Permanent Magnet Ltd.

Dear members

Glad to post new stock analysis from Industrial Goods and Industrial Machinery sector.

Fundamentals are awesome, should be in portfolio for long term, I will add slowly 40-50 stocks for 12 month in portfolio.

PERMANENT MAGNET LTD.
Cmp :- 140

(SCRIPT CODE :- PERMAGN)

BSE CODE :- 504132

COMPANY PROFILE :- 

• Permanent Magnets Limited is one of the flagship companies of Taparia Group, Mumbai and also one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies. It is a front-runner among young, dynamic and growing companies in India. 

• PML magnets are used extensively in key industry sectors such as electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways and electricity generation.

• The technical collaboration started in 1963 with “Centro Magneti Permanenti” (CMP) Italy. In 1973, PML started manufacturing Ferrite magnets. In 1983, PML upgraded technology with help of Dowa Mining (Japan) and Sumitomo (Japan).

• PML started manufacturing magnetic assemblies such as Separators, lifting devices, holding devices etc. in 1984. In 1996, PML implemented the ISO 9001:1994 system for the first time. PML has been growing since then in the field of Magnets, Assemblies, Shunts and High Permeability components.
• 
  
• Company operate in Manufacturing of parts & accessories of Electricity Meters, Gas Meters, Cast Alloys, Permanent Magnets and Magnetic Assemblies.

Divisions

Magnetic Assemblies

PML is the leading Magnetic Assemblies manufacturer in India offering a wide range of Industrial Application Magnetic Devices such as Magnetic Separators and Filters to separate out iron and other magnetic impurities, Magnetic Lifters to lift metal plates, sheets and various other metallic products and Magnetic Holding Devices to perform grinding and other machining activities.

PML also manufactures Home and Office devices such as Magnetic Knife Holders, Magnetic Tool Holders, Magnetic Sweepers and many more.

PML’s is know for its quality and service.

Shunts, Shunt Assemblies and Brass Terminals

Shunts are precision parts commonly used for measuring current in KWH for Electronic Meters, Electric Vehicles, and other applications like Invertors, etc.

PML manufactures following types of shunts:

Full Manganin shunt, Electron beam (EB) Welded Shunts, Manganin shunts for Electric vehicles (EV), Manganin or CuNi44 shunt for PCB

PML also supplies Brass Terminals, Neutral Blocks, Brass Screws and other Brass Connectors used in Electricity Meters. These are manufactured using high quality Brass which make them highly reliable and durable. Precision work is done for threading and finish.

Magnetic Cores & Shields

Permanent Magnets Limited is also in the business of manufacturing and marketing products using High Permeability Nickel and Iron Components including Mu-Metal. Our specialty lies in custom designing suited as per the best needs of the customer. We are capable of manufacturing all types of drawing and permeability requirements.

Magnets & Assemblies for Meters

PML is one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies in the world. PML’s magnets are used extensively in key industry sectors such as electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways and electricity generation.

KEY FUNDAMENTALS :- 

STOCK INFO
Market Cap	121 Cr
P/E	18.88
52 W High/Low	194.90 / 48.75
Face Value	10
EPS	8.36
Book Value	21.40
Price/Book Industry PE	6.58 23.79

SHARE HOLDING PATTERN
Promotors	71.81 %
FII	--
DII	--
Public/NII	28.19%
TOTAL	100%

ANNUAL RESULT :- 

• Company constantly generates revenue and slowly growing.
• Company constantly making higher profit. PAT increases YOY

• Company continue posting profit of loss of (-2.3) CR in 2012 to reach profit 5.40 CR. in FY 18.
• If same trend continue than FY19 PAT will be expected to 7.2 Cr. which is highest ever PAT since company's establishment.
• Company shown four fold jump in EPS in FY17 to FY18.

• Company's Revenue  & Net profit continue increasing. ROE also strong.
• Company shown four fold jump in EPS in FY17 to FY18.

Why to invest in Company :- 

• Trading at PE 18.88 against industry average PE of 23.79.
• Consistent profit making company.
• Company is constantly working on New Market segments with new components like Circuit Breakers, current transformer, shielding components, Flux Concentrator, gas meter components, customized alloy ingot, automotive precision parts.
• Specific areas in which R & D carried out by the company. Like Components for electrical car , Nano & amorphous iron base parts.
• Company is expanding its business and research on Smart meters and Electrical Vehicle parts. because future is of electrical vehicles.
• Various smart meters rollout schemes in different regions, such as U.S, UK, and favourable government initiatives supporting the installation of these devices are expected to play a vital role in industry growth. 

Verdict :-

• Valuation of the stock is high, but by seeing the strong growth prospects of the company, I have invested few amount in the stock keeping 190 target till March 2019

• The stock can touch 300 levels in 1-2 years.

Negative :- 

• Company not paying dividend.
• Low volume stock.

P.S. :- Already holding stock from 127 levels, one can check fundamentals by own as my views may be biased due to self investment.

Happy Investing

==========================================================================

Disclaimer:- 

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. 

Before buying any stock take advice from certified person

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”