Gammon infra POTENTIAL MULTIBAGGER STOCK D12M02Y2018

Gammon infrastructure projects is a pan-India infrastructure development company with a diverse portfolio of assets across ports, road and power. The company has technical and operational experience of around two decades in the infrastructure sector. 
For more info check, http://www.gammoninfra.com/   

NUMBERS - THE LATEST 
Market cap: 315 crores              CMP on Day12 Feb2018: Rs 3.30                     BV: 6.9
Revenue 1HFY18: 57 cr (standalone)      Net profit 1HFY18: 3.8 cr approx      FV: 2 

POSITIVES 
1. After several years of extremely challenging situation, the company has won a new project. There are sufficient indications that the worst is over for the company.
2. Gammon infra divested its stake in 6 projects to Brookfield, and pared down signifiant part of its debt with a 70% reduction in its interest flow.
3. There has also been a financial and organizational re-structuring of the group with a change in the  ownership of the company
4. On the balance sheet of HYFY2018 investments in subsidiaries is worth 1287 crores and long term borrowings is around 30 crores. 

INTERESTING INFO
1. RGBL (Rajahmundry Godaveri Bridge Limited) is one of the operational assets of the company. The project cost is 1071 crores.
2. ICTPL (Indira container terminal private limited) is the flagship project of the ports division. Here the project cost is 1233 crores. During the year, ICTPL achieved a record handling of 6312 vehicles in a single vessel.
3. In VSPL (Vizag Seaport private limited) the company handled 63,24,345 tonnes of cargo in FY2017. Company made a PAT of around 4.5 crores here.
4. Gammon infra shares made a life time low at 2.66 in Oct 2017.

NEGATIVES - POSSIBLE RISKS   
1. Loss making projects are a cause for concern (because of which share price has been battered)
2. Overall infra space has been out of favour since the last few years which had a direct effect on the share price of the company.         

MY TAKE 
Gammon infra is a penny stock. The last 5 years have been extremely challenging for the company almost on the brink of questioning its potential to survive. The management has taken several steps to streamline the company and position it for future growth. Infrastructure is an area of focus for the Modi government, with a massive spending outlay. Gammon is well positioned to bag some projects. Recent win is evidence of that. 

The cumulative project cost of the company's infrastructure assets is around 7500 crores. Most of these are monoply projects, with revenue concession periods of around 30 years. The market cap of the company is 300 crores. So for an astute and patient investor, the opportunity is obvious. To make the most of this, it requires tremendous conviction and huge patience.  

Gammon infra is a potential multibagger!!      


Disclosure: I own shares in Gammon infra.       


For commercial collaboration, consultation and JV ideas;
                                                   you can contact me via zorbayogi9@gmail.com


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. 

Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.     

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

Aspinwall and Company POTENTIAL MULTIBAGGER STOCK D04M02Y2018

Aspinwall is in the business of coffee, logistics and plantations. Headquartered in Goa, this company has a phenomenal history spanning over a century.  
For more info check, http://www.aspinwall.in   

NUMBERS - THE LATEST   
Market cap: 347 crores                 CMP on Day3 Feb2018: Rs 444                    BV: 170
Revenue FY17: 244 cr                  Net profit FY17: 7.5 cr approx                   FV: 10   

POSITIVES    
1. Logistics division of the company is doing very well. So is the coffee division with some global price volatility
2. For entire FY17 the company made net profit of 7.5 cr whereas in first 9 months of FY2018 they did a NP of around 14 CR
3. Aspinwall is steadily increasing its investment is almost all its divisions. On the other hand, they are also reducing their debts.
4. All the divisions of Aspinwall have a bright future.  

INTERESTING INFO      1. This company was founded by a British businessman called as Aspinwall. So this is a pre-independence company
2. The current promoters of the company belong to a royal family of Kerala.
3. The company exports a substantial portion of its coffee. They also own a brand
4. Ace investor Porinju Veliyath has been an early investor in this company, through his PMS.  

NEGATIVES - POSSIBLE RISKS         
1. Global commodity price fluctuations could impact the company.
2. As Aspinwall in listed only on NSE its visibility could be muted.  

MY TAKE   
Aspinwall & Company is a wonderful investment opportunity. As this company got listed only in 2016 and that too only in NSE, very few people know about this company. This can be truly called as a hidden gem.   

This is a high quality company, with a phenomenal history and track record. Stable and prominent promoters and sound management makes this company an obvious choice both from a medium as well as a long term perspective.  

Aspinwall is an high potential multibagger!!


Disclosure: I own shares in Aspinwall.


For commercial collaboration, consultation and JV ideas;
                                                  you can contact me via zorbayogi9@gmail.com    


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.       

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

Aurionpro Solutions POTENTIAL MULTIBAGGER STOCK D03M02Y2018

Founded in 1997 Aurionpro solutions is a IT (software) products company. This company has 24 offices in 14 countries. While its North American headquarters is located in San Ramon, California; its global headquarters is located in Mumbai.
For more info check, http://www.aurionpro.com/

NUMBERS - THE LATEST
Market cap: 459 crores                  CMP on Day2 Feb2018: Rs 194                      BV: 281
Revenue FY17: 638 cr                     Net profit FY17: 43 cr approx                    FV: 10

POSITIVES
1. The transformation of the company is evident in the results of the last 2 quarters, where it has managed a operating profit margin of around 17%
2. The company has over 1300 employees and around 29 Fortune 500 customers.
3. Aurionpro sold its global Access Management business to KPMG for around 200 crores.
4. For half year FY2018 the company EBITDA grew by 43% and net profit grew by 76% and the story of transformation has just begun.

INTERESTING INFO 
1. Aurionpro which recently sold one of its division to KPMG at approx 200 crores is available at a market cap of around 450 crores.
2. It will be really interesting to see how this 200 CR will be utilized. Common sense and logic tells me a portion would go for retiring debt, one portion to invest in growth areas, one portion as reserves and one portion as a substantial dividend. We need to watch this space.
3. Aurionpro is participated in Money2020 to be held in Las Vegas in Oct 2017
4. Company is winning new orders from diverse set of customers from various geographies. Details can be found in their website

NEGATIVES - POSSIBLE RISKS     
1. Any global political or economic shock could impact the share price of this company.
2. As the promoter holding is relatively low for this small cap, this stock could be highly volatile.

MY TAKE
Aurionpro solutions is a company that has undergone a structural transformation. Over a period of 4 years, the management has methodically transformed this company from a software services company to almost a software products company. The positive consequences of this transformation will play out over the next 1 - 3 years.

The focus areas of the company are Enterprise security and Digital innovation. Both these are high growth areas that offer tremendous potential. Apart from this the company is also into various banking, logistics and government solutions. Looking at the future scope and trajectory of this company, it is deeply undervalued, and all set to make higher highs over the coming months and years.  

Aurionpro is an obvious potential multibagger!!


Disclosure: I own shares in Aurionpro.        


For commercial collaboration, consultation and JV ideas;
                                                   you can contact me via zorbayogi9@gmail.com  


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict.
Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.       

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

Lahoti Overseas POTENTIAL MULTIBAGGER STOCK D15M05Y2017

Lahoti overseas is primarily in the business of yarns. They export a wide variety of yarns like cotton, flex, melange, linen, special, blended and synthetic. This 25 year old company exports to multiple countries. They have under their control over 100,000 spindles and 100 airjet looms to produces high quality yarns.  
For more info check, http://www.lahotioverseas.com/    

NUMBERS - THE LATEST   
Market cap: 76 crores                CMP on Day15 May2017: Rs 27                 BV: 35
Revenue FY16: 460 cr                   Net profit FY16: 3 crore approx                FV: 2     

POSITIVES 
1. Lahoti overseas has been a dividend paying company since last 10 - 15 years. With improved product line, new markets and increased suppliers, the company could continue to do well in the near and medium future.
2. For FY2016, the company did a topline of 460 crores and bottom line of 3 cr. However for FY2017 with a top line of around 500 sr, the net profit could be in the range of 7 to 8 crore. For a company with such fine numbers, long term debt stands only at 7.41 crore.
3. Company has their own offices strategically located in Mumbai, Dhaka and Coimbatore. They also have associate offices in Egypt, China and Portugal.
4. Apart from yarns, Lahoti is also into fabrics, raw cotton and organic textile products. 

INTERESTING INFO  
1. Over the years, the company has built good relationship with overseas customers, and exports to various countries like Hong Kong, Malaysia, Japan, South Korea, Vietnam, and some countries in Gulf, Mediterranean and the Americas.
2. Since 1997 the company has consistently won awards and trophies from TEXPROCIL for their prodcut quality and export performance.
3. The company has strong operating cash flows with almost 47 crores accounted by operating activities in 2015 - 2016
4. Promters are very astute and honest. Assets owned by the company are transparently evident in the annual report. Company owns 2 flats in Mumbai and one in Pune, and also its own offices. Apart from that, the company holds equity shares in Some blue chips like Emami, TCS, Cadila, LG Balkrishna, Reliance, Zydus wellness and others. Added to all this, it also has investments in debt mutual funds with BNP Paribas, HDFC corporate debt and others.  

NEGATIVES - POSSIBLE RISKS 
1. Simultaneous slowdown in multiple geographies at the same time  

MY TAKE 
Lahoti overseas is a well run and well managed company. Their business model of an asset light approach, is working well and evident from the strong cash flows. With focus on high quality of products and customer relationship, the company is going from strength to strength.

The promoters have been financially very prudent. The market value of their real estate and financial assets could almost cover up to 70 - 80% of the company's current market cap. In other words, the share holder is getting his shares free. This is a case of having your cake and eating it too. In addition to that, the regular dividend payout. Icing on the cake :-)

This stock has all the attributes of a potential multibagger, with almost no negatives. From current levels, the stock could head much higher over the near and medium term. The only thing needed for an investor is the patience.  

Lahoti is a potential multibagger!! 


Disclosure: I own shares in Lahoti overseas.  


For commercial collaboration, consultation and JV ideas;
                                            you can contact me via zorbayogi9@gmail.com 


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.  

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.

Mahalaxmi Rubtech POTENTIAL MULTIBAGGER STOCK D22M04Y2017

Mahalaxmi Rubtech is in the business of technical textiles and synthetic, coated and printed fabrics. This Ahmedabad based company has manufacturing capacity to produce printing blankets of upto 426 feet in length and 3700 mm in width.     
For more info check, http://www.mrtglobal.com/  

NUMBERS - THE LATEST   
Market cap: 61 crores                 CMP on Day22 Apr2017: Rs 61                  BV: 53
Revenue FY16: 168 cr                  Net profit FY16: 3 crore approx                 FV: 10    

POSITIVES    
 1. Revenues of Mahalaxmi increased from 144 to 168 crores y-o-y. Further, the profit increased from 2.91 to 3.08 cr. 
2. Promoters strengthened their stake from 55.99% to 57.08% between 2015 and 2016. They further increased their stake by alloting 11,50,000 shares to the promoter and promoter group upon conversion of warrants at 45 rs.  
3. In the last FY the company earned foreign revenues to the tune of 20 crores. With strong focus, the exports could grow quite well in the future.
4. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.  

INTERESTING INFO   
1. During last year, the promoters consolidated equity shares such that 10 existing shares of FV 1 rupee were consolidated into 1 share of 10 rs.
2. Some of the specialized and niche products of the company are offset printing blankets, rubber coated fabrics, hydraulic seals and air cells.
3. Last year the company participated in 'touch the future' held in Germany during May - June
4. Check out the website and product range to see the diversity of end use of the company products.

NEGATIVES - POSSIBLE RISKS  
1. Simultaneous slowdown in both domestic and global markets.
2. Increase in cost of raw materials   

MY TAKE   
Between the years 2007 and 2011 Mahalaxmi had a glorious time with revenues increasing from 10 to 128 crores and profits from 1 cr to 6 crores. The share price had a phenomenal rise from 15 rs in 2009 to 250+ in 2010. However 2012 to 2015 has been very challenging for the company with almost flat revenues and profits.   

With increased involvement of the younger generation of the promoter family, increased product range, increased export growth and enhanced profits, the company is positioned to do well over the next few years.

Mahalaxmi Rubtech is a potential multibagger!!  


Disclosure: I own shares in Mahalaxmi  


For commercial collaboration, consultation and JV ideas;
                                                   you can contact me via zorbayogi9@gmail.com   


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.   

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.

Samrat Pharmachem POTENTIAL MULTIBAGGER STOCK D30M03Y2017

Samrat Pharmachem is in the business of iodine derivatives. Started in 1992, Samrat is a highly specialized company, that exports to various countries across the world along with having a strong foothold in the domestic market.      
For more info check, http://www.samratpharmachem.com/    

NUMBERS - THE LATEST    
Market cap: 24 crores                  CMP on Day30 Mar2017: Rs 75                BV: 49
Revenue FY16: 61 cr                    Net profit FY16: 0.3 crore approx              FV: 10    

POSITIVES    
1. Revenues have been around 20 crores per quarter consistently over the last 3 quarters along with improving profit margins.  
2. Company made a net profit of 30 lakhs in entire year last year. This year nine-month profit is almost 1.5 crores. 
3. Samrat manufactures iodine salts and bromine salts. The company has one of the widest range of iodine derivatives. 
4. The products of Samrat is used in a wide range of industries. Pharma, Chemical, Animal feed, Printing, Textile and others. 

INTERESTING INFO    
1. During last year the company increased export revenue from 8.5 cr to 11.7 cr.
2. Long term debt of company is only 1.5 cr and company has cash-on-hand of around 3.5 cr and current investments of 2 cr  
3. The company was recognized as one of the Top 500 small and mid manufacturing companies in India.
4. Samrat has committed to participate in CPHI, an industry event, to be held in Frankfurt during October 2017. A step in the right direction to improve customer base, and hence revenues.  

NEGATIVES - POSSIBLE RISKS  
1. Any global event impacting the margins of the company.

MY TAKE  
Samrat is a nano-cap company with market cap around 25 crore. However it is a high quality company with specialized products, hence forming a niche. Improved profit margins and export revenue indicates management steps is in the right direction. Doubling from current levels is quite probable. 

However with increased capacity utilization, revenue growth and enhanced profits, the stock could head much higher over the medium term.

Samrat is a potential multibagger!!   


Disclosure: I own shares in Samrat Pharmachem  


For commercial collaboration, consultation and JV ideas;
                                                   you can contact me via zorbayogi9@gmail.com     


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.    


Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.

Suzlon Energy POTENTIAL MULTIBAGGER STOCK D11M02Y2017

Suzlon energy is a pioneer and leader in the business of renewable energy solutions. They have 3 main divisions, Wind, Solar and Forging. Suzlon has presence in around 19 countries across 6 continents. Key markets for the company are India, Brazil, China and North America.  
For more info check, http://www.suzlon.com/    

NUMBERS - THE LATEST  
Market cap: 8640 crores                      CMP on Day11 Feb2017: Rs 17       
Revenue FY16: 9562 crores                   Net profit FY16: 483 cr                       FV: 2 

POSITIVES     
1. For Suzlon energy the year 2015 - 2016 was a year of turnaround. The company could manage a net profit of 483 crores. This was done on the back of 1130 MW worth of sales volume, a 149% increase over the previous year.  
2. The company has two back-2-back successful quarters with good margins, further manifesting the turnaround. For 2 consecutive quarters, gross margins are in the range of 44 - 46% 
3. Consolidated net debt was brought down from 14,570 crores to 8,452 crores. 
4. Modi government has an ambitious target of 5000 MW per year for wind energy. Suzlon with its 14 manufacturing facilities in India and a presence in all 9 windy states is well placed to make the most of this opportunity.  
5. Credit rating by CARE upgraded from BBB- to BBB for domestic operations, and a provisional rating of A- for international operations.    

THE TURNAROUND 
1. In Q3FY2017 Suzlon grew its revenue 76% y-o-y to 3,307 crores. Net profit grew by 350% y-o-y at 304 crores. 
2. New order intake for this quarter was 557 MW with total order book at 1,231 MW
3. Consolidated net debt stood at 6,538 crores. excluding FCCB.
4. Company achieved a milestone of 10,000 MW in India. The entire wind asset is under the Suzlon fold for servicing and maintenance.
5. Two new rotor blade factories was commissioned in Andhra Pradesh and Rajasthan. 

INTERESTING INFO 
1. In the year 2015 Dilip Shanghvi, India's 2nd richest man, and promoter of Sun Pharma, picked up 23% stake in Suzlon for an investment of 1800 crores.
2. Suzlon energy strengthened its top management with two important senior hires, JP Chalasani as CEO and Rakesh Sarin as CEO of international operations.
3. Already a leader in the wind energy space, Suzlon entered into the solar space. As solar energy compliments wind energy, the company is now well positioned as a multi-dimensional solutions provider. Suzlon can now offer wind-solar hybrid solutions.
4. Company crosses 2 GW milestone installation in Maharashtra and Tamil Nadu.
5. Suzlon aims to be the company of choice for renewable energy by 2020. 

NEGATIVES - POSSIBLE RISKS     
1. There are still some loose ends in terms of the turnaround, like resolution of FCCB bonds, restructuring of debt and gaining market confidence .
2. If wind stops blowing or sun stops shining, in India and other countries of the world, that could be a major risk for Suzlon :-)  

MY TAKE 
Suzlon energy is a humongous turnaround story. Few years back when I took a look at this company, it looked like a gone-case. Most market observers had written off this company. From that situation to today, it is a phenomenal story. Full credit to Tulsi Tanti and Team Suzlon.    

Fossil fuel and conventional energy has ruined the planet over the last 100 years. It is high time the world moves towards renewable energy. The indications are clear, and the direction is set. This area is all set to grow over the next 10 - 20 years. Suzlon is in the right place at the right time. 

If my memory serves me right, Charlie Munger once said that turn-arounds rarely turn around. Looking at the indian stock market we can find atleast 100 companies that look like they are turning around. But that is not the case. Though rare, turn arounds do happen. 

Turn-around companies offer a unique opportunity to make a fortune. We can make massive profit, provided we have selected the right company, and timed our entry into the stock. Currently Suzlon is in such a zone. 

Suzlon energy is a massive potential multibagger!!  


Disclosure: I own shares in Suzlon.  


For commercial collaboration, consultation and JV ideas;
                                                you can contact me via zorbayogi9@gmail.com   


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW. 

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.