Best small cap investment ideas for the year 2012 are as following.
Tilaknagar Industries
CMP Rs.33.65
BUY
Tilaknagar Industries is a fast growing IMFL player with a dominant position in major liquor market (South India) with a strong product portfolio of more than 30 brands. Tilaknagar Industries has increased its distillery capacity and the utilization levels are expected to increase significantly from 25% currently which would not only drive strong revenue growth, but would also increase the margins.Recent acquisition and JV with leading MNC liquor players are further triggers for the Tilaknagar Industries stock to outperform.
Himalya international
CMP Rs. 18.75
BUY
Himalya international recent expansion in Mehsana and its tie-ups with leading Quick Service Restaurants (QSR) and JV with J R Simplot will help double its revenue in FY13. Post expansion Himalya international ‘s mushroom capacity has more than tripled and the new segment of appetizers and French fries will help broaden its revenue mix. The utilization levels are slowly expected to increase which would be margin accretive along with robust revenue growth.
Oriental Carbon & Chemicals
CMP Rs. 88.65
BUY
Oriental Carbon & Chemicals is a leading supplier of insoluble sulphur, a critical raw material for radial tyres, whose demand is sustainably rising on better operating performance. As it is in great demand, Oriental Carbon & Chemicals doubled the capacity which was entirely funded through internal cash accruals and debts. Currently the Oriental Carbon & Chemicals stock price is ruling weak on some teething problem at new plant which is likely to be fully stabilized by year end and we estimate profitability to expand 40% in FY13. |
