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)