BASANT AGRO MULTIBAGGER POTENTIAL STOCK D28M11Y2014

Basant Agro Tech was started as a joint initiative between the "Bhartia group" based in Akola, Maharashtra and Mr. C.L.Jhunjhunwala. Its business activities are mainly focused on fertilizers and seeds. For more info check, http://www.krishisanjivani.com             

The company is managed by the Bhartia family who are well versed and experienced in the field of agriculture with a track record exceeding 2 decades. Their brand name "Krishi Sanjivani" is well accepted by farmers and the company has established a robust distributor network.   

PRESENT DAY NUMBERS      
CMP on Day28 November2014: Rs 8          Market cap: 72 crores         BV: 10        FV: 1      
Revenue FY14: 313 cr (FY13 291 cr)        Net profit: 16 cr (FY12 10 cr)     EPS: 1.83 (FY13: 1.15)
Long term Debt: 50 cr approx (as per FY14 annual report)      

MULTIBAGGER POTENTIAL       
1. The seeds division contributes to approx 30% of the over all revenue and 40% of the net profit. The future scope is immense. 
2. This division is headed by Dr. B.G.Bathkal, ex-Chancellor of PDKV university, and he is a pioneer in this field with several achievements to his credit.  
3. The company has undertaken a major expansion in one of its SSP fertilizer unit to increase the capacity substantially; the result will show in the top line and bottom line over the next few quarters     
4. Agriculture accounts for approx 14% of the nation's GDP  and  11% of its exports   
5. About half of the population of India still relies on agriculture as its principle source of income.   
6  Agriculture is also a source of raw material for a large number of industries.     

IMPORTANT INFO         
1. Steady revenue growth over last 10 years    
REVENUES: FY2005 (46 cr); FY2007 (92 cr); FY2009 (128 cr); FY2011 (168 cr); FY2013 (291 cr)

2. Consistent profits over last 10 years  
NET PROFIT: FY2005 (1.2 cr); FY2007 (3.5 cr); FY2009 (5.4 cr); FY2011 (6.1 cr); FY2013 (10.4 cr)

MY TAKE       
Agriculture will continue to be closely aligned to the progress of India as a country, and economy, for at least the next 2 - 3 decades. If India has to grow and prosper, then utmost importance needs to be given to agriculture. Almost all the state governments and the central government recognize this fact. Good quality seeds and suitable fertilizers are of prime importance to this development and success.    

Basant has a well established, and positioned, fertilizer division and a fast growing seed division. The company is adequately equipped to play an integral part of the India growth story through its contribution towards the agriculture sector. Based on the tremendous future growth potential, the company is deeply undervalued at current levels.    

A robust potential multibagger!!


Disclosure: Basant Agro Tech is part of my core holdings.

WORKSHOP ON MULTIBAGGERS D01M11Y2014

Dear Investors, Friends and Fellow travelers!!

This is to inform that I have been conducting workshops with FOCUS on "multibaggers". These are one-day workshops.          

The objective of this workshop is to help a small investor(with some basic knowledge about stock market) to start with "few lakhs" and "make a few crores" in a time horizon of 6 - 8 years with a practical, sensible, disciplined and do-able approach.       

During this workshop, you will learn how to:

How to find a potential multibagger ?   
How to derive maximum benefit from a multibagger ?
How to avoid making mistakes with cheap stocks of poor quality companies ?
How can multibaggers be a game changer in your life ?   

Think about it....     

Do you want to learn "how to fish" for once in life??

Or would you want to waste time and energy, trying to search for means and options, where others should give you fish every single time and where by "you will forever be dependent on some one else"

Be independent. That is the only way you can make it BIG in the stock markets.

Best Regards!!

For further details, write to zorbayogi9@gmail.com

BRIGADE ENTERPRISES MULTIBAGGER POTENTIAL STOCK D19M10Y2014

Brigade Enterprises is a Bangalore-based real estate company with substantial interests in Residential, Commercial, Hospitality and Retail. Brigade Enterprises Ltd. operates through its subsidiaries like Brigade Hospitality services Ltd, WTC Trades & Projects Pvt Ltd, Orion Mall management company Ltd and others. For more info check, http://www.brigadegroup.com/     

Founded by Mr M.R.Jaishankar, Brigade was focused mainly on the Silicon valley of India, Bengaluru City, for almost a decade. They have subsequently ventured into other southern cities like Chennai, Mysore, Mangalore, Kochi, Chikmagalur and Hyderabad.   

PRESENT DAY NUMBERS       
CMP on Day19 Oct2014: Rs 130            Market cap: 1460 crores         BV: 113         FV: 10     
Cons Revenue FY14: 960 cr (FY13 834 cr)        PAT FY14: 120 cr (FY13 60 cr)       
EPS: 8.0 (FY13: 5.5)           

MULTIBAGGER POTENTIAL       
1. Promising future - Projects to be launched in the near future (City wise) are: Bangalore-Residential; Exotica-Tower(0.72 mn sft), Panorama(1.28 mn sft), Bangalore-office;  Signature(0.55 mn sft), Lakeshore(0.84), Bangalore-Retail; Golden Triangle(0.35 mn sft), Mysore-Residential; Mountain View(0.40 mn sft), Chennai-Residential; Metropolis(0.77 mn sqft).          
2. Robust present - Key on-going projects (City wise) are: Bangalore-Residential; Meadows(1.80 mn sft), Lakefront(1.88), Bangalore-office; IRV(0.37 mn sft), Magnum(0.53), Bangalore-Retail; Orion East(0.25 mn sft), Mangalore-Residential; Pinnacle(0.51 mn sft), Mysore-Retail; Vantage(0.13 mn sqft)       
3. Brigade Hospitality has tie-ups with Starwood(Sheraton), Intercontinental(Holiday Inn) and Accor(Mercure). Currently 2 of their hotels are operational and over the next 4 - 5 years, they will have at least 10 hotels in total.     
4. Brigade Retail owns the Orion Mall in Bengaluru which is a 5-storey mall with total area 102,192 sqm and has Shopping, F&B, Multiplex. At least another 2 - 3 malls of various sizes and features are currently under development/planning in various cities.       

INTERESTING INFO       
1. Brigade is the licensee of WTC Bangalore, a 92,900 sqm office tower with 32 levels in Bengaluru. Being a part of the World Trade Centers network, this property is of A++ specifications. Some of its prestigious clientiele include Amazon, Samsung, Tellabs, Siemans, etc     
2. Brigade signed a PE deal with GIC Singapore to develop a residential property on Whitefield main road in Bangalore. The land acquired is around 9 acres for a developable area of 1.5 million sqft.      
3. In June 2014, Brigade announced plans to invest around 750 CR to open upto 8 luxury hotels in South India in collaboration with international majors.   
4. Brigade owns 3 schools in Bangalore at JP Nagar, Malleswaram and Mahadevapura.       

MY TAKE         
When it comes to the listed real estate companies in India, the first names that come up are Unitech, DLF, Godrej, Indiabulls, etc. When it comes to Bangalore, people often think of Sobha, Prestiage, etc. Brigade is mostly ignored(which is great for a potential multibagger).         

Starting out as a local Bengaluru company that builds offices and apartments, Brigade has steadily, logically and aggressively transformed itself into a multi-dimensional company with expertise, and a strategic presence in various adjacent areas of the real estate world. This company has potential to become a massive and highly profitable business organization over the next 3 - 5 years; A dark horse in this sector.   

A high potential multibagger!!            

Disclosure: I own shares in Brigade Enterprises.  
Brigade Enterprises is the first real estate company that I own (mostly I stay away from this sector).    

You can contact me via zorbayogi9@gmail.com

EDELWEISS FINANCIAL MULTIBAGGER POTENTIAL STOCK D09M10Y2014

Edelweiss Financial Services is a leading conglomerate started from scratch by a group of professionals led by Mr. Rashesh Shah, an indian financial services industry veteran. Established in the earlier part of the last decade, the company was engaged in a single vertical, capital markets, until year 2007. For more info check, https://www.edelweissfin.com/    

Since the last few years, Edelweiss has strategically moved into multiple adjacent areas/verticals in the financial services industry. The company is into five different (and related) verticals: Credit(loans), Financial markets, Asset management, Life insurance and Commodities.    

PRESENT DAY NUMBERS   
CMP on Day09 Oct2014: Rs 48            Market cap: 3674 crores         BV: 36            FV: 1           
Revenue FY14: 2546 cr (FY13 2177 cr)                Net profit FY14: 220 cr (FY13 178 cr)   
EPS: 3.1 (FY13: 2.3)        

MULTIBAGGER POTENTIAL         
1. Consolidated revenues of Edelweiss grew by 17% during FY 2014 which is quite significant considering the difficult market conditions.
2. PAT grew by 23% in what can be regarded as one of the most challenging year in recent times.
3. Edelweiss is present in all the major indian cities with 216 offices, including 6 international locations.
4. Over 5 lakh clients are served by around 4000 employees of the company across both retail and wholesale services.
5. A share buy back announced earlier during this year indicates the confidence of the promoters in the future prospects of the company.   

INTERESTING INFO  
1. Edelweiss Tokio life insurance company registered a rise of 102% in gross premiums over previous year FY2013
2. Edelweiss was ranked first in IPO distribution during FY2014 in Retail and HNI categories
3. Over 100 indian corporates and around 500 institutional (both global and local) investors participated in the annual India conference organized by Edelweiss
4. NBFC subsidiary ECL finance Ltd had a successful maiden NCD public issue of 500 CR in January 2014
5. Company has been maintaining a healthy dividend payout of around 28%    

MY TAKE        
Starting with a single pillar, Edelweiss Financial today is standing on 5 pillars. The transformation from a single vertical to 5 verticals was done slowly, measured and with good planning, backed by excellent execution. The company has competent and proven top management, adequate and capable middle management, to take this organization to the next level.   

India, as an economy, will be one of the fastest growing in the world over the next 5 - 10 years. Whether this grows at 6, 7 or 8%; this will create a massive middle class (bigger than the population of few developed countries put together). This will create the need for a wide range of financial services. 
Edelweiss is well equipped to capture this opportunity and transform itself into a significant financial services powerhouse. This company has the ability to scale. This belongs to Warren Buffett philosophy: Great Quality business at a reasonable price.   

A fine potential multibagger!!   

Disclosure: I own shares in Edelweiss financial  

You can contact me via zorbayogi9@gmail.com

MULTIBAGGERS - WHAT ? (3) D29M09Y2014

Series 1 - Part 3       

In my last post, I have listed several (past) multibaggers from 2 time perspectives. "Few years" perspective and "Few months" perspective. 
The latest one year perspective does not happen very often. I call it a - mad "bull surge" rally. 
How ever there are chances of this happening a couple of times every decade. And if you are well positioned for such a phenomenon; the benefits in a very short period of time can be enormous.

SOME OBSERVATIONS ABOUT MAKING MULTIBAGGING PROFITS / GAINS  

A. Time     

By now it must be quite obvious that, one of the most important aspect to make multibagging profits is TIME. That time in definable terms is "few years". It could be 2, 3, 4 years. In rare cases you could get your rewards in a matter of few months. 
So the learning is, after you buy/add/accumulate a stock; you got to give it time to mature. Because time is such an important aspect, it is better to treat this as a "journey". If you get all the elements of the journey correct, every multibagger journey can be profitable.      

B. Selection       

Stock selection is a very important aspect. You have to get this correct (as this is the first step). Here the key word is "Quality"; it is very essential to buy a good quality company if you desire multibagging profits. 
My definition of a good quality company: A company with a good quality product / service, with a visible demand (requirement) of the service / product over the next 2, 4, 5 years; honest / trustworthy promoters, capable management, decent processes; adequate communication with investors, transparent and understandable financial reporting.  
A good website, a past track record, a consistent dividend policy, a good/reliable brand; would be nice to have.   

C. Price    

At what price you buy a stock is the most important determining factor, as to how well you will do with your multibagger. 
Thumb rule is simple: Buy the stock at as low price as possible. Ensure that the stock is truly undervalued. 
Remember, there is a difference in a stock being "just cheap" and "being undervalued"    

D. Appropriate Action       

"Buy low" and "Sell high" are the only 2 actions needed, after identification of a stock is done. These 2 simple actions will ensure that you profit from your stocks, again and again, and again. 

E. Conviction and Patience      

As time is an essential aspect of a multibagger journey, it is important that your conviction in the company behind the stock much be VERY HIGH.     
Market corrections from time to time and sometimes, even market crashes are a reality of the stock markets. During such time, panic sets in and people will be tempted to join the herd and sell their stocks.  
Conviction is what really helps people to "accept the pain" and ride through the rough waters without selling their stocks.     

Series 1 (Multibagger, What?) comes to an end now.   

Wish and Hope that more and more people learn how to make "multibagging profits" from potential multibaggers.  

All the best!!


Sign off note: 

Prime Minister Narendra Modi speech at the Madison Square gardens in New York yesterday, was easily the most inspiring speech by an indian leader of our times.

For the first time in my memory, I really felt that something good can happen to India. More than anything I felt that "I was at the right place at the right time"

If things work out even half as well as our PM has envisioned; indian stock markets will throw up several "rupee millionaires" and may be even a substantial number of "dollar millionaires". 

Wish you all a wonderful and multibagging journey in the years ahead. Cheers!!

MULTIBAGGERS - WHAT ? D21M09Y2014

Series 1 - Part 2 (previous post was Part 1)

Important Question: What is a multibagger ?    

A multibagger is a stock that has multiplied its investor's money. (this is PAST)  

More important Question: What is a potential multibagger ? 

A potential multibagger is a stock which can multiply your money. (in the FUTURE)  

In other words, it is a stock which can provide you with multifold profits/returns

If a stock gives you 100% profits (doubles your money) then it is a 2-bagger.
If a stock gives you 300% returns (quadruples your money) then it is a 4-bagger
If a stock gives you 700% returns, then it is a 8-bagger
If it gives you 900% profits, then it is 10-bagger

....we can go on.....     

Examples of recent (past) multibaggers: Over last 1 - 2 years        

 1. Granules India (Pharma): 95 rs (as 22Mar2013) and 929 rs (price as on 19Sep2014)
          Almost a 10-bagger (profit 900%): Time frame: 18 months (approx)  

2. JK Tyre (Tyres): 82 rs (as 28Aug2013) and 498 rs (price as on 19Sep2014)
          Almost a 6-bagger (profit 500%): Time frame: 12 months (approx)

3. eClerx (IT/BPO): 600 rs (as 25Mar2013) and 1440 rs (price as on 02Sep2014)
          Almost a 2-bagger (profit 120%): Time frame: 18 months (approx)

4. Gati (Logistics): 24 rs (as 01Oct2013) and 190 rs (price as on 12Sep2014)
          Almost a 8-bagger (profit 700%): Time frame: 12 months (approx)   

5. Himatsingka Seide (Textile): 30 rs (as 26Mar2013) and 100 rs (price as on 12Sep2014)
          Almost a 3-bagger (profit 200%): Time frame: 18 months (approx) 

6. RS Software (IT/software): 120 rs (as 16Aug2013) and 820 rs (price as on 18Sep2014)
          Almost a 6-bagger (profit 500%): Time frame: 12 months (approx) 

7. Gabriel India (Auto ancillary): 20 rs (as 24Jun2013) and 84 rs (price as on 12Sep2014)
          Almost a 4-bagger (profit 300%): Time frame: 15 months (approx)  

VERY IMPORTANT POINT:
Observe that this happened in the scenario of a massive bull run (hope rally) in the indian stock markets with a bullish backdrop of global stock markets driven by easy liquidity. This is a unique situation (just like this, every other situation in the market will be different).     


Phenomenal (past) multibaggers: Over last decade (adjusted for stock splits and bonuses)  

1. Shriram Transport (Finance): 25 rs (as 07Jul2004) and 1000 rs (price as on 13Jun2014)
          Almost a 40-bagger (profit 3900%): Time frame: 10 years (approx)      

2. Lupin (Pharma): 70 rs (as 09Mar2004) and 1400 rs (price as on 19Sep2014)
          Almost a 20-bagger (profit 1900%): Time frame: 10 years (approx)   

3. AVT Natural (Agro): 90 ps (as 24Jun2004) and 50 rs (price as on 19Sep2014)
          Almost a 50-bagger (profit 5000%): Time frame: 10 years (approx)    

4. Dabur India (FMCG): 10 rs (as 02Jul2004) and 200 rs (price as on 20Aug2014)
          Almost 20-bagger (profit 1900%): Time frame: 10 years (approx)    

5. Atul Auto (Auto): 30 rs (as 26Mar2013) and 100 rs (price as on 12Sep2014)
          Almost a 3-bagger (profit 200%): Time frame: 18 months (approx)    

IMPORTANT OBSERVATION:
Multibaggers are not sector dependent. Most of them are very high quality companies.   


MY (multibagger yogi) multibaggers (Prices at which I bought and sold - Approx)     

1. Marksans Pharma (Pharma): 12 rs (as 22Nov2013) and 48 rs (price as on 03Sep2014)
          Almost a 4-bagger (profit 300%): Time frame: 10 months (approx)    

2. Prakash Constrowell (Construction): 90 ps (as 15May2014) and 3.60 rs (price on 11Aug2014)        
          Almost a 4-bagger (profit 300%): Time frame: 14 months      

3. Trigyn Tech (IT/software): 21 rs (as 13Jan2014) and 52 rs (price as on 09Sep2014)
          Almost a 2/3-bagger (profit 150%): Time frame: 9 months (approx)   

4. Firstsource Solutions (IT/BPO): 20 rs (as 18Dec2013) and STILL HOLDING    


In this post, I have listed around 15 examples of past multibaggers. If you search enough, you will be able to find at least another 20 - 25 examples (of the past multibaggers) easily. 

Try and search for some. It will be a learning exercise as well as fun. Cheers!!

MULTIBAGGERS - WHAT, WHY and HOW ??? D18M09Y2014

Dear Friends, Fellow travelers, Investors and Traders!!

As demonstrated by my stock picks, my focus is potential multibaggers and I write about a company only if it has a reasonable chance, and high probability of its stock of becoming a multibagger, in the time frame of 2, 3, 4 years.   

Over the next few days, I will explain in detail, with examples, the meaning and importance of the single most important word in my investment life, M U L T I B A G G E R.

During this journey, we will find answers to some questions:  

What is a multibagger ?
What is the significance of a multibagger ?
Why is a multibagger important ?
How can multibaggers be a game changer in my life ?
How do we find a potential multibagger ?
How does a stock become a multibagger ?
How does one benefit to the maximum from a multibagger? etc etc    
(more questions welcome)

It can be seen from stock market success stories, that investment and extraction of maximum upside potential from a potential multibagger stock is what differentiates a normal investor from a super successful investor. 

Identification and traveling the distance with a stock that provides multibagging profits is what differentiates the best from the rest. 
 
As I go about writing on the topic of multibaggers, feel free to express your thoughts, and ask questions, queries, doubts and clarifications if any.


Keep learning!!  

Keep minting!!

DATAMATICS GLOBAL MULTIBAGGER POTENTIAL STOCK D20M08Y2014

Datamatics Global Services is a company founded by Dr. Lalit S. Kanodia, an indian IT industry pioneer with a Doctorate from MIT, USA. Datamatics helps large global companies in managing their end-to-end application life cycle and business processes. Their next generation solutions span Document management, Portal management, Publishing solutions, Data warehousing & analytics and several others. For more info check, http://www.datamatics.com  

Datamatics client footprint is spread across all four major continents, Americas, Asia, Europe and Australia. The company is a trusted partner to many Fortune 500 companies and help them power their business process automation by creating next generation solutions.

PRESENT DAY NUMBERS
CMP on Day20 Aug2014: Rs 58.40       Market cap: 350 crores         BV: 59            FV: 5           
Revenue FY14: 733 cr (FY13 550 cr)     Net profit FY14: 48 cr (FY13 26 cr)  EPS: 8.2 (FY13: 4.4)
Debt: 80 cr (on consolidated basis)       Current assets and cash balances: 160 cr (approx) 

BRIEF HISTORY 
Datamatics was one of the early companies in the indian IT industry. The company was founded in the year 1975. This was the first indian IT company to win "International Asia Pacific Quality Award" in the services category in the year 2007. Over the last 2 - 3 decades the company has won several awards and recognition in areas such as Quality, Corporate governance, HR, Job creation, etc 

MULTIBAGGER POTENTIAL 
1. Revenues of Datamatics grew by 24% in FY 2013; significantly higher than 10.2% growth of the overall industry
2. Remarkable achievement in the growth of the acquired company Cignex
3. Cignex revenues grew from 99 cr to 193 cr in the 2 years after acquisition
4. Datamatics has maintained an excellent and consistent profit growth during the last 4 years.
5. The company's reserves (excluding revaluation reserves) as per balance sheet increased from 268 cr in FY13 to 306 cr in FY14
6. Except for 2-3 years, the dividend payout ratio has been in the range of 40% over the last 10 years

INTERESTING INFO
1. Datamatics Global Services was voted as India's "Most respected software company in corporate governance" at the 5th Annual India leadership conclave & India affairs Business leadership awards.
2. The company has delivery centers in 7 cities; Ahmedabad, Mumbai, Nashik, Delhi, Bangalore, Chennai and Puducherry
3. The company has overseas subsidiaries in Germany, USA, UK, Australia, Switzerland, Mauritius and Singapore
4. The export revenue of the company is 86%
5. Prior to founding Datamatics in 1975, Dr. Kanodia was one of the persons instrumental in setting up TCS in 1967

MY TAKE   
From an investment perspective, Datamatics ticks all the boxes. It is a fine IT company; superb track record, consistently profit making, excellent promoter pedigree, financially stable, wide range of clients, management execution capability and more than anything; deeply deeply undervalued.

A million rupee question? Why on earth is this stock available so cheap? Market cap of 350 cr.
This is a question to which I have no answer. Mr Market has missed out on this one(thus far).

A company with 700+ cr annual revenue, 48 cr net profit, current assets worth 160 cr, dividend paying; solid, stable and robust in every which way. I am reasonably sure that this stock cannot continue to be ignored for ever. This is a great time to buy, hold and sit tight. Bright and profitable future ahead. For the company and its stock holders.

This belongs to Warren Buffett philosophy: Great Quality business at a reasonable (read, rock bottom cheap) price. An inevitable potential multibagger!!

Disclosure: I own shares in Datamatics

You can contact with me via zorbayogi9@gmail.com

AVT NATURAL MULTIBAGGER POTENTIAL STOCK D15M08Y2014

AVT Natural Products Ltd. is one of the finest, high quality, profitable, well managed and niche company based in Kerala. This is a 100% EOU. The various businesses of this agri company are Marigold Oleoresins, Spice Oleoresins & essential oils, value added beverages (mainly Decaffeinated tea). They have recently ventured into specific health suppliments (nutraceuticals). For more info check, http://www.avtnatural.com/     

The company belongs to the AV Thomas group which consists of business in diverse areas such as Plantations, Tea, Spices, Rubber, Leather, Food ingredients, biotech, etc. One of the group companies is AVT McCormick, a 50:50 joint venture between AVT and McCormick & Co Inc. of USA.    

PRESENT DAY NUMBERS     
CMP on Day15 Aug2014: Rs 43.25          Market cap: 650 crores          BV: 12          FV: 1           
Revenue FY14: 271 cr (FY13 255 cr)   Net profit FY14: 51 cr (FY13 50 cr)   EPS: 3.35 (FY13: 3.32)
Debt: ZERO      

BRIEF HISTORY   
AVT Natural was formed in 1986. It started with Marigold cultivation on 200 acres of land, and has since gone up to 35,000 acres producing 100,000 metric tonnes of flowers with the support of 30,000 loyal farmers. 

MULTIBAGGER POTENTIAL 
1. The company has delivered 3 consecutive years of PAT of 50 CR plus (this during when global conditions have been challenging)
2. The company is a "Zero Debt" company as on 31st March 2014 (they walked the talk of becoming a ZD company as stated in their AR 2 years back)
3. Compounded profit growth has been around 32% over the last 10 years and RoE has been around 35% during the same period
4. The company has been maintaining a healthy dividend payout of over 20% over the last 10 years (with the exception of a couple years)
5. For the first time in its history, they clocked a revenue of 90 CR in Q1FY14; it is not far when QR will be 100 cr plus stepping up the threshold
6. The company has diversified into health supplements under the brand name "Optim Health". The launch was done in few select cities just recently.
For more into check, http://www.optimhealth.in/       

INTERESTING INFO
1. AVT Natural featured in the Forbes list of 200 best companies under a billion dollar revenue in the asia pacific region (in the year 2012)
2. The contract farming model followed by AVT is regarded as one of the best. Their endeavor is to ensure "Quality at source"
3. They have been audited and certified for Quality by BUREAU VERITAS in accordance with ISO 9001:2008 
4. AVT has a win-win relationship with the farmers maximizing net returns to the farmers and ensuring quality produce for the company at optimum price.  

MY TAKE  
AVT Natural is already a proven SUPER MULTI BAGGER. From a stock price of 40 paisa in the year 2002 (adjusted for splits and bonuses) to a life time high of 50 rupees in the year 2015; this has multiplied investor wealth by approximately 110 times in a matter of 12 to 13 years.    
Even if we were to split the stock performance into 2 separate time periods; this stock has been a multibagger twice. 40 ps in year 2002 to 8 rs in 2008 (a 20-bagger); and 4 rs in 2009 to 40 rs in 2014 (a 10-bagger).   

Now the million rupee question is "Will it became a multibagger yet again ?". I do believe it has all the potential and capability to become a multibagger yet again from the 40 - 45 levels. Tremendous strength in the existing product portfolio, uniqueness of the business model, proven management capability, and diversification into new but associated business areas; should ensure that the financial and business performance and growth should continue into the foreseeable future. At a PE of around 12 and PB of around 4 this could still become a wise investment idea.

A strong and robust potential multibagger!!  

Disclosure: I own shares in AVT Natural (and intend to accumulate more on dips)

MOREPEN LABORATORIES MULTIBAGGER POTENTIAL STOCK D12M08Y2014

Morepen Laboratories is a 25 year old company. The company's business comprises of Formulations (over 100 branded formulations in 8 major therapeutic segments), API (API's and intermediates for both regulated and non-regulated markets), Diagnostics (blood banking machines, clinical and home health devices) and OTC; some of the OTC brands include Burnol, Lemolate, Sat-isabgol, Head-X, Fever-X and others.   

The company has 3 manufacturing facilities with international standings for API, Formulations and OTC. They are located in the foothills of Himalayas in the state of Himachal pradesh. For more info check, http://www.morepen.com          

PRESENT DAY NUMBERS  
CMP on Day12 Aug2014: Rs 5          Market cap: 205 crores          BV: 4.5            FV: 2           
Revenue FY14: 352 cr (FY12 318 cr)      Net profit(loss): FY14 (2.7 cr) [FY12 (20.5 cr)]
Debt: 85 cr (approx) 

BRIEF HISTORY  
Morepen started in 1985 as a pure API (active pharmaceutical ingredient) business. They then moved up the value chain to complex multi-stage synthesis and further progressed into high value molecules. The company built world class manufacturing facilities and got them approved in accordance with USFDA standards in the year 1999. 

MULTIBAGGER POTENTIAL  
1. After continuous Q-o-Q losses, for the first time since 12 quarters the company has made a quarterly net profit of approx 1 crore in Q1 FY15
2. Debts have reduced consistently from high of around 800 crores (in 2006) to less than 100 crore currently.
3. From a low of 115 cr annual revenue in FY 2006; the revenues have steadily increased to 352 cr in FY 2014   

INTERESTING INFO   
1. Morepen facilities/plants are situated in one of the most scenic, beautiful and serene surroundings on the foothills of Himalayas
2. Loratadine has been a major source for the API business. Other contributors are Montelukast, Atorvastatin, Sultamicillin, etc
3. In OTC product catrgory, 'Dr Morepen' is a well established and positioned brand. The range of products are Isabgol, C-Sip, Burnol, Lemolate, etc  

MY TAKE  
Morepen laboratories is a major turn-around story. This company got a fresh lease of life; courtesy CDR in the year 2006. The company was one of the early entrants into the pharma business. Despite having a good business plan, good set of products, early establishment of various brands; the company lost its way some time around the years of 2002-04. Everything that could go wrong, went wrong for them. The situation of the company went from bad to worse to dire.The stock price collapsed from a high of 1200 rs (FV 10) and went downhill for almost a decade to a low of 2 rs (FV 2).     

Then the turnaround started. The company went for a CDR. The Debt Restructuring Scheme was approved by the CDR cell in June 2006. Since the CDR commencement and progress in the year 2007; the company has painstakingly undertaken several steps in the right direction. In a slow and steady journey, the recovery and revival of the company appears to be taking place in a sustained manner. The worst seems to be over. The future looks to be bright and vibrant for the company. It has all the ingredients and traits to make a successful and profitable pharma company.   

Hence a potential multibagger!!      

Disclosure: I own shares in Morepen labs (and will continue to add/accumulate more)

THEMIS MEDICARE MULTIBAGGER POTENTIAL STOCK D06M08Y2014

Themis Medicare is a distinct pharma company promoted by Mr Shantibhai Patel, a pioneer in the Indian pharmaceuticals business. Gedeon Richter, a Hungarian pharma company with over a 100 years of history, owns a meaningful stake in the company. 

The company has 4 state-of-the-art manufacturing facilities at Vapi(Gujarat), Haridwar(Uttaranchal) and Hyderabad. They have a nationwide network of around 2000 stockists and field force of around 500. Company currently has presence in around 40 countries; and is looking to expand that.  For more info check, http://www.themismedicare.com/    

PRESENT DAY NUMBERS  
CMP on Day06 Aug2014: Rs 120            Market cap: 102 crores          BV: 68          FV: 10           
Revenue FY13: 173 cr (FY12 157 cr)      Net profit(loss): (4.7 cr) [FY12 (32.4 cr)]
Debt: 90 cr 

BRIEF HISTORY 
Originally established as Themis chemicals, in joint partnership with Gedeon Richter, Hungary. This company holds the distinction of becoming the 2nd company in the world and the 1st in India to produce Vitamin B12 by non-sterile fermentation. This also became the 2nd company in the world (and 1st in India) to produce Ethambutol Dihydrochloride.    

MULTIBAGGER POTENTIAL   
1. Increase of 50% in Formulations(higher margins) sales over last year (FY 2013)
2. Focus on anti malarial, Anesthesia, pain management and other research based products
3. Long term partnership signed with Novartis India for exclusive marketing rights of certain innovative products
4. Tie up with Beta healthcare on the international front
5. From loss making previous quarters; there is a profit of 1.2 cr during the current quarter(FY 2015 Q1); Turnaround clearly visible and evident    

INTERESTING INFO   
1. Break through development of Diclofenac injection using patented technology (in the year 2013)
2. Introduction of oil free Emal (alpha beta artheether injection) in ampoules and PFS (pre-filled syringes)
3. THEMISALTM, a unique gel for stopping bleeding enters European market (in 2006)
4. Themis develops and introduces SEPGARDTM; a unique wound healing agent for the first time in India (in 2002)    

MY TAKE    
Themis medicare is an innovator company in true spirits. The last couple of years had been very tough for the company. Poor financial performance coupled with quarterly losses impacted the share price badly and it touched a low of 40 rs this year. How ever the worst seems to be over. The management took some concrete steps in the last few quarters and a turn-around is around the corner. This would be a good time to accumulate this stock.   

Market cap of 100 cr for this innovator company with an enviable track record (in innovation) is downright cheap. Deeply undervalued; so to say. Even a conservative estimate of 500 CR market cap is not too unrealistic or ambitious. It is just a matter of time and a few good quarters. 

A strong potential multibagger!!      

Disclosure: I own 1500 shares in Themis Medicare (and intend to add more)

TEXMO PIPES MULTIBAGGER POTENTIAL STOCK D06M07Y2014

Texmo Pipes and Products is a leading player in the pipes and fittings industry. It manufactures and markets PVC pipes and fittings, SWR pipes and fittings, CPVC pipes and fittings, Molded fittings, Plumbing pipes and fittings, Casing pipes for tubewells and other agricultural fittings. For more info check, http://www.texmopipe.com/ 

PRESENT DAY NUMBERS  
CMP on Day06 July2014: Rs 18.75        Market cap: 45 crores        BV: 51        FV: 10           
Revenue FY13: 205 cr (FY12 176 cr)    Net profit: 1.2 cr (FY12 4.1 cr)  EPS: 0.5 (FY12: 1.7)
Debt: 46 cr   

BRIEF HISTORY   
Texmo pipes and products was incorporated as a public limited company in the year 2008; by conversion of Shree Mohit industries and Shree Balaji industries. The company has its manufacturing plants and head office in Burhanpur, M.P.   

MULTIBAGGER POTENTIAL  
1. The production of CPVC pipes and products commenced on June 19; Texmo is one of the few manufacturers in this product category and hence may benefit with higher margins  
2. The pipe production capacity has increased by 200 MT per month and fittings by 50 MT. This will aid in revenue growth and increased market share.  
3. As per the interview with the MD of the company by CNBC; the company hopes to execute orders of around 140 cr during FY15.   
4. Texmo bagged an order of around 60 crore from Power Grid corporation earlier this year. And another order from BSNL.     

INTERESTING INFO    

1. Texmo came with its IPO in the year 2010; at a price of 90 rs. Currently in 2014 it is available at 18 rs (a huge discount; almost like a wind up sale) 
2. During the same time its production capacity has more than doubled (plus a new plant for manufacturing of CPVC products; which are niche) 
3. Currently they are present only in 8-10 Indian states. (and intend to become a pan India company); So tremendous headroom for growth. 
4. In the last 3 months; the promoters have bought over 5 lakhs shares in the open market. VERY IMPORTANT POINT    

MY TAKE   

Texmo pipes mainly supplies to the sectors of agriculture, power, building and construction, telecommunication and infra structure. The new government will give special impetus to almost all the sectors mentioned and hence Texmo could be a potential beneficiary and hence is poised for rapid growth and profitability over the next 2 - 5 years. At current valuations, this stock is deeply undervalued.   

This is a very young company with all the right ingredients for growth; Investing in this would be like investing a small sapling. And if the right environment, necessary support(water/manure), protection is provided; this can grow up to be a strong and profitable tree.

A high potential multibagger!!

Disclosure: Texmo pipe and products is part of my core holdings. I own 9000 shares (and intend to add more)

PATEL LOGISTICS MULTIBAGGER POTENTIAL STOCK D06M07Y2014

Patel Integrated Logistics is a logistics services provider that offers a complete range of solutions. Its business activities include Surface transport, Door pick-up and door delivery, On-board couriers, Domestic cargo consolidation, International freight forwarding, international courier consolidation and Warehousing. For more info check, http://patel-india.com/ OR http://www.pill-india.com/

PRESENT DAY NUMBERS
CMP on Day06 July2014: Rs 30.80      Market cap: 47 crores      BV: 60       FV: 10           
Revenue FY13: 509 cr (FY12 452 cr)   Net profit: 2.4 cr (FY12 2.6 cr)  EPS: 1.5 (FY12: 1.7)
Debt: 40 cr

BRIEF HISTORY
Set up as a 1-truck activity in 1959, Patel roadways grew into one of the largest road transportation company in Asia which further transformed into a single-stop logistics services provider. The company has over 75,000 satisfied customers and is known for its reliable service.

MULTIBAGGER POTENTIAL
Scope of growth in various divisions of the business:
1. PATEL ROADWAYS: This division is a direct beneficiary of the rising domestic consumption; which needs last-mile connectivity to tier-2 and 3 cities
2. PATEL RETAIL: Express cargo industry in India is growing at a phenomenal rate of 35% and thanks to e-commerce will continue to do so.
3. WAREHOUSING: The company has about 1.5 lac sq ft in Chennai which is will expand to 5 lac sq ft for the automotive sector.

INTERESTING INFO
1. Early this year, recognizing the potential of the logistics industry, act investor Radhakishan Damani picked up stake in Gati; and the stock have moved 400 - 500% upwards since then.
2. Patel logistics is a formidable company in the same sector which is right there amongst the best in the industry.

MY TAKE
Logistics, as a business is closely aligned with India's growth as a country. The GDP/economic slowdown of the last few years had a direct impact on the company and therefore it struggled. How ever, the very same factor; will now act as a great driver and lever for this company to experience rapid growth along with the growth of the country over the next 2 - 5 years. This belongs to the Buffett philosophy category of "Great business at a reasonable price". In fact, this is very cheaply available; read, deeply undervalued.

A robust potential multibagger!!

Disclosure: Patel Integrated Logistics is part of my core holdings. I own 4000 shares (and intend to add more)

INDIABULLS POWER MULTIBAGGER POTENTIAL STOCK D04M05Y2014

Indiabulls power is one of the youngest power producing company in India. The company is currently developing thermal power projects with an aggregate capacity of 5400 MW. Both the current projects are in Maharashtra, Amravati and Nashik. For more info check, http://www.indiabulls.com/power/default.htm

Started in the year 2007, Indiabulls power belongs to the Indiabulls group which also run successful business in the areas of Housing finance, Real estate and Stock broking. This group is renowned for making regular and liberal dividend payouts which also indicates that all their business are operating profitably.

PRESENT DAY NUMBERS
CMP on Day04 May2014: Rs 7.90            Market cap: 2085 crores         BV: 20.5         FV: 10 

Revenue Q3FY14: 91 cr                 Revenue Q2FY14: 102 cr
Both projects being implemented by the company are greenfield projects (started from scratch). Since the inception of the company, there have been no revenues. The last 2 quarters (Q2 and Q3 FY2014) are the first time they are having operational revenues.

MULTIBAGGER POTENTIAL

1. Phase 1 (2700 MW) construction almost complete. Various units will go towards commission in both Amravati and Nashik over the next few quarters.  
2. Land, water and coal clearances all in place for entire 5400 MW generation capacity
3. Annual run rate of around 40 billion units will be achieved by the completion of Phase 1
4. Tariff for 1200 MW tied up with long term PPA with Maharashtra SEB at rs 3.26 / unit
5. Full financial closure achieved for total capex for development of entire capacity of 5400 MW
6. Assuming 1 rupee per unit as margin, cash generation for average 25 billion units per year would be around 3600 crore.

INTERESTING INFO: Recent dividend payouts of Indiabulls group company's

1. Indiabulls HF   (FV: 2 rs):     450% (Apr14),     350% (Jan14),     350% (Oct13),     300% (Jul13)    
2. IB securities     (FV: 2 rs):    50% (Apr14),     50% (Feb14),     50% (Oct13),     50% (Aug13),                                                                                 50% (May13),     50% (Jan13)         
3. IB Real estate     (FV: 2 rs):     50% (Apr14),     50% (Oct13),     50% (Aug13),     100% (May13) 
Looking at the track record of dividend payout of the various group companies, it is highly probable that even Indiabulls power could become a regular and rich dividend paying company. At the current CMP range of 7 - 9 rs; the future dividend payout could be very rewarding.

MY TAKE
India is one of the most power deficit countries in the world. Looking at the demography of India and the overall growth prospects of the country, the demand for power will be immense and will grow for at least the next one decade. Despite this reality, the power sector has been plagued by problems since last 2 - 4 years. Everything that could have gone wrong, has went wrong. Coal problems, discom problems, gas problems, governance issues, etc etc. The worst seems to be over. Speed in the sector reforms and decision making over the last few months will continue for the next 1 - 2 years.  

Given this backdrop, Indiabulls power is well placed to grow its revenues and profitability over the next 4 - 8 quarters. The stock is available at a throwaway price. A 5400 MW power producer at around 2000 crores; a steal. The future can only be better. This is almost like a small plant which has the right prospects and environment to grow up to become a large tree.   

A strong potential multibagger and future dividend story!!

Disclosure: I first bought Indiabulls Power around 14 months ago, and have been consistently adding to my holding since then.

YBRANT DIGITAL MULTIBAGGER POTENTIAL STOCK D30M03Y2014

Ybrant Digital is a digital media marketing company with offices in over 20 countries. The potential market for this business is global. Ybrant is one of a kind company on the indian stock market. The digital channels on which advertising and marketing solutions are offered are Display, Social, Mobile, Video and Search. For more info check, http://www.ybrantdigital.com
The future prospects and growth of this company is directly related to the increased usage of the internet and its enhanced influence across the world. Increased adaptation of smart phones and mobile applications has a positive impact and directly benefits the company.

PRESENT DAY NUMBERS
CMP on Day30 Mar2014: Rs 15.96             Market cap: 760 crores              BV: 21            FV: 2
Debt: Net debt 160 cr including working capital of 100 cr (as on Dec 2013)

(From audited consolidated financial results FY2013)
Revenue: 1601 cr (FY12 1263 cr)    Net profit: 51 cr (FY12 191 cr)    EPS: 1.07 (EPS FY12: 4.03)
(From unaudited consolidated financial results Q3FY2013)
Revenue Q3FY14: 462 cr (Q3FY12 423 cr)        Net profit: 66 cr (Q3FY12 60 cr)      EPS: 1.39

BRIEF HISTORY
The company was originally incorporated in June 2000 as Ybrant Technologies Inc. Name changed to 'Ybrant Digital' in May 2008. The company then had a reverse merger with LGS Global Ltd, a BSE listed company in an all-stock transaction and thereby established its presence in the indian stock market in the year 2012.

MULTIBAGGER POTENTIAL

Strategic acquisitions:
1. Ybrant Digital acquires Serbia based email marketing platform 'Volo MP' and US based 'Medios One' in the year 2006
2. Acquires US based online ad network company 'Ad Dynamix' for USD 10 million and Israel based 'Oridian' for USD 13 million in 2007
3. Further acquires Argentina company 'Dream Ad' and Australian company 'Max Interactive' in all cash deals in 2009. Max Interactive is strong in Asia Pacific.
4. Acquires US based Lycos Inc for USD 36 million in the year 2010, resulting in a wholly owned subsidiary. Lycos, headquartered in Massachusetts US, is a prominent internet brand with diverse businesses such as Gamesville.com, Tripod.com, HotBot.com and Angelfire.com
5. Acquires minority stake in Israel based 'Web 3.0'in April 2011
6. The company acquires PriceGrabber, LowerMyBills and ClassesUSA.com owned by UK based Experian for USD 175 million in the year 2012

MY TAKE
Digital revolution is here to stay. Internet, Search, Social media, Web portals, games and web applications will find increased usage all across the world. Increased adaptation and multitude of apps will keep smart phone and mobile phone usage on the growth path. All these will compel the corporations and companies across the world to advertise on the internet and mobile networks. The wallet share for advertising and marketing revenue by the new media will continue to increase in the coming years.
Due to the multitude of acquisitions over the last few years, and a foothold in diverse and significant space of Digital marketing and advertising; Ybrant Digital is well positioned to grow its revenues across multiple geographies and thereby increase its margins and profitability.

A high potential multibagger!!

Disclosure: Ybrant Digital is a part of my core holdings (and I intend to add more)

PRAKASH CONSTROWELL MULTIBAGGER POTENTIAL STOCK D20M03Y2014

Prakash Constrowell is a construction and contracting company. Its focus areas are buildings, infra structure and real estate. The company is based in Nashik, Maharashtra. They undertake both private and government projects. For more info check, http://www.prakashconstro.com/

PRESENT DAY NUMBERS
CMP on Day20 Mar2014: Rs 0.95 (95 paisa)    Market cap: 12 crores          BV: 8          FV: 1   
Debt: 25 cr (approx)
Consol revenue FY13: 226 cr             Net profit: 5.6 cr             EPS: 0.45
Consol revenue FY12: 184 cr            Net profit: 6.3 cr             EPS: 0.60

BRIEF HISTORY 
Originally established as 'Prakash Builders' in year 1978. Incorporation of 'Prakash Constrowell Pvt Ltd' in 1996. Conversion into public limited company, named as 'Prakash Constrowell Ltd' in 2010. IPO in the year 2011 with listing in NSE and BSE. 

MULTIBAGGER POTENTIAL
Inflection points:
1. Receives order to build a bridge across Godavari river at Nashik in year 1996
2. Company achieves turnover of 10 crore in year 2000
3. Awarded first infrastructure construction project on BOOT basis at Yevatmal, Maharashtra in 2002
4. Initiated a real estate project involving construction of 3 towers consisting of 36 flats in 2007
5. Company achieves turnover of 100 crore in year 2009
Company future outlook:
1. Company has a significant track record with several successful projects over the years; and a decent order pipeline.
2. Well placed and experienced to benefit from the infrastructure opportunities over the next few years.

INTERESTING INFO
1. Prakash Constrowell won the 62 cr contract to build and indoor stadium and multipurpose sports hall at Goa for Lusofonia games.
2. The company has initiated 2 real estate projects. One in Nashik and one in Pune. The positive impact of these is yet to unravel.

MY TAKE
A paisa stock. Deeply undervalued. Badly battered. Share price collapsed from 24 rs in Feb 2013 to 50 paisa (0.5 rs) in Feb 2014. This belongs to the Buffett philosophy category of "Buy when others are fearful, Sell when others are greedy". 

A fantastic potential multibagger!!
I have no hesitation in calling this stock as the "king of paisa stock" (in year 2014)

Disclosure: Prakash Constrowell is part of my core holdings (and I intend to add more)

FIRSTSOURCE SOLUTIONS MULTIBAGGER POTENTIAL STOCK D28M02Y2014

Firstsource Solutions is a leading BPO company. Its focus areas are healthcare, telecommunications, Media, Banking and financial services. The company has over 100 clients, across various geographies. These include 21 Fortune500 and 9 FTSE100 companies. For more info check, http://www.firstsource.com

PRESENT DAY NUMBERS
CMP on Day28 Feb2014: Rs 28.25            Market cap: 1822 crores              BV: 26            FV: 10
Consol revenue FY13: 2818 cr (FY12 2255 cr)                   Net profit: 146 cr (FY12 62 cr)                                                                                                                   EPS: 2.82 (FY12: 1.44)
Cons revenue 9MFY14: 2320 cr            NP 9MFY14: 143 cr                       EPS: 2.04 (9MFY14)
Debt: 756 cr (long term)                      Cash on books: 149 cr

BRIEF HISTORY
Originally established in 2001 as 'ICICI infotech' by ICICI bank. Change of name to 'ICICI Onesource' in 2002. Name changed again, to 'Firstsource solutions Ltd' in 2006. Listed on indian stock exchange in the year 2007.

MULTIBAGGER POTENTIAL

Company on a growth track:
1. Consistent growth in revenues during last 8 quarters, despite a subdued global environment.
                    Cons revenue Q3 FY2014: 799 cr [Q3 FY2013: 719 cr, Q3 FY2012: 581 cr]   
2. Consistent improvement in business performance over last 8 quarters, thereby improving profitability.
                    Net profit Q3 FY2014: 48 cr [Q3 FY2013: 41 cr, Q3 FY2012: 7 cr]
Inflection points:
1. Rajesh Subramaniam re-joins the company as deputy MD and CFO in July 2011, and is further elevated to MD and CEO in April 2012
2. Sanjeev Goenka acquires 49.5% in Firstsource, and becomes its new owner in October 2012; and as part of the deal structuring, the company pays off the FCCB bond holders.

INTERESTING INFO
1. In his earlier stint, Rajesh Subramaniam had been the CFO of Firstsource from November 2002 to June 2008.
2. Ace investor Rakesh Jhunjhunwala, buys 2.5 cr shares(around 5%) in Firstsource, in July 2013.

MY TAKE
Though Firstsource is technically a midcap stock (<1850 cr market cap); the reality is a little different. It is a large company that employs around 30,000 people, operates 47 delivery locations across 5 countries(India, US, UK, Philippines and Sri Lanka), manages approx 90% repeat business from existing clients , with annual revenues of over 3000 cr. Ideal combination of an astute promoter and an experienced and competent management team. This belongs to the Buffett philosophy category of "Great business at a reasonable price".
 
A robust potential multibagger!!

Disclosure: Firstsource solutions is part of my core holdings (and I intend to add more)
    

ONMOBILE GLOBAL MULTIBAGGER POTENTIAL STOCK D16M02Y2014

Onmobile Global is an MVAS(mobile value addedd services) company based in Bangalore. Renowned for its hugely successful RBT(ring back tones); the company now offers 5 product categories; Music, Expression, Entertainment, Cloud and Life impacting services. For more info check, http://www.onmobile.com/

Mobile VAS is broadly defined as all those products and services offered by a cellular/mobile operator other than voice(ability to speak) and SMS(ability to text). VAS includes ring tones, music, gaming, entertainment, mobile browsing, and further extends to m-commerce, m-education and a gamut of areas.

PRESENT DAY NUMBERS
CMP on Day16 Feb2014: Rs 32         Market cap: 366 crores            BV: 79            FV: 10
Debt: 130 cr                                  Net worth: 722 cr (excl goodwill)      Cash on books: 212 cr

BRIEF HISTORY
The company was originally incubated within Infosys, later spun off, and incorporated in California in the year 2000.  Acquired Voxmobili, a French data products company in 2007. First indian mobile VAS company to go public in the price band of 425 - 450. Listed in Feb 2008; opens at issue price of 440. Acquired Telisma S.A., a French speech recognition company in 2008. Acquired the leading 3G video technology and mobile solutions developed by Silicon valley based Dilithium networks Inc in 2010. Acquired Livewire Mobile; a music, ringtone and infotainment company in 2013; thereby expanding its services to leading operators in North America.

MULTIBAGGER POTENTIAL

Potential of MVAS:
There are numerous reports about the potential of MVAS in India and across geographies. Some also mention business potential. Most of these numbers are humongous. I have deliberately not included data from those reports. How ever, voice and SMS are just parts of the mobile telephony business. We have all witnessed how majestic the growth has been in that space. As MVAS includes a much wider gamut of products and services, one only needs to wait and watch as to how large this opportunity could become.
Onmobile Global is well positioned to make the most of this opportunity. It has all the basics in place. After the recent turbulence, the company has emerged with a more robust foundation. So, has the potential to capitalize on this opportunity.

Revenue diversification over last 4 years:
Annual revenue, and mix in Q2 FY2010: 106 cr [India 79 cr, International 27 cr]    
Revenue, and mix in Q2 FY2014: 225 cr [India 50 cr, Latam 55 cr, Dev mkts 80 cr, Emrg mkts 38]
                    (Except India, all geographies are growing since last 8 quarters.
                                           International business share at 76% in Q2FY14)

Current global representation:
In the year 2009, the company had presence/offices in Australia, Bangladesh, France, Indonesia, Malaysia, Singapore, Nepal, South Africa and Romania.
In 2013, Onmobile has added the following countries: Netherlands, USA, Mexico, Argentina, Venezuela, Brasil, Egypt, Uruguay, Senegal, Mali, Kenya, Malawi, Costa Rica, Spain, Tanzania, Zambia, Uganda, Madagascar, Rwanda, Nigeria, Ghana, Sierra Leone, Canada, Italy, Spain, Cyprus, Guatemala, Chile, Panama, Nicaragua, El Salvador, Peru.

The increase in the international spread of geography during last 4 years, in conjunction with the increase in annual revenues, and change in the revenue mix speaks volumes about the future potential of this company.

IMPORTANT INFO
1. Sanjay Bhambri, the current Chief commercial officer, re-joined the company as Regional VP, Emerging markets. In his earlier stint with Onmobile, he was VP, APAC and MEA.
2. Onmobile has inducted 2 new independent directors into the board within the last 1 year. Both people with impecabble credentials who earlier held positions of repute in their respective countries. Mr R Chandrashekhar, who was Chairman, Telecom commission and Secretary, DoT. Ambassador (Ret.) Barry White, who was US ambassador to Norway.

MY TAKE
The last 3 years have been terrible for the company. Corporate governance issues, unfavorable regulations by the Indian telecom authority, declines in India revenue, dubious actions by ex-CEO, senior management resignations, telecom scams in India. Everything that could have gone wrong went wrong. The once poster-boy of indian mobile VAS became its whipping-boy. Share price collapsed from a high of 340 rs in July 2009 to a low of 19 rs in Aug 2013.

As the oracle of Omaha says,
                            "Buy when others are fearful, and Sell when others are greedy"

In the last 6 quarters, the company has systematically grown the business across multiple geographies; Latin America, Africa, North America, Europe (while holding their fort in India). They have further set right systems and processes, strengthened the corporate governance, brought back some of the erstwhile stars, strengthened their top management, organized their service offerings and pain stakingly brought the company back on rails.  

With the foundation in place, fully energized by the revamp and re-organization, Onmobile Global is equipped and well placed to become a top global MVAS company. Further the recent corporate action, whereby the promoters have come up with an open offer at 40 rs, to increase their stake from 32% to 42% is a testimony of their confidence in the future prospects of the company.

A strong potential multibagger!!

Disclosure: I own shares in Onmobile Global (and intend to add more)

MARKSANS PHARMA MULTIBAGGER POTENTIAL STOCK D09M02Y2014

Marksans pharma is a promising company with presence across multiple countries in various geographies. Manufacturing facilities are at Goa, India and Southport, UK. Focus areas include Oncology, Gastroenterology, Antidiabetic, Antibiotics, Cardiovascular, Pain Management, Gynaecology. For more info check, http://www.marksanspharma.com

The company has 3 overseas subsidiaries; Bell, Sons & Co (in UK), Nova pharma Australasia (in Australia) and Relonchem Lts (in UK).

PRESENT DAY NUMBERS
CMP on Day9 Feb2014: Rs 17.50                    Market cap: 674 crores                       FV: 1
Cons revenue FY13: 438 cr (FY12 355 cr)         Net profit: 45 cr [FY12 (17) cr]             EPS: 1.19
Cons revenue 9MFY14: 471 cr                         NP 9MFY14: 62 cr                 9MFY14 EPS: 1.59
Debt: 85 cr

BRIEF HISTORY

Originally incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals. Later spun off into a separate entity, Glenmark Laboratories Ltd. Name changed to “Marksans Pharma Ltd” in 2005. The company has world class manufacturing facilities for API and Formulations, approved by US FDA, UK MHRA, Australia TGA and Brazilian ANVISA health authorities.

Subsequently the company underwent a series of mishaps and challenges, like bad takeover/mergers, default of FCCB/loans, declining revenues, business downslide, etc; resulting in completely eroding the net worth. The company had to register to BIFR under sick companies Act. The stock market had written off the company and the share prices languished for years.

MULTIBAGGER POTENTIAL

Turnaround details and Inflection points:
1. The company allotted 17,500,000 equity shares to the chief promoter, Mr. Mark Saldanha, thereby increasing the equity share capital in December 2012
2. Marksans entered into a settlement agreement with the holders of FCCB for settling USD 26 million worth in principal value in March 2013
3. De-registered from the purview of SICA and no longer in BIFR as per hearing held in July 2013
4. Turned profitable with consolidated net profits of 45 cr in FY2013

Company on a growth track:
1. Consistent business and financial performance since last 6 quarters
2. Cons revenue Q3FY14 is 168 cr vs 114 cr in Q3FY13 (growth of around 47%) 
3. Cons NP Q3FY14 is 22 cr vs 8 cr in Q3FY13 (improvement of around 175%)
4. The company has one of the biggest manufacturing facility in India having USFDA approval for softgel products.  Products based on soft gelatine are high in demand

INTERESTING INFO
1. Mr. Mark Saldanha, promoter and MD of Marksans, is the brother of Mr Glenn Saldanha, the chairman & MD of Glenmark pharmaceuticals
2. Between January and April 2013, Mark purchased the company stock from open markets and increased his stake to 51.25%

MY TAKE
Marksans is a fantastic turnaround story. Promoter with excellent credentials, competent top management, good mix of products and representation in various geographies. Company also focused on drugs going off patent between 2013 and 2018. Has capability to leverage such opportunities. Deeply undervalued and beaten down stock. A strong potential multibagger. 

Disclosure: Marksans pharma is a part of my core holdings

                                    

TRIGYN TECH MULTIBAGGER POTENTIAL STOCK D02M02Y2014

Trigyn Technologies is a 1000 people IT company with offices in USA (Washington DC, New Jersey, Massachusetts), Germany and Switzerland. Development centers in Mumbai and Bangalore. Focused on IT Staffing, Solutions, Systems Integration, Software Development and Maintenance, and other services. For more info check, http://www.trigyn.com

PRESENT DAY NUMBERS
CMP on Day2 Feb2014: Rs 22.55             Market cap: 66 crores             BV: 34                FV: 10
Cons revenue FY13: 351 cr (FY12 279 cr)       Net profit FY13: 15 cr (FY12 10 cr)         EPS: 5.33
Cons revenue H1FY14: 215 cr                        NP H1FY14: 15 cr                      EPS H1FY14: 5.2
Debt: Zero                                              Cash on books: 7.5 cr

BRIEF HISTORY
Originally incorporated in 1986 as "Leading Edge Systems Ltd". IPO in year 1995 at Rs 50 per share. Bonus issue of 1:1 in year 1998. Name changed to "Trigyn Technologies Ltd" in year 2000.

MULTIBAGGER POTENTIAL
Approx P/E: 2.5
Approx Cons revenue FY14: 400 cr              Approx NP FY14: 30 cr               Approx EPS: 10

Company on a growth track:
1. Consistent business performance (check company website for assignments bagged in 2013)
2. Consistent growth in financials for last 20 quarters
                        (FY08 cons revenues 119 cr, NP 7 cr; FY13 cons revenues 348 cr, NP 15 cr)
3. Achieves 150% increase in net profit on consolidated basis for Q ended June 30, year 2013
4. Recruiting technical staff aggressively in 2013 and 2014 (check the various job sites)

Inflection (turning) points:
1. Mr Homiyar Panday designated as President of US operations in May 2003
2. United Telecoms acquires the company in July 2006
3. Mr R Ganapathi appointed as Chairman and Executive director in April 2012
4. Extension of UN contract in August 2013

INTERESTING INFO
1. Some time in the year 2000, the share price of Trigyn was Rs.3000
2. Stock price of the company 6.50 in APR2013 and 26 in JAN2014
                        (already a multibagger(4-bagger) stock for people who bought in April 2013)

MY TAKE

Trigyn is a turnaround story on a stable footing. Experienced promoters, competent management, consistent performance and steady growth. Mostly ignored, deeply undervalued,  under researched company with robust fundamentals. US and Europe recovery, weak currency, IT sector bullishness are positives for the company. A strong potential multibagger. 

Disclosure: Trigyn tech is part of my core holdings (and I intend to add more)