The company I studied today was PI Industries Ltd. It was part of the peer comparison in CRISIL's report on Dhanuka Industries which I studied on day 6.
The company has issued new shares during each of the last 4 years. Thus it required some efforts to prepare the adjusted net profit figures and to evaluate the issues.
The company has two main verticals. In domestic market it sells the agri-input products (agro-chemicals, fertilizers and plant nutrients), and does the contract research and manufacturing (CRAMS) for its foreign clients.
Last year, the company raised 117 crores through a qualified-institutional-placement (QIP), by issuing the shares at 609.60 (dilution of 8%). The funds being used to setup a new facility at Jambusar SEZ to "provide a fillip to the export volumes."
Historically, the company has had an asset-turnover of around 4 times (current net block is of 480 crores). If the capacities are utilized and the company is able to get the export orders, then it can see a turnover of around 2000 crores in a few years (FY 2013's turnover was 1245 crores and FY14Q1 turnover was 400 crores).
The current market capitalization of the company is 1758 crores. Based on the annualized earnings of last quarter, the company is at a forward PE of around 10-12 times.
There isn't a high margin of safety and visibility at these levels, but it is a stock I will keep an eye on.