SPICEJET MULTIBAGGER POTENTIAL STOCK D15M10Y2015

Spicejet is a low cost airline. It was originally founded by Ajay Singh and Bhupendra Kansagra in 2005. A south based group took over the airlines in 2010. After the company ran into rough weathers in 2014, it was once again acquired by Ajay Singh.
For more info check, http://www.spicejet.com/

NUMBERS - THE LATEST        
Market cap: 2354 crores            CMP on Day25 June2015: Rs 38.50             BV: Negative
Revenue FY14: 6304 cr               Net profit FY14: (1000 cr)loss                    FV: 10           

POSITIVES - TURNAROUND FACTS       
1. From a net loss of 124 crores in Q1FY14 the company made a net profit of 71 CR in Q1FY15. In all probability Q2 profit should surpass 100 cr.  
2. Lower crude oil prices has played a wonderful role in this turnaround. In operating expenses, cost of aircraft fuel was 773 crores in Q1FY14 and it is 358 crores in Q1FY15. In all probability the cost of global crude prices will remain subdued for some time. Spicejet is a direct beneficiary.  
3. Since last 5 months, load factor for Spicejet has been in excess of 90% which is a fantastic indication of the customer confidence   
4. From the time of ownership change, debt has come down from 2200 crores to 1100 crores.

INTERESTING INFO - SPICEJET IN THE RIGHT DIRECTION      
1. SpiceJet plans direct flights to Dubai from Amritsar and Kozhikode(Calicut), starting November 15, 2015 for an introductory fare of 4999 rs.  
2. The airlines adds 6 new aircrafts and offers 291 daily flights, 10 new sectors, 30 increased frequencies and 22 via connections
3. Spicejet become the first airline to perform a civilian night landing at Port Blair in Andaman
4. The airlines announced its first red-eye flights(late night flights) on the Delhi - Bangalore route commencing from November 2015.        

NEGATIVES - POSSIBLE RISKS  
1. The turn around is still a work-in-progress. Though it is heading in the right direction with substantial tail winds from the environment, there are always unknown risks which could surface.  
2. Airlines in general are risky business. Even from a global perspective they have been wealth destroyers. So investors cannot afford to be complacent. You need to be vigilant and book profit at the right time. Probably even well before time.

MY TAKE
Spicejet is an amazing turn-around. It is still work-in-progress.  

This company had come to a stand still in December 2014. It had hit a rock bottom in terms of operations and finances. When Ajay Singh acquired the company in Feb 2015, the company was in deep mess.

Full credit to the business acumen of Ajay Singh, and his experience in the aviation business, which is not only complex, but also dependent on multiple external factors. In 6 months he has steered this airlines in the right direction.   

Today this company is available at a market cap of around 2000 crores.  

Indigo the leader in low cost airlines is coming with its IPO this month end. With a market share of around 35%, it could have a valuation of anywhere between 20,000 - 25,000 crores.  

Spicejet has a market share of around 15%. Now how much will the market value Spicejet at ?

4000, 6000, 8000 crores ? It is anybody's guess :-)           

A strong potential multibagger!!    


Disclosure: I own shares in Spicejet.


For consultation(commercial) 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 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 analysis and make your own decisions.

COUNTRY CLUB MULTIBAGGER POTENTIAL STOCK D15M08Y2015

Country Club Hospitality and Holidays(CCHH) is in the business of Holiday packages-both national and international, Events and parties, Clubs and resorts and Fitness centers. Established in 1989, the company owns over 50 hospitality properties India, Middle East, Thailand and Sri Lanka. Venturing into fitness vertical recently, it has 25 exclusive member fitness centers.   
For more info check,
http://www.countryclubindia.net/
http://blog.countryclubindia.net/
http://events.countryclubindia.net/          

NUMBERS - THE LATEST
Market cap: 180 crores            CMP on Day15 Aug2015: Rs 11.00        BV: 60 rs.(approx)   
Revenue FY14: 495 cr              Net profit FY14: 17 cr                              FV: 2          

POSITIVES - MULTIBAGGER POTENTIAL
1. Country Club has resorts spread across India. They target the new middle class, the aspiration class. Their packages are mostly targeted at families, and that too young families across large indian cities. Their potential target customers are the fastest growing segment in the indian middle class in terms of consumption.
2. Most of their properties were acquired before 8 - 10 years, and due to the massive urbanization, what was once outskirts, is not well within city limits, and hence their clubs and resorts are easily reachable and approachable.
3. Founded by Mr. Rajeev Reddy who established the first level of growth, the company is now led by his children, Siddharth Reddy as the CEO and US-based Varun Reddy as the COO.
4. The marketing team of the CCHH is very dynamic and their marketing strategies are quite aggressive, and it comes as no surprise that they have over 4 lakh members.   

INTERESTING INFO   
1. At 22 years, Siddharth Reddy is one of the youngest CEO in Corporate India. Under such a young CEO, the company has great potential to make big strides in the near future, and establish itself firmly in the market. 
2. COO Varun Reddy has done a double major in Economics and Communication from Rutgers University in the US; and hence has capability to bring in modern management and professionalism into practice
3. The biggest competitor of CCHH is Mahindra Holidays, how ever they seem to be in a much higher class and catering more to the elite, as the price differential between their packages is quite substantial.
4. In the last 6 months, at least 4 people personally known to me have become members of Country Club; and from the internet blogs, people who have visited and experienced the resorts seem to be happy.

 NEGATIVES - POSSIBLE RISKS
1. There have been several negative reviews on the internet about the poor customer service of this company. At times, people find it difficult to even contact them over phone. The company is aware of this. They need to take concrete steps to improve customer service and manage the expectations.
2. There have been some corporate governance issues in the past. Probably that is the reason the stock is beaten down so badly. How ever, since last few years, they have been running a reasonably clean business, and are trying to improve on professionalism.  

MY TAKE 
There are several ways to identify if a company is undervalued. Especially if you want to find potential multibaggers, it is more of an ART than science. By following bookish formulas and ratios and excel sheets, it is very hard to find companies that can give multibagging profits.

The book value of the properties owned by Country Club across India and overseas, is in the range of 1200 crores. The market price could be much higher. The debts on the books is around 400 crores. So from a bird's eye view, it is quite obvious that this company is worth more than 800 crores at the least.  

Today this company is available at a market cap of less than 200 crores.  

Along with this, we have a business that is known for its aggressive marketing and is signing up members in good numbers, as we speak. As the competition in this space is limited, and entry barriers to new companies are very high, due to unavailability of land, and exorbitant real estate prices, this company has a fantastic future prospects. 

A high potential multibagger!!

Disclosure: I own shares in Country Club.  


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


Important Note: Potential multibaggers are those stock which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 3 - 4 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 analysis and make your own decisions.

GVK POWER AND INFRA MULTIBAGGER POTENTIAL STOCK D25M06Y2015

GVK Power and Infrastructure is one of the foremost infrastructure holding company. Founded by Dr. GVK Reddy, this company owns a wide range of infrastructure assets in Airports, Energy, Transportation and resources. GVK is a key infrastructure player in India, with increasing interests abroad. For more info check, http://www.gvk.com/         

Dr. GVK Reddy, the founder chairman has been conferred with the "Padma Bhushan" award from the Government of India in the category of Trade and industry. He is a first generation industrialist with interests in infrastructure construction, hospitality, biotechnology and petrochemicals. He was also conferred with the "Infrastructure person of the year" for his contribution to the infrastructure of India.   

NUMBERS - THE LATEST  
Market cap: 1240 crores         CMP on Day25 June2015: Rs 8.40         BV: 12 rs.(approx)   
Revenue FY14: 2820 cr           Net profit FY14: (368 cr)loss                 FV: 1         

POSITIVES - MULTIBAGGER POTENTIAL   
1. GVK increased its stake in MIAL, Mumbai International Airport, to over 50% by acquiring 13.5% stake from Bid Services Division for USD 231 million. After this transaction MIAL became a subsidiary of GVK Airports which is a subsidiary of GVK Power and infra, the listed company. GVK has concession rights, for its share of revenues and profits for 30 years, with a provision for another 30-year extension.
2. GVK hiked its stake in BIAL, Bangalore International Airport, to over 43% by acquiring 53 million shares from Siemans Project ventures for Rs. 613 crores. Even here the concession rights, is for 30 plus 30 years.
3. The IPO of GVK Airport Developers, which is a 100% subsidiary of listed GVK company, could prove to be a game changer for the company. In all probability, the IPO could well happen before December 2015
4. Consolidated EBITDA for FY2015 stood at Rs. 1143 crores as against Rs. 1005 crores the previous year. This is clear evidence that the company is heading in the right direction.
5. MIAL recorded revenue of Rs. 637 crores for Q4FY2015 as against 544 crores in Q4FY14. EBITDA margin improved to 47% compared to 28% the previous year. Net profit is Rs. 17 crore vs net loss of Rs. 58 crore. BIAL recorded revenue of Rs. 255 crores for Q4FY2015 as against 163 crores in Q4FY14. EBITDA margin improved to 69% compared to 51% the previous year. Net adjusted profit is Rs. 83 crore vs net loss of Rs. 86 crore.   

INTERESTING INFO       
1. In 2014 GVK awarded 1.16 million sq ft of land for rs. 580 crore at the Mumbai international airport for commercial development. This is part of overall commercial development of 22 million sq ft over next 10 years.
2. GVK was awarded the contract to modernize and develop green field international airports in North Bali and Yogyakarta(Java) both in Indonesia.
3. In the hospitality sector, Taj GVK is an alliance between the Taj group and GVK, which has 4 hotels in Hyderabad, and one each in Chennai and Chandigarh.
4. GVK EMRI (Emergency Management and Research Institute) is one of the most important social initiatives of the company. This service is spread across 15 states. With the help of this widespread initiative and equipped with over 9000 ambulances, around 30 million cases have been attended to and over 1 million lives saved      

NEGATIVES - POSSIBLE RISKS      
1. Company has been making losses q-o-q since the last several quarters. From a quarterly loss of 235 crores in Q4FY14 it has come down to 108 crore loss in Q4FY2015. There is a strong possibility that the company could come in green over the next few quarters.
2. Non-availability of gas supply for its 2 gas based power projects. This was bad luck with no fault on the side of the company. As per latest development, AP Transco, have exercised their option to buy out the Phase 1 Jegurupadu gas plant of 217 MW. This should ease out some pain for GVK.
3. With more projects coming into LIVE mode, and an increased revenue stream, and a growth in operational profits, the company is headed in the right direction. A successful IPO of the airports venture and reduced interest rates, could all auger well for the company.

MY TAKE     
GVK is popularly referred to as "GVK Power" in the stock market. It is also often mistakenly assumed as just one of the other private power producers. Though it started out as a private power producing company, over the last 10 years it has become a full fledged infrastructure asset owning company.   

This company currently owns and manages 2 of the busiest airports in the country, 2 gas powered power plants, 3 road projects and few other. Projects under implementation are one 540 MW coal based thermal power plant, two hydro electric power projects cumulatively over 1100 MW, 2 airports in Indonesia, and a coal mine in Australia.     

Today this company is available at a market cap of around 1200 crores.   

This is deeply deeply undervalued. As they say, "the best time to buy is when it seems situation is at the worst" (only provided it is a good quality company, and you are very sure about its future prospects based on real facts and evidence)          

The last 3 years have been terrible for the company. Everything that could go wrong went wrong. It did not get the promised gas supplies for its gas power plants, lost one of its coal mines, and a stubborn interest rate scenario with escalating debts.         

It seems like the worst is over. The developments of the last 3 months, and the probability of positive events over the next 3 - 6 months make this an excellent turn around story. The turnaround is surely happening. This is a great time to be accumulating shares of a fantastic future potential company at very cheap valuations.

A strong potential multibagger!!


Disclosure: I own shares in GVK.     

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


Important Note: Potential multibaggers are those stock which have potential to give 200 - 1000% 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.

ULTIMATE MULTIBAGGER STORY INFOSYS D07M06Y2015

Infosys has been one of the most successful and commendable indian business venture of our times. This company needs no introduction. It will very difficult to find some one, who may not have heard of this company, or come across any anecdotes about this stupendous entrepreneurial success.    

Co-founded by seven software professionals in 1981, the company was incorporated as "Infosys consultants Pvt. Ltd." in Pune with rs. 10,000 as its initial capital.  In 1992 it became a public limited company with the name "Infosys Technologies Ltd". Over the next 2 decades this company went on the become the second largest IT services company in India, and one of the top 10 publicly traded company in the India.  

A one-time investment of Rs.1,00,00 by buying 1000 shares of Infosys during its IPO would now be worth approximately 25 crores (Twenty Five crore rupees). That makes it at the least, a 2500-bagger. 
Mind boggling!!   

Even assuming one lakh rupees was a lot of money in at that time, even an investment of 10,000 rs. which a lot of people could have surely managed, could have transformed into around 2.5 crores now. Yes, that is 2,50,00,000 rupees!!  

HOW INFY BECAME SUCH A STUPENDOUS MULTIBAGGER     
1. Revenues story -> Rs. 512 crores in the year 1999, 9521 CR in 2006 and 50,132 CR in FY2014
2. Net profit story -> Rs. 132 crores in 1999, 2458 CR in 2006 and 10,656 CR in FY20124
3. Dividend story -> Rs. 15 (2001), 12.5 (2002), 14.5 (2003),
                                                  Rs. 115 (2004), 38.5 (2006), 55 (2010), 35 (2011), 47 (2012)
4. Bonus story -> 1994 (1:1), 1997 (1:1), 1999 (1:1), 2004 (3:1), 2006 (1:1), 2014 (1:1)

INTERESTING INFO        
1. Infosys made an IPO offer in February 1993 at a price of rs. 95 per share, that is, a share with FV of rs. 10 and rs. 85 as a premium.
2. The stock got listed on the exchanges in June 1993 and opened at an approx price of rs. 140
3. Infosys IPO was almost a debacle. It was under-subscribed, and hence Morgan Stanley bailed them out, by buying a good portion of equity at offer
4. In the year 1999, the share price of Infosys moved to 8100 rupees making it one of the most expensive share in the market by denomination      

MY TAKE      
Finding a company like Infosys in its early stage, and benefiting from it to the maximum, is very difficult. How ever, with some diligent research of the past years, we will be able to find at least 25 - 50 super multibaggers over the last 2 decades.         
Even though they may not be 2500-bagger like Infy, it is quite enough, even if they are 100-baggers or 200-baggers. One lakh to one crore rupees or two crores, even if it takes 12, 15, 18 years, is not a bad deal at all.
 
Over the next 2 decades, there will be many such opportunities!!
The point is, even if we are successful with one such find, by investing a good amount in it, and forgetting it for 10, 12, 15 years, then you pretty much need not do anything. Even if it takes us 1, 2, 3 years to find that kind of a potential multibagger, it is worth it.       


Disclosure: I do not own shares in Infosys.    

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.  

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

INDIABULLS REAL ESTATE MULTIBAGGER POTENTIAL STOCK D10M05Y2015

Indiabulls Real Estate (IBR) is one of the largest real estate company in India with development projects spread across high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development. It has around 30 ongoing projects totaling approx 70 million square feet, 2500 acres of SEZ development and additional land bank of 1000 acres. For more info check, http://realestate.indiabulls.com/       

Relatively a new player, IBR has delivered a record 3.3 million sq ft developed space valued at USD $ 1.75 billion within 4 years of inception. Some of the commercial tenants of IBR are Vodafone, Yes bank, Franklin Templeton, Canadian consulate.  

NUMBERS - THE LATEST     
Market cap: 2400 crores          CMP on Day10 May2015: Rs 57          BV: 145 rs.(approx)   
Revenue FY14: 1799 cr            Net profit FY14: 230 CR (EPS: 5.2)      FV: 2         

POSITIVES - MULTIBAGGER POTENTIAL        
1. With significant ongoing projects coming to delivery over the next 2 - 3 years, and its massive land bank, Indiabulls real estate could do very well in terms of revenue growth and profitability over the next 2 - 5 years.   
2. As most of the properties have been acquired by IBR through relatively transparent means, mainly via public auctions, the risk due to opaqueness of the indian real estate sector is low. In FY2014, the company sold 3.40 million sq ft worth approx 3000 crores.
3. Indiabulls group is renowned for making regular, consistent and hefty dividend payouts; Dividend payouts by Indiabulls Housing finance have been approx 600% in FY2013, 1400% in FY2014. Payouts by IBR have been 100% in FY2013 and 150% in FY2014 thus far; in all probability the dividends could increase going forward as the profitability of the company increases.
4. Promoters own approximately 37% of the company(inclusive of 10% treasury stock) and none of it is pledged. FII's own around 25% and some of the HDFC, Kotak and HSBC mutual funds recently added this stock to some of their schemes.        

NEGATIVES - POSSIBLE RISKS           
1. As the company is relatively new, the quarterly results are erratic adding to the rapid fluctuations in the stock price.
2. Though the company has acquired certain marquee properties via auctions, their timely delivery of projects along with consistent quality is yet to be seen.    

INTERESTING INFO        
1. In the year 2011, YES Bank, picked up the top six floors at one of the three buildings at Indiabulls Real Estate's commercial project Indiabulls Finance Center in Lower Parel at rental of Rs. 125 per sq ft a month
2. Interests rates in India seem to be on a secular downtrend. Lower rates on housing loans and infrastructure projects expected over the next 2 years will benefit IBR in a direct way; and thus improve on revenues and margins.
3. IBR purchased the entire stake of FIM and its affiliates for 1172 crores in 7 projects comprising areas of 297 acres in NCR and Chennai
4. In year 2014,  IBR paid GBP £ 155 million (approx 1,550 crore rs) for a commercial property in London's Mayfair. IBR bought a 87,444 sq ft property, 22 Hanover Square, in an auction from the Scottish Widows Investment Partnership. Mayfair is an up-market London neighborhood, home to the significantly wealthy.        

MY TAKE         
In the property development and real estate business, the most important criteria is "location, location and location". From that perspective the locations of the ongoing projects of Indiabulls real estate can most definitely be qualified as PRIME. Further, they have massive land banks across various geographic locations in India and abroad, which will provide them a platform for future development over next 3 - 5 years or probably more.    

With the indian economy all set to rise, and projected increase in GDP and a rise in upper middle class, demand for housing units is all set to rise in locations like Mumbai region, Delhi region, Chennai and other cities. Apart from the 1000 odd acres of land bank in Mumbai, NCR and Chennai, IBR also owns land and developments in Agra, Jodhpur, Ahmedabad, Baroda, Indore and Vishakpatnam.   

Indiabulls real estate is well placed to become a multibagger!!       

Disclosure: I own shares in Indiabulls real estate.   


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


Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 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 (AND SELL HIGH).     

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.

DR DATSONS LABS MULTIBAGGER POTENTIAL STOCK D18M04Y2015

IGNORE THIS POTENTIAL MULTIBAGGER

THIS POST WAS A CLEAR MISTAKE. MY WORST STOCK PICK TILL DATE

(Though some people suggested me to remove this post, I have retained this to acknowledge my mistake and hence, try not to repeat this in the future)       



Dr. Datsons Labs is a research driven pharma company. Corporate office is situated in Raigad district in Maharashtra. They have an API manufacturing facility and R&D centre in Mahad and a Forumulations manufacturing facility in Pune. The company has a vision to be a premier provider of new medical therapies in Anti Cancer and Anti Malaria. For more info check, http://www.drdatsons.com/   

This company was formerly known as Aanjaneya Lifecare. The original promoter, Dr Kannan Vishwanath, received the young entrepreneur award by Singapore India chamber of commerce. The company also won the Business Excellence Award at World Summit of Emerging India in July 2009. In May 2011, Aanjaneya Lifecare came with an IPO of 50,00,000 equity shares of Rs 10 at a price band of Rs.228 to Rs.240; the company got listed in the range of approx 300 rs and hit a life time high of 850 rs in January 2013. 

NUMBERS - THE LATEST       
Market cap: 150 crores              CMP on Day18 Apr2015: Rs 14         BV: 45 rs.(approx)   
Revenue FY14: 421 cr                Net profit FY14: 67 lakhs                    FV: 10   

POSITIVES - MULTIBAGGER POTENTIAL  
1. Dr. Datsons Labs is the 3rd largest quinine salts manufacturer in the world and has among the largest controlled substances quota in India.
2. The company created an infringing route of synthesis for 3 complex anti-cancer drugs namely Docetaxel, Gemcitabine Hydrochloride and Capacitabine. This resulted in global patents, and hence the prospects of long term global revenues.
3. The company transformed lozenges into a Novel Drug Delivery System(NDDS) for common illnesses, paving way for a multitude of medicines/drugs.
4. As per AR of FY2014, the long term debt on the balance sheet got reduced from 358 CR to 167 crores (as a result of FCCB conversion)
5. Datsons forged a potential collaboration with Delhi based Ochoa laboratories to supply oncology drugs worth 120 crore to cater to the European market.  

NEGATIVES - POSSIBLE RISKS
1. Quite clearly the last 2 years have been very bad for the company. Probably the tough times could last a little longer. 
2. A majority of FCCB bond conversion has already taken place with substantial dilution in equity. There are still some pending conversions which could happen at a future date.

INTERESTING INFO   
1. Under the current SHP status, this company has no promoter. This company is entirely managed by the board of directors, with the backing of the financial investors, most of them foreign investors; very similar to Subex (the story is almost identical)
2. During March 2015, the company signed a deal with Yemen's AL-MUGDH pharma to export Anti-malarial drugs worth 80 crore.
3. USA based Westminster Pharmaceuticals has shown interest in Dr Datsons contract manufacturing.
4. Recently, there was an announcement that Dr Datsons will supply anti-malarial drugs to Clinton Foundation via the CHAI, Clinton Health Access Initiative.
5. Belgium based Eubage Laboratory was expected to sign an agreement with Dr.Datsons for manufacturing 20 nutraceuticals at its Pune formulations plant. This deal is expected to ensure a revenue flow of approx 100 crore over 18 months.  

MY TAKE    
Dr Datsons Labs, in its current form, can be termed as a 2nd life of the company. We can call it version 2.0; as this is not just a simple turn around, but a complete over haul of the company, some what very similar to Subex. The new management have almost got a clean slate with some past baggages.       

An enviable product portfolio, commendable infrastructure, staff skills and capability, track record of past patents(and new ones submitted), a strong vision and proven business plan; all these are the positive factors from the past legacy of the company; strength from the previous life very much relevant to the present. Recent orders are a testament to that.                

Zeal and focus demonstrated by the new management team, recently bagged orders are concrete proof that they are able to secure substantial business/contracts mainly from foreign companies/clients, and further interest expressed from corporates overseas, either to do business or acquire stake in the company, all auger well for the future prospects and growth of the company.    

At the lower end of the futuristic probability spectrum, the new management and board could well steer the company from its rough waters, into a path of growth and profitability. Further, from a more optimistic and ambitious view, a strong global pharma major taking over this company (or a meaningful stake); and work towards synergizing with the company's competitive advantage and take its offerings to the world, could well prove to be a blue sky for the company, in which case, SKY IS THE LIMIT.   

A potential multibagger as and when the new management team turns around the company completely!!  
A potential super multibagger if the foreign multinational takes a majority stake and leverages the strength of the company on a global scale!!      

Disclosure: I own shares in Dr.Datsons       


For personal advise and consultation(commercial); 
                                                         you can contact me via zorbayogi9@gmail.com  

Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 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 (AND SELL HIGH). 

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.

SHARON BIO-MEDICINE MULTIBAGGER POTENTIAL STOCK D14M04Y2015

Sharon Bio-Medicine completed its 25 years, with a commendable year on year growth for over 12 years. Head-quartered in Navi Mumbai, this company has evolved from being an intermediate and API manufacturer to providing a wide range of clinical/pharma processes services and formulations/finished doseages. The company has manufacturing plants in Taloja, Dehradoon and Selaqui. For more info check, http://www.sharonbio.com/         

NUMBERS - THE LATEST      
Market cap: 235 crores            CMP on Day14 Apr2015: Rs 23            BV: 24 rs.(approx)   
Revenue FY14: 1313 cr             Net profit FY14: 69 cr                             FV: 2      

POSITIVES - MULTIBAGGER POTENTIAL   
1. Recently the company received GMP approval from UKMHRA for the expanded area of its Formulation and Tablets plant in Selaqui, Uttarakhand.  
2. During the last financial year, the company invested 85 crores for doubling of the capacity of their formulation plant.    
3. The company is striving for operational excellence through Asset productivity, capital effectiveness and operations risk management.  
4. Sharon Bio-med has a wide variety of formulations, and most of them are essential drugs. The whole list can be seen via the link below
http://www.sharonbio.com/generalproducts.asp       

5. Along with the UKMHRA approval, the company has also applied for USFDA approval. These both approvals will open the largest markets for the company's products and hence pave the way for future growth and profitability.     

NEGATIVES - POSSIBLE RISKS         
1. Company had a very bad last quarter with huge losses. Was it a one off or will the pain continue for some more time ?
2. Company has working capital issues and large debts. How long will it take to resolve these ?  

INTERESTING INFO  
1. In March 2015, a allotment of 67,15,400 equity shares of rs 2 each at a premium of 48 rs was done to the promoters. This indicates the value that they perceive of their company.  
2. Due to the challenging financial situation, the management of the company decided to go for debt restructuring in Mar 2015, and the same was accepted by their bankers in April 2015. This quick acceptance indicates the bankers confidence.  
3. During the recent share price collapse, one of the reason was dumping of pledged shares. Incidentally only one promoter had their shares pledged. Rest all the shares are un-encumbered (not pledged)
4. The company has a separate CRO division called SA-FORD for toxicology and has a GLP certified laboratory in Taloja, Navi Mumbai.
Details here: http://www.sa-ford.com/index.htm     

MY TAKE      
Sharon Bio is a good example of the profound Warren Buffett statement, "Buy when others are fearful, and Sell when others are greedy".  

Here is a company that has grown consistently for over 15 years, has plants in multiple locations, has a successful research division, wide range of products , a revenue of over 1000 crores, a track record and a proven management team. Available at approx 200 crores.  

Last few months have been bad for the company with one blow after another. A fire in one of their plants, a quarterly loss for the first time in many years, share price collapse from approx 90 rs to approx 15 rs, pledged shares dumped, working capital issues, etc   

How ever, none of these problems are neither insurmountable nor permanent. The management has the capability to bring the company back on tracks. They have taken certain timely measures and concrete steps such as introducing new capital via issue of warrants to promoters, major capacity expansions, CDR approvals from the bankers, plant approval from EGMP, etc  

If one wishes to benefit from potential multibaggers, the right time to buy stock of a company is when things are going wrong; how ever, only as long as one is convinced that course correction can happen as a result of remedial measures. Such opportunites yield superlative profits.  

A potential multibagger!!    

Disclosure: I own shares in Sharon Bio.      

For personal advise and/or consultation(commercial); 
                                                        you can contact me via zorbayogi9@gmail.com       


Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 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 (AND SELL HIGH).    

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.          

TOP MULTIBAGGERS 2013 and 2014 STOCK D03M04Y2015

RECENT MULTIBAGGERS - SOME STOCKS THAT GAVE MULTIBAGGING RETURNS 
DURING 2013 - 2014 TIME FRAME   

Company/Industry         Start price/month       End price/month      Profits(percentage)    

GRANULES INDIA              105 rs.                      880 rs.                      750% (approx)   
(Pharma)                          (March 2013)             (Sept 2014)                 8-bagger   
* stock got split 1:10 in Mar 2015           

ASHOK LEYLAND               16 rs.                        54 rs.                        250% (approx)   
(Auto-heavy vehicle)         (Nov 2013)                 (Nov 2014)                 3-bagger       

GATI                                    25 rs.                        280 rs.                      1000% (approx)   
(Couriers)                          (Oct 2013)                  (Nov 2014)                 10-bagger      

RS SOFTWARE                   60 rs.                        360 rs.                      500% (approx)   
(IT - software)                   (March 2013)             (Oct 2014)                   6-bagger       
 * stock got split 1:2 in Jan 2015           

JK TYRE                              85 rs.                         625 rs.                      650% (approx)   
(Tyres)                               (Sept 2013)                 (Dec 2014)                  7-bagger   
* Stock got split 1:5 in Dec 2015       

PATEL LOGISTICS             10 rs.                         140 rs.                      1300% (approx)   
(Logistics)                         (Sept 2013)                 (Dec 2014)                  14-bagger      

http://multibaggeryogi.blogspot.in/2014/07/patel-logistics-multibagger-potential.html


INDOCO REMEDIES           60 rs.                         300 rs.                     400% (approx)  
(Pharma)                           (July 2013)                  (Nov 2014)                  5-bagger       

TAKE SOLUTIONS            30 rs.                          90 rs.                       200% (approx)  
(IT - software)                  (Sept 2013)                  (Feb 2015)                  3-bagger             

DEWAN HOUSING             120 rs.                       400 rs.                      250% (approx)  
(Housing finance)            (Aug 2013)                   (Dec 2014)                  3-bagger       

MARKSANA PHARMA        10 rs.                        60 rs.                      500% (approx)   
(Pharma)                          (Oct 2013)                    (Nov 2014)                 6-bagger      


http://multibaggeryogi.blogspot.in/2014/02/marksans-pharma-multibagger-potential.html



POINTS TO NOTE:   
1. All of them were deeply deeply undervalued (before the journey began)     
2. All of them are micro caps or small caps (couple of mid caps)   
3. All of them had been dormant (very little movement) for 2 - 3 years, before the massive up move.  
4. The up-move was rapid in most cases, where maximum profit came in 9 - 12 month period, when the momentum was at its highest.    

MY TAKE  

Observation / Guideline / Learning      

To make multibagging profits in the markets, a stock specific approach needs to be adopted.   

The first important step is to select the right stock. (and then holding on to it until it becomes a multibagger and provides maximum profits)    

RIGHT STOCK SELECTION is the entry point to making a multibagger journey and achieving multifold profits, minimum being 100%           

All the best!!               


For personal advice and/or consultation; you can contact me via zorbayogi9@gmail.com  


Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 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 (AND SELL HIGH).    

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.

SUBEX LIMITED MULTIBAGGER POTENTIAL STOCK D15M03Y2015

Subex is a software/IT products company. Based in Bangalore, this innovator company offers products and services mainly to telecom service providers. This company pioneered the concept of ROC and implemented it successfully. For more info check, http://www.subex.com/ 

NUMBERS - THE LATEST  
Market cap: 190 crores            CMP on Day15 Mar2015: Rs 11        BV: 11 rs.(approx)   
Revenue FY14: 340 CR              Net profit FY14: (11 cr)loss                 FV: 10       

POSITIVES - MULTIBAGGER POTENTIAL   
1. Subex is a turn-around story. Last 2 quarter results are clear indication that the company is turning around.
2. Two tranches of FCCB conversion in the last 6 months indicates the confidence of the bond holders.
3. From a cash loss of around 9 crore in FY13; the company has done a cash profit of 46.99 CR in FY14 (check latest annual report)
4. In an interview to talkRA(in 2014), the CEO has indicated that Subex intends to become a USD 100 million revenue business with a operating margin of approx 25%; stock at current market cap is available very cheap.    

NEGATIVES - POSSIBLE RISKS       
1. Short term volatility(wild swings) in the stock price.
2. Inability of the marketing team to win as much new business as they anticipate.   

INTERESTING INFO   
1. The tagline of Subex2.0 as indicated in the latest AR is: Strong foundation, Sustainable growth; clearly indicates the top management confidence.
2. FY14 revenue break up: License & implementation(40%), Managed services(27%) and Support(33%)
3. Surjeet Singh, the current CEO of Subex was the CFO of Patni and played a significant role in its eventual buy out.
4. Even after the debacle the company experienced post its acquisition of Syndesis, the executive leadership, most notably, Vinod Kumar, Ashwin Chalapathy, Shankar Roddam, Ganesh and Sekharan stayed with the company.  

MY TAKE   
Subex is one of those rare successful indian software/IT product companies that developed original/patented products which have been adopted by large global clients across various countries. Subhash Menon, the founder and his core team truly deserve credit for this.    

In the Subex1.0 version, the management did almost everything right in its first half, and then made a few mistakes(mainly wrongful/miscalculated acquisitions) in the second half. The stock price hit a life time high of 800 rs in 2007 and a life time low of 5 rs in 2013.   

Now Subex2.0. The turnaround of this company has also been quite unique. The effort was admirably led by independent directors Sanjeev Aga and Anil Singhvi with full backing of the anchor investors(foreign) who held substantial stakes in the company. Selecting of Surjeet Singh as CEO was one of the masterstroke.   

The most notable aspect in this entire journey is the loyalty and confidence of the 2nd level management of the company. Despite hardship and challenges, they stuck on with the company. Last but not the least, most of the clients stayed on with the company in spite of the uncertainity. 

Depending on the magnitude of the turnaround, and successful implementation of strategy, this stock can go much much higher. Even by a conservative estimate, there is a potential of 400-500% profit from current levels.

A high potential multibagger!!   

Disclosure: I own shares in Subex.

For personal advice and/or consultation; you can contact me via zorbayogi9@gmail.com  


Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatility is the reality of the stock market and that will always happen. Near 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 reasons 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 AND SELL HIGH.

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this a 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.