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5

Mid-Cap
Shares
For Wealth Creation

Hindustan Media Ventures

About

Investment
Argument

Hindustan has 4 editions and 113 sub editions across the Hindi speaking region
and has been re-launched in a New Version. It covers all spheres of news like
international, national and local news which relates to politics, business, entertainment,
sports and varied general interests

We expect strong growth in both advertising and circulation revenue due to


the companys strong presence in various states. Management has also guided that the
company is focusing on improving operational efficiencies to ensure growth of revenue
leading to growth of profit

Rural slowdown, due to many competitors entering the market, could impact
Risk

Financials

growth in the long run. Companys expectation of increase in circulation revenue could
also not be met
FY

CMP

Sales

OPM

EPS

PE

BVPS

PBV

EV

EV/Sales

ROE

2012-13

214

597

16

24

59

1,636

2.7

15

2013-14

214

636

18

12

19

69

1,655

2.6

17

Apollo Tyres
Apollo Tyres Ltd, is in the business of manufacture and sale of Tyres. The
company has four manufacturing units in India, two in Southern Africa and one in the
Netherlands and exports to over 100 countries.

About

Investment
Argument

Risk

Financials

It offers a comprehensive product portfolio of passenger car, light truck,


truck-bus, off highway and bicycle tyres, retreading material and retreaded
tyres. Over plantation of rubber and decline in auto OEM demand has kept the prices
under pressure for rubber

Apollo Tyres growth prospect is less in the short term considering the companys
capacity constraint, slow demand and competition from competitors providing
cheap alternatives
FY

CMP

Sales

OPM

EPS

PE

BVPS

PBV

EV

EV/Sales

ROE

2012-13

171

13,412

14

21

90

9,796

0.7

23

2013-14

171

12,726

15

20

99

9,788

0.8

20.6

Styrolution
Styrolution ABS is the leader ABSOLAC (ABS) in India, which is a plastic resin used

for manufacturing of home appliances, automobiles, consumer durables


and business machines. It is also a leading manufacturer of ABSOLAN (SAN) which
About

Investment
Argument

Risk

Financials

is used for products such as lightings, stationeries, novelties, refrigerators and cosmetic
packing

As the Automobile and Household industry is expected to grow at a good


pace, it will drive the demand for Styrolutions products. Hence we expect the company
to expand at a great pace

The company has been currently impacted by high cost of imported rubber due to
expansion plans and by fluctuations in cost of crude oil. Also the demand has slowed
down currently
FY

CMP

Sales

OPM

EPS

PE

BVPS

PBV

EV

EV/Sales

ROE

2012-13

568

826

10

31

19

216

1055

1.3

14

2013-14

568

989

10

36

16

247

1065

1.1

14.6

Merck

About

Merck is a subsidiary of Merck Group Company, which is located in Germany. It operates


both Pharma and Chemical business in India. It supplies high-quality
pharmaceutical and chemical products. It is the worlds oldest pharma and chemical
enterprise located in 59 countries

Merck is one of the leading companies for innovative and top-quality high-tech products
in the pharmaceutical and chemical sector in India. The Pharma business comprises of

Investment
Argument

formulations used in area of cardiovascular, metabolic diseases and


vitamins. Chemical business comprises of Bulk Pharma Compounds and Specialty
Pigments

Prices of key ingredients used in products manufactured by the company remain volatile
due to several market factors, including changes in governmental policies and

Risk

Financials

fluctuations in the foreign exchange rates


FY

CMP

Sales

OPM

EPS

PE

BVPS

PBV

EV

EV/Sales

ROE

2012-13

804

687

15

47

17

291

1,415

2.1

16

2013-14

804

798

10

34

24

315

1,392

1.7

10.7

Mangalam Cement

About

Investment
Argument

Risk

Financials

Mangalam Cement has a total productive cement capacity of 2 MTPA while all the
capacity is located in Rajasthan in the northern region. The company sells ~65% of
cement in the north while remaining volume is sold in Uttar Pradesh and central
region

A presence in favorable regions of North India has helped the company to maintain
higher utilization levels. It has completed the expansion plan of cement and clinker
capacity. With increased capacity, it should be able to benefit from economies of

scale by improving its margin

There is a risk of lower sales realization in the present financial year (2015-16).
Also there is a risk of continued weak prices of cement in the northern region

FY

CMP

Sales

OPM

EPS

PE

BVPS

PBV

EV

EV/Sales

ROE

2012-13

249

631

16

21

12

162

725

1.1

13

2013-14

249

706

19

29

184

746

1.1

15.7

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