Multibagger stocks by Mayank Sharma.

Sunday 28 May 2017

Srikalahasthi pipes: Update.

Srikalahasthi pipes posted it's annual results on 12 may 2017. For March quarter ended sales stood at 432.20 Cr.(Net Profit 31.19 Cr.) which was 291.56 Cr.(Net Profit 40.10 Cr.) for December Quarter and 315.05 Cr.(Net Profit 46.12 Cr.) for FY16Q4. for FY17 Sales stood at 1177.87 Cr(Net Profit 158.80 Cr.). which was 1145.61 Cr.(Net Profit 140.2 Cr.) in FY16.

If we look at this data we can say that the quarterly as well as yearly results were bad, some people also told that "Srikalahasthi Pipes posted very bad result" (i agreed with them and if i saw this type of results for any other company before 3 years i told the same. Because that time i compared sales and profits qoq/yoy.)

Now, come to the point we have to check the reason for sharp fall in Net Profit for March quarter. now analyse detailed results they spent 73.81 Cr. for Purchase of traded goods and which is not necessary to come in each quarter as you can see in the results for previous 3 quarters it was NIL and it was 29 Cr, for FY16.

purchase of traded goods not belongs to Raw materials (i can say this because the showed it separately for each year) and it may be higher this year because of expansion. already highlighted this as well in my tweet on the day of result. so now, we can say that results were not bad.

Srikalahasthi pipes recommend dividend 6INR/SHARE. annual eps@35.25 . See sr. No. IV-b pic.twitter.com/Ba5VlQNZZd
— Mayank Sharma (@mynkbrst) May 12, 2017

What is next trigger?

On the result day i told my calculated EPS for FY18 around 70.

let's do some calculation for that, as discussed above the purchase of traded goods is not applicable for each quarter and if they show the expenditure for the same in my view it may be around 20-30 Cr. So, I can add 50 Cr. in to the profit of March quarter which was 31 Cr, so Sri may post Net Profit around 81 Cr. (EPS of 20) or 70 Cr. (EPS of 17.5) and annual EPS may come around 70-80.

Beside this i got great news for srikalahasthi pipes is that it may become debt free from Q1FY18. click here

->Company having great size of opportunity and its products DI Pipes will be in great demand for next five years as South India facing water shortage.

-> Market share of Company is 95% in south and 15% in India.

-> Benefits of expansion of DI Pipes capacity will be seen in FY18 revenue.

Rain is not in our hand but, if govt. Work for solve the drinking water crisis! One can see the size of opportunity for srikalahasthi pipes https://t.co/iue6T7bRnp
— Mayank Sharma (@mynkbrst) February 5, 2017

you can see the small calculations for margins, revenue and earnings i posted earlier.

Not able to login blogger so short story for my favorite script is here 😇🤗 #superbullis on #srikalahasthipipes https://t.co/ubeEmaxSxg
— Mayank Sharma (@mynkbrst) May 17, 2017

This is short Calculation which i do for srikalahasthi pipes. as, they are on expanding the coke oven plant capacity there are chances to some pain may come in financials( My calculations may go wrong). But my view for srikalahasthi pipes is purely long-term.

It may give 3-5X returns from CMP@340 in next 3-5 years.

disc: i am not SEBI registered analyst. Do your own research before invest in any stock or consult financial expert.

Saturday 11 February 2017

STAR PAPER MILLS : UPDATE

*Star paper mills*
-Trail eps @30
-Posted 8 plus eps in each quarter (first 3)of fy17
- nine monthly eps at 26.66 vs 7.12)
So excepted eps for march qtr is 8 plus
-so yearly eps will be 36 plus
- book value will be around 80 after march.
So star paper mills @200 is available at p/e of 6.66 and fy17 5.55
and P/B at 2.4 *chepest in paper industry*
- paper industry are traded at average p/e of 15

*-so if star paper trade on P/E of 10 then target price will be 300 as per now (eps 30×10) and 360 by august (eps 36plus) cheapest stock in the paper industry with debt free status*
HOLD IT TIGHTLY

And if we take a look on management interview about margin pressure then they told that margin pressure will be *ease* in next few months so, we can hope for better numbers ahed.

Disc. : I am not sebi registered analyst (it's in progress) do ur own homework before invest in any stock.

Monday 2 January 2017

Bye Bye 2016 and welcome to 2017.

Performance of world index in 2016.

Indian indexes managed to gave positive returns in 2016 as last day index closed in green. 2016 was very tough year for the economy. The major changes which impacted on markets were slowdown in china which was effected from 2015, Brexit, US- elections, Trump's victory, surgical stricke and finally the demonetization.

From, all this market gave good correction and I personally considered all corrections as BUYING OPPORTUNITIES and markets recovers in just 3-5 days each time.

So, we can also say that 2016 was year for value investing as well as value trading, minimum 4-5 times 20-30% downside shown in fundamentally good stocks and stock recovered to it's original value in very short time.

Stocks which i picked in 2015 and gave more than 100% plus returns in 2016.

1. visaka industries : Bought at 110 on 13 feb 2015.

2. Banco products india : bought at 120 , 3. indiabulls real : bought at 50 diwali picks.

and booked profit in ashok leyland @110. which i bought in 2014 @ 46.

now fully exited from visaka and indiabulss real and holds half qty. in bnace for target of 300. and eariler favourite stocks become multibagger ccl products india 4x, spicejet 7x and SRF 10x.

SRF bought at 172 in late 2013

my favourite CCL Products India

My Stocks from 2016.

1. jvl agro @ 22.5
2. PFC @ 75 (adjusted for bonus)
3. hinduja global solutions @ 460
4. lovable lingerie @220
5.GMDC @ 55
6.century enka @211
7. NMDC@ 100
8.Indian acrylic @ 16
9. Star paper mills @ 81
10. uflex @ 320
11. talwalkars @ 250
12. genus power and infrastructure @ 50

Top 5 stocks of 2016

Some of my views and top picks from 2016.

Star paper mills

Take advantage of opportunity

Simple rule for multibagger returns

Be positive and invest in fundamentally good sound stocks on correction.

Outlook for 2017.

The economy of India is the sixth-largest economy in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP). India also topped the World Bank's growth outlook for 2015-16 for the first time with the economy having grown 7.6% in 2015-16 and expected to grow 8.0%+ in 2016-17.

2017 will be prove as good year for market as well as longterm investors. just be price sensitive and invest in good fundamental stocks.

first pick of 2017.

j kumar infra @200

my stocks at bottom

top 5 stocks from earlier picks to outperform in 2017.

Follow @mynkbrst

Wednesday 21 December 2016

If you are bullish on india you must be bullish on power sector : my pick genus power and infrastructure.

Genus Power Infrastructures (GPIL), incorporated in 1992, is engaged in the manufacture and distribution of electronic energy meters, power distribution management projects, hybrid microcircuits, inverters, batteries, home UPS and online UPS in India and abroad. The company is part of $300 million Kailash Group.

Currently, GPIL has manufacturing facilities at Jaipur and Alwar in Rajasthan and Haridwar in Uttaranchal. It owns a subsidiary namely Genus Urja (formerly as Genus Consumer Products) that is engaged in generation of power. Headquartered in Jaipur, India, the company also has offices in USA, Singapore and China.

Genus exports its products to UK, USA, as well as developing countries including Korea, Singapore, Germany, Brazil and Ireland,among others. The company has received ISO 9001: 2000 certification for its quality management.

The company has clientele namely Ahmedabad Electricity Co, Surat Electricity Co, Tata Power, KSEB, ASEB, RSEB, MSEB, MPSEB (state electricity boards), UPPCL, UPCL, DHBVNL, JKPDD among others, ITI – Bangalore / Mankapur / Rai Bareli CDOT – Bangalore / New Delhi, Central Electronics, BSNL – Bangalore / Thiruvanthpuram / Chennai, DRDO – Jodhpur Maruti Udyog, Instrumentation– Kota, BEL – Bangalore / Kotdwar and Reliance Energy.

Products

Genus manufactures residential meters, industrial meters, grid meters, group meters, AMR solutions,

reference meters, special meters and Software for electricity management server. the company manufactures batteries, solar products, UPS and inverters.

It undertakes engineering construction and contracts and also manufactures hybrid micro units.

Key Highlights

1992– The company was incorporated as Genus Overseas Electronics.
1994– Genus established a manufacturing unit for thick film hybrid microcircuits and SMT PCB assemblies.
1996– It launched unique tamper proof single and three phase electronic energy meters in India.
1997– The company received ISO 9001:1994 and IECQ certifications.
1998– The company emerged as the largest manufacturer of energy meters.
1999– Genus launched multi–functional and multi–tariff meters.
2002– The company’s design and development received recognition by Department of Scientific and Industrial Research, Government of India.
2004– It launched India’s first ‘Sure Sine Wave Super Inverter’. Genus installed lean manufacturing by collaborating with TBM consultants, USA.
2005– It launched AMR/pre–payment meter. Company forayed in projects related to power distribution management.
2006– Genus formed two joint venture companies in Brazil. The company set up a manufacturing unit located at Haridwar
2007– it implemented ERP software package SAP successfully
2009 – First company in India with STS certification for its prepayment meters
2010 – Solar Hybrid Inverters launched
2011 – Outstanding Performance award by NDPL Towards AT& loss Reduction.
First company in india with SABS certification for its prepayment meters.

Awards

In the year 2000, the company was rated as 7th turnaround company of India by Business World, India

The company was amongst top 100 Electronic companies in India by EFY in the year 2004.

It was first in India to receive DLMS certification for energy meters in the year 2007.

My Outlook For the Stock:

Genus has the distinction of paying dividends for 13 consecutive years and that it has a very impressive business model and quality management.Genus had posted good results despite the tough environment it was operating in and things would improve dramatically thanks to the Government’s initiatives towards the power and infra sector.

in near future there are so many good things also coming for this sector and "genus" also gets benefits of that, and the stock is consolidated from last 1 year after it made a high of 62.50 ,at current market price it's almost corrected around 50% from it's 52 week high. so, as per my view this is the right time to enter in the stock. i already bought it at 50 at the time of Diwali, accumulated below that price and hold for the target of 90-95 with 1-2 year view.

Genus is a “long-term multi-bagger” stock.

I am not SEBI registered analyst, kindly take advice of your of financial adviser or do your own homework before invest in any stock.

Follow @mynkbrst

Wednesday 26 October 2016

My Multibagger Stocks

My concept for investing in market is BUY RIGHT AND SIT TIGHT, for that generally i found out stocks which are on growth, in which profit increases yoy or qoq. for multibagger returns view must be long term, minimum 3-5 years.

2014 picks

bookef profit in ashok leyland@110.

Monday 24 October 2016

Diwali picks - 2016

Generally I select good companies for Diwali picks, which has limited downside from the current market price just take a look my previous Diwali picks.

DIWALI PICKS 2014

1. Spicejet @ 14
2. Meghmani organics@ 15
3. NHPC@ 18
Which gave more than 200% returns in 2 years.

DIWALI PICKS 2015

1. Kanoria chemicals@ 60
2. Banco products @120
3. Indiabulls realestate @50

Over all return at 71% as on 24-oct-2016.

DIWALI PICKS 2016

For this Diwali i recommend to BUY
1.Uflex ltd@ 320
2. Genus power and infrastructure@ 50
3. Talwalkars fitness@ 260

This stocks will become Multibagger in future, buy with 3-5 years horizon, will share other details about the companies later. Stay tuned.
HAPPY DIWALI IN ADVANCE...

My views are personal, do your own research before invest in any stock.