Riddhi Siddhi Gluco Biols - Siddhir Bhavatu Me Sada!


I found yet another value pick in Riddhi Siddhi Gluco Biols Ltd.

Riddhi Siddhi, based at Ahmedabad (Gujarat, India), is India's largest starch & starch derivatives company.

What makes it attractive?

1. Over last 10 years,

- sales have increased 10 times (94 cr to 1007 cr)
- net profit has increased 175 times (from 0.94 cr to 165 cr)
- no loss in any year
- eps has increased 245 times (from 0.6 to 147.22), a CAGR of 58%
- book value has increased 6 times (from 52 to 304)
- uninterrupted dividends

2. There is a huge margin of safety (275%) at the current price of  Rs.270. Incidentally, when I first analyzed a few months back, there was a negative margin of safety (-3%).

I invest based on my understanding of "value investing" and not "growth investing". What this means for this blog post -> "Growth across the last 10 years" is only a pre-requisite whereas  "Margin of Safety" is the deciding factor.

Disclosure: I own shares of Riddhi Siddhi & will purchase till I reach my planned diversification target.

PS: Siddhir Bhavatu Me Sada , taken from a Sanskrit invocation to the Indian Goddess of Learning, literally means May there be accomplishment for me always.

Invictus.

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