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.

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. 

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.