MANAPPURAM FINANCE POTENTIAL STOCK D24M07Y2016

An initiative as early as in 1949 in the hinterlands of Kerala by Mr VC Padmanaban to provide financial solutions to farmers and fishermen; Today his son, carrying the legacy forward, Mr VP Nandakumar has transformed Manappuram Finance into a multi-dimensional NBFC with a 20 year track record on BSE, and a mission which started in South India, today has branches all across India.
For more info check, http://manappuram.com/      

NUMBERS - THE LATEST    
Market cap: 6327 crores              CMP on Day24 July2016: Rs 75.20            BV: 35.24  
Revenue FY16: 2373 cr                Net profit FY16: 353 cr                             FV: 2          

POSITIVES  
1. Global gold prices after making a low of USD 1084 per ounce has been making a steady upmove towards USD 1400
2. Negative impact due to uncertain regulations towards gold loans and negative perceptions are a thing of the past. Positive outcome of that was the LTV (loan-to-value) of 75% which enhances the risk management   
3. New businesses of Manappuram contribute to 12% of their AUM (assets under management), and are well headed towards 25%  
4. Net profit shot up almost 100% from 69 cr in Q4FY15 to 124 cr in Q4FY16.  

INTERESTING INFO   
1. Microfinance AUM (acquired company Asirvad Finance) shot up from 300 crore to almost 1000 crores in approx one year
2. People of India are unique in terms of their love for gold. Manappuram holds 59.6 tonnes of gold assets
3. Manappuram has pioneered the concept of online gold loans. After evaluation, people can store their gold in vaults, and can access loans online 
4. Manappuram has popular actors as their brand ambassadors thereby enhancing their brand-recall. Mohan Lal, Venkatesh, Vikram, Akshay Kumar, Puneet Rajkumar and others     

NEGATIVES - POSSIBLE RISKS   
1. Slowdown in global gold prices could act as a sentiment negative, though the company has taken steps to reduce negative impact of gold price fluctuation.  
2. Global market turmoil or negative surprises from China or Europe OR increase in US Fed rates

MY TAKE
Manappuram Finance has already established itself as a leading gold loans financing company over the last decade. With a single line of business, the company has grown its profits from less than 10 crores to 350 crores in approximately 10 years.  

Year 2015 was an inflection year for the company, to move to the next level. The company has successfully moved into 3 adjacent areas of business areas, being Microfinance, home loans and commercial vehicle financing.   

If the company can repeat what it did with gold loans, in the Microfinance business, this can be a NBFC behemoth over the next 5 year. From the current AUM of approx 12,000 crore moving towards AUM of 20,000 crores, even 25,000 CR looks quite achievable. Compared to other players in this field, this company with great future prospects, is available at reasonable valuations.   

Company has future potential to become a multibagger!!   


Disclosure: I own shares in Manappuram.   


For consultation, commercial collaboration 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.

EMMBI INDUSTRIES POTENTIAL STOCK D26M01Y2016

Starting out with just one small polymer extrusion plant, today Emmbi Industries has grown to one of the India's largest specialty polymer processing company. In a journey of 2 decades, the company has transformed from a small operation with less than 10 members to a company that has over 180 customers in around 50 countries across the world. 
For more info check, http://www.wovensackindia.com/  

NUMBERS - THE LATEST   
Market cap: 124 crores              CMP on Day26 Jan2016: Rs 70.20            BV: 35.86
Revenue FY15: 192 cr                Net profit FY15: 6 CR                                   FV: 10   

POSITIVES   
1. Stable and consistent revenue growth over a decade.
                                 FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR 
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
                                FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding. 

INTERESTING INFO 
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years. 
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.  
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.  
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.

NEGATIVES - POSSIBLE RISKS  
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.


MY TAKE  
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time. 

Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.  

At a market cap of 124 crores, this company with great future prospects, is available cheap.   

An excellent potential multibagger!!  


Disclosure: I own shares in Emmbi Industries.   


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.
 

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.