With the golden opportunity to invest in Indian equity markets presently, retail investors are very much interested to take the opportunity and earn some profits out of it. But this investors are confused about picking the right stock, whether to pick large cap, mid cap or small cap. If you want good returns than you have to take some risk and returns would be very good.So lets invest in Midcap where returns are high with some risk. With some research I found a good stock known as Kushal Tradelink Limited which is a private limited company with the main object of dealing into various types of papers viz. Kraft, Duplex, News print waste, Cromo Art Paper etc.
Company is listed on BSE exchange in B group soon will be listed on NSE as all formalities are in process. Stock is trading actively with over 10 lac shares average daily volume, stock price has risen consistently and have never fall even Rs. 10 from its high price at any point of time, company have declared interim dividend twice 40% in January 2016 and 60% in March 2016 respectively. Company have 3 giant paper mills in Gujarat as well as corporate house, wholly owned subsidiary in Singapore and in Ajman(UAE) subsidiaries are involved trading of physical agricultural, chemicals, paper waste and metals trading.
For providing a helping hand to the society ,the company is going to start CSR activities.
Activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to:— (i) Eradicating extreme hunger and poverty; (ii) Promotion of education; (iii) Promoting gender equality and empowering women; (iv) Reducing child mortality and improving maternal health; (v) Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases; (vi) Ensuring environmental sustainability; (vii) Employment enhancing vocational skills; (viii) Social business projects.
By this step ,it shows that the company is not only focused on profits but also participating in welfare of the society.
The stock is fairly price low.The 1 year price to earning is 218.73 the minimum pricing is 54.86,medium 111.89 and maximum 218.73 it means the share has a capacity to do at 218.73.The 1 Year price to book is 23.85.the minimum 5.98 ,medium 12.20 and maximum 23.85.The earning yield (EBIT/enterprise value) is 0.90% and PEG (Price/Earnings to growth ratio)is 1.49.The compare to peers company the company look good turnaround in sales and profit the company as growing day by day with good amount of sales. Kushal Tradelink has reported a sales total income from operations of Rs 67.08 crore and a net profit of Rs 1.40 crore for the quarter ended Sep ’15 and Kushal Tradelink has reported a sales total income from operations of Rs 89.58 crore and a net profit of Rs 2.39 crore for the quarter ended Dec ’15.the comparison of stock with peers.
| Name | Last Price | Market Cap. | Sales | Net Profit | Total Assets |
| (Rs. cr.) | Turnover | ||||
| Pudumjee Paper | 15.45 | 146.7 | — | 0.01 | 1.02 |
| Rainbow Papers | 12 | 127.46 | 559.01 | 24.44 | 1,319.24 |
| Genus Paper | 4.8 | 123.42 | 288.61 | 9.6 | 367.16 |
| Pudumjee Pulp | 18.2 | 74.62 | 291.48 | 20.27 | 255.38 |
| Star Paper | 37.65 | 58.77 | 271.3 | 15.54 | 60.76 |
| Shreyans Ind | 31.5 | 43.55 | 369.52 | 9.8 | 130.84 |
| Malu Paper | 11.9 | 20.3 | 230.82 | 1.87 | 116.62 |
| Pudumjee Ind | 9.2 | 16.56 | 157.05 | 1.66 | 116.06 |
| Sirpur Paper | 8.2 | 13.93 | 423.04 | -90.98 | 367.67 |
| Servalakshmi | 3.15 | 13.58 | 179.82 | -42.1 | 231.6 |
| Magnum Ventures | 2.95 | 11.09 | 222.72 | -73.32 | 358.36 |
| Kushal Trade | 125.6 | 1,490.03 | 263.61 | 4.67 | 119.99 |
Turnover and profits for Sep and Dec quarter published on BSE does not include turnover and profits of its subsidiaries .So when profits of subsidiaries are visible on Consolidated Annual balance sheet it will change P/E and Book value of the company , so these in turn will increase Investor participation and increase demand of stock which in turn will increase the price of stock and it’s a good opportunity to invest in these stock.
So going through all analysis we can conclude that Kushal Tradelink is one of the best Midcap stock to invest and earn a good amount of profit.
