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.

BASANT AGRO MULTIBAGGER POTENTIAL STOCK D28M11Y2014

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

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

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

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

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

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

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

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

A robust potential multibagger!!


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

WORKSHOP ON MULTIBAGGERS D01M11Y2014

Dear Investors, Friends and Fellow travelers!!

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

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

During this workshop, you will learn how to:

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

Think about it....     

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

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

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

Best Regards!!

For further details, write to zorbayogi9@gmail.com

BRIGADE ENTERPRISES MULTIBAGGER POTENTIAL STOCK D19M10Y2014

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

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

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

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

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

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

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

A high potential multibagger!!            

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

You can contact me via zorbayogi9@gmail.com