Hitting a goldmine in the world of stock investments is a rare possibility, especially in a mature and regulated market. One such possibility that is growing stronger with every passing day is Kushal Tradelink Limited, a leading manufacturer, trader and supplier of premium quality paper products. In recent times, the company’s stocks have come across as a hugely profitable investment opportunity, backed by strong business fundamentals, increased turnover and profits, impressive performance on the stock markets, increased participation of retail investors, several new orders and clients and ambitious expansion plans. In short, Kushal Tradelink Ltd. is on the way to its big bang and you can be a part of it and reap handsome rewards on your investments.
As per our research, the stock price of Kushal Tradelink has risen nearly 300 percent over a period of around 2 quarters, which is phenomenal. Another good thing is that the rise in stock prices has occurred in a continuous motion, without any instances of prices going down. Volume of shares traded has also risen consistently. The current average daily volumes are around 10 lakh. Sales turnover has more than doubled in just 5 years while net profit has more than quadrupled during the same period. Earning per share (EPS) has also nearly doubled, having risen from 1.08 (for year ending March ’11) to 1.97 (for year ending March ’15).
We are hopeful that Kushal Tradelink will announce its third dividend this year, provided that the company achieves its targeted sales and profits. The company has already declared two interim dividends this year, one in January (40%) and another in March (60%). The company’s growth prospects look promising as it has signed big-ticket sales deals including a Rs 200 crore contract with Shree Rama news prints, a 1000 crore deal with Bungee India (fortune 500 company) and a 250 crore deal with Adron enterprise ltd (Adani Group). In addition to these, as many as 1500 SME businesses are regular clients of Kushal Tradelink, which ensures an ever increasing demand for the company’s products.
When we scanned the company’s data on BSE, we saw that retail investors’ interest in the company’s stocks has risen considerably in recent times. As compared to the quarter ending December 2015, when retail investors were 7,954, the number has risen to 20,262 for quarter ending March 2016. This is an increase of more than 150% in just 3 months. It looks like an increase in demand for the company’s stocks combined with supply scarcity is boosting the company’s stock prices.
On the operations side, we found out that Kushal Tradelink owns 3 giant paper mills in Gujarat and operates from a state-of-the-art corporate center in Ahmedabad. The company has wholly owned subsidiaries in Singapore and in Ajman (UAE), which are primarily involved in the trade of agricultural products, chemicals, paper waste and metals. The Company is helmed by people with vision and dedication, professionals who have worked hard and with integrity to ensure that the company’s fortunes and that of its investors keep rising year by year. Mr. Sandeep Agrawal, one of the promoters of the company, is the Chairman & Managing Director. Mr. Mahendra Agrawal is also a promoter and works as the company’s Whole-Time Director.
One of the positive things we have noticed is that the company is actively targeting new business ventures to increase its footprint in the market. The company has already launched Kushal Infrastructure Pvt. Ltd. (KIPL), which is a Group Company focused on construction and real estate development. KIPL has plans to build commercial and residential buildings as well as focus on industrial and infrastructure projects, at various locations in and around Ahmedabad.
Kushal Tradelink has a long-term business plan to achieve leadership status in the industry it operates. The company acts as a respectable member of the business ecosystem, where it regularly contributes to the society via its Corporate Social Responsibility (CSR) initiatives.
Based on our research, we would say it’s a buy call for Kushal Tradelink. However, if you wish to weigh in the market risk factors, then you may want to wait till the company announces its financial results for 2015-2016. Kushal Tradelink offers a great investment opportunity, both short term and long term, and you may want to keep it on your watch list.
Disclaimer: Information provided here is based on data collected and analyzed by our research team. Opinions expressed here may vary from the actual outcome, since investments are subject to market risks. We cannot be held liable for individual investment decisions based on information provided by our research team. It is recommended that you read all investment related documents carefully and consult your financial adviser before making any investment decision.