Wealth report 2012 released by CITI and Knight Frank predicts fall of North America and West Europes share in World GDP from 41% to 18% by 2050. And Share of Asia, especially Chindia, would go up from 27% to 49%. This simply summarizes that India and Chinda would grow rapidly for the next 40 years.
As per Goldman Sachs, India could grow 40 times by 2050. And India's GDP would grow from $960 Billion in 2010 to $8165 Billion by 2050. And this growth is expected at mear GDP growth of 5.5% !
If you thought it was unachievable, let us rewind. Since 1991, our cement industry has grown 4.4 times, Finished steel by 5.6 times, Electricity by 3.1 times and Coal by 2.5 times. On an average our GDP has increased 4 times since 1991. With 1.2 billion population, furture growth is very much a possibiility but for the caveats like reforms, corruption etc.
This booming economy has given birth to many enterprises like Apollo Hospitals (1979), Pantaloon Retail (1987), Bharti Airtel (1995), Infoedge (1995), MCX (2002) and Jubliand Foodworks(1995).
This HUGE growth opportunity is definitely a very positive news for enterpreneurs and Equity investors who could invest in such companies and grow with them.
Following are list of small companies which have been financially strong, consistent dividend giving with positive networth for past 10 years. These companies have Debt equity ratio of 0.5 in each of past 10 years.
A word of caution: Small companies are usually volatile since the shares are relatively illiquid with low trading volume. Hence it is advisable to restrict your investment to such small companies to maximum of 10% of your overall equity portfolio. You should have patience to buy and patience to sell.
WENDT Indis:
- Part of Wendt GmbH (MNC) Switzerland, which is a leader in super abrasive tooling solutions and high precision grinding machines for 80 years.
- 3 Verticals : Super abarasive, Non super abarasive and International Businesses.
- 2 subsidaries : in Thailand and in Middle East Sharjah.
- Exports contribute 20% of revenue.
VESUVIUS India:
- Vesuvius UK (MNC) holds 55% stake
- Parent company - leader in consumable high performance speciality ceramic refractory with 57 manufacturing facility across the world.
- Started production in Kolkata from July 1994
- Supplies Slide gate equipment, porous plugs, monolithics, precasret shapes and taphole clay and cruciles for NON Ferous Industry.
- Makes refractory product for Steel, cement and glass industry
- Has facility @ Kolkata, Gujarat and two in Vizag. Fifth plant coming up @ Vizag again.
GANDHI SPECIAL TUBES:
- Debt Free
- 100 Crore + turnover
- Manufactures welded seeamless tubes and cold formed coupling nuts
- Supplies to Original Equipment Manufacturers (OEMs) of Automotive, Refrigiration and other engineering industries.
- Liberal Dividend payment : 30% in 2012 and 28% in 2011
- Paid dividend of Rs.8.8 Crores from PAT of 29.8 Crores in 2012.
ADOR WELDING:
- Debt Free
- earlier known as Advani-Oerlikon
- commenced operations in 1951
- 75% of revenue fromWelding consumables
- 25% revenue from equipment and project engineering which includes manufactre of flares, incinerators and Env.engineering products
- Caters to overseas market of Middle east, africa and south east asia.
- Exports @ 34 Crores
- Manufacturing facility @ Gujarat, Chennai, Chattisgargh, Pune
- Fund's its expansion purely through internal accruals and not on borrowings.
ANUH PHARMA:
- Largest producer of erythromycin salts since 1989
- Ramped up its production of 15 tonne per annum in 1989 to 900 TPA now.
- One of leading producer of Active Pharma Ingredients.
- Manufactures anti bacterial, anti tuberculosis, anti malarial and corticosteroids
- Client base of 350
- Products exported to over 50 countries, contributing 45% of revenue.
- Expects to grow 20% per annum for next few years.
- Rs.10 invested (in 1 share of ANUH in 1989 is worth 96 shares of Rs.5 each,) valued at Rs.11500 in FY2012. That is a 1150 times increase in capital !!! or an annualized growth of ___%
AGC Networks:
- Earlier known as Avaya Global Connect
- Avaya Inc sold its 59.13% stake in AGC to Essar in April 2010.
- At present, AGC is subsidary of Aegis - part of Essar Group.
- Tech solution in 9 countries, 16 officesin India, 2500 customers including fortune 500 companies.
- 63% revenue from United communications
- 31% from customer ser ices
- 6% from CRM solutions
- Capital has appreciated 9 times in last 10 years.
- Goal is to reach $ 1 Billion revenue by 2015.
Hercules Hoists :
- Completed 50 years of business in 2012.
- Shekhar Bajaj Group
- Manufactures Material handling equipments like Chain Pully Blocks, Chain and wire rope electric hoists, ratchet lever hoist, pulling and lifting machinery etc.
- Manufactures under brand name INDEF
- Growth depend on new projects and expansion of existing companies apart from replacement market.
TVS IMPAL:
- India Motor Parts and accesories - a TVS group company incorporated in 1954
- Distributor of auto spare parts and accessories of over 50 manuacturers
- Network of 52 branches
- Distributes Engine components, Brake systems, Fastners, Radiators, Suspensions, Axles, Auto Electricals, Wheels, Steering Linkages and Instrument.
- Reported 17% growth in turnover, crossing Rs.500 crore milestone.
WIM Plast :
- Startedin 1988
- Manufacturers plastic moulded furnitures @ Daman in 1994
- launched 25 new models in premium segment and household category
- Despite aggressive expansion, remains debt free
International Travel House :
- ITC holds 61.69% stake
- Started in 1981
- Offers full boquet of travel services for business and leisure
- offers Business travel, car rental, destination management services, domestic and world tour, corporate conference and management services.
- 10 International air transport offices, 13 car rental offices and 19 travel counters
- Owns largest Branded car Rental company - with 900 cars.
- Through global star travel management system, the company has access to 75 partners in 63 countries.
- Will be implementing Phase II of IT based integrated platform
Aeonian Investment Company:
- Very small company
- Investment company that invests moneh in listed and unlisted shares and mutual funds.
- Funds managed by ENAM - professional portfolio managers
- Reported profit in all the past 10 financial years.
- Consistent dividend between 150% to 1000% on face value of Rs.2
- Turnover is little less than 5 Crore andn Profit of Rs.3.7 Crore
- Market value is Rs.51.3 Crore
- Shareholder base : 2197 only
- Promoters hold 86.9% stake
- Book Value is Rs.188 per share against current market price of Rs.107
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment