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)
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)
Sir Now Prakash Constrowel price is downtrend so suggest me at what level to buy this script, also suggest me it is really worth to hold because this script is paisa stock.
ReplyDeleteHi Ram Singh,
ReplyDeleteNormally I do not make buy or sell calls. My main objective is to share knowledge and clarify questions and info about companies.
Remember always in stock market; Choose the right company.
Then "Buy Low Sell High". If you do this, you will be successful and make money.
About Prakash Constrowell, it is obvious that it is very low.
If you have a time frame / horizon of 8 - 12 months; this stock could offer some very good returns. It will be best to accumulate as long as the price is below 1.50
Best Regards!!
sir i m T.SREEDHAR
ReplyDeleteCan you give any analysis of 3i infotech
Hi Sreedhar,
ReplyDeleteThe debt levels of 3i infotech is extremely high. If you look at their revenues and gross margins over last 3 - 4 quarters; it is very difficult to imagine how they will repay the debts and when. The equity is being continuously diluted. Therefore I keep away from such companies.
Best Regards!!
I think the price only came down from 24 due to stock split of 10:1......think this is missed in the analysis.....whats your view on that or is it the adjusted price...
ReplyDeleteHi Vivek,
ReplyDeleteThe IPO of Prakash Constro was in the range of 160 rs. Thereafter it hit a peak of 310 rs in Nov 2011. The stock split happened only in December 2012.
Therefore the current price is adjusted price. It is evident that this stock is available very cheap; with huge potential for profits.
Best Regards!!
Sir,
ReplyDeletePrakash Costro price is continuous downtrend, what is the target price.
Mr Ram Singh, All the stocks that I pick and analyze and explain in this blog are potential multibaggers.
DeleteA potential multibagger means, any stock, that has the potential to give a minimum of 200 - 400% profit. The profits could even go up to 800 - 1000%. Obviously if you want to make such profits, it will not happen in few weeks or months. It will take a few years. So PATIENCE is most important. And a time frame of few years. In some cases it might happen much early.
So this is not a blog for traders. And short term targets are possible only for traders. Not for long term investors.
I wish you all the best!!
It is 16.90
DeleteDear ZY Sir
ReplyDeleteAs per the todays market status & that of Prakash Const. what should be the accumulation range for PC.
Thanks & Regards.
Dear San, How do you plan to accumulate Prakash Constro?
DeleteSince last 3 - 4 weeks, it has been doing continuous upper circuit.
There are lot of undervalued stocks in the market.
If you have a 2 - 4 year time horizon, it is better to look at other stocks.
Best Regards!!
Hi, incidentally while browsing through Internet must say luckily I landed on your blog. Most of your analysis has been quite apt and to the point. I hold OMG from 25 levels. Wish to check if Prakash Const is at good entry point even now say for 2 year horizon? Obviously I would put in as much money I can afford to let go in case of a downturn. cheers! -Pratyush
ReplyDeleteHi Pratyush, Holding Onmobile Global at 25 is good. My average ownership price is around 30 (and I still buy it on dips).
DeleteIt is one of those rare companies which have potential to move from being a small company to a medium sized company in the next 3 - 5 years.
We have to wait and watch as to how the new CEO will steer the company over the next 6 - 12 months.
Though there is medium level risk associated with the company, the upside potential is immense (in the case of them able to clear all past mess and steer the company in the right direction).
Cheers!!
Pratyush, About Prakash Constro, one cannot say for certain as to when the UC's will open up and you will get a buying opportunity. The fair value of this stock is 8 rs (range of 6 - 12). Keep this stock on your radar.
DeleteIf you have a 2 - 4 year time horizon, and if you can find this stock at low levels (what ever they may be at that time); may be you can look at it.
At this point in time, chasing this stock may not be very useful.
Cheers!!
Dear ZY,
ReplyDeleteNow the price for Prakash Cont is 2.25 and in continuous UC. Can one enter now?
Also, you are requested to study Visees Info. Its seem to be a multibagger stock.
Dear Javed,
DeleteAbout, PC; please see the comments above (you will get your answer).
About Visesh info, I have been accumulating at 20 - 25 paisa since last 8 weeks. This stock has potential to reach 1 - 2 rupee range (Time frame: 2 - 4 years). So yes, it is a potential multibagger.
Best regards!!
UPDATE PRAKASH CONSTROWELL: D28M06Y2014
ReplyDeleteFriends!! (and fellow travelers)
From the first published/documented price of around 1 rupee (March 2014);
Prakash Constrowell as on Friday the 28th June(2014) was quoting at:
BSE (rs 3.30) and NSE (rs 2.70)
Almost a 200% up move. We can now term it as a MULTIBAGGER.
A superb 3-bagger. Cheers!!
Stock: Prakash Constrowell
ReplyDeleteSpecific response to query by JM on Indiabulls power page
With a time horizon of 2 - 5 years; let us visualize Prakash Constrowell will reach a price of approx 16 (or 25)
Caution: This is only for illustration (as I never give targets)
So it does not really matter that much if you buy at 3 or 4 or 5 (from a profitability perspective)
How ever it is wiser to buy in multiple chunks with few weeks gap (as you can benefit from corrections; if any)
In this case that may not possible as there was continuous UC for 5 weeks.
Best Regards!!
It's happened to see your blog, through sharing by a friend in moneycontrol.com. Your analysis is very good.Thanks a lot.
ReplyDeleteGr8 to c ur msg, Desu.
ReplyDeleteGood to hear ur appreciated words. I wish u lots of profits in the stock market.
Best regards!!
Can I purchase this at current rate of 2.75 for the holding period of 1-3 years.
ReplyDeleteDear Anil,
DeleteThe recent quarter results of Prakash Constrowell was terrible. Pathetic in fact. There financial results have been erratic and volatile.
Despite that if you buy in the range of 2 - 3 rs; the probability of making good profits in 2 - 3 year time frame are high.
How ever, at this point in time, there are much better companies where the probability of making huge profits are much higher.
Some of them are: Datamatics global, Themis medicare, Firstsource solutions, Morepen labs, etc
Best regards!!
It mean that I can invest Datamatics global, Themis medicare, Firstsource solutions, Morepen labs at current level even they have appreciated around 200 %
DeleteDear Anil,
DeleteDatamatics, Themis and Firstsource are all very high quality companies. Despite the decent run, they are still undervalued.
With a 2 - 3 year time horizon, they could all prove to be hugely profitable. It is not unrealistic to expect 100 - 200% profit from these levels.
About Morpen, as there appears to be some operator activity (along with strong fundamentals of the company); there is certain amount of risk involved. So it is better to buy only on corrections
Best Regards!!
Hello Zorba ji...hope u r doing well....I just got the link today from Moneycontrol........however I am already invested in Prakash constrowell(avg. buy price is 2.09) however need ur advice should I add more at CMP for long term perspective...........and also could u pls give ur view on MVL limited..i am badly stuck here..at around 40% loss....wish u and ur family Merry Christmas and Happy New Year 2015 in advance..........God Bless You!!!!!!
DeleteThis comment has been removed by the author.
ReplyDeleteHi sir...at cmp Prakash is at 4.07...what will be the target for two years..please
ReplyDelete