How to Identify Multibagger Stocks in the stock Market

How to Identify Multibagger Stocks in the stock Market

Enkei Wheels Multibagger 2 year time frame

Enkei Wheels Multibagger 2 year time frame

• Enkei Wheels (India) Limited is a manufacturer of the Aluminum Alloy Wheels to two wheelers as well as four wheelers. It’s a part of Enkei Group which is a Global Leader in this segment.

• Enkei Wheels is de-merged from the erstwhile Enkey Castalloy Ltd. This company is a 35% subsidiary of the Japanese wheel maker Enkei Corporation .

• Its parent company having operations globally in more than 15 countries around the world and it is one of the prominent maker of wheels with specialization in Racing wheel.

•  This comapny has grown in popularity of motor sports is very limited in India compared with developed countries.But the chances are very high for rapid changes in motor sports sector in our country going forward. 

• With the help of Japanese Technology the Company’s plant is equipped with the advance machinery & system for manufacturing aluminum alloy wheels. for other automobile sectors like Car's and two wheelers .

• Major customers here includes Honda,Maruti,Hero Honda,Nissan,Toyota ..etc.Company is also supplying part of its production to its sister concerns outside India.

• The falling oil prices are going to bring huge grwoth for indian Auto sector and Emkei is going to benefit hugelt.Todays youths are giving alway looking for alloy wheels for pepey drive and the hole customer view is changing on wheels.

• With the strong support of parent company Enkei Wheels is improving its performance.Since the parent company is keen to develop business in India , possibility of a buy out and delisting  can't be ruled out in future.

• Sales has grown by 20 % and profit by 20 % and this company could is showing strong growth story with Make in india tag.

Ccurrently ruling at 146 this stock can reach 300 Rs in 2 year timeframe. 

Orient Beverages recommended 3 months back has achived target

Orient Beverages recommended 3 months back has achived target

• Orient Beverages recommened 3 months back has achived its target of 200 Rs.
• Safe investors can exit this stock and reenter on corrections.
• The company is doing very well and and sales is growing at 30 %
• No of shares that promotere pledged is also came down from 79 to 75 %
• Half year EPS is around 4.5 while last year full year EPS itself was 5.6

Old posting-->

http://niftyhistoricaldata.blogspot.com/2014/09/orient-beverages-ltd-bisleri-bottle.html

Hope our followers have benefited following us 

SJVN Limited Multibagger Long term 3 years time frame

SJVN Limited Multibagger Long term 3 years time frame 

• SJVN Limited, is a Mini Ratna CPSU under the Ministry of Power, Govt. of India, is a joint venture between the Govt. of India & Govt. of Himachal Pradesh

• Started in the year 1988, the Company is fast emerged as a major power player in the country. The present authorized capital of SJVN is INR 7000 crores.

• SJVN is successfully operating the country’s largest 1500 MW Nathpa Jhakri Hydropower Station and is setting new benchmarks.

• SJVN today has a diversified set of power projects, which includes Hydroelectric Projects in Himachal Pradesh, Uttrakhand, Aurnachal Pradesh and in the neighboring countries of Nepal and Bhutan, a Thermal Power Project in Bihar, a Power Transmission Project in Nepal, Wind Power project in Maharashtra and Solar Power Projects in Gujarat & Rajasthan

• SJVN has made its debut into the Thermal Power Generation by taking up the 1320MW Buxar Thermal Power Project in Bihar for execution. The Company has been allotted the Deocha-Pachami Coal Block in West Bengal for sourcing coal for the project.This further going to increase the revenue of the company.

• SJVN has signed an MoU to develop and operate the 4000 MW Ultra Mega Solar Project in Sambhar area of Rajasthan with five other PSUs: BHEL, PGCIL, SSL, REIL and SECI. SJVN has 16% equity in the country’s largest Solar Energy project.

• The company has paid most of its debt and almost debt free now.

• With such a a diversified portfolio the and good growth the company has surpassed its Full year EPS in 2013 in Halfyear itself.

We are very bullish on this stock and will see a target of Rs 50 in 3 years timeframe

TCI India Multibagger

TCI India Multibagger

• TCI is India's leading Multimodal Integrated Supply Chain Solutions Provider with a Global presence. With expertise developed over five decades, customer centric approach and extensive infrastructure, TCI today moves 2.5% of India's GDP by value.You are wondering where i am going You got it right TCI will be one of the biggest benificery of GST tax implementation.

• The company has 1000 office,5000 staffs, 4 ccargo ship,wharehouse of 10 million sqft. A model very diffcult to setup and will require massive time.

• Various verticals of TCI are TCI Freight, TCI XPS,TCI SCS,TCI Seaways, TCI Global.

• In this TCI XPS and TCI Seaways is growing very good.Profit has increased 20 % year on year.
• The Company's revenue growth has been subdued due to slowdown in manufacturing and investment in infrastructure projects. Sustained demand for logistics services from pharma, retail, and FMCG and e-commerce sectors however has compensated for the decline in demand from other verticals

• MULTIBAGGER stock to have in your portfolio if if find it right.

Dhanuka Agritech Recommended 1 year back reached target

Dhanuka Agritech Recommended 1 year back reached target

• Dhanuka Agritech Recommended 1 year back reached is revised target of 550.Safe investors cn exit the stock

Old Post-->

http://niftyhistoricaldata.blogspot.com/2014/04/dhanuka-agritech-recommended-8-month.html

EROS international recommend last August Target achived

EROS international  recommend last August Target achived

• EROS international recommend last august with target of 260 for 2 years. Stock surpassed its target and now ruling at 350 Rs. Book profit and exit the stock.

Old posting

Click here-->http://niftyhistoricaldata.blogspot.com/2013/08/eros-international-mulitbagger-trgt-260.html

BHEL recommend Last year August has achieved its target.

BHEL recommend Last year August has achieved its target.

• BHEL recommended Last year August has achieved its target.Advice investors to exit.

Old Post

Click here -->http://niftyhistoricaldata.blogspot.com/2013/08/bhel-mulitbagger-trgt-250-2-yrs-time.html

Infinite Computer solutions Multibagger

Infinite Computer solutions Multibagger

• Infinite Computer Solutions is a global service provider of IT services, Product Engineering and Mobility and Messaging Products and Solutions, with focus on Telecom, Energy & Utilities, Media & Content, Healthcare and Banking & Finance industries.

• Company was Established in 1999,headquartered in Bangalore, India.

• Company has 16 Office and 8 DeliveryCenters in Bangalore,Boston,Chennai, Chicago, Hyderabad,New Delhi, Gurgaon & Rockville.

• Stock was listed in Exchange in 2010 and has employee strength of 5000 world wide with majority of workforce in india.

• Revenue for FY 2014 is around  USD 287M and EBITDA is  USD 30.7M. 5year 5 Year Revenue CAGR at 21%.

• Stock is currently trading at 12 PE while another Midcap stock hexaware is rulling at 20 PE.

SBI Monthly Composite Index and SBI Yearly Composite Index- India Focus index

SBI Monthly Composite Index and SBI Yearly Composite Index- India Focus index

• No wonder Fortune Magazine listed SBI Chairperson Arundhati Bhattacharya as most powerful Women in India

• And she is doing the right thing.For the firsttime we will have a India focused index which if first in the country.(So far we depend on HSBC to provide data).

• SBI Monthly Composite Index and SBI Yearly Composite Index are tools which will report month on month data to track data from manufacting and service industry.

• These index are created based on banks internal loan portfolio which shows how is the credit grwoth in the country.

• These index will also take into account customer spending,mining, interest rates,inflation and exchange rates.

• This is a very good start and appreciate the SBI chairman for introducing iinnovative index and focus more on India

Rakesh Jhunjhunwala Latest portfolio Dec 2014

Rakesh Jhunjhunwala Latest portfolio Dec 2014

• Bought Spicejet,NCC and MCX recently.
• He is bullish on ONGC and MCX.
• His target for Nifty by 2030 is 1,25,000.His justification for this number is that nifty has grwon 10 times in last 10 years.So It will grow like this for next 15 yrs

Our Midcaps stock recommendation has achieved the target

Our Midcaps stock recommendation has achieved the target

• 4 Months back we recommend a set of Midcap stocks that will give 50 % returns in 1 year.
• But this has been achieved in just 4 months.
• Hope investors have benefited from the recommendation

Old recommendation -->http://niftyhistoricaldata.blogspot.com/2014/07/six-midcap-stocks-that-will-give-50.html

Nifty PE Chart 2014

Nifty PE Chart 2014

• This is a bull year with PE ranging from 17 to 22

Nifty PE Chart 2013

Nifty PE Chart 2013

• This is a Bear market with PE between 20 and 15.

Nifty PE Chart 2012

Nifty PE Chart 2012

• This was a Bull year and Nifty PE was in 15 to 20 range.

NIFTY PE Chart 2011

NIFTY PE Chart 2011

• This was Bear market.Nifty PE dropped from 25 to 16.

Nifty PE Chart 2010

Nifty PE Chart 2010

• This was a bull year Nifty PE was ranging between 20 to 25 range

Lloyd Electric and Engineering Ltd Multibagger 240 Rs 3 yrs timeframe - India growth Story.

Lloyd Electric and Engineering Ltd Multibagger 240 Rs 3 yrs timeframe - India growth Story.

• Lloyd Electric and Engineering Ltd was started in 1987 as a Coil company and today they are one of the biggest AC manucaturing company

• Production started in 1990 with a capacity of 300 Coils per day.By 1997 they where producing  1500 Coils per day becoming the largest manufacture of Coils in India.The same year they started Developing Air conditioner units for Railway Coaches.

• The Company entered in 2004 in to retail market with its aritconditioners for household and there reputation quickly got good acceptance from retail customers.

• Consolidated Revenue of the Group grew by20% over the previous year to Rs. 1776 crores,while profits (PBT) expanded by 35% to touch at record high of Rs. 97 crores in 2013-14 yr.

• Company is also planing to release New products developed includes inverter split air conditioners for the OEM market, Heat and Cool products for export market with R-410A refrigerant.

• In the Commercial Air-conditioning business, your company has developed Roof Mounted HVAC unit for Metro Rail using ecofriendly refrigerants. Being IRIS compliant, the company has bagged its first prestigious order from Bombardier Transportation for the supply of Roof Mounted Ventilation Units for EMU coaches. This has opened avenues for the company to bid for international jobs in Railways.

• With strong Management and strong Brand, we expect this stock to go new highs as AC will become like Fans in coming years and this company is set to be a huge beneficiary from it.Also there international acceptance is going to take this company to ddifferentstage.

We recommend a Buy on this Stock with 3 Yrs time frame for a target of 240 Rs.

Bank Nifty PE Chart 2009

Bank Nifty PE Chart 2009

• Bank nifty PE range is 6 to 15 for 2009

Bank Nifty PE Chart 2010

Bank Nifty PE Chart 2010

• Bank nifty PE range is 13 to 22

Bank Nifty PE Chart 2011

Bank Nifty PE Chart 2011

• PE range for 2011 was between 20 to 13.

Bank Nifty PE Chart 2012

Bank Nifty PE Chart 2012

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2012 Chart for Bank Nifty

Bank Nifty PE Chart 2013

Bank Nifty PE Chart 2013

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2013 Chart for Bank Nifty

Bank Nifty PE Chart 2014

Bank Nifty PE Chart 2014

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2014 Chart for Bank Nifty

KRBL recommended 10 Month back has achieved the target-Upgrading new Target Price Rs 180

REPEAT -KRBL recommended 10 Month back has achieved the target-Upgrading new Target Price Rs 180

• We have recommend KRBL in Jan this year for a target of 70. This has been achived.
• Old Posting -->http://niftyhistoricaldata.blogspot.com/2014/01/krbl-multibagger-2-yrs-timeframe-trgt.html
• We feel there is trong growth story left in this comany as Indian Consumtion of Basmatic is rising very well and will continue. The EPS is steadily growing and so is the Profit.
• With strong Management and strong Brand like India Gate this stock will see steady growth as brand consiousness is increasing in India.
• So we recommend to Hold or sell and recover  your investment and hold the rest as free with a new Target of 180 Rs in 2 yrs time frame

Our recommendation on 17 Nov has Given profit of 25000 Rs - Mint money Enjoy

Our recommendation on 17 Nov has Given profit of 25000 Rs - Mint money Enjoy

                      No Magic No Thamasha,just facts, our skills will help make u money,don't trust anybody asking money to giving tips,just bogus.

Se our performance and judge for yourself.

• Yes it was once again a wonderful week with 25000 Rs profit. No IT company pays, just trust us and follow us and trade.Hope our followers have made profit following us.

JVL Agro recommended previous has released results with 40 % increase in net profit

Result Update:

• JVL Agro recommended previous has released results with 40 % increase in net profit.
• Sale also improved by 5.3 % Q-o-Q basis.

Old recommendation: http://niftyhistoricaldata.blogspot.com/2014/10/jvl-agro-industries-limited-multibagger.html

RS Software Multibagger 1200 Rs 3 yrs time Frame Long term

RS Software Multibagger 1200 Rs 3 yrs time Frame Long term

• RS Software is a company focused on which is focused on Payment Systems in Finacial Industry.
• Thier ePayement system is widely popluar and accepted widely accross the world.
• Ther Soultions incude mobile and contactless payement (Just tap your Debitcard on the payment system) which showls companies eagerness to adapt new technology and grow.
• With 85 % of transactions in the World is still happening through cash,just imagine the kind og growth this comapny can have.
• There 5 yrs Profit after tax is at the rate of 59 % . EBIDTA is at 36 % for past five years which is best in the industry.The company is Zero debt company with Surplus of 160 Crores.
• With lot of pastive for this company and huge growth potential,no woder the Ace investor Dolly Khanna has increased here state  continously for past 4 quaters.
• One can enter this stock with Target of 1200 Rs with 3 yrs time frame.Happy investing

Trading Stocks Recommendation for the Week- 17 Nov

Trading Stocks Recommendation for the Week- 17 Nov

Following are the stocks that we are recommending this week on 17th Nov 2014

• HDFCBANK (HDFC BANK LTD) 
• GLENMARK (GLENMARK PHARMACEUTICALS) 
• M&MFIN (M&M FIN. SERVICES LTD) 
• SBIN (STATE BANK OF INDIA) 
• TATACHEM (TATA CHEMICALS LTD) 

Our recommendations of 10 Nov has Earned 30,000 Rs in 1 week.No Magic

Our recommendations of 10 Nov has Earned 30,000 Rs in 1 week.No Magic

• Our recommendation on 10 Nov has given 30,000 Rs for this week. It was fantastic week.Hope our followers have benefited from our recommendation.

How to predict when a Stock is going to change the direction

How to predict when a Stock is going to change the direction

This is the question every trader and investor in Stock market has, how to predict when a Stock is going to change the direction? Always i have seen the so called Market Experts say its very difficult to predict exactly.

With over 10 yrs in Market we have now fine tuned on this topic and now we can say for sure when the Stock will change direction


Have look at this INFY Stock Chart.

• You can very clearly see that SMA 5 and SMA 20 makes a cross over
• At the sametime MACD 12 has crored EMA 26 9as shown in charts)

This is the change point where the stocks gets to change the direction and move.


With these 2 simple technique you can milk money in millions. 

Suven Life Science Target achieved -Upgrading Target

Suven Life Science Target achieved -Upgrading Target

• Suven Life Science recommended on Aug 2014 with target of 240 has been achieved in just 3 months.
• We feel this is still very good company and more upside is left.This is just a start of great stock in patent business,a unique company in India .
• We are upgrading the Target to 440 Rs with 2 yrs time frame

Old Recommendation --> http://niftyhistoricaldata.blogspot.com/2014/08/suven-life-sciences-multi-bagger-240-1.html

 

Indraprastha Gas Ltd recommended 1 yr- Target Achived

• Indraprasatha Gas recommended 1 year back with 1 yr time frame as our short-term pick has surpassed the target of 360 Rs and currently trading at 430.
• As this was Short-term recommendation and as our target has been achieved,suggesting the investors to exit the stock.
• Hope our followers have benefited from our recommendation

Old Recommendation --> http://niftyhistoricaldata.blogspot.com/2013/10/indraprastha-gas-multibagger-1yr.html

Navneet Education Limited MULTIBAGGER 200 Rs in 3 yrs time frame Medium Term

Navneet Education Limited MULTIBAGGER 200 Rs in 3 yrs time frame Medium Term

• Navneet Education Limited (Formerly known as Navneet Publications (India) Ltd), is in the business of Educational, Children and General books Publication, Scholastic Paper  and Non-Paper Stationery products.

• Navneet has emerged as a preferred brand for Educational Products among teachers and students in India. The company's products are sold under the brand names of 'Navneet', 'Vikas', 'Gala', 'FfUuNn' and  'Boss'.This is evident from thier sales figures which has grown strong yoy.

• All there Publications are focused in 5 mail languages English, Gujarati, Hindi, Marathi, and Urdu.The Company has 65 % market share in Western India, where literacy rate is growing steadily.

• The company also exports stationary to Middle East, parts of Africa, U.S.A. and Europe. The company has more than 500 Stock Keeping Units making it the largest paper stationery brand in India.

• In 2009 the company entered into Digital Learning in 2009. eSense which is  installed in 2,200 institutions int the country.
• The company also forayed into preschool sectore with Brandname Leapbridge Education.They have 6 schools in Pune and Mumbai and i expect this to grow in coming years.

• Navneet also has entered into School Management Business by taking a minority stake in a School Management Company in Andhra Pradesh. Till noe  the company has  52 schools under the brands "Gowtham Model School" in Andhra Pradhesh & "Orchids - the International school" 6 in  Bengalooru (Karnataka) & 3 in Mumbai (Maharashtra).

• With strong Management and good diversification and a steady dividend paying company, i believe this company is in niche education sector which is going to boom in coming years.This is already evident in there Profit which is increase 3 times in last 3 years.

So we recommend a Buy on this stock with target of 200 Rs in 3 yrs time frame.

Trading Stocks recommendation on 10-Nov

Trading Stocks recommendation on 10-Nov

• LUPIN (LUPIN LIMITED) 
• FEDERALBNK (FEDERAL BANK LTD) 
• APOLLOTYRE (APOLLO TYRES LTD) 
• IBREALEST (INDIABULLS REAL EST. LTD) 
• ABIRLANUVO (ADITYA BIRLA NUVO LIMITED)

Our Recommendations on 7-oct earned Rs 89000 profit in just 1 month

• We have given a list of stocks to trade on 7 th Oct.Generally we exit in 1 week.But this time we see all these stocks continue strong.So we continue holding  it and exited on Friday after 1 month

Old Recommendation --> http://www.v4gain.in/2014/10/trading-stocks-for-week-07-october-2014.html

Following are the results.We made a super profit of 89000 Rs in 1 month

• Though Titan was strong in charts,the falling Gold prices affected the Stock.Rest all stock performed as expected 
• Hope our followers have benifted from our sratergy.

Are you buying your stocks at the right price?

Are you buying your stocks at the right price?

In the long run the stock price should reflect its fundamental true value. However in the short run a stock might have great fundamentals but still be moving in wrong direction. This can be due to other factors, such as news releases and changes in future outlook, which also have effect on the price. Trends in the market and investors emotions also effect the short-term fluctuation in stock prices resulting in the current market price deviating from its true value.

One question that is important to consider is: "What is the difference between a great business and a great investment?" -the answer is "price". If you pay too high price for even the best stock in the world, you will never make a good return on your investment. Therefore, a great investment does not likely have a high price. The point of this question is that the price you pay for a stock does matter enormously; it is the most important factor in your return. Accordingly, doing your fundamental analysis (thoroughly) is of a great importance when making your investments.

5 key factors to look for while investing in Stock market

5 key factors to look for while investing in Stock market

1. Earnings

The key element all investors look after is earnings. Before investing in a company you want to know how much the company is making in profits. Future earnings are a key factor as the future prospects of the company's business and potential growth opportunities are determinants of the stock price.

Factors determining earnings of the company are such as sales, costs, assets and liabilities. A simplified view of the earnings is earnings per share (EPS). This is a figure of the earnings which denotes the amount of earnings for each outstanding share.

 

2. Profit Margins

Amount of earnings do not tell the full story, increasing earnings are good but if the cost increases more than revenues then the profit margin is not improving. The profit margin measures how much the company keeps in earnings out of every dollar of their revenues. This measure is therefore very useful for comparing similar companies, within the same industry.

 

Higher profit margin indicates that the company has better control over its costs than its competitors. Profit margin is displayed in percentages and a 10 percent profit margin denotes that the company has a net income of 10 cents for each dollar of their revenues.

To get better understanding of profit margins it is good to compare two companies with alternative margins, see table below.

3. Return on Equity (ROE)

Return of equity (ROE) is a financial ratio that does not account for the stock price. Since it ignores the price entirely it is by many thought of as THE most important financial measure. It can basically be thought of as the parent ratio that always needs to be considered.

This ratio is a measure of how efficient a company is in generating its profits. It is a ratio of revenue and profits to owners' equity (shareholders are the owners). Specifically it is: 

 

An easy example of this is that if company A and company B both generate net profits of $1 Million but company A has equity of $10 Million but company B has equity of $100 Million. Their ROE would be 10% and 1% respectively meaning that company A is more efficient as it was able to produce the same amount of earnings with 10 times less equity. 

 

 

The reason for why this measure is so important is because it contains information about several factors, such as:

• Leverage (which is the debt of the company)

• Revenue, profits and margins

• Returning values to shareholders

Good approximation is that ROE should be 10-40% greater than its peer.

4. Price-to-Earnings (P/E)

When taking the current market price into consideration, the most popular ratio is the Price-to-Earnings (P/E) ratio. As the name suggest it is the current market price divided by its earnings per share (EPS). It is an easy way to get a quick look of a stock's value.

A high P/E indicates that the stock is priced relatively high to its earnings, and companies with higher P/E therefore seem more expensive. However, this measure, as well as other financial ratios, needs to be compared to similar companies within the same sector or to its own historical P/E. This is due to different characteristics in different sectors and changing markets conditions.

This ratio does not tell the full story since it does not account for growth. Normally, companies with high earnings growth are traded at higher P/E values than companies with more moderate growth rate. Accordingly, if the company is growing rapidly and is expected to maintain its growth in the future this current market price might not seem so expensive.  This is the reasoning for the existence of different investment styles; Value vs. Growth stocks.  

Example 

While some sectors normally have low P/E measures, other sectors commonly have higher ratios. For example, utilities commonly have P/E ranging from 5 to 10 while technology companies commonly have a P/E ratio ranging from 15 to 20 or above. This is due to expectations in the market about the sector and its earnings-growth possibilities. The utility sector has stable earnings and is not expected to grow rapidly while technology companies are expected to grow faster and tend to need less capital for its growth. 

In order to simplify, the following table illustrates four companies in two sectors  with alternative figures.

 

It is not very appropriate to compare Apple with GDF Suez as Apple has a growth rate of 11 times more than GDF. It is more appropriate to compare Apple with Google. In that relation, Apple seems cheaper than Google by the look of the P/E. Now you should ask why that could be? -is this bargain or are some other reason why Apple is priced lower than Google. One suggestion might be that the market expects Google to have more earnings-growth in the coming future and Apple's previous earnings growth is not expected to grow much further. 

 

In order to account for growth, the P/E ratio can be modified into the Price/Earnings to Growth (PEG) ratio. A PEG ratio is calculated by dividing the stock's P/E ratio by its expected 12 month growth rate. A common rule of thumb is that the growth rate ought to be roughly equal to the P/E ratio and thus the PEG ratio should be around 1. A relatively low PEG ratio indicates an undervalued stock and a PEG ratio much greater than 1 indicates an overvalued stock.

The PEG ratio can be very informative figure, especially for fast growing and cyclical companies. In this one ratio you get an understanding of the company's earnings, growth expectations and whether it is trading at a reasonable price relative to its fundamentals.

 

5. Price-to-Book (P/B)

A price-to-book (P/B) ratio is used to compare a stock's market value to its book value. It can be calculated as the current share price divided to the book value per share, according to previous financial statement. In a broader sense, it can also be calculated as the total market capitalization of the company divided by all the shareholders equity.

This ratio gives certain idea of whether you are paying too high price for the stock as it denotes what would be the residual value if the company went bankrupt today.

A higher P/B ratio than 1 denotes that the share price is higher than what the company's assed would be sold for. The difference indicates what investors think about the future growth potential of the company.

Fundamental Analysis of Stocks - India Focus

Fundamental Analysis of Stocks - India Focus

Fundamental analysis will gives better understanding and foundation on investment decisions. When determining whether a company's stock is a good investment, fundamental analysis is a great tool to reach a conclusion. 

• What is a Fundamental Analysis?

          A fundamental analysis is all about getting an understanding of a company, the health of its business and             its future prospects. It includes reading and analyzing annual reports and financial statements to get an               understanding of the company's comparative advantages, competitors and its market environment.

• Why use fundamental analysis?

          Fundamental analysis is built on the idea that the stock market may price a company wrong from time to             time. Profits can be made by finding underpriced stocks and waiting for the market to adjust the valuation           of the company. By analyzing the financial reports from companies you will get an understanding of the               value of different companies and understand the pricing in the stock market.

After analyzing these factors you have a better understanding of whether the price of the stock is undervalued or overvalued at the current market price. Fundamental analysis can also be performed on a sectors basis and in the economy as a whole.

• True value of a stock?

          For a fundamental analyst, the market price of a stock tends to move towards its 'intrinsic value', which is           the 'true value' of a company as calculated by its fundamentals. If the market value does not match the               true value of the company, there is an investment opportunity.

Example of this is that if the current market price of a stock is lower than the intrinsic price, the investor should purchase the stock because he expects the stock price to rise and move towards its true value. Alternatively, if the current market price is above the intrinsic price, the stock is considered overbought and the investor sells the stock because he knows that the stock price will fall and move closer to its intrinsic value. To determine the true price of the company's stock, the following factors need to be considered.

JVL Agro Industries Limited Multibagger 3 yrs timeframe Target of 100 Rs

JVL Agro Industries Limited Multibagger 3 yrs timeframe Target of 100 Rs

• This Young Company was started in 1990 and operates mainly in Vanaspathy oil was started by Mr. D. N. Jhunjhunwala who is also the Chairman of the company.They are today the single largerst producer of Vanaspati oil in the Country.

• The company has set many milestore on the way with first company in the industry to achive ISO 9001:2008 certfied.

• The company famous brand is "JHOOLA" which is used all through Noth  east and middle India.The company toady focus on various refined oils and more focus is given by the company on healthier oils such as Mustard oil.

• They have also built a 3 MW power plant which further reduce the power cost of the company.

• Our country which hugely depends on imports (60 % is imported) to meet is Oil demand of consumers.In this industry the company is taking various steps to encorage the local producers, on such step is increase of Oil import duty by 5% which the government is planning to take.This will hugely benefit the local players.

• Company is also diversifying its business and focusing on Food sector.Its building the indias largest food park in bhiar and we expect this ti boost the earning from end of 2015.

• Also the Mangement is taking various meassure to increase the profit which is currently at 1 % to 5% which they have setup as their goal.

• With good track record of the company and favorable growth environment, good risk management i see this company growing in to new high in coming year.So recommending this stock for 3 yrs time frame and target of 100 Rs.

  

SML ISUZU Multibagger another Eicher Motors in Making Target 5000 Rs in 5 yrs timeframe.

SML ISUZU Multibagger another Eicher Motors in Making Target 5000 Rs in 5 yrs time frame.

• This Commercial Vehicle company was started in 1985 and since than has been growing strong. Sumito Corporation Japan holds 44 % in the Company followerd by 15 % by ISUZU.

• The company has full in house body building and there Maza model are very famous.Till 2011 the company was called Swaraj Mazda and it got renamed as SMI Isuzu Limited.

• In 2009 Sumitomo increased its stake to 53 % and that when the company started expanding Rapidly after that.

• In 2012 they entered the Luxury bus segment and 10000 Kg Trucks.

• Its profit in recent years where affected because of mining ban and exconomic slow down.

• The company has strong presence in Commercial vehicle segment and penetrate new segments in coming years.

• Its almost a Zero debt company with good Cashflow.The EPS has dipped this year to 12 from 25 as they used the money to payoff the debts which is smart move.

• So in coming years the Comany will furthe expanion and growth will benefit the investors.

• The stock has goe from 300 to 800 in 6 months,but we still feel lot of value unlocking is still there and with strong support from Japanese promotes this comany will gor to 5000 Rs like eicher motors in longterm of 5 years. 

SONATA SOFTWARE - Multibagger Zero Debt Company with Profit doubled.Target 350 2 yrs timeframe.

SONATA SOFTWARE - Zero Debt Company with Profit doubled.Target 350 2 yrs timeframe.

• SONATA SOFTWARE is a Midcap IT stock which has now fallen in Radar of lot of Big Fund houses.This Stock is Part of Goldman Sacs CNX 500 Fund.
• Company is aglobal IT services company that focuses on enabling businesses win value with strategic IT initiatives.
• The focus on Product Engineering, Professional Consulting Services, Early Adopter Programs, Implementation and Alliances.
• Thier netsales has increased sone 20 % and company is expecting to keep this growth momentum going.
• There Cash reserve is 245 crores and we can expect hefty dividends in coming years.
• The have very low or nil debt and we expect the company to be debt free in coming years
• Also the company EPS has increasd from 3 to 7.4 Rs and we expect this to double in next 2yrs.
• With strong dollar and US economy booming, all IT stocks will have there next IT run.So we recomend to enter this good stock and see it reach 350 Rs in next few years. 

Vimal Oil Multibagger 400 Rs 3 Yrs timeframe Long term investment

Vimal Oil Multibagger 400 Rs 3 Yrs timeframe Long term investment

• Vimal Oil and Foods (VOFL) was started in 1993 with focus on edible oils.
• They raised from 50 tone refinery to fully automated refinery with tottal turnover of Rs 2000 Crores.
• They produce all tpe of oil like cottonseed oil, groundnut oil, mustard oil, Soyabean oil, Sunflower oil,Olive oil, Corn oil and table margarine.
• All packaging is done inhouse and this help the company save cost.
• Other products the company is involved are milk-Products, electrical, cable & wires, submersible pumps, paints and varnish, wall-floor, vitrified, porcelain tiles and micro- minerals
• The company is seated in good Oil belt which help it get easily the raw material needed.
• Sales and Profit has grown 3 folds in last 5 yrs and with strong managemnt team, we are confident that this company will continue reach new highs in coming days.
• With PE of of 16 and promotore holding close to 73 % shows the confidence the promoter has on the company
• One can invest with ta Targer of Rs 400 IN 3 yrs timefram

AVT Natural Products Ltd Multibagger 200 Rs 5 yrs timeframe Long term

AVT Natural Products Ltd Multibagger 200 Rs 5 yrs timeframe-Long term

• AVT Naturals Products Limited is part of AV Thomas Group who are well known in South india for their plantation business.
• In 35000 acres its producing  100,000 flowers.It also produces Nutraceutical products,Green tea,Marigold,paparikka,Capsicum,Black pepper and Feed grade Oleoresins.
• Marigold seeds is developed and provided to Farmers for growing.So Quality is maintained at source itself.
• The company has diversifed intot Food safe natural flavours and color production.This have given a huge global sucess for the company
• The company has Contracted 30,000 local farmers who are loyal to the company and shows that its not easy to reproduce the model.
• There plant in Cochin where the extraction is state of Art facility with ISO 9001-2000. HACCP, AIBI certifications and ability handle 55 tones per day.
• There international presence incude vendors for Kemin foods the owrlds largest produce of Lutien.
• Futures plans incude diversification in China which offers low cost of labor and good Climatic condition hence giving good growth in future.
• In past 5 years they have paid all their debt and the are now close to debt free and there sale have tripled in last 5 year profit increased 5 fold.
• With PE of just 14 and strong profit and zero debit will move the Share price to atleast 200 Rs in 5 yrs timefrae

Wires & Fabriks (S.A) Ltd Multibagger 3 yrs time frame 250 Rs Long term investment

Wires & Fabriks (S.A) Ltd Multibagger 3 yrs time frame 250 Rs Long term investment

• Wires & Fabriks (S.A) Ltd a niche company in manufacturing of wire fabrics for industries was started in 1963.

• The company is specailized in Forming Fabircs,Woven Sryer Screen,Spiral Dryer Screen,Pulp Fabrics,Stainless stell mesh,Phosporus broze mesh.

• The company has spent close to 13 million dollars to modernize the plant whihc help the company to enter into new areads like SSB Forming Fabrics

• The commpany was awarded the ISO 9002 in 1994 first in the country and later upgrade to 9001:2008.Its also the first Company to have inhouse R&D facility approved by govt.of india

• The company has technical collaboration with Albany International which help it develop world quality paper chemicals.

• The Profit after tax has increased close to 100 % yoy and total income has reached 100 Crores from 50 cores 5 years ago.

• Also the company gives 18 % yoy dividend which is good for investor.

• Overall we are very confident on the Management and Company and we expect the "Made in India" Story take this stock to new highs.

• So we suggest the investor to invest in this company with targert Price of 250 Rs in 3 Yrs timeframe.

Gillanders Arbuthnot & Company Ltd Multibagger 2 Yrs timeframe Trgt of 150 Rs

Gillanders Arbuthnot & Company Ltd Multibagger 2 Yrs time frame Trgt of 150 Rs

• Gillanders Arbuthnot & Company Ltd was founded by Mr Gillander and Mr Arbuthnot in early 1913.The Stocks then change hands and this Company became part of Kothari Group.Currentl Chariman of the Company is Mr A.K Kothari.

• The company has a very vast portfolio, especially tea,textile,engineering,chemical and trading.This diversification has helped company sustain and grown even during difficult times

• Among all the Group in the Company Tea business is the most successful business which is earning good returns for the Company.They do Bulk and Retail sales also.The company has 5860 achres under it belt.It is done in sales of Mayur Tea.

• The Engineer division has done lot of Turnkey project for Steel Companies, the Companies success is executing th project in Durgapur Steel Plant is giving new niche advantage in these kind of projects.They have a Factory of 19000 sqft from Kolkata.

• The Chemical industries is provides Lead Oxides and Stabilizers for PVC Industry.It has total Capacity of 17655 Metric tons.

• With sales increasing 20 to 30 percent, we the Company achieving good results and good profits in Company in coming years.The company has strong backing of Kothari groups and will get all the support it needed to grow.

Dolly Khanna Picks Stake in Mold Tek Packaging Multibagger Target 360 Rs 1 year timeframe

Dolly Khanna Picks Stake in Mold Tek Packaging Multibagger Target 360 Rs 1 year timeframe

• Dolly Khanna the Ace investor who has the nake of picking Stock which are Multibaggers with good returns.
• All her Previous picks are BlockBuster hits ,just like Salman Khan's Movies.
• Some of Noted Stocks are Hawkinks Cooker,Cera Sanitary,Avati Seeds. All are multibaggers.
• Now looks like she has found another Multibaggers Mold Tek Packaging.
• She has picked some 1 lac shares during the last quater probably in the 40 to 60 Rs range.
• The Stock has now zoomes close to 190 Rs and we expect this to go upto atleast 360 Rs in next 1 year.
• So get into and hold tight and enjoy the Dolly Khanna wave. 

Sabero Organics Gujarat Ltd Mulitbagger 400 Rs 2 yrs time frame Medium Term

Sabero Organics Gujarat Ltd Mulitbagger 400 Rs 2 yrs time frame Medium Term

• Sabero Organics Gujarat Ltd is a subsidary of Coramendal International and Murugappa Conglomerate was founded by Chuganee family in 1991.
• They are producing Fungicides, Herbicides, Insecticides & Specialty Chemicals which help in Crop protection.
• It has  manufaturing facility in Gujarat and there facility are ISO 9001 and ISO 14001 certified.
• All there products are produced inhouse with the help of strong scientist and large worforce.
• The company has susidaries in  Europe, Brazil, Argentina, Australia and Philippines.
• The companies profit increased to 3500 crores from 950 rores.This is 300 % growth year on year.
• The company is planning to amalgamte itself with parent,which will give strong precence in international market.
• Suggest buy this Stock with 2 yrs harizon so thata after amalgamation with Cromendal internation the stock will double in 2 yrs time frame

TCPL packaging Multibagger Target 500 in 2yrs Timeframe -Will boom in Made in India wave

TCPL packaging Multibagger Target 500 in 2yrs Timeframe -Will boom in Made in India wave

• TCPL earlier known as Twenty first century Printers was started in 1990.The company is promoted by Kanoria family.

• They are specialized in Printed folding Cartons and have 6 manufacturing in totaL.3 are in located in Silvasaa (Maharashtra) and 2 are located in Haridwar and other one in Goa.

• All there plants are top class quality Plants with ISO 9001: 2008, ISO 22000 : 2005 certified and are also compliant with BRC/IoP Global Standard-Packaging Issue 3, which is suitable for direct food contact. Also Silvassa and Haridwar are also FSC certified & SEDEX Compliant.

• They are also the largest exporter of printed Cartons with export to Countries like UK,UAE etc.This Exports contribute 22 % of there revenues annually.

• There products include Printed blanks & outers, Folding cartons, Litho Lamination, Plastic cartons, Blister paper, Shelf ready packaging.

• Some of the products which use TCPL packaging are Horlicks,Glousn D,Red lable Tea,Mcdowell Liquour,Dove,Colgate,Pepsodent,Foure Square Cigarates and many more.

• The have grown Conistently at 15 % in last 5 years.With Modi's Make in India kicking off, we see these manufacturing industries boom in coming year.

We are recommending this Stock with a Target of Rs 500 in 2 yrs timeframe .