward integration for procuring key input materials for its products from TIL.

 


NO.4:Shanthi Gears Ltd

Details:

 

·         Market Cap₹ 3,345 Cr.

·         Current Price₹ 436

·         High / Low₹ 528 / 292

·         Stock P/E46.6

·         Book Value₹ 39.4

·         Dividend Yield1.15 %

·         ROCE32.1 %

·         ROE23.8 %

·         Face Value₹ 1.00

·         Free Cash Flow₹ 47.9 Cr.

·         Debt₹ 0.00 Cr.

·         Profit after tax₹ 71.7 Cr.

·         Promoter holding70.5 %

·         Change in Prom Hold0.00 %

·         Return on equity23.8 %

·         EPS₹ 9.35

·         Sales₹ 468 Cr.

·         Return over 3years63.4 %

·         Return over 5years31.4 %

·         PAT Qtr₹ 18.1 Cr.

·         Return over 1year23.0 %

·         Sales growth26.9 %

·         Book value₹ 39.4

·         Industry PE31.1

·         Price to Earning46.6

·         Debt to equity0.00

·         FII holding3.61 %

 

 

ABOUT 

Shanthi Gears Ltd is in the business of design, manufacture, supply and servicing of gears and gear boxes.

KEY POINTS 

Product Portfolio
The company's product portfolio encompasses a range of customized gearboxes, loose gears, worm gearboxes, and helical gearboxes. 

Geographical Split FY23
India - 94%
Rest of the World - 6%
The company exports to countries like America, Europe, and others. 

Manufacturing Capabilities
The company owns and operates 4 manufacturing units and 1 foundry division unit in Tamil Nadu. 

Industries Catered
The company has a well-diversified client base and caters to reputed clientele across several sectors viz. engineering, steel, cement, railways, material handling, earth moving, and others. 

Order Book
In Q3FY23, the Company registered an order booking of ₹ 120 Crores. 

Investments
Investments in the company have increased from Rs. 28 cr to Rs. 35 cr in FY23, due to investments in Tax-Free Bonds and mutual funds. 

Acquisition by Murugappa Group
TIIL, the flagship company of the Murugappa Group, acquired a 70% stake in SGL in 2012. Since then the co. has benefitted from the strong management support and the operational synergies as a subsidiary of TIIL. In 2019, Co. undertook a share buyback of 50 lakh equity shares, following which TIIL’s stake increased to 71%.

 


Likhitha Infrastructure Ltd

 

·         Market Cap₹ 1,282 Cr.

·         Current Price₹ 325

·         High / Low₹ 343 / 185

·         Stock P/E20.7

·         Book Value₹ 63.4

·         Dividend Yield0.46 %

·         ROCE36.2 %

·         ROE27.1 %

·         Face Value₹ 5.00

·         Free Cash Flow₹ 35.9 Cr.

·         Debt₹ 0.00 Cr.

·         Profit after tax₹ 62.0 Cr.

·         Promoter holding70.0 %

·         Change in Prom Hold0.00 %

·         Return on equity27.1 %

·         EPS₹ 15.7

·         Sales₹ 370 Cr.

·         Return over 3years68.8 %

·         Return over 5years%

·         PAT Qtr₹ 15.8 Cr.

·         Return over 1year75.9 %

·         Sales growth31.7 %

·         Book value₹ 63.4

·         Industry PE22.4

·         Price to Earning20.7

·         Debt to equity0.00

·         FII holding0.67 %

 

 

NO.5: Likhitha Infrastructure Ltd

Details:

ABOUT 

Incorporated in 1998, Likhitha Infrastructure Ltd is in the business of laying gas supply pipe lines and irrigation canals, building bridges over the canals and related maintenance works

KEY POINTS 

Business Overview:
Company is an oil & gas pipeline infrastructure service provider, focused on laying pipeline networks along with construction of associated facilities and providing operations & maintenance services to oil and gas companies in India. It has presence in 17+ states and 2 union territories of India. At present, company has laid around 1000+ Km of Oil and Gas pipelines including steel and Medium-Density Polyethylene (MDPE) networks and 600 km of Oil and Gas pipelines for ongoing projects

Services Offered
a) Pipeline Infrastructure:
Company's Cross-Country Pipeline projects entail laying of Oil and Gas Pipelines over long distances across the country. Its scope of work in CGD projects includes laying of High Pressure Gas Steel Pipelines, Medium Density Polyethylene Pipelines and Construction of CNG Stations
b) City Gas Distribution:
CGD projects entail transportation or distribution of natural gas to consumers in domestic, commercial or industrial and transport sectors through a network of pipelines. It cater to domestic household use, commercial use in hotels, hospitals, restaurant and offices; transport sector use in vehicles; and by small scale industries for power generation
c) Operation and Maintenance Services
It also provides O&M Services to the Oil and Gas Companies which includes Management Services for CGD networks, other repairs, modernization, scheduled shutdowns, as well as overhauling and maintenance of existing pipelines

Initial Public Offer (IPO)
In FY21, the company completed its Initial Public Offer (IPO) of 51 lakh equity shares at a price of Rs.120/- per share. The IPO Proceeds of Rs 61.2 cr were mainly used to meet the working capital requirements

Clientele:]
GAIL, IHB, HPCL, IOCL, ONGC, IGL, IOAGPL, TGPL, IGGL, BPCL, etc.

Revenue Breakup - FY22:
Revenue from Operations ~99%, Other Income ~1%

Geographical Presence
The Co has a strong presence in 16+ states and 2 Union Territories of India. It is the first pipeline laying co from South East Asia to execute the first ever Trans-National Hydrocarbon (Multi-product) pipeline connecting India and Nepal

Projects Completed
The Co has completed projects in states
such as MP, AP, Karnataka, Gujarat, Delhi,
UP etc for clients like Avantika Gas Limited,
GAIL India Limited, Indraprastha Gas Limited, Indian Oil Adani Gas Pvt Ltd, and ONGC. The Projects mainly involved MDPE Pipe Laying and Steel Pipe Line Laying

Order Book - FY22:
In FY22, company’s outstanding order book position is 1,108.22 cr., which comprises Cross Country pipelines and associated facilities ~52%, City Gas Distribution including CNG Stations ~46%, and Operation & Maintenance of CNG / PNG services ~2%
a) Rs.177 Cr from various Oil/ Gas Distribution Companies during Q2FY22
b) Rs.305.85 Cr from Oil/ Gas Distribution Company called Numaligarh Refinery Ltd
c) Rs. 120 Cr from various Oil and Gas Distribution Companies during Q3FY22
d) Rs.129.63 Cr from M/s. GAIL (India) Ltd on February 1st 2023

Future Outlook:
a) Company intends to expand into new verticals for Tankage Projects and expecting an order from IOCL
b) It is exploring opportunities in Middle East, Africa & other like countries, where there is a huge demand of Pipeline Infrastructure companies.
c) It is in talks with various Offshore T&I companies to foray in Offshore business

 

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