Good Luck India Ltd : A Multi-Bagger Stock

                                 Goodluck India Ltd : A Multi-Bagger Stock

CMP : 88-90

BSE CODE :530655

Market Cap : 192 Crores

       LISTED ON : NSE AND BSE

TARGET : 225/250

TIME-FRAME : 12-16 Months

History of the Company :

Established in the year 1986, Good Luck India Limited is an ISO 9001 certified organization, engaged in manufacturing and exporting of a wide range of galvanized sheets & coils, towers, hollow sections, CR coils CRCA and pipes & tubes. We also specialize in providing Telecommunication Structures, ERW Steel Tubes, ERW Steel Pipes, and Galvanized Black Steel Tubes. These are acclaimed for high tensile strength, long service life and higher efficiency.

Products:

GoodLuck India Ltd's Product Range includes the following :

• Galvanized Pipes
• Square & Rectangular Pipes
• CDW Tubes
• CR Coils & Sheets
• Forgings
• Fabricated Steel Structure
• Transmission & Telecom Towers

Clients:

Company’s clients are spread over several industries and includes large clients like –POWERGRID, ABB, BSES, Reliance group, Tata group,NTPC, BHEL,EIL,BMW, Audi, Mahindra group to name a few.

Financials of the Company :

• Profit After Tax (PAT) for the year ended on 31st March,2017 has been reported  at Rs 21.96 Crore and turnover at 1185 Crore.
• As per the numbers as on 31st March,2017 the company has generated Return on Equity of approx. 17%.
• At present an EPS (Earning per share) of 10 Rs, the share is currently trading just at a P/E ratio of 9.
• The company is a regular dividend paying company and has paid dividend for past 10 consecutive years.

Investment Rationale : Why to Invest in this Stock ??

• Shareholding of the promoters in the company is 60.46% as on 31st March,2017 which strongly indicates interest of promoters in growth of the company.
• Cashflow positive for past 3 financial years
• With the Indian economy poised for growth and increased recognition at global platform the demand for company's product is bound to increase.
• Market Cap to Sales Ratio : 0.16 ( Considering March 2017 sales and current market cap) is very attractive
• At current price of 90 Rs per share and EPS of 10 Rs , the stock is presently trading at an attractive P/E ratio of 9.
• At a forward reasonable P/E of 15 and EPS of 15.00, we expect the stock price to soar higher atleast to 225 and higher levels in coming time.

Disclaimer Note: The above is not a research report but information as available on public domain and it should not be treated as a research report. Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.

Disclosure: It is safe to assume that I might have Goodluck India Ltd  in my portfolio and hence my point of view can be biased. Readers should peform own due diligence before investing. We do not assume any responsibility or liability resulting from the use of information , judgements and opinions for Trading or Investment purposes on the Blog.