Equity Intelligence, which is the PMS of Porinju Veliyath, has bought 212,000 shares of Cimmco Ltd on 23rd March 2017 at Rs. 69.95 per share in a bulk deal.
Other bulk deals and recommendations of Porinju
Recommendation to buy railway stocks
In a tweet of 25th January 2017, Porinju recommended a buy of railway stocks like Titagarh Wagons Ltd, Texmaco Rail, CIMMCO and Kalindee.
Rail stocks, TWL@124 TexRail@111 CIMMCO@72 Kalindee@117 etc. used to move pre-budgets to fall later. Different in 2017? #ChangingFortunes
— Porinju Veliyath (@porinju) January 25, 2017
About Cimmco Ltd
The original name was Central India Machinery Manufacturing Co. Ltd.
At present, Cimmco is engaged in the business of manufacture of Textile Machinery and accessories, Steel Castings, Railway Wagons, Structural, Cement Plant Machinery, Cotton Yarn, Construction activities, Coextruded plastic films (Non-Tubular) and moulded products (injection/compression), Thermosetting Plastics as well as Export of Projects/various products.
Defense sector diversification to be a game-changer
The Company has diversified into the defense sector. JP Chowdhary, the CEO, explained that the easing of the policy and changing the terminology from ‘state-of-art’ to ‘modern technologies’, is likely to pave way for more investors to come into the sector. He revealed that the Company has ambitious plans to make a name for itself in the defense sector.
Cimmco’s manufacturing facility is spread over 200 acres and is strategically located close to Mathura (Uttar Pradesh) and Bharatpur (Rajasthan) tank depots of the Indian Army
The Company has received an industrial licence for manufacturing defense equipment. The defense products will be manufactured from the unit at Bharatpur in Rajasthan.
Umesh Choudhary, the MD of Titagarh Wagon, said that Cimmco Ltd plans to invest “heavily” in the next two years and orders worth in excess of Rs.100 crore are already in hand.
The Company plans to start rolling out products like armoured vehicles by the end of this year.
Cimmco Ltd recommended by Aashish Tater of fortunewizard.com
Aashish Tater of fortunewizard.com has recommended a buy of Cimmco Ltd on the basis that it has multibagger prospects.
He said that the pedigree of the promoters is good. The Company used to be a Yash Birla company earlier and suffered because of that. However, it is now a 75 percent subsidiary of Titagarh Wagons.
Tater also emphasized that the Company has a 200 acre land at Bharatpur that will be used for defense and manufacture of wagons.
He opined that Cimmco will be a “very big going forward” and a potential multi bagger.
He also emphasized that the Company has an order book of Rs 100 crore and that it will get more orders from the defense.
Cimmco is also quoting at cheap valuations of less than Rs 200 crore Ashish Tater said.