BSE Code : 531266, CMP 510. Buy in range of 480-510, and hold for 1.5-2 years for handsome gains...
V.S.T Tillers Tractors Ltd is a bangalore based company. It is promoted by the V.S.T Group, in collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power Tillers and Diesel Engines. The company is into manufacturing of Power Tillers, Engines and Tractors.
As India economy is dominated by Agriculture and still it is have large scope for introducing technology into it. Since population is growing, food prices are also rising slowly. To increase productivity in agriculture sector government is bringing in various schemes and giving subsidies to farmer on use of Tractors and other machinery. The sales of power tillers have been increasing since last couple of years and VST tiller future looking promising as per that.
The Company is a market leader in Power tiller and have 50% market share. Earlier company was producing tiller and tractor on its same Bangalore plant, but seeing the demand of tiller company had started a new facility for tractors and Bangalore plant will be making tiller, so it should post good growth in sales of tiller in coming years..Company is planning to focus on tiller with 65-70% revenues coming from tiller segment.
The company has market capitalization of INR 440 Cr, and trading at FY 12 PE of 9.5 approx. We expect it to command PE of 13-15 in good markets and as its profit grows, one should see re-rating happening in the counter. The company maintains a very good operating profit margin of 17.41% and net profit margin of 10.86%. The company has proved its worth over the years by maintaining Return of Equity of over 33%.
Company is looking good at this valuation and one can look forward to 100%+ returns in next 1.5-2 years in this counter.
For any query mail us at multibaggerpicks.info@gmail.com
Sunday, September 11, 2011
Thursday, September 1, 2011
Piccadilly Agro Industries Ltd
Piccadilly Agro Industries Ltd. Bse Code: 530305
CMP: 34 Rs
Collect 70% at CMP and 30% at 31 levels.
Target short/medium term 54-60 rs till March 2012. Long term target of 150-180 levels in next 2-2.5 years.
Piccadilly Agro started with Sugar business long back, and struggled a lot. Last 4 years they started liquor production and expanding it very fast. As we all know demand for liquor will never end in this world so it business is going to grow many folds. They are in Haryana region and have strong presence of thr brand in that region. They have good contacts which is helping them in getting license and all process done smoothly. Results of liquor started showing in, and the demand is good and revenues growth is good. Last year EPS was 11.4 but posted weak results in June qtr hence had to witness the fall, expect good results again soon and re-rating of the counter in coming 6-12 months..So next 3-4 qtr will be good for this counter. Since it is very much corrected from highs and now in range of 30-34 we recommend 70% buying now and 30% at deeps. Dividend of 2 rs is on card which gives 6% approx dividend yield on cmp and record date is 23rd Sep 2011. Also it had shifted to liquor industry but PE re-rating is still not done, hence expect PE re-rating as per sector in coming years, So buy this counter at cmp and falls and hold for 2-3 years to get handsome returns....
For any query mail us at Multibaggerpicks.info@gmail.com
CMP: 34 Rs
Collect 70% at CMP and 30% at 31 levels.
Target short/medium term 54-60 rs till March 2012. Long term target of 150-180 levels in next 2-2.5 years.
Piccadilly Agro started with Sugar business long back, and struggled a lot. Last 4 years they started liquor production and expanding it very fast. As we all know demand for liquor will never end in this world so it business is going to grow many folds. They are in Haryana region and have strong presence of thr brand in that region. They have good contacts which is helping them in getting license and all process done smoothly. Results of liquor started showing in, and the demand is good and revenues growth is good. Last year EPS was 11.4 but posted weak results in June qtr hence had to witness the fall, expect good results again soon and re-rating of the counter in coming 6-12 months..So next 3-4 qtr will be good for this counter. Since it is very much corrected from highs and now in range of 30-34 we recommend 70% buying now and 30% at deeps. Dividend of 2 rs is on card which gives 6% approx dividend yield on cmp and record date is 23rd Sep 2011. Also it had shifted to liquor industry but PE re-rating is still not done, hence expect PE re-rating as per sector in coming years, So buy this counter at cmp and falls and hold for 2-3 years to get handsome returns....
For any query mail us at Multibaggerpicks.info@gmail.com
Updates
Atul Auto--Giving right for every 4 shares investor will get 1 shares @ 30 rs per share. One should definitely apply and hold the stock for long term.
Dhanuka Agritech--If sold higher buy on fall to 98 and 84 levels.
Cera Sanitary ware--Buy on falls..
Shirpur Gold--As gold prices increased, and looking to go higher further, it margins and bottom line also should rise with increasing top line, so expect total re-rating in the counter in next 12-15 months...Hold and buy more and more...
for any query mail at multibaggerpicks.info@gmail.com
Dhanuka Agritech--If sold higher buy on fall to 98 and 84 levels.
Cera Sanitary ware--Buy on falls..
Shirpur Gold--As gold prices increased, and looking to go higher further, it margins and bottom line also should rise with increasing top line, so expect total re-rating in the counter in next 12-15 months...Hold and buy more and more...
for any query mail at multibaggerpicks.info@gmail.com
Tuesday, July 26, 2011
General Updates
Dhanuka Agri--Reched 110 and correcting, hope short term members made profit and long term holding.
ABC India--Recommended at 120 now trading at 136.
Sah Petroleum--Booked Profit once...good chance to re-enter again at 34...
Shirpur Gold--Hold recommended.
Atul Auto---Good levels to add are 110-120 and low...target in medium term 150-175 levels.
Cera Sanitary--Moved after we recommended to 240 levels...and corrected...hold recommended...and those who havent added add at 190-200 levels...
For any query mail us multibaggerpicks.info@gmail.com
ABC India--Recommended at 120 now trading at 136.
Sah Petroleum--Booked Profit once...good chance to re-enter again at 34...
Shirpur Gold--Hold recommended.
Atul Auto---Good levels to add are 110-120 and low...target in medium term 150-175 levels.
Cera Sanitary--Moved after we recommended to 240 levels...and corrected...hold recommended...and those who havent added add at 190-200 levels...
For any query mail us multibaggerpicks.info@gmail.com
Thursday, July 7, 2011
Shirpur Gold
Shirpur Gold--512289---For high risk taker...CMP 102...
We all know the story behind shipur, if one dont knows a small review below...
This company is into Gold refining business and was started once in 2001, and that time Shirpur gold was promoted by the Patels of Autoriders group and it is the first and largest gold refinery in India. Autoriders group started the commercial production in 2001 with a set-up of 300cr plant, but due to death of the promoter Mr. Mukesh Patel...the project got de-railed...and company could not ramp up its business. After this they were not able to run the operations and less working capital and non-payment of loans company went into the hands of Asset Re-construction Company of India. From there Jayneer Capital Private Ltd JCPL (Zee Group) acquired the financial assets of the Company through a bid process which was awarded in their favor by ARCIL. JCPL also had converted loans on Shirpur to equity and started the commercial production for last 3 qtr. But still it need to show profits to its investors...whr risk lies...Company is running at very less capacity as of now...once it uses 70-80% of its capacity and shows profit it will be completely re-rated... company current market cap is of just 159cr..... which is much lower than what quality of assets they have as of now...if company goes for liquidation it will be surely more than 200cr...
So not much to loss...and long term can get very good returns....
Buy with 3-5 years view...not less than that...
Cheers
Sanket
We all know the story behind shipur, if one dont knows a small review below...
This company is into Gold refining business and was started once in 2001, and that time Shirpur gold was promoted by the Patels of Autoriders group and it is the first and largest gold refinery in India. Autoriders group started the commercial production in 2001 with a set-up of 300cr plant, but due to death of the promoter Mr. Mukesh Patel...the project got de-railed...and company could not ramp up its business. After this they were not able to run the operations and less working capital and non-payment of loans company went into the hands of Asset Re-construction Company of India. From there Jayneer Capital Private Ltd JCPL (Zee Group) acquired the financial assets of the Company through a bid process which was awarded in their favor by ARCIL. JCPL also had converted loans on Shirpur to equity and started the commercial production for last 3 qtr. But still it need to show profits to its investors...whr risk lies...Company is running at very less capacity as of now...once it uses 70-80% of its capacity and shows profit it will be completely re-rated... company current market cap is of just 159cr..... which is much lower than what quality of assets they have as of now...if company goes for liquidation it will be surely more than 200cr...
So not much to loss...and long term can get very good returns....
Buy with 3-5 years view...not less than that...
Cheers
Sanket
Wednesday, July 6, 2011
Cera Sanitary Ware
Add Cera Sanitory ware on every falls...CMP 214. Low volume counter, so add in small lots at every falls for 1-2 years view...Very good portfolio stock...
Company is into manufacturing of Sanitary products. And every house uses it...and consumer industry story...and that too Indian domestic market growth story...so long way to go....
FY11 EPS of the company is 27 (but thr might be error, as EPS should be around 21.7 approx as per Net profit figure..) and PE of just 8, Hence short term it can move to 270 levels and long term also. a good bet....
FII buying from the market and March qtr had seen increase in holdings, promoter also increased holding...
Sales increases slowly and should see more rise as more and more construction of houses and offices increase in India.
Expect 300cr sales by FY12 and hence EPS of 29-30 approx and with PE of 10, we can easily get targets of 300...which is 50% approx move from this levels...good for long term investment....as sales grows...
Add at CMP and on every falls...
Cheers
Sanket
Company is into manufacturing of Sanitary products. And every house uses it...and consumer industry story...and that too Indian domestic market growth story...so long way to go....
FY11 EPS of the company is 27 (but thr might be error, as EPS should be around 21.7 approx as per Net profit figure..) and PE of just 8, Hence short term it can move to 270 levels and long term also. a good bet....
FII buying from the market and March qtr had seen increase in holdings, promoter also increased holding...
Sales increases slowly and should see more rise as more and more construction of houses and offices increase in India.
Expect 300cr sales by FY12 and hence EPS of 29-30 approx and with PE of 10, we can easily get targets of 300...which is 50% approx move from this levels...good for long term investment....as sales grows...
Add at CMP and on every falls...
Cheers
Sanket
Saturday, June 25, 2011
ABC India.
ABC India Limited --520123, CMP 119 rs. EPS of 10.24 and PE of 11.62, Sector PE of 20-25 range.
ABC India Limited provides logistic services in India. Companies in this sector are Aegis Logistic, Aqua Logistic & Chartered Logistic. If one followed this companies closely one by one each company had multiplied 5-7 times over last 1-3 years. Chartered logistic the latest one to get higher valuations..
Now we think is the turn of ABC India. Company owns a fleet of trucks, hydraulic trailers, and prime movers. ABC offers material logistic, in-plant logistic, import-export logistic, and distribution/sales logistic services. ABC India also undertakes turnkey projects, representing various services, including port handling, customs clearing, and multi-modal transportation by road/rail/barge, as well as offers international freight forwarding services. It operates approximately through its 200 offices across India and have warehouse & storage space of 15,000 cubic meters. ABC India, through its 24 % joint venture interest in Nissin ABC Logistics Pvt. Limited, engages in logistic service business. Business model looks robust and they have all the required infrastructure in place, and CMP of the company is just 60 cr. This is mainly due to promoters not showing very good corporate governance and not looking for expansion, but now promoter are showing interest and this is shown by thr continuous buying from open market, as this shows that they are eying growth in future and create value for share holders...
Company is currently having market cap of 60 cr, which way too less if any new entrant want to set-up same operations than it will cost them much higher... so if we say 150-200cr approx market cap then also 100%-200% price rise possible...hence it is a very good buy...
Also Mr Madhusudan Kela(head-Reliance Mutual Fund) got 1.7 lac shares in March 2010.
Results of the company are good, and posted a EPS of 10.24 vs last year EPS of 2, growth of 5 holds. It was on before that trading at EPS of 7.89, so it went down and now again reviving....hence trading low and good time to collect....June qtr results should make it rise....CMP of 119 and PE of 11.6 against industry PE of 20-25.
So expect re-rating sooner or later....collect in range of 110-118 and hold it long...some land story is thr...but not including that....
Happy Investing
Sanket
ABC India Limited provides logistic services in India. Companies in this sector are Aegis Logistic, Aqua Logistic & Chartered Logistic. If one followed this companies closely one by one each company had multiplied 5-7 times over last 1-3 years. Chartered logistic the latest one to get higher valuations..
Now we think is the turn of ABC India. Company owns a fleet of trucks, hydraulic trailers, and prime movers. ABC offers material logistic, in-plant logistic, import-export logistic, and distribution/sales logistic services. ABC India also undertakes turnkey projects, representing various services, including port handling, customs clearing, and multi-modal transportation by road/rail/barge, as well as offers international freight forwarding services. It operates approximately through its 200 offices across India and have warehouse & storage space of 15,000 cubic meters. ABC India, through its 24 % joint venture interest in Nissin ABC Logistics Pvt. Limited, engages in logistic service business. Business model looks robust and they have all the required infrastructure in place, and CMP of the company is just 60 cr. This is mainly due to promoters not showing very good corporate governance and not looking for expansion, but now promoter are showing interest and this is shown by thr continuous buying from open market, as this shows that they are eying growth in future and create value for share holders...
Company is currently having market cap of 60 cr, which way too less if any new entrant want to set-up same operations than it will cost them much higher... so if we say 150-200cr approx market cap then also 100%-200% price rise possible...hence it is a very good buy...
Also Mr Madhusudan Kela(head-Reliance Mutual Fund) got 1.7 lac shares in March 2010.
Results of the company are good, and posted a EPS of 10.24 vs last year EPS of 2, growth of 5 holds. It was on before that trading at EPS of 7.89, so it went down and now again reviving....hence trading low and good time to collect....June qtr results should make it rise....CMP of 119 and PE of 11.6 against industry PE of 20-25.
So expect re-rating sooner or later....collect in range of 110-118 and hold it long...some land story is thr...but not including that....
Happy Investing
Sanket
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