GTL and GTL infra

Its panicky situation for GTL twins and things are looking worst seeing the interest rate, People who bought for short term should book the loss and get out on the little highs, Here is some more information for the same -

http://www.firstpost.com/business/why-gtl-infra-is-still-an-ugly-duckling-for-buyers-29481.html

Thanks.

keep sense while Janata panick

"keep sense while Janata panick"  this is the very first golden rule of investing and this is the time to keep this rule in your back of mind. Next few weeks are going to be turbulent and I would advise my readers to be patient and not to get panicked by any unconfirmed news. Whenever you observe overreaction don't think too much just analyze the scrip on basic parameters without any preconceived notion and then decide, you might end up making quick bucks, remember volatility provides lots of opportunity. And forget about the bottom fishing you will never get to know where the bottom is, it will come and go and you would just keep waiting. Do your analysis based on the basic parameters of investing and jump in, who knows later you might be saying Ohhh man This time I invested at extreme bottom :)

Under multibagger series hers is the list of stocks which I've recommended so far, after lots of volatility they are still near about the recommended prices. Now recent fall makes them even better buy and that too with the margin of safety.

KS oils recommended at 19

Hanung Toys & Textiles Ltd recommended at 150

Nagarjuna Agrichem Ltd. recommended at 110 

Parenteral Drugs (India) Ltd. recommended at 112

Thanks.

For short term

GTL ltd and GTL infra

Today GTL ltd and GTL infra both are down 57% and 40% respectively and after clarification from management I don't think there is anything sinister. This kind of fall happens because of margin calls trigger and whenever that happens it is followed by super recovery. Readers who are bit risk takers can buy this and if this turned out well can give good returns in very short span.


Thanks.

Multibagger

KS oils

Current price – 19

Target – 50

Timeframe – 2 years

K S Oils is a leading integrated edible oil company and is the trusted name behind renowned brands like Kalash, Double Sher, K S Gold, among others. Our consumer brands and products in mustard oil, soybean oil and palm oil are a household name with Indian consumers who use our oils regularly as a healthy cooking medium. A leader in mustard oil in India, K S Oils today enjoys 11% market share in the overall mustard oil segment with a dominant 25% market leadership in branded mustard oil. 

Today it has fallen because of Mauritius panic and whenever such a event occurs it presents the opportunity to buy.  Buying it now can prove to be a value investment as its trading at PE 3.7 and with the comfortable level of debt.

Thanks.

Multibagger

Hanung Toys & Textiles Ltd

Current price – 150

Target – 400

Timeframe – 2 years

In 1990, Ashok Kumar Bansal, a qualified chartered accountant started Hanung with Rs 25 lakh borrowed from his father. He initiated a technical collaboration with Korea's Hanung Industrial Co. He also adopted the Korean company's name for a simple, practical reason. "India was not associated with quality products then," And now Hanung is India’s largest Manufacturer and Exporter of Soft Toys Decorative Cushions & Children’s Room Furnishings. Apart from these products, Hanung has recently launched a wide range of Home Furnishings in various fabrics, colors and designs.

With an area of 75,000 Sq. Feet and 426 machines, Hanung has a production capacity of 110 Lacs Pcs/Annum. Complete In-House Designing, Production, Finishing and Packing, Container Loading & Dispatch Facilities. Over Eight Thousand Designs, and growing. Clients include all big retailers in US and Europe and domestic market is growing rapidly too.

One of the biggest reasons for Hanung's success is its cost management strategy. It saves on raw material by entering into long-term contracts with suppliers. Its plants are located in tax-free and special economic zones, leading to substantial tax savings.

Entry into the home furnishing sector has augured well and the ratio has been improving towards furnishing from toys and this seems to be the next growth driver for the company. Company has forayed into home furnishing retail under the name “Splash” which If worked out well then can take Hanung by places, Even if this does not then also there is no reason not to invest in this company as we are seeing huge investment in Indian retail coming up and consumption is also growing and all these is enough to catapult hanung to the next level.

Valuations - Considering all these facts this looks like a value stock at current levels of 150 and can become the multibagger in the years to come. At 150 PE comes out to be 3.14 and does have a value. Debt is on bit higher side and that’s the reason of its fall to these levels but to me its an opportunity to buy. Management has been showing great sense of capital management for many years now and I’m sure will sail through this very well.

Concerns – In media there has been reports of promoters being involved in stock price manipulation. That’s the inherent risk associated with every small cap stock, almost every smallcap promoter does that and that’s why you see these at even PE of 3 despite exponential growth in past years.

Thanks. 

Keep an eye on this one

Bliss GVS Pharma Ltd.

The company's most unique product is 'Today' Vaginal Contraceptive, a safe female contraceptive aimed at furthering planned parenthood and is also an established method for preventing conception.
It's manufacturing facility situated at Palghar (approx. 90 kms away from Mumbai City) in an Industrial area which is well-developed with all Infra-structural facilities. The plant aims to be as the most modern and one of its kind in Indian sub-continent, to manufacture suppositories.
Before taking a decision on investing in this little pharma gem let's go through few other parameters. Last quarter results have been disappointing and that's why stock has come down to sub 23 levels and may go down further a bit. Fundamentals are good and currently trading at PE of 5.6, DE as low as 0.05 and dividend yield is at nearly 1.5%.  
Be watchful for this share, don't jump right away, seeing the global conditions and commodity prices and inflation I think we should get it at lower levels.

Thanks.

A good consumer stock

Hitachi Home & Life Solutions Ltd.
Current price – 195
Target – 320
Time frame – 1 year

India is globally known for its huge consumer growth and increasing consumers in higher segments. 10 years before only high end people use to afford AC and mobiles now its becoming very common. Outsourcing jobs has created a all new era of consumerism and people in India have stared going for quality over price and this number is increasing day by day.

Hitachi has its niche in domestic AC segments and is known for its quality and hitachi really stands out amongst its competitors likes LGs and Samsungs. As per the recent announcement made by the company Hitachi is reaching for a 12 percent share of the Indian air-conditioner market by the end of 2011.Hitachi currently holds a seven percent share by volume - and a ten percent share by value - of the domestic AC market that sold about 3.2 million units last year and is valued at Rs 5,500-6,000 crore, growing at over 20 percent annually, said the company. Company execs unveiled Hitachi's new offerings for the 2011 season that strengthen its affordable lineup and also add models to its premium segment.The split and window AC models launched for Kolkata on Wednesday range from Rs 19,990 to Rs 49,990. The company, known for its relatively high end offerings, was stressing on the "mass premium" segment with the new entrants, officials said.By the end of the current year, the company wants to take in 10 percent of the AC market by volume and 12 percent by value, Managing Director Motoo Morimoto said. Hitachi also plans to expand its production capacity since it will exhaust the current volume of 4 lakh units annually within this year. The company already owns two facilities in Gujarat and Jammu and said it will announce expansion plans by March end. 

Valuation wise its currently trading at single digit PE which is very rare for any consumer company with quality management, DE ratio is as low as .4. These all factors make it a good buy at current level of 195, though in the current volatility stock can go bit lower but in the long term its a good story to buy.

Thanks.

Multibagger

Nagarjuna Agrichem Ltd.
Current price – 110
Target – 300
Time frame – 1.5 years


Agriculture has been an integral part of Indian growth story and pesticides as a business has always been investors' favorite. Recently I've been to my village and saw a pesticides bag at my home and I got curious to see the manufacturer's name and guess what, it was - Nagarjuna Agrichem Ltd. And this was the first time I started following the company's performance.

Last fiscal has been dismal and especially the last quarter, company has been struggling with the issues like strike and because of that there have been closing down of the plants and low output. These issues have been sorted out now and plant is up and running now.

Next fiscal is expected to be much much better and given the sector which it operates in it is all set be part of India growth story, and I'm assured that this will turn out to be multibagger in the coming years. Book value being at 135 and DE ratio at comfortable level of .9 and dividend yield at amazing 5% this one is worth investment.


Thanks.

Multibagger

Parenteral Drugs (India) Ltd.
Current price – 112
Target – 400
Time frame – 1.5 years

Parenteral Drugs (India) Limited is one of the leading and fastest growing healthcare company, that has constantly followed a path created by its own will, hard work and determination. PDPL is involved in research, production and manufacturing of pharmaceutical products viz. intravenous infusion, tablets, capsules, liquids syrups, injections etc.

March 11 quarter results have been disappointing and that's the reason you are seeing this stock at such an attractive price. First three quarter results have been good but the last quarter negated all and full year result came to as low as 8 cr. Promoter holding is on the higher side at 70% and seeing the past performances this stock is all set for next bull run.

Here I strongly advise to invest in this stock at current price, In a year or 2 this is all set to be a multibagger.


Thanks.

One more solid bet in pharma

Bilcare Ltd. 
Current price – 379
Target – 800
Time frame – 1 year

This one is really solid bet in pharma sector giving consistent performance year after year, this one is a must have in the pharma pack.

An R&D driven organization, Bilcare Research focuses on developing cutting-edge solutions that enable the pharmaceutical industry to realize significant qualitative and measurable cost and time benefits in the 'drug discovery to market' value chain.
Bilcare Research has a global footprint with modern manufacturing and R&D plants located across U.S., Europe, India and Singapore. We work with leading pharmaceutical companies across the globe to address their challenges. This includes not only bolstering the drug discovery pipeline through innovative products, processes and services, but also improving the efficacy of pharmaceuticals and drug delivery through innovative solutions in packaging. Our novel brand protection and management technologies aim to ensure that safe and genuine medicines reach the hands of consumers.

Valuations - PE -10, DE - .56, Book value - 344. Amazing management, 1% dividend yield.

This one is a must buy, don't miss out on such a wonderful opportunity at such a price.


Thanks.

Pick from pharma

Venus Remedies Ltd.
Current price – 200
Target – 400

Time frame – 1 year

Pharma sector has been the pick of the investors in the India growth story. Pharma has been as strong as technology sector and following almost the same successful model  for their business. Here is one very good pick from pharma secor - Venus Remedies Ltd. The very first reason to invest is the valuation. Stock is at 200 levels and PE is 3.74 and on top of that promoters have increased their stake substantially from 25 to 30%. Debt equity ratio is at comfortable level of .8 and book value is at 212. I don't write long stories praising the stocks and here already mentioned the points and if these looks convincing to you then go ahead and buy it, you won't regret it.

Thanks.

This is the time....

Hi,

Right now every one looking too bearish on the Indian markets. Interest rates are almost at peak and I don't think its going to get any further. Inflation is also seems to be in its high level zone as it usually remains feb -may almost every year. I feel this is the last cycle of worst happenings and things are going to get improved hereon, be it interest rate or inflation or crude, I reckon this is the best time to invest.

As it is expected that commodities will go down that would propel earnings to higher side and that will auger well for boosting the sentiments. In the end I would advise to average AK capital at 325 levels.

Thanks.

James bond of bond market

AK capital
Current price – 400

Target – 800

Timeframe – 1 year

Pioneer in the Fixed Income Money Market segment of Indian Capital Markets, AK Capital holds an unparalleled track record in management of Public and Private Placement of debt instruments and is also known for Management Consultancy. Recently AK Capital is ranked 12th among the top 100 fastest growing small companies by ET Intelligence Group.

Last nine months profit being at 46 cr. it is expected to close the year with 60 crs of net profit and market capital is just 268 crore. It is really worth putting your money in the leader in its segment at these valuations.  

Thanks.

One with aggressive management

JK tyre

Current price – 103

Target – 240

Timeframe – 1.5 years

Raw material of tyre is rubber and prices of rubber have gone up by 250% in last 1.5 years and that’s the main reason of bad health of tyre industry despite robust demand. Prices of rubber have been going up because of supply and demand mismatch which would improve sooner or later and prices of rubber are not at sustainable levels. In the near term prices can go up even further but this is the stock which can be averaged fearlessly if stock goes down. This stock might test your patience for some time so you would need to give it at least 1 year to see the true colors.

The Company is making efforts to make the facility in Chennai operational in the current year which was earlier scheduled for commissioning in middle of next year. The plant will have a capacity to produce 2.5 million passenger car tyres and 450,000 units of truck, bus radials every year. Apart from this, company plans to venture into power sector by setting up a 1,360 MW power plant near Jhansi in Madhya Pradesh. Which is bit of a diversification but I feel power is the safest business to diversify into, so I’m not worried on that front too. Some time back stock touched 70 levels and now has crossed 100 and if results of this quarter do not come out well which is very much probable then you may get it at sub hundred levels as well. So I would suggest putting only 35% of your intended money for this stock so rest you can average with if needed.

Thanks.

Treading on the path of recovery --

Well here it comes; I wish I can repeat the history of my first stock selection with my first recommendation except selling it too early.

Vishal Retail

Current price – 31

Target – 90

Timeframe – 2 years

Name must be scary to all who so ever had followed it till now. The main reason for me to recommend this as the management has gone into really safe hands now. It’s all time low being 25rs.its still very near to its bottom, it has already seen worst and all is factored in its price and things are only going to improve from here on.

Vishal retail is perfect example of what can over leveraging can do to a flourishing business and why the feet should be grounded even when you are on the real high. Recently Shriram group and TPG have bought the promoters stake and you can observe the improvements in the nearby Vishal retail stores and you will see that people are coming back to the store. There are no numbers as such to back my recommendation, still lots of debt which buyers already must have planned for. Both the buyers h ave deep pockets and I’m sure can take Vishal retail by places from here. And just to verify about management just go through the performance of Shriram transport finance.

I have to be bit conscious with my recommendations that’s why the target of 90 is also conservative.

Thanks.

Let's start........

Hi,

As I’m writing my first post and going to write my first stock recommendation suddenly something came to my mind and that is the first stock which I bought on 6th July 2006 if I remember correctly. The stock was “REI AGRO” which I bought at 122 and waited for 2 weeks, stock went no where neither up nor down. I thought what the heck I bought my first stock after so much of reading and so called data analysis and it’s not giving me any profit. I used to check almost 10 times in an hour and in two weeks I got bored and exited. 1.5 years later just before 8th Jan 2008 stock probably touched 1600 or even 1700 I don’t remember exactly, even after the big crash till April 2008 I don’t think stock went below 1200. Well I could not take any profit from my first stock but market tried to give me the most important lesson of the investment world – PATIENCE, and believe me if you can be patient then half job is done and rest half is done by the buying with margin of safety.

Let see if I can show some discipline with my blog and try to publish the update on the performance as well.

Thanks.