This auto spare company is shifting gears towards growth. Is it a good buy?

Shivam Autotech, run by the Munjal family of the Hero Group, had a difficult year. During fiscal year 2010, the company reported a loss of Rs 3.82 million rupees compared to a profit of Rs 19.3 crore in the year 16, weighed by higher interest costs.

Shivam is in the process of manufacturing transmission gears, shafts and precision engineering components for the automotive industry.

The company had built two new facilities. Its gross or gross value of fixed assets increased by Rs 395 million rupees during fiscal year 2013 to about Rs 600 crore (gross assets of Rs 485 crore and current working capital of Rs. 101 million Rupees) by the end of 2016. Despite the growth in assets, revenues in this period have remained in the region of Rs 420 crore to Rs 450 crore.

Of these facilities, the Bangalore facility started operating in April 2016 and the second facility in Rohtak was also operational in 2010. These two plants, partly funded by debt, contributed to almost zero revenue in the fiscal year 2010, but were added to the company’s expenses (which increased by 16%) and interest costs. Interest costs during fiscal year 2010 increased 35 percent to Rs 29 million rupees, resulting in losses. However, this should be corrected with both facilities already in operation.

Shivam offers some well-known national and international companies such as Bosch, MotoCorp hero, Maruti, Denso Mitsuba Hilti, among others. Shivam is a key player because of its technology and its integrated facilities with internal forging and cutting capability.

Installation of Bangalore respond to a large extent Bosch and also expand the scope of the company in the four-wheel segment, which still accounts for about 15% of sales. Most of the manufactured Bangalore plant products replace the import requirements of their customers which, for some components, such as electronic power steering, depends solely on imports.

Except, the plant was operating at a capacity utilization of approximately 85 to 90 percent, unable to meet the needs of its customers as Hero Group, which grows aggressively in export markets. The gap between supply and demand should allow a rapid acceleration of production.

The new facility will expand its product portfolio and develop the capacity of certain niche products that should mark a bit more space. The benefits of operating leverage, the contribution of high margin products and overall volume growth will have a significant impact on the margins and profitability that were previously depressed.

Today, MotoCorp hero represents nearly 80% of his sales. However, after the start of these two plants, the hero ratio would be reduced to 60% and the other would be recognized by other customers, which reduces their dependence on a single customer.

Some of the benefits due to capacity expansion will accrue during the year and 18 more than in year 19. Return rates also improve. Its debt (Rs 363 crore in 2010) to equity, will also improve by about 1.8 times to 1.4 times or less. Improving two matrices – Roe and debt / equity – will have a positive impact on ratings.

What is the CBI’s jurisdiction, when can it conduct raids?

The Central Bureau of Investigation has often been accused of working at the request of the central government. Even the Supreme Court, in 2013, called the investigation agency as “parrot cage” and “the voice of his master.” In the fall of raids against NDTV promoters Prannoy Roy and Radhika Roy, the CBI once again faces allegations of being a supporter. In response, the IWC issued a statement press June 6, 2017, for how the investigation by the IWC in the NDTV raid was legal and in accordance with the Supreme Court’s decision on private banking investigations.
NDTV promoters were accused of “illicit gain of Rs 48 million rupees to developers – Dr. Prannoy Roy, Smt Radhika Roy, M / s RRPr Holdings Pvt Ltd and an undue loss corresponding to the ICICI bank” under Provided for in the 1988 Law on the Prevention of Corruption.

Burglary of NDTV promoters and the alleged “unjustified” investigation

Article 6A of the Law on the Establishment of the Delhi Police Special (CDPI) covers the IWC’s investigations if an offense has been committed under the 1988 Law on Prevention of Corruption with prior central government approval.
In an emergency, the IWC has been accused of having no jurisdiction in private bank lending cases, the IWC has clarified in its statement, “the Supreme Court of Honor in Ramesh Gelli 2016 against the IWC has said that The provisions for the prevention of corruption 1988 Act applies to employees of private banks. Therefore, the ICC is competent to investigate the case of private banks.
What is Ramesh Gelli vs CBI [WP (CRL). DO NOT. 167/2015]?

In this case, the Supreme Court held that section 2 (c) (viii) of the 1988 Law on the Prevention of Corruption and Article 21 of the Indian Penal Code 1860 which defines “civil servant” must be Read with Article 46-A of the Bank Control Act, which has the scope of the crimes provided for in the Law.
The issue in question was whether the president or CEO or CEO of a private bank operating under the RBI’s license under the 1949 Bank Regulation Act has an office and performs its public functions to attract the official definition “.
What is the competence of a CBI research?

The 1988 Crime Act to prevent corruption within the Central Monitoring Commission (CVC) and other problems with the Department of Personnel and Training (DOPT) staff departments, pensions and complaints, Government of India.
CBI investigate cases refer mainly to central government employees, financial interests of central government, violation of central laws, fraud, fraudulent embezzlement involving activities involving large funds, similar offenses committed by organized gangs or Criminals that affects several states.
It also analyzes the case from one state to another and international ramifications and the participation of several official bodies, where, from all angles, it is considered necessary that a single body in charge of research is carrying out the investigation.
Are CBI arrests different than police arrests?
The IWC’s detention, with or without a court order, is under the 1973 Criminal Code Act, which applies to all police officers who detain when approval is required if the magistrate’s arrest is made with an order. The provisions of an arrest without a warrant are included in section 41 of the Code of Criminal Procedure, which also applies to ICC officials.

Feud over Qatar deepens conflicts across Arab world

* The opponents of Qatar decided to make use of

* Libya and Yemen remain trapped in post-Spring Arab Wars

* Rift with Doha urges factions supported by the UAE

* Fury among customers can make peace plans more difficult

By Noah Browning and Aidan Lewis

DUBAI / TUNIS, June 9 (Reuters) – Separated Qatari by the other Arab states is intensifying striking divisions between their respective allies focusing on wars and political conflicts in Libya to Yemen.

The dispute complicates efforts to stabilize the country suffering from years of turmoil and undermining the notion of a united Sunni Arab world against terrorism and Iran, proclaimed by US President Donald Trump during his visit last month.

The dispute is the latest chapter in the battle of wills between political Islamists and traditional Arab autocrats who have been battering Muslim societies for decades.

Since the events of the “Arab Spring” 2011, which aspired to democratic reform, but in several countries collapsed in the war, especially Egypt and the United Arab Emirates have become the main enemies of the Muslim Brotherhood supported upwards By Qatar.

After Saudi Arabia, Egypt and the UAE have severed ties with Doha in Doha, accusing it of supporting the militants and Iran, regional allies followed the prosecution and denounced the internal enemies as Qatar puppets, which undermine the reconciliation efforts of the Foreign powers.

“The situation has become very embarrassing: Qatar and its rivals are fighting, but indirectly and in the territory of others,” said Yemeni analyst fárëa al-Muslimi.

“The fact that the internal Arab masses like this increase and complicate very clearly that the Arab world is far from solving other problems like Palestine or Iraq or even the relationship with Iran.”

In Libya, the UAE and Qatar, who have played a key role in supporting the rebels during the uprising that overthrew Muammar Gadhafi in 2011, became rivals on the battlefield with competing interests and visions.

The UAE, with Egypt, supported the former anti-Islamist commander Khalifa Haftar appointed by a government and a parliament based in the east. Qatar and Turkey have supported Islamist factions in western Libya.

Yemen – melee conflict from Saudi Arabia launched an air war in 2015 against the Houthi movement that controls the capital – a secessionist council of South Yemen armed by the UAE opposes the internationally recognized government, as it includes the Muslim Brothers supported by Qatar.

The Yemeni junta and the Saudi Government, despite years of relations with Qatar, have reduced diplomatic relations with Doha.

The Libyan government and the East parliament aligned anti-Islamist Haftar did the same.

“We are sure that interested States in the Gulf and Egypt will push to drastically change the scandalous policies of Qatar,” Mohamed Dayri, Foreign Minister of the East.

On Friday, Saudi Arabia, UAE, Egypt and Bahrain have designated as Libyan terrorists including five Tripoli Mufti Sadiq al-Ghariani, an influential figure for anti-Haftar militias in western Libya. They also listed defense brigades in Benghazi (BDB), a group that tried to revive armed opposition to Haftar since last year.

Qatar has gained weight in world affairs, talking about its vast wealth of gas throughout the region, trying to irritate the United Arab Emirates and the power of the Arab Persian Gulf Saudi Arabia with unknown positions and support for Islamists.

PEG ratio can help you spot multibaggers; 10 stocks which rose over 100% in 1 year

Finding value in the Indian market is difficult, especially at times when markets are operating at record levels. Benchmarks rose more than 17 percent over the past year, but there are many stocks that have more than doubled over the same period.

Finding value in the markets, although most stocks have doubled in the last year could be a difficult task. To make the job easier for investors, there is a relationship that is easy to calculate and is readily available, ie the PEG ratio.

The PEG or price / earnings ratio for EPS annual growth can provide a more complete picture of the population, especially in a bull market when the P / E ratio tends to inflate.

A price-earnings ratio (PE) can be calculated by dividing the market value of the share by earnings per share (EPS). The relationship between PE and profit growth provides an overview if inventory and evaluation with respect to P / E alone.

There are a number of actions that have experienced a significant price increase if followed by the PEG ratio. To simplify, we have compiled a list of top ten stocks that have more than doubled investor wealth and still have a lower PEG ratio below 1.

Some stocks whose PEG ratio is less than 1 include such names as Avanti Feeds JM Financial, Sunteck Real Estate, Dewan Financing Housing, Edelweiss Financial Services, Balkrishna Industries, REC, Can Fin Homes and Lakshmi Vilas Bank.

“PEG is a good criterion for evaluating the assessment of a population, especially in upward markets when PE indicates an exaggeration. It is true that the PEG less than 1 leaves a margin of safety, even when the stock has a total price,” he said. VK Vijayakumar, chief investment strategist Geojit Financial services Moneycontrol.

“PEG inventories with investment of less than 1 deserve.But we should not conclude that a greater than 1 indicates PEG overvaluation and high risk. Recently, some stocks with more than 1 PEG have yielded good returns,” he said.

The theory suggests that less than 1 PEG ratio indicates that the stock is undervalued and analysts’ consensus estimates are currently too low. On the other hand, more than 1 PEG ratio suggests that the expectation of market growth is higher than consensus estimates.

The relationship can not be applied to all sectors. This works best for stocks that have a cyclical nature and to be more efficient, investors should use a growth rate based on the last 3 years, experts suggest.

“For growth, investors should consider long-term growth (growth of at least 3 years). This will reduce the cyclical element in growth and reduce error in calculating the ratio,” said Shashank Khade, senior director and advisers for Investment of capital Entrust Family Office to Moneycontrol. Although PEG is a good indicator, it should be used with other criteria. A bit indicator used, but it is important Gains Performance, experts suggest.

The performance of the results is the EBIT divided by the value of the company. “Efficiency gains over 5 percent is good, which can be used with the PEG ratio,” said Vijayakumar Geojit Financial Services.