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Five Multibagger stocks which cannot be missed

Chirag — Thu, 28 May 2009 04:02:00 +0000

If you go to see the current stock market rally the stocks which were down over 60 to 70% were the maximum gainers in the last 2-3 weeks.
We didnt by them we have missed the opportunity. But one thing to remember is “Every thing which has gone up has to come down again”.
Few stocks which have further upside after they bottom out are :

HDIL : One construction giant.
HCC : Another construction giant.
DLF : Our Construction biggy.
Marksans Pharma: A penny stock to rock.
Apollo Tyres.

I will give a detailed analysis on all the above stocks. Keep a track.

Happy Investing!

Next post: Zero Debt companies on BSE and NSE.

Value Investing – Jaiprakash Associates.

Chirag — Tue, 10 Mar 2009 01:37:00 +0000

Multibagger Tip – Jaiprakash Associates.
BSE Code: – 532532
CMP: – 65.85
Target: – 85 (3 – 4 months) Long term target – 140 (12 – 18 months)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December 08 and now is down almost 85%.
Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering in this sector which this script is the first to cherish.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.

Happy Investing.

9 PSU banks to gain from equity infusion.

Chirag — Sat, 18 Oct 2008 07:41:00 +0000

Finance minister P Chidambaram announced on Wednesday that the government will infuse additional capital in those public sector banks, which have capital adequacy ratio (CAR) of less than 12 per cent to take the adequacy ratio above that level. The move is a pre-emptive measure to stave off any adverse impact of the global financial crisis on the Indian banking system and is likely to calm the nerves of both customers and investors.

According to a Financial Chronicle analysis, the move for capital infusion would help at least nine public sector banks that have a capital adequacy ratio of less than 12 per cent. They include Allahabad Bank, Bank of Maharashtra, Central Bank, Dena Bank, Indian Overseas Bank, Punjab and Sind Bank, Syndicate Bank, UCO Bank and Vijaya Bank.

Of these, three have a CAR of less than 11 per cent while the Central Bank of India has the lowest capital adequacy ratio of 10.01 per cent as of June 30, 2008. The other two banks having capital adequacy ratio of less than 11 per cent are Vijaya Bank (10.47 per cent) and UCO Bank (10.53 per cent).

“There are only four public sector banks, which have a CAR of less than 11 per cent. To take them to 12 per cent, an amount of about Rs 1,000 crore will be required. For most other banks, the CAR is above 11 per cent,” an official in the finance ministry, who did not wish to be identified, said.

Private sector banks are better placed in terms of CAR than their public sector counterparts. Only three private sector banks have a CAR of less than 12 per cent. If these private sector banks are to increase their CAR, they will need only about Rs 300 crore.

However, how much additional capital these banks put together requires is not clear. Also, the government is still working on the nitty gritties of the capitalisation scheme. When contacted by Financial Chronicle, Syndicate Bank chairman and managing director George Joseph said: “The measure announced by finance minister would certainly help us, but how much additional capital we would require is yet to be calculated.”

The latest finance ministry measure will have no impact on banks having capital adequacy ratio of above 12 per cent, including the country’s largest bank, the State Bank of India, which has a capital adequacy ratio of 12.64 per cent as of June 30, 2008.

Source: MydigitalFC.

Stock Idea – Sesa Goa.

Chirag — Thu, 02 Oct 2008 17:30:00 +0000

Scrip: – Sesa Goa Ltd.
BSE Code: – 500295
CMP: – 116
Market Cap: – 4601
Target : – 145 (2-3 months)

Commodities are bottoming out and showing signs of uptrend.
Company has a good management and has shown good results in the pasts.
It has now fallen more than 50% from its peak and is even trading at a discount to the price Vedanta paid last year to acquire the company from Mitsui.
At that time: (i) iron ore prices were half that of the present levels; (ii) sales volumes were considerably lower, (iii) cash levels were also much lower; and (iv) other competitors had shied away from bidding due to imposition of Rs 300/tonne export duty on iron ore just before the process. Several factors have collectively led to this fall.

The key negatives are: (i) seasonal weakness; (ii) lower import demand from China, given curtailed steel production due to Olympics and Paralympics; (iii) global commodities sell-off as financial institutions pull out funds to enhance liquidity amidst the global financial crisis; and (iv) higher coke prices in China causing weakness in low-grade iron ore prices. However, these negatives are fading away and this will result in a dramatic shift in sentiment, going forward.

Sukhani says on this scrip “Sesa Goa is a part of the commodity play and it’s an excellent stock to own and to trade in. There is a sense that at least for investors, they have a lot of support below current prices around Rs 100, its little low but for an investor this is a good time to go and get invested in the stock. For a trader there is overhead resistance, so take Rs 10-15 chance for an upside, its worth buying for both traders and investors.”

Stock Idea – Jaiprakash Associates.

Chirag — Tue, 30 Sep 2008 15:11:00 +0000

Scrip:- Jaiprakash Associates.
BSE Code: – 532532
CMP: – 111
Target: – 140 (3 – 4 months.)

This is one of the badly beaten up stock in this great bear market. this scrip had made a high of 510 this December and now is down almost 80%. Real estates have seen their worst days all thanks to the US sub prime crises.
What I think at the movement this is a good scrip to accumulate for long term view.
This company is engaged in the business of heavy civil engineering construction, expressways, cement and real estate and hospitality.
The performance of the company has been quite good.
One thing to notice is when there is any short covering the sector which is pulled is Banking and Reality.
JP Associates has a strong order book value of various Express highway more over it owns a fully owned subsidiary Himalian Express way.
One must buy this scrip in dips and book profits in sharp rise.
Happy Investing.
Stock Quotes Here.

Stock Idea – Godavari Power and Ispat Ltd.

Chirag — Sat, 27 Sep 2008 15:19:00 +0000

Scrip: – Godavari Power and Ispat Ltd
CMP: – 143
BSE Code: – 532734
52 week H/L: – 376.50 – 141.00
Market cap: – 401.83

Summary -
Initially it produced only sponge Iron , but then over a period of time it diversified into value added products like billets, HB wires and captive power plant run on waste gases emanated from its own kilns. It commenced with an annual production of 105000 tpa of sponge Iron and since then has increased its capacity five fold to become one of the largest producer of sponge Iron in India. Billet and HB wires are produced through its wholly owned subsidiaries.
Company has signed an MOU with chattisgarh government for an investment of 1570 crores for its expansion plans . Company is into manufacturing of sponge iron , steel billets , ferro alloys , captive power generation , wires rods and now about getting approval for mining is going to be a fully integrated manufacturer of steel . The company is all set to get approval for aridongri mine in chattisgarh .A consortium led by GPIL has been allocated four coal blocks at Nakia and Madanpur in Chhattisgarh with 243 million tonnes of total reserves, of which, GPIL’s share is 63 million tonnes . Complany is planning to increase its power capacity 1000 MW

Key Financials: -
A mere maket cap of 401 crores seems much lesser for the company and GPIL seems strongly undervalued . Company clocked a sales revenue of 950 crores resulting in a n eps of 36.50 rs. Managment is targeting at a sales of 1400 crores for FY09 . At the CMP of Rs 143, the stock is trading at 4.39 its FY09 earnings and 2.7x FY10E EPS of Rs 33.84. If company gets nod for mining further EPS of 25 rs can be added to FY 10 earnings .
Further more adding the value of new investments worth 1570 crores and power expansion plans which is about to happen in next four years . Stock has very bright prospects and will outperform the markets in a big way .

Happy Investing.
Stock Quotes Here.

Stock Idea – OnMobile Global.

Chirag — Tue, 23 Sep 2008 03:26:00 +0000

OnMobile.
CMP: Rs 450
Target price: Rs 700 (8-9 months)
52 Week H/L: 744.70 – 400.10
Market Cap: 2619.45

Summary: –
OnMobile Global Limited is a provider of mobile value added services and products (MVAS) in India. The Company has a range of applications that are delivered by its customers, who are telecom operators and media companies, to their subscribers. The products of the Company are Network based in-call solutions like caller ringback tones, dynamic voicemail and missed call alert service, Voice-based multi-modal portal which allows subscribers to access informational and entertainment content such as music, sports updates, news, stock and commodity price updates, in multiple languages using speech-based navigation; on-device client software applications; interactive media solutions, such as tele-voting, interactive programming, mobile auditioning and auctions; mobile commerce solutions like ticketing (movie and railway ticketing), utility payments and mobile marketing services, and business support solutions like phone backup and pre-paid and post-paid bill payments.

Key Factors/ Drivers: -
(Data Compiled by Citi Group)
OnMobile Global is India’s largest VAS (value-added services) operator (35% share) in a rapidly growing market [FY08-11 (estimated) CAGR at 51%.

The estimated 36% EPS (earnings per share) CAGR over FY08-11 (estimated), was due to the company’s increasing international presence.

According to the Citi note, the domestic VAS has graduated from being a glorified sub-set of p-to-p SMS to a well-demarcated segment. “The current contribution of the company at 3.4% of wire-less revenues is likely to increase to 6% by FY12E.

Key Positive: –
Mobile sector will see a boom as it is keeping on adding numbers of subscribers on a daily basis.
More over every one need a cell phone.
Strong growth potential.

Key Negative: –
Markets looking volatile so this is the biggest threat to the stock.

Stock Idea Rcom.

Chirag — Wed, 10 Sep 2008 04:10:00 +0000

Scrip: – Reliance Comm.
BSE Code: – 532712
Market Cap: – 83643.59
CMP: – 405.25
52 Week H/L: – 844.00 – 381.05

Summary: -
Reliance Communications Limited is an integrated telecommunications service provider. Reliance Communications Limited has established a pan-India, next generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire infocomm value chain, covering over 15,000 towns and 400,000 villages. Reliance Communications owns and operates a next-generation Internet protocol (IP)-enabled connectivity infrastructure, comprising over 165,000 kilometers of fiber optic cable systems in India, United States, Europe, Middle East and the Asia Pacific region. The Company has a customer base of 50 million, including over 1.5 million individual overseas retail customers. Its corporate clientele includes 1850 Indian and multinational corporations, and over 250 global carriers. The Company is the flagship company of the Reliance Anil Dhirubhai Ambani Group. In April 2008, it acquired a 90% interest in eWave World Ltd.
Having 50 million customers it is second largest telecom operator behind Bharti Airtel.
It is an excellent company of ADAG group it has good business model among the all other telecommunication company in India co and also is the second highest subscriber in India co provides various services like mobile,fixed/wirless phone/terminal,land line,net connection,,PCO, Etc. The company also owns world best ethernate technology with buyout flag tecl.

The key positive factors: -
1. It will roll out GSM services from December onwards. This will be a major trigger for new growth opportunities. Reliance Communications is the only national operator providing GSM and CDMA services.

2. Telecom story is still intact. New subscriber numbers are still encouraging.

3. It entered into lucrative IT space by announcing Reliance Technology Services- another growth opportunity.

4. Arrival of BIG TV a profitable business “may be.”

5. Reliance Communications will list its global arm “Globalcom” as a separate entity.

6. It will list tower business (Reliance Infratel) within a short period of time. Both the above listings will unlock value in this communications giant.

7. Broadband usage will increase in the coming years.

The key Factors to drive this stock will the Reliance Infratel IPO.
Introduction of GSM service will add a plus to it.

Live Charts. – (technicals)

If you wish to add any thing to this stock , fundamentally or technically post it in comments.
I Will appreciate it.

Stock Idea – Areva T&D.

Chirag — Mon, 08 Sep 2008 04:19:00 +0000

Scrip: – Areva T&D
CMP: – 1624
BSE Code: – 522275
Market Cap: – 7767.26
52 Week H/L: – 3280.00 – 1199.00

Summary: –
Areva T & D India Ltd. is an India-based company engaged in the business of power transmission and distribution. The Company’s products and systems serve to transmit and distribute electricity, as well as operate networks through information management. Areva T & D India Ltd. is present at all stages of the supply power chain, from the generator to the end user, backed by a services portfolio. The Company has a presence in more than 30 countries.

Business: -
Areva has many ‘firsts’ to its credit, thus gaining market leadership in a number of products; The company commissioned India’s first Extra High Voltage substation of 765 kV for NTPC in 2007. It built the largest power generating transformer for Reliance Energy in the same year. It is also a market leader in GIS (Gas Insulated Switchgear) substation. GIS are much more compact as they occupy significantly lesser space compared to AIS (Air Insulted Switchgear). Given the demand for space in the country, the company quickly capitalised on this need especially in urban substations. Areva is also expanding capacities for the high voltage transformers and GIS switchgears to cater to the growing market and retain leadership position.

Expansion: –
Areva plans to double its capacity over the next two years with Rs 700 crore investments in Greenfield projects. The expansion move appears timely as the company, apart from catering to local demand, has also started receiving outsourced orders from its parent.

Key Financials: –
At EPS of 45.25 the company is trading 35(PE) times of its CMP.
PE looks attractive at 35.
With a huge market cap of 7767.26and adding 700 cr. of its expansion will add 10% to the stocks value.

N Deal: –
The company already makes nuclear reactors and rotors. Its parent company is a world leader in conventional nuclear projects. It makes turbines for nuclear power stations. It supplies steam turbines to over 30% of nuke power stations globally.

Key Positive: –
The N Deal I think is one of the best reason for the stock to shoot up.
A dividend paying stock.
Annual profits up 10% and so is the quarterly profit.

Happy Investing.
Check Stock Quote Here.

Stock Idea – Larsen & Tubro.

Chirag — Tue, 02 Sep 2008 04:24:00 +0000

Scrip: – LNT
BSE Code: – 500510
CMP: – 2562
52 Week H/L: -4670.00 – 2100.00
Target: – 2900 ( Before 3 rd Oct.)
Target for long term investors : – 200% returns after Bonus in 2 years.

Summary: –
One of the badly beaten out scrip in the Indian markets is LNT.
For Short term traders this scrip is excellent as record date for bonus is 3rd of Oct.
Technically speaking this scrip shows some positive strength to me.
Bonus will pull up this scrip.

A long term bet: –
It is India’s largest Engineering and Construction giant.
L&T is the best managed company in India – Business Today survey.
Larsen and Toubro will benefit from huge infrastructure investments in India and Gulf regions.
Strong Order book.
L&T will be demerged into Power, IT, Ship building and Railway units along with engineering division. Investors will get very good returns after the demerger.

Verdict: -
All the factors are in favour of LNT so I am not adding Key Positive and Key Negative.

Ratings -
Short term: – 8/10
Medium Term: – 7/10
Long term: – 10/10 and if possible more than this.

Happy Investing.

Comment on my last stock Idea here.