Research – 30th April 2018

Fundamental View:

Srikalahasti Pipes is one of the leading manufacturer of DI pipes with backward integration. Ductile pipe have high tensile strength, flexible and leak tight joints, corrosion resistant, longer service life and are mainly used for portable water and sewerage transportation. The company have good infrastructure which includes own railway siding to transport iron ore, leased plot at krishnapatnam port to accommodate coal import, water arrangement with tirupati municipal corporation to utilize sewerage water, long term lease limestone mines and own material handling facilities. With government focus on drinking water, the future prospects are bright for the company. Last year the company has expanded capacity of DI pipe from 2.25 TPA to 3 TPA. We expect company to show steady growth in coming years on higher orders from Government. Trust areas can consider Srikalahasti Pipes for decent gains.

Fundamental View:

Blue Star Ltd. is one of the largest Consumer Durable company in India with an annual revenue of Rs.4,400 Crores. It has wide range of products – Room Air Conditioners, water purifiers, air purifiers, air coolers, water coolers, central air conditioning, commercial refrigeration, cold storages and speciality products – mortuary chambers and hot water generators. The company has introduced 100 new models of various ACs, including 40 models equipped with energy efficient invertor technology to meet the demand for summer and thereby increase there revenue in AC segment with a target of Rs.1700 crores in 2018-19 from Rs.1500 in 2017-18. Another factor which the company expects is the trade war between China and US. As China is producing ACs with low cost will affect there production if the trade dispute continous. This will help the consumer durable industry in India to increase exports. These factors will help increase the market share of the company from 11.5% to 12.5%.
This year the company is planning to invest Rs.85 crores on new product development, research and design and advertising and brand promotion. It is also planning to add 50 exclusive stores this fiscal, taking the total exclusive stores count to 200.

The growing demand for room airconditioners in the Indian and world market and the trade war between Us and China, Bluestar is expecting a revenue growth of 19% during 2018-20 and margins to improve from 5.8% in FY2017 to 6.6% in FY2019.

Looking at the above valuation it is good to buy Blue Star at the CMP of Rs.793 with a target of Rs.850/- in three months.

Fundamental View:
1. Good Q4 results announced – 38% rise in profit, declares 75% dividend (Rs. 7.5 Per share)
2. Companies best ever performance in its 42 years history.

Short Term view: Positive
Long Term view: Positive
News Updates:
1. Positive monsoon prediction will help the company for coming days performance.

Fundamental View:

TAKE Solutions is a leading international business technology company with products backed by a strong domain expertise to provide cost–effective comprehensive solutions for businesses. With over 500 current employees, TAKE Solutions global headquarters are in Chennai, India with North American headquarters in Princeton, NJ.
TAKE specializes in Regulated Information Management Systems (RIMS) and Clinical Data Management Services. TAKE utilizes the Universal Drug Development Model (UDDM) for integration of data elements, application and business rules applied within the clinical drug development systems.

TAKE Solutions staffs major technology centers and sales offices in Chennai, Malaysia, Mumbai, Oman, Philadelphia, and Research Triangle Park, NC, and Austin, TX. TAKE Solutions is SEI–CMMI Level 5 Certified, Microsoft Gold Certified, and is a Registered CDISC Solution Provider. TAKE conducts business today in 9 countries with more than 150 FORTUNE 1000 customers.

TAKE Solutions has achieved Microsoft Gold Partner Certification for the past ten years.

Recent developments.

Take Solutions has signed a major deal with the leading South Korean Pharma major, Yang Pharm Co Ltd.