5 - Stocks With Returns Over 500% In The Past One Year:
1. KSolves India Ltd +927%
Ksolves India Ltd. is a software development and technology consulting company. It came up with an IPO in June 2020.
The company is an 8+ years old company. It has 300+ developers.
The company claims to have expertise in new technologies around machine learning and big data. These include Apache Spark, Apache Cassandra, Apache NiFi, Salesforce, Machine Learning, Artificial Intelligence, Openshift, Microservices, Penetration Testing, DevOps, Mobile Development, etc.
- Company is almost debt free.
- Stock is providing a good dividend yield of 4.78%.
- Company has delivered good profit growth of 127.77% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 119.40%
- Stock is trading at 32.54 times its book value
2. Saregama +652%
Saregama is the oldest music label company from India (established 1902, erstwhile "Gramophone Company of India" & then "HMV"). The company is aiming to be a pure-play content company supported by the global consumption boom. #
Since 2017, Saregama has been making headlines again owing to the launch of two unique initiatives, Saregama Carvaan and Yoodlee Films
Business Segments
Music Licensing (46% of sales), Carvaan Product Platform (40% of sales) Film & TV Segment (13% of sales), and Publication- "OPEN" Magazine (1% of sales) as of FY20.
Music Licensing - "Saregama" Portfolio Monetization:
The company has Intellectual Property (IP) rights of 1.3Lakh songs, 6K+ hours of Tamil television serials (content made for SunTV), and 60 movies.# It has a presence in film music across all Indian languages, with 31% of the music portfolio acquired in the last 20 years.
Through digital licensing agreements across global OTT platforms, social media, TV & radio stations, etc. company is monetizing the music portfolio across 7B+ per month song touchpoints (2B+ youtube channel views in Q3FY21 ).
Carvaan Product Platform :
"Carvaan: Digital Music Player" is a product with 5000 preloaded songs, easy UI, and high-quality speakers including ones from Harman Kardon . These are being sold by a distribution network of 30K retailers.
Film production business:
Yoodlee Films # is Saregama’s production house producing digital thematic films for the youth, with revenue primarily from licensing to digital OTT platforms. It has released 15 movies on Netflix/Disney Hotstar/Zee5 in the last 3 yrs.
3. Adani Total Gas Ltd +602%
AGL is engaged in City Gas Distribution (CGD) business and supplies natural gas to domestic, commercial, industrial and vehicle users.
- Company is expected to give good quarter
- Company has delivered good profit growth of 42.03% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 28.77%
- Stock is trading at 78.40 times its book value
- The company has delivered a poor sales growth of 8.48% over past five years
4. Adani Transmission Ltd +590%
Adani Transmission and its subsidiaries (together referred to as the Group) are engaged in the business of generation, transmission and distribution of power through India. The Group develops, owns and operates transmission lines across the States of Gujarat, Rajasthan, Bihar, Jharkhand, Uttar Pradesh, Maharashtra, Haryana, Chhattisgarh and Madhya Pradesh. Apart from the above the group also deals in various agro commodities.
- Stock is trading at 32.63 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Company has low interest coverage ratio.
5. Rajratan Global +533%
Product Offerings
Tyre Bead wire :Used in all kinds of automobile tyres, tyres of earth moving equipment and aircrafts. It prevents vibration during driving and is required for safety, strength and the durability of tyres.#
High Carbon steel wire :Used in automobile, construction and engineering industries. It is also known as black wire.#
Market Position
The Company is among Asia’s largest bead wire manufacturers (ex-China)#
The Company's subsidiary Rajratan Thailand is the only bead wire manufacturer in Thailand and has a ~25% market share there.#
Rajratan India is the largest manufacturer of TBW in India with a market share of ~50%, also there is a high entry barrier in the TBW industry due to the long approval cycle by tyre manufacturers, and it's a critical product.#
Clientele
As of Q3FY21 85% customers were associated with the company for more than five years. It services customers in India, Italy, USA, The Czech Republic, South Korea, etc. #
Indian Clients : Apollo tyres, ATG, Birla Tyres, CEAT, MRF, Balkrishna, etc.#
Thailand Clients : Bridgestone, Sentury Tire, Destone, etc.#
International Clients : Toyo Tires, Nankang, Trelleborg, etc.#
Facilities
Presently, the company has a combined installed capacity of 1,12,000 Tonnes p.a. (TPA) of bead and black wire from its facilities in India and Thailand :-
1. Pithampur (M.P.) India - 72,000 TPA
2. Ratchaburi, Thailand - 40,000 TPA.
It undertook aggressive CAPEX programs during FY19-21 and increased its capacity from 62,000 in FY19 to 1,12,000 in FY21.#
Geographical Split FY21
India - 66%
Rest of the world - 34%
Customer Concentration
During FY21, the top 3 customers of the company contributed ~39% of total revenues of the company.
Tax Benefit
The company's Thailand subsidiary/division will receive tax benefit on the profits reported on all the production in excess of 22,000 TPA for a period of eight years. This benefit is expected to expire by 2025.
Focus
Rajratan is largely focused on the manufacture of bead wire (87% of total capacity and 90% of revenues in FY20).
It also plans to expand its Thailand plant's capacity to 60,000 TPA by the end of FY22.
Raw Material Fluctuations
The company is able to pass on the Raw Material price increase with a slight lag to its customers.
- Company is expected to give good quarter
- Company has delivered good profit growth of 26.39% CAGR over last 5 years
- Stock is trading at 9.09 times its book value
- Debtor days have increased from 64.89 to 77.88 days.
The above is only for eductional Information, do your own research and analysis before investing.