CRISIL Research has assigned a ‘CRISIL IER fundamental grade of '3/5' to Gandhimathi Appliances. The grade indicates that the company's fundamentals are ‘good’ relative to other listed equity securities in India. CRISIL Research has assigned a valuation grade of 4/5 to the company, indicating that the market price has an ‘upside’ from the current levels.
The assigned fundamental grade takes into account strong growth in the branded kitchen appliances industry in India driven by growing disposable income, increase in urbanization and rising number of new gas connections following a surge in the number of nuclear families. The company will be a major beneficiary of this strong growth due to its leading market position - a leader in the organized kitchen appliances industry in South India across all product categories except pressure cooker; strong brand recall - ‘Butterfly’ has a strong consumer recall in the southern markets, especially in Tamil Nadu; and well entrenched distribution network of 165 exclusive distributors. It also has tie-ups with oil marketing companies for distributing gas stoves, which enables it to penetrate the market faster. The grade is supported by an experienced management team, which has turned around the company from a sick unit to a profit making company between FY03 and FY08.
The grade is, however, impacted by intense competition from organised players such as TTK Prestige in the South; and Hawkins, Sunflame and Bajaj Electricals in the North. Additionally, the company faces competition from numerous unorganised players, who compete on lower pricing. The grade is also constrained by Gandhimathi’s high gearing at 1.7x and relatively higher working capital of 83 days in FY11.
| Company Name | CMP |
|---|---|
| Crompt.Greaves Cons. | 396.50 |
| Whirlpool Of India | 1611.50 |
| Bajaj Electricals | 971.15 |
| IFB Industries | 1452.95 |
| TTK Prestige | 723.00 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Download APP
