11 companies for my portfolio!

For the last couple of months, I have been working to filter out companies in my portfolio to reduce the number of companies from the 54 to 20 or 30.  To find out the ones that I want to keep, I put all my companies to a quantitative test with investment criteria of Benjamin Graham, Kenneth Fisher and Martin Zweig as I mentioned in one of my recent posts.  I decided to keep those companies that pass any one of these three filters – and I got just 11! As usual, I am sharing with you what I found.

1. Opto Circuits

It is a technology company catering to healthcare industry. A multinational medical device company head-quartered in India and its products are used in about 150 countries.

Its revenue have been growing consistently every year for the last 10 years. Last four quarters also have shown impressive growth. Its EPS have grown at an impressive compound annual growth rate of 33% over the last five years.

Its debt equity ratio at 65% and not so healthy cash flows are points to be cautious!

2. Astral Poly Technik

Astral Poly Technik is a manufacturer of PVC plumbing systems. It has the license of Lubrizol of USA, equity joint venture with Speciality Process of USA and tie-up with many international names.  Its corporate clients include big names across various industries! Its products cater to the domestic and industrial applications.

Its revenue have been growing consistently every year for the last 10 years. Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 32% over the last five years.

Its debt equity ratio is moderate at 27% but its cash flow is not very healthy.

3. Page Industries

Page Industries Ltd. is the exclusive licensees of JOCKEY International Inc. (USA) for manufacture and distribution of the JOCKEY® brand Inner-wear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal and UAE.

Its revenue has been growing consistently every year for the last 10 years. Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 36% over the last five years.

Its debt is huge at a debt-equity ratio of 93%  and its cash flow is also not very healthy.

4. Technofab Engineering

A 40 year old engineering and construction company, serving the Power, Industrial and Infrastructure Sectors, by executing comprehensive balance of plant (BOP) and auxiliary systems on a complete Turnkey EPC basis.

It is clearly a cyclical play which is affected by economic cycle and government policies due to its dependence on power and infrastructure sectors.

Its revenue have been growing consistently every year for the last 6 years. Last four quarters also have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 91% over the last five years.

Its debt is moderate at a debt-equity ratio of 11%  and its cash flow is not very bad.

5. Clariant Chemicals

Clariant Chemicals (India) Limited is one of India’s leading specialty chemicals companies and is the No. 1 player in Pigments, Textile Chemicals, Leather Chemicals, Biocides for Paints. Its products cater to the wide range of industries.

Its revenue growth in the last few years are not very impressive and  last four quarters also have shown muted or negative growth. Its EPS grown at an impressive compounded annual growth rate of 31% over the last five years.

Its is a zero debt company. Its cash flow is not very impressive and cash and cash equivalent in the balance sheet has been coming down in recent years.

6. Hinudstan Zinc

Hinustan Zinc is India’s largest and world’s second largest integrated producer of zinc & lead, with a global share of approximately 6.0% in zinc. Hindustan Zinc is a subsidiary of the NYSE listed – Sterlite Industries (India) Limited  and London listed FTSE 100 diversified metals and mining major – Vedanta Resources plc. Its core business comprises of mining and smelting of zinc and lead along with captive power generation. It has four mines and four smelting operations in India.

Its revenue have been growing consistently every year for the last 10 years except a dip in two years – 2008 and 2009.  Last four quarters have shown impressive growth. Its EPS has grown at an impressive compound annual growth rate of 35% over last 10 years.

It is a zero debt company and its current ratio is 3.01! It has been paying dividend in all of the last 10 years.

7. Mayur Uniquoters

Mayur Uniquoters is manufacturer of PVC Vinyl. Its major clients are from Auto-mobile and footwear industries.

Its revenue have been growing consistently every year in the last 10 years. Last four quarters also have shown impressive growth. Its EPS grown at an impressive compounded annual growth rate of 65% over the last five years.

Its debt is moderate with a debt-equity ratio of 13%  and its cash flow is not very bad.

8. Wim Plast

Wim Plast manufacture plastic moulded furniture and bubble guard extrusion sheets in the brand name of Cello.

Its revenue have been growing consistently in the last 5 years.  Its EPS grown at an impressive compounded annual growth rate of 74% over the last five years.

It is a zero debt company and its cash flow is also healthy.

9. Mphasis

An IT company delivering Applications services, Infrastructure services, and Business Process Outsourcing (BPO) services globally serving clients across a wide range of industries.

Its revenue have been growing consistently every year in the last 7 years. However its last four quarters results were disappointing. Its EPS grown at an impressive compounded annual growth rate of 60% over the last five years.

It is a zero debt company and its cash flow is healthy.

10. National Peroxide

National Peroxide Limited manufactures Chemicals “Hydrogen Peroxide”, “Sodium Perborate” and “Per Acetic Acid”. NPL, a pioneer in India for peroxygen chemicals, is the largest manufacturer of Hydrogen Peroxide in India. Hydrogen Peroxide is a highly versatile chemical used in various industries for bleaching, chemical synthesis, environmental control/effluent treatment, sterilisation etc.

Its revenue have been growing consistently every year in the last 5 years except a dip in 2010. However the sales were down in the June 2011 quarter. Its EPS grown at an impressive compounded annual growth rate of 62% over the last five years.

It has no significant debt with a debt equity ratio of 7% and has an healthy cash flow.

11. Voltas

Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

Its revenue have been growing consistently every year in the last 10 years. However growth in last four quarters were not consistent and was low. Its EPS grown at a compounded annual growth rate of 25% over the last five years at 31% over 10 years.

Its debt position is low with a debt equity ration of just 7% and has a healthy cash flow.

 

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