Wednesday, 22 March 2017

CAREER POINT - CL Educate IPO - Peer re-rating?


INTERESTING STOCK TO WATCH:

CAREER POINT 
MCAP: 200 Odd Crores.
CMP: Around 111/-
CURRENT P/E: Around 13.90.

NEGATIVE: Revenue Growth missing.
POSITIVE: Sectoral bullishness, Debt Free, Cheap Valuations, Technically ripe for a move

Career Point is an education company.
They provide coaching and education services right from Pre-School to Ph.D.

Education has been out of theme off late but with the IPO of CL EDUCATE there can be some action in the sector.

CL Educate owner of the brand Career Launcher is out with an IPO that is priced at a P/E of 86 against FY15 nos and at a P/E of 100+ against the FY16 nos. 

In such a scenario, Career Point even though small in size is at throwaway valuations compared to the over-valuation of Career Launcher (CLEDUCATE).

Even another peer MT Educare is trading at a P/E of 28.

Career Point has had good stable financial performance, however there has been no turnover growth yet but that's expected to kick in soon as per the Annual Report. Career Point also has a NBFC subsidiary named Sarjan Finance.



Technically stock has witnessed a huge correction, right from 700s in 2010 the stock has only crashed having given temporary rallies. I think with a short-term, mid-term horizon in mind this can be a good stock with CL Educate IPO triggering a re-rating of sorts. SL of 98 should be good.



Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have CAREER POINT in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.



Thursday, 9 March 2017

B&A LTD - Tea is the sector for 2017 - Value Pick



B&A LIMITED
BSE: 508136
BSE SYMBOL: BNALTD BSE CATEGORY: XD
CMP: 230-240
MARKET CAP: Around 70 Crores.
CONSOLIDATED FINANCIALS FY16:-
SALES: 157.65 Crores
NET PROFIT: 9.81 Crores
EPS: 31.65
PROMOTER HOLDING: 59.15%
CURRENT P/E AGAINST FY16 EPS: 7.50

Friends as I had expressed on 19th December 2016 on the blog in the post "Tea & Plantations up next" that TEA and Plantation stocks are going to do well in 2017. In the post I had expressed hopes for 30-60% gains in the stocks in short-term.
You can see how well the stocks mentioned have performed in just 3 months. Harrison Malayalam posted at 66, made high of 94.35. Up 42.95%. Dhunseri Tea & Industries Ltd posted at 290, made high of 325. Up 12%. Mcleod Russell Ltd posted at 149, made high of 179.75. Up 20.63%. Rossell India Ltd posted at 91, made high of 131.85. Up 44.89%.

These stocks have performed well and I take this opportunity to write about a new interesting stock in the TEA sector named: B&A LTD.

I believe TEA sector is going to be a big story in 2017, Same like what Sugar did in 2016.
As per cycle tracking, we are done with Sugar > Paper and now its turn of Tea & Plantations.

B&A Ltd is a Tea company that operates 7 Tea Estates in Assam. The company also has resorts and etc with obviously a good Land Bank.
Till latest December 2016 quarter, B&A is having a standalone EPS of somewhere near 49, last year during the march quarter price for Tea were low but this time the Tea prices are holding up strong (http://www.indexmundi.com/commodities/?commodity=tea&months=240&currency=inr) so if we assume that they declare good number of March Quarter and do the EPS of around 15 their full year number will increase to an EPS of 64 plus consolidated additional gains should be able to take it close to 68-70 so if we assume a good quarter for March 17 the Annual Eps for FY17 will close close to Rs 70.

There already are news of production cuts of Tea from Kenya and Africa and the Tea Prices are expected to show strong up-trend this year.

While other stocks have already given 35-40% returns, I believe a much bigger opportunity is there in B&A LTD because of its profit making record.

Same as Sugar at the peak of a Cycle, The P/E valuation TEA Sector can command would be in the 10-15 range so if we assume that B&A LTD can seriously clock an EPS of close to 70 the peak p/e valuation of 10-15 will give the stock a very healthy price and at 70 Crores Market Cap I guess this is one of the cheapest Tea stock with profitable records available right now around a P/E of around 7 against FY16 earnings.

A coffee, logistic, plantation stock named Aspinwall which caught the fancy of Portfolio Manager Porinju Veilyath is trading at a valuation of 20 P/E.

Technically on the charts B&A Ltd is having a 5 year pattern breakout above 268-270. Who knows if this can be another Doubler and More for Us?








Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have B&A LTD in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

Monday, 13 February 2017

REVIEW - SINCE BEGINNING OF TIME

Dear Friends,
This blog was started on 15th October 2014.
The blog is less than 2 and a half years old now.
I thought this was a good time to check how things have fared since beginning of time.

So here is the latest review of everything that has been posted on the blog.



Total of 46 stocks were posted on the blog.
Average returns at peak is 111.69%.
Average returns at cmp is 50.97%.
So that means most of the stocks posted on the blog have doubled from the price of post.
I hope readers are happy with the posts/write-ups on the blog. Keep reading!!

Monday, 19 December 2016

Tea & Plantations up next

We played the Sugar cycle rally in the market by participating in Upper Ganges 220 to 500, DCM Shriram Industries 166 to 256, Ugar Sugar 33 to 73, Rajshree Sugar 70 to 90 and KM Sugar 7 to 30....All of them gave excellent returns.

We played the Paper cycle rally in the market by participating in Star Paper 59.85 to 205, Kuantum Paper(BSE) 202 to 556, Nirvikara(Balkrishna) 44 to 120. they all provided insane returns.

Now up next the focus should be on Tea & Plantation.
May not be as big opportunity as Sugar & Paper but still a very good one for atleast 30-60% odd gains.
In paper, valuation wise cheap names look like:-
Harrisons Malayalam Limited (CMP 66) Tea & Rubber.
Dhunseri Tea & Industries Limited (DTIL) (CMP 290) Tea.
Mcleod Russel (CMP 149) Tea.
Rossell India Ltd (CMP 91) Tea & Defense.

Rubber & Tea prices are moving up and are expected to move up further and faster now onwards.


Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.


Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have Harrisons Malayalam Ltd, Dhunseri Tea & Industries Ltd, Mcleod Russel India Ltd and Rossell India Ltd in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

Thursday, 8 December 2016

NCL INDUSTRIES LTD - Cement, Pre-Fab Low Cost Housing









INTERESTING STOCK TO WATCH:

NCL INDUSTRIES LTD 
MCAP: 400 Odd Crores.
CMP: Around 118/-
CURRENT P/E: Around 8.

NEGATIVE: 82.94% Promoter Holding pledged.
POSITIVE: Sectoral bullishness

NCL Industries Ltd is a cement company from the state of Telangana.
NCL is also having a Prefab Houses segment.
NCL is also into Ready Mixed Concrete, Cement Bonded Particle Board & Hydropower.

Demonetization has been the buzzword since last month.
With Demonetization and the hard push on taxation the government is expected to get richer so there are obvious expectations that going forward from here there is going to be huge spending on Infra, Railways, Solar Energy, Housing For All from the Government.

NCL's core business is of Cement which is expected to do well with increased spending on Infra (roads,highways etc) and we have Prefab Housing segment, This segment is very important right now.

PreFab housing is used by many state govts. to realize the dream of Housing for All.
Apart from housing for all, the sector will witness huge demand as the country needs high number of cabins for toilets to improve sanitation and with the plans of cashless economy we need to increase the number of ATMs and very soon we are going to have Aadhar Micro ATMs. All this would require pre-fab cabins and structures.

There are select stocks available in this sector like, Sahyadri Industries, Richa Industries but I feel NCL is a safer bet because of a good brand of cement under its kitty. (Nagarjuna Cement).

Take a look at their pre fab site: http://www.nclind.com/why-ncl-prefab

Technically 110-109 looks like a strong support, if broken stock can correct otherwise there are chances of a good recovery and rally in this stock.


Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have NCL Industries LTD in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.





Wednesday, 7 December 2016

DYNEMIC PRODUCTS & DCM SHRIRAM INDUSTRIES


DYNEMIC PRODUCTS LTD.
DYNEMIC PRODUCTS posted on the blog at Rs 75 on 7th November 2014.
 The stock has rallied to 148 today, Making a fresh time high.
In two years the stock has moved up by almost 98%.
Now the stock is being pushed by many experts as a value pick at current levels.
Value Investing WINS again, Dynemic tested our patience a lot though.
Hope all the readers enjoyed!!!



 DCM SHRIRAM INDUSTRIES LTD.
DCM SHRIRAM INDUSTRIES posted on the blog at Rs 166 on 12th June 2016.
 The stock rallied to 256 last week, Making a fresh high.
In just six months the stock has moved up by almost 55%.
Hope all the readers enjoyed!!!



Saturday, 26 November 2016

Let's do something this weekend.

We may be doing many things for the society but will never get an opportunity to be able to be a part of building a hospital... As they say. "Health is the greatest gift".

I urge the readers, If you have enjoyed reading the blog and want to return something, Please come forward and help
us raise funds for this much needed cause.

It doesn't matter if its big or small but we really need your support.

The organization (Shrimad Raj Chandra Love & Care) needs our support to build a Hospital in the rural belt of Gujarat.

Here is a indication of how your contribution can be put to use:-

Rs. 2,500/- An artificial limb for the physically challenged

Rs. 5,000/- A minor surgery

Rs. 10,000/- Safe motherhood for a less privileged woman

Rs. 15,000/- Intensive care treatment for a critically ill new born baby

Rs. 15,000/- Outreach medical care for a day.

Rs. 50,000/- A hospital bed for a month.

Here is the Ketto page guys do contribute and share with all your friends: https://tsk25.ketto.org/fundraiser/AmritaManshiAdityasPledge?utm_source=internal&utm_medium=fbpageshare&utm_campaign=AmritaManshiAdityasPledge

Wednesday, 9 November 2016

Shree Ajit Pulp & Paper - New Paper Stock to Watch

In a simple post on this blog on 25th July 2016 titled Paper Stocks up next I talked about 3 paper stocks.
Star Paper, Kuantum Paper, Nirvikara (Name changed to Balrkishna).
All of them have moved insanely. 

SO HERE IS ANOTHER INTERESTING STOCK TO WATCH:
SHREE AJIT PULP & PAPER LTD
BSE: XD GROUP
BSE CODE: 538795
CMP: AROUND 250
MARKET CAP: 140 CRORES
TRAILING P/E: AROUND 10
P/E AS PER FULL YEAR EXP: UNDER 8 

ON THE CHART IT LOOKS LIKE IT HAS BEEN A HIGHER HIGH, HIGHER LOW BULL RUN AND CAN DO REALLY WELL GOING FORWARD.


AND I WILL NOT SAY A WORD ON DONALD TRUMP AND THE WAR AGAINST BLACK MONEY, WHILE DONALD TRUMP IS NOT HIGHLY RELEVANT TO OUR MARKETS AND THE BLACK MONEY WAR IS A GREAT STEP, I FEEL ITS ALREADY SO BADLY HYPED BY THE MEDIA THAT WE DON'T NEED TO TALK MORE ABOUT IT AND JUST FORGET IT FOR A WHILE.

Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.


Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”


Disclosure: It is safe to assume that i might have SHREE AJIT PULP & PAPER LTD in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.

Saturday, 5 November 2016

JK AGRI GENETICS LTD almost 100% returns in 6 months


I wrote about JK AGRI GENETICS LTD on 14th May 2016 when the stock was at 389.
On 2nd November 2016 the stock touched a high of 769. That's a rally of 380 rs per share

The stock rallied about 98% from 389 and as we had written about the possible re-rating.
Mr Market did the re-rating :)

Here is the link to JK AGRI post

Hope readers are enjoying reading the blog. Hope to come up with something new soon! :)