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Company in discussion is recommended by my stock market guru Research Wings.
Company who came from BSE SME to BSE Main and now from low margin trading firm to manufacturing firm, RCI industries have exhibited excellent growth path.
On going 80 Crores capex for enhancing capacity of which 49 Crores met from preferential allotment from Promoters and remaining out of internal accruals
High margin business, acquired 2400MT capacity Devi Metals, ongoing capex for 6000MT by FY2018 & 24000MT by FY2019
Company focus is shifting from trading to high margin flat products manufacturing business and hence highlighted
Previous closing price is ₹249.45 and I bought today at ₹246 in my personal portfolio.
Comparing it with peers Precision Wires and Ram Ratna wires(Don't go with peers given on screener.in or other websites as automated websites will give peers in commodity trading and as discussed above, RCI has now become Copper ancillary manufacturer as primary business) , inspite of excellent growth on cards, it's still undervalued. Such stocks are typical hidden gems, otherwise growth stocks usually demands higher valuation if information is widespread in the market.
Checking the company on charts
As We can see from the chart, on account of previous growth, stock has given good rally after getting in from BSE SME to BSE Main and is in consolidation for complete year when capex is ongoing. This chart pattern looks similar to cup and handle where rally is succeeded by consolidation (cup) and on the verge of Breakout (handle)
Recent Volumes spurt also supports the price trend. Now only wait is for a massive Breakout at 52week high after which many analysts will start giving calls but we have grabbed it when it's sleeping.
(@JTtime_market): https://twitter.com/JTtime_market?s=08
Company in discussion is recommended by my stock market guru Research Wings.
Rationale for picking this story:
Company who came from BSE SME to BSE Main and now from low margin trading firm to manufacturing firm, RCI industries have exhibited excellent growth path.
On going 80 Crores capex for enhancing capacity of which 49 Crores met from preferential allotment from Promoters and remaining out of internal accruals
Talking about 3 divisions of the company :
Copper trading -
Low margins businessRound products -
Medium margin business, current capacity at 24000MT from 20000MT in FY2017
Flat Products -
High margin business, acquired 2400MT capacity Devi Metals, ongoing capex for 6000MT by FY2018 & 24000MT by FY2019Company focus is shifting from trading to high margin flat products manufacturing business and hence highlighted
Previous closing price is ₹249.45 and I bought today at ₹246 in my personal portfolio.
Comparing it with peers Precision Wires and Ram Ratna wires(Don't go with peers given on screener.in or other websites as automated websites will give peers in commodity trading and as discussed above, RCI has now become Copper ancillary manufacturer as primary business) , inspite of excellent growth on cards, it's still undervalued. Such stocks are typical hidden gems, otherwise growth stocks usually demands higher valuation if information is widespread in the market.
Checking the company on charts
As We can see from the chart, on account of previous growth, stock has given good rally after getting in from BSE SME to BSE Main and is in consolidation for complete year when capex is ongoing. This chart pattern looks similar to cup and handle where rally is succeeded by consolidation (cup) and on the verge of Breakout (handle)
Recent Volumes spurt also supports the price trend. Now only wait is for a massive Breakout at 52week high after which many analysts will start giving calls but we have grabbed it when it's sleeping.
Awesome explanation!
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