Futuristic Company | Performed Exceptionally | Setting Governance Benchmark | Truly Global Player | Emphasis on R&D | World-Class Professional Advisory Board.
Micro-Cap Stock Idea (Mentoring Program) of May'21 : Raghav Productivity Enhancers Ltd (BSE:539837)
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Note: Raghav Productivity stock idea was published in May 2021 @ 302 per share to all our PAID subscribers of Mentoring Program where we identify 10 best-in-class micro-cap multibagger stocks from micro cap segment in a year. To join WhatsApp to +91 9354179604 (Sanjay Gupta)
Micro-Cap Stock Idea of May'21 : 💥 Raghav Productivity Enhancers Ltd (BSE:539837) 💥
✅ Best Proxy Play to Steel, Ceramic, Glass Sector | Market Cap < 350 Cr | PE (FY22E) ~ 20 | ROCE % ~ 23 | EBITDA Growth ~25% (3Y) | Expect ~150% Upside in Next 12 months.
🏆🏆🏆 Futuristic Company | Performed Exceptionally | Setting Governance Benchmark | Truly Global Player | Emphasis on R&D | World-Class Professional Advisory Board.
📌 RPEL is engaged in the manufacturing of quartz based ramming mass, quartz powder and tundish board. It sells its products under the brand name of “Raghav”.
📌 RPEL is the largest ramming mass producer in the world (~10% market share) and only listed and organized ramming mass manufacturing company in India. Asia’s Most Trusted Ramming Mass Brand Award given by IBC Research, USA. Always focused on enhancing its ability so that it can deliver more to the clients.
📌 Visionary and Experienced Management with Industry Leaders from US serving in the top management. Risk of corporate governance and risk of survival are ruled out.
📌 Sales growth (10Yr) 27%; Profit growth (10Yr) 98%; ROE (10Yr) 22%; 66.17% increase in Export Volumes during 2019-20. Record Breaking Q4 FY21 Results - Revenue Up 40% QoQ & Profit Up 130% QoQ.
📌 Expected turnover ~ 90-100 crores in next couple of years with future plans to foray into foundry industry and high purity quartz powder used in manufacture of artificial marble.
📌 Large addressable Market Size, World-class fully-automated plant at a single-location. It has a diverse product range and a broad geographic presence. Exports to over 20 countries, benefiting from high margins and better payment terms.
📌 Emphasis on R&D, products are of superior quality, professional advisory board that serves in the top management. Technical collaboration with Sweden-based JWK AB, with a formidable R&D track record; RPEL’s R&D center is the only one to be recognized by the Department of Scientific and Industrial Research (Government of India) and positioned as a research-led ramming mass Company (10.52 crore, investment in R&D, 2017-2020 R&D investment; 3.35 as % revenues, 2019-2020)
📌 70% market controlled by unorganized players, Company has a diversified clientele including large and medium induction-furnace players in India and abroad. The Company exports to 28 countries and supplies within India across 26 states.
📌 Virtually no debt on its books; with strong liquidity and high profitability and returns, financial position of RPEL is strong.
📌 Mr. Ashok Bhandari (CFO and president of Shree Cement for 25 years) is chief economic advisor to the company and visits the company every quarter.
📌 Mr. Utpal Sheth (Highly passionate, Mind-blowing stock picker), CEO RARE Enterprises(Firm of Rakesh Jhunjhunwala) and his own firm Chanakya Corporate Services holds ~ 8% stake in this company. Last year company has issued preferential equity shares to few smart investors @ 170/-
📌 Increasing government expenditure on infrastructure and Smart cities mission is expected to boost demand for steel, which in turn would boost demand for ramming mass used in steel.
🎙️🎙️🎙️ Missing this "one-of-a-kind" stock is EQUAL to missing 100x opportunity.