Kriti Nutrients Limited ( REVISED CALL)

Dear members

          Kriti Nutrients Limited (KNL) was uploaded on blog at 21.60 on 29/09/17. Than after stock made new 52 week high of 56.95 on 06/03/18. 

Which is 150% Multibagger return on the stock.

Now the market has corrected heavily but the fundamentals and conviction in this stock made me again study this stock at current levels.

One can check out for more upsides.
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Kriti Nutrients (Code 533210)

cmp 32.50
Market Cap 101 Cr
PE 12.82
FV - 1
Promoter Holding :- 66% 
Industry : Edible Oils

Company Profile :- 

Kriti Group is a reputed manufacturer of plastic polymer piping systems,blow moulded plastic products and premium quality refined soyabean products with a loyal customer base both in India and Internationally.The greater part of the product’s manufacturing is based in Central India with a branch in the region.The group sells branded products for domestic consumption as well as exports.

👷 Kriti group is divided in three industries 

1. Kriti Industries

Kriti’s extensive manufacturing facilities at Pithampur consists of cutting edge technologies and infrastructure spread over 1,32,000 sq. meters. Following superior technology in Extrusion & Injection Molding, form a solid base for Kriti’s high tech products for giving best quality to its customer. Kriti Industries (India) Limited, Kriti Nutrients Limited & Kriti Auto & Engineering Plastics Pvt. Ltd. spread acroos thousands of sq. meters in industrial towns of Pithampur (M.P.), Dewas (M.P.) & Ranjangaon near Pune (Maharashtra).

2. Kriti Nutrients

The soya plant is located at Dewas, with an area of 60520 sq. meters with its modern infrastructure and technically advanced machinery comprising of an Alfa Laval refinery, ion exchange R.O. Plant for water purification, Fluidized bed boilers, effluent treatment plant and skilled man power manufacturing Refined Oil, Soya Flour.

3. Kriti Auto & Engineering Plastics Pvt. Ltd.

The Engineering Plastic Division is a single point solution for all plastic moulding and assembly requirements for customers. Kriti has already been established itself as a preferred source and a world-class defined manufacturer of automobile and white good manufacturers in the region.

KEY FUNDAMENTALS :- 

STOCK INFO
Market Cap	1 Cr
P/E	8.18
52 W High/Low	56.95 / 23.90
Face Value	1
EPS	8.36
Book Value	12.46
Price/Book Industry PE Dividend Yield	3.04 15.32 0.55%

SHARE HOLDING PATTERN
Promotors	66.06 %
FII	0.20%
DII	--
Public/NII	33.73%
TOTAL	100%

Analysis with Peers :- 

• By Analysing Company with peers, Company have Annual Profit Growth and Revenue Growth is far better than other peer companies. Though at this price stock is available at some higher valuations.

• Dividend Yield is also good.

Financial :- 

Source  :- screener.com

• By Analsing Company past 5 years result , Company is giving best result every year.

• Sales is increasing, other income increasing. EBITDA increasing continuously.

• Net Profit stood 6.31 in March 2017 while we have earlier uploaded in blog. While in FY18 company posted 15.79 Cr. of Net Profit. Which is 150% jump in net PAT.

Source  :- Equitybulls.com

• Recently Company posted it's Q2 FY19 result. Company has posted Excellent result on Q2. Approximately 40% increase in net profit QoQ. While 66% jump in Half Yearly result.

• Net profit stood 4.20 Cr. in Q2 FY19 against 3.00 Cr. in Q2FY18.

• EPS increased from 0.60 to 0.84

CARE Ratings:- 

RATIONALE :- 

• Strong Promoter Group. Promoter Holding is also Good. Company has good consistent profit growth of 72.90% over 5 years. Company has a good return on equity (ROE) track record: 3 Years ROE 25.55%

• Strong Financials. Consistent Profit Making. 

• Strong Fundamentals.

• KNL has a network of around 200 dealers spread across India. Apart from the soya edible oil, KNL is also expanding its product base to manufacture high margin soya value added products for food, pharmaceutical and nutrition industry for which it has setup R&D facility at its manufacturing plant in Dewas, Indore. 

•  KNL had set up facilities to manufacture high-grade lecithin and it supplies the same to leading FMCG Company worldwide. 

• Expected benefits from continued favourable pricing parity, depreciation of Indian rupee and decline in competitiveness of United States of America’s (USA) post introduction of import duty by China on US soya seeds. 

• China may import oil meal from India and Indian well managed Solvent Extraction companies may surge.

• Company intent for increasing value added product contribution and exports.

• Undervalued compared to its fundamental strength. Beneficiary of both - exports, import duties on edible oil. Strong brand in central India

• Continuation of “Bhavantar Bhugtan Yojana (BBY)” by Government of Madhya Pradesh, decline in competiveness of US post introduction of import tariff by China on US soya seeds and depreciation of Indian Rupee vis-à-vis US dollar support the Indian soya processing industry in near term. Further, import duty hiked on edible oil by Government of India (GoI), increase in soybean crop area, increase in export incentives by GoI under Merchandise Export from India Scheme (MEIS) also favorably impacts the Indian soya processing and edible oil Industry. 

Source :- Annual Report & CARE Rating Research

http://www.careratings.com/upload/CompanyFiles/PR/Kriti%20Nutrients%20Limited-10-03-2018.pdf 

ANNUAL REPORT :- https://beta.bseindia.com/bseplus/AnnualReport/533210/5332100318.pdf 

RISK :- 

• Company’s entire business is operated from a single processing and refining facility located in Dewas, Madhya Pradesh. In case of a severe breakdown in its refinery, or a strike by workers ?will completely halt the operations of the business.
• Production of Soya bean is highly dependent on monsoon. A delay or shortage of monsoon may create a shortage of raw material for the company, leading to increase in input costs, and the company may not be able to maintain its profit Growth.  

VERDICT :- 

WE BELIEVE SOCK AT CURRENT LEVEL IS ATTRACTIVE, CAN SEE NEW 52 WEEK HIGH SOON IF SAME PERFORMANCE SHOWN IN FY19 RESULT.

EXPECTING 100+ WITHIN 2-3 YEARS.

#MULTIBAGGER

Happy Investing

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This is a personal blog and presents entirely personal views on stock market for only education purpose. Any statement made in this blog is merely an expression of my personal opinion. These informations are sourced from publicly available data. By using/reading this blog you agree to (i) not to take any investment decision or any other important decisions based on any information, opinion, suggestion, expressions or experience mentioned or presented in this blog (ii) Any investment decisions taken if any would be his/hers sole responsibility. (iii) the author of this blog is not responsible. 

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NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”