Friday, April 22, 2016

HARRISONS MALAYALAM LTD :- VALUE PICK

Dear friends,



   Today we are looking in to agri- business sector stock for short to medium term investments




   HML



An integrated agriculture operation giant Harrisons Malayalam Limited is India's largest producer of rubber, South India's largest cultivator of Tea and perhaps the largest farmer of Pineapple in the region. It is also a major processor of other agricultural produce from neighboring farmlands.

The company also produces smaller quantities of a variety of other exotic horticultural crops like Areca nut, Banana, Cardamom, Cocoa, Coffee, Coconut, Pepper and Vanilla as well as limited quantities of Organic tea and Spices.

Exotic horticulture being a labour intensive activity the company has been a major employer of people. It today has a workforce of about 15,000. Operating in rural India the company has been responsible in bringing economic activity to remote parts and providing basic amenities including healthcare to a population otherwise deprived of such support.

Over half of the workforce comprises of women. Equal status is accorded to them and they earn the same salaries/wages as their male counterparts.

HML is a company that has witnessed many seasons and weathered many storms. Today it is growing from strength to strength, taking advantage of the changing paradigm for agriculture in India.

HML is part of The RPG Enterprises, one of the largest business conglomerates in India with business interests ranging from tyres, cables, power transmission, telecommunications, pharmaceuticals ,speciality chemicals to retail and consumer marketing, hotel, tourism and entertainment . 


  

Products and Services 


Harrisons Malayalam Limited operates its various businesses through independent divisions. The company has leveraged skills developed in one sphere of activity to complement the requirements of another. Over a period of time we have developed competence in all these areas. The various divisions are




 Rubber



 In the early 1900's rubber was first planted on a commercial scale in India. As a major corporate in agriculture, Harrisons Malayalam took on the yet again pioneering work for yet another crop - having opened new areas for tea in the previous century.

Today the company has a total planted area of about 6000 ha. This is spread over 10 estates.

The Company produces 8.5 million kilograms from its own area and processes another 1.5 million kilograms bought from neighboring holdings.

Rubber though tapped as latex, is processed into various rubber products - a stabilized concentrated form of latex, smoked sheets, crepes and crumb/block rubber in a wide variety of grades. 

 

 Rubber price are trading 139 per kg in Indian exchanges is up more then 45% in last 3 months , this is huge positive for this company, this extra prices of rubber can add 20- 25 cr profit of the company. Promoter holding 50% stake in company, coming results mays come more positives.


    Stock trading both NSE and BSE @ 66 level some risk taker  investor can buy @ current price and hold short to medium term of decent returns.



Before buying anty stock take advice from certified person.


Disclosure :- I am holding this company shares.



this extra prices of rubber can add about Rs 20 crore to the operating profit of the company.

Read more at: http://www.moneycontrol.com/news/market-outlook/tulsian-tells-stock-picksmarket-opinion-fromexpert_6334821.html?utm_source=ref_article
this extra prices of rubber can add about Rs 20 crore to the operating profit of the company.

Read more at: http://www.moneycontrol.com/news/market-outlook/tulsian-tells-stock-picksmarket-opinion-fromexpert_6334821.html?utm_source=ref_article

 




6 comments:

  1. sir it has debt of 112 crores.

    ReplyDelete
    Replies
    1. Big group company, book value of 74, Ithink this debt is manageable.

      Delete
  2. why do u always recommend shares when it trades at a very high price? Could you pls comment on your earlier recommended MPS?

    ReplyDelete
    Replies
    1. I believe stock move to highs their is no resistance, ( fundamental required). No change my old view in mps. Important:- I am not force to buy anyone to discussed stocks,if you think price is high then leave this counter, and buy low price stocks.

      Delete
  3. Great sir 30% + up since u r recomendation

    ReplyDelete