Hindustan Tin Works POTENTIAL MULTIBAGGER STOCK D07M02Y2017

Hindustan Tin Works is one of the leading can manufacturing companies in India. With over 5 decades in existence, this company provides a wide range of metal packaging solutions.  
For more info check, http://hindustantin.biz   

NUMBERS - THE LATEST    
Market cap: 82 crores                   CMP on Day07 Feb2017: Rs 79               BV: 120
Revenue FY16: 297 cr                     Net profit FY16: 14 crore                       FV: 10  

POSITIVES  
1. Hindustan Tin Works achieved a PAT of 14 crores in FY2016. Out of that 9 crore came from the sale of investments.
2. Company has a solid balance sheet with cash on books at 13 CR and long term debt of 28 crores.
3. HTW increased its export sales from 68 to 72 crores.
4. Company has a joint Venture with London listed Rexam.   

INTERESTING INFO  
1. Hindustan Tin Works participated in a trade fair held at Dubai in Nov 2016. Going in the right direction to grow exports.
2. Stemcor AG, a British metal company, holds a 9.6% stake in the company. United India Insurance and Religare Finvest are other large share holders.
3. Company credit rating by ICRA is A2+ for short term and A- for long term
4. Some of the brands / products for which HTW makes containers are Nestle Milkmaid, Delmonte pinapple slices, Protinex, Sambandh ghee, Cherry blossom and Asian paints.  

NEGATIVES - POSSIBLE RISKS   
1. Slow recovery in the global and local economy could be a negative for this company. 

MY TAKE  
Hindustan Tin Works is a high quality company. A leader in its business area. Metal can consumption in India is very low. Compared to the consumption scale of USA at 160 for India it is near to 1. So one can imagine the future potential. Added to that, metal cans are re-recyclable unlike plastic. 

Company is deeply undervalued. With a CMP far lower than the book price, and a single digit PE, this stock has a long way to go. With a well established customer base, professionally and technically capable company, HTW could reward its investors in a big way. 

HTW is an obvious potential multibagger!! 


Disclosure: I own shares in Hindustan Tin Works   


For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.

Asahi Songwon Colors POTENTIAL MULTIBAGGER STOCK D30M01Y2017

Asahi Songwon Colors is in the business of speciality chemicals. This Gujarat based company is engaged in the manufacturing of phthalocyanine pigments comprising of CPC blue and a range of beta blue pigments.
For more info check, http://www.asahisongwon.com/       

NUMBERS - THE LATEST         
Market cap: 312 crores                   CMP on Day30 Jan2017: Rs 256                BV: 120
Revenue FY16: 224 cr                     Net profit FY16: 21 crore approx                FV: 10     

POSITIVES 
1. Around 80% of the company revenues comes from exports. Some of their top clients are DIC, Japan; Sun Chemicals, USA and Clariant Chemicals.
2. Operating margin has gone up from 10.8% in FY13 to 17.6% in FY16. In the same time D/E ratio has come down from 0.59 to 0.33
3. Excellent results in Q2FY2017 results with sales of 68 crore and net profit of 7 CR.
4. By de-bottlenecking of operating capacity, the company plans to increase production from 750 to 850 tonnes per month.

INTERESTING INFO  
1. Company has introduced 2 new products; Beta Blue 15.4 and Alpha Blue. These could help in improving the margins going forward
2. They have around 25 crores in cash and corpus which eases possibility of future expansion.
3. AksharChem, a similar company, which was demerged from Asahi Songwon, moved up from 150 to 750 in one year backed by excellent results. So Asahi Songwon doubling from current levels should not be a surprise :-)
4. DIC Corp and Clariant have been long term stake holders in the company. 

NEGATIVES - POSSIBLE RISKS 
1. Extremely difficult to find negatives in this company :-) 

MY TAKE 
Asahi Songwon Colors is a high quality company. Excellent management pedigree, niche products, proven track record with a business that has global scope in terms of growth. Almost an ideal company. Management has undertaken a host of initiatives that will show in the future results.

Several companies that are into specialty chemicals have proven to be great wealth creators over the last couple of years. Most of the good quality ones are trading at 4 to 6 times book. Asahi Songwon has all the attributes of a high quality company, however, which is available at around 2 times book. So this comes in the category of a great business at a reasonable price.

Asahi Songwon is a high probability potential multibagger. It is just a matter of patience!! 


Disclosure: I own shares in Asahi Songwon  


For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.

Maan Aluminium POTENTIAL MULTIBAGGER STOCK D24M01Y2017

Maan Aluminium is an aluminium products manufacturing and trading company. Established in the year 1989, the manufacturing unit of this company is located in Pithampur, Madhya Pradesh. 
For more info check, http://maanaluminium.in          

NUMBERS - THE LATEST      
Market cap: 30 crores                CMP on Day24 Jan2017: Rs 93              BV: 83
Revenue FY16: 190 cr                Net profit FY16: 0.6 crore approx             FV: 10          

POSITIVES 
1. For the year FY2016, the profit before tax increased by 122%, with a 20% increase in the export volumes.
2. Revenues in the last 2 quarters have been consistently above 100 crores. Both q-o-q and y-o-y this is a huge improvement.
3. Maan Aluminium has expertise in producing designs with more than 10,000 shapes, thereby able to cater to a wide range of customer requirements.
4. Over the last few quarters, there has been a steady increase in the net profit of the company 

INTERESTING INFO   
1. The manufacturing revenues achieved last year was only on 50% utilization of installed capacity. Therefore there is a huge scope for growth.
2. Equity capital of the company is quite low, and promoters hold around 65%
3. Two insurance companies also own shares in the company
4. In the annual report of FY2016, there is a quote by Bill Cosby on the cover which says, "In order to succeed, your desire for success should be greater than your fear of failure". This indicates the mindset of the promoter and the management :-)         

NEGATIVES - POSSIBLE RISKS   
1. Any melt down in global metal prices could be a negative for this company. 


MY TAKE   
Maan Aluminium is a turn-around story. After a bad spell of several years, the company is coming into the positive. Efforts by the management in the last 12 - 18 months is in the right direction. The results of the steps taken are visible in the numbers.  

At a market cap of around 30 crores, this is probably the cheapest company in the Aluminium sector. Supportive global metal prices could act as a tailwind for this sector, which could significantly boost the profitability of the company.   

From current levels, the stock could head much higher over the near and medium term.    

Maan is a potential multibagger!!     


Disclosure: I own shares in Maan Aluminium    


For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.

Ram Ratna Wires POTENTIAL MULTIBAGGER STOCK D14M01Y2017

Ram Ratna Wires is a leading manufacturer of winding wires used in heavy electrical equipment. Starting out as a small electrical shop, this company has transformed into RR Shramik, the leading supplier of copper wires used in transformers, switch-gears, transmission lines, capacitors, etc   
For more info check, http://www.rrshramik.com/         
(there is also an old website for the entire group)  

NUMBERS - THE LATEST             
Market cap: 178 crores                 CMP on Day14 Jan2017: Rs 81               BV: 36    
Revenue FY16: 720 cr                    Net profit FY16: 9 cr approx                  FV: 10          

POSITIVES        
1. As winding wires is one of the primary inputs to electrical equipments and machines, Ram Ratna is set for good future growth with increased government emphasis on infrastructure   
2. Since last 3 quarters the company has done a net profit of 4+ crores. That too on the back of a sluggish year. There is quite good scope that annual EPS for the current FY could well double compare to last FY.
3. Though the last year balance sheet indicates a debt of 100+ crores, long term debt here stands at only 12 - 15% of that. Rest all could be working capital.   
4. Crisil has upgraded the company's bank limit rating from BBB- to A3  
5. RRW has been declaring dividend since last 6 - 7 years without fail         

INTERESTING INFO   
1. Company Management has indicated their global aspirations. The new website (rrshramik) streamlined on the RRW business, rather than the entire group, clearly shows their focus and intent. The design and strcuture of the website is surely geared towards international markets. Forex earned last year was only around 50 crores. There could be huge scope to grow and expand this business.  
2. The company has an extensive product line comprising of 16 products falling into 5 groups. Details in the website.  
3. Promoters of Ram Ratna Wires own 73% of the company. Another 10% is owned by anchor investors. So only 17% is owned by around 4000 shareholders.   
4. RRW website homepage headline is,
Quality: Stemming from our dedication to give you a superlative experience in electrical technology.
This indicates the positive mindset of the management :-)       

NEGATIVES - POSSIBLE RISKS   
1. Delay in infra spending by the government  
2. Apart from that, there is nothing much that I can think of :-)          

MY TAKE   
Ram Ratna Wires has all the attributes of a potential multibagger. Good quality company with a wide range of niche products having a proven and capable management, with concrete vision for future growth and expansion.   

There is a high degree of probability that there will be huge infrastructure spend in India over the next 1 - 2 years, including the electrical industry under a dynamic and result-oriented power minister. This could directly become a substantial tailwind for RRW.    

All one needs to do it buy the shares, and sit on them tightly for few years. Making excellent profits here is highly probable.  

RRW is an obvious potential multibagger!!  


Disclosure: I own shares in Ram Ratna           


For commercial collaboration, consultation 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 2 - 3 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 assessment and make your own decisions.

Palred Technologies POTENTIAL MULTIBAGGER STOCK D18M12Y2016

Palred Technologies is a holding company that has two main lines of business. Through Palred Online Technologies, it owns and operates the e-commerce portal called LatestOne dot com. Latest One is a specialized e-tailer that deals mainly in mobile accessories.    
For more info check, http://palred.com/            
To check out the e-com portal, http://www.latestone.com/      

NUMBERS - THE LATEST        
Market cap: 73 crores                    CMP on Day18 Dec2016: Rs 89               BV: 48
Revenue FY16: 38 cr                       Net profit FY16: Nil                                FV: 10         

POSITIVES     
1. Operations of latestone.com seem to have stabilized, with revenue of 10 crore plus for the last 4 quarters
2. Quarterly loss which was in the range of 5 crore per quarter has come down to 2 crore per quarter
3. In December 2016 LatestOne entered fashion accessory category with sunglasses and wallets
4. In November 2016 LatestOne completed registration of 1000 dealers on its B2B portal         

INTERESTING INFO         
1. Palred was earlier known as Four Soft. In October 2013, the company sold its logistics business for around USD 40 million   
2. The company declared and distributed a special dividend of 29 rs. per share to around 20,000 investors. This action demonstrates that the promoter cares about the retail investors.   
3. Equity capital of the company was reduced from 35 crores to around 8 crores. In times when promoters are expanding equity rampantly, here is a company that has reduced equity. This shows that the promoter values the equity of his company.  
4. Founder and MD of the company, Palem Srikanth Reddy has been buying the shares in small chunks through open market transactions since last few months.   

NEGATIVES - POSSIBLE RISKS   
1. Though latest one has gained traction in terms of business and revenue, it is yet to make profits.
2. There is very little information about the other ventures of the company   

MY TAKE     
Years 2013 to 2015 witnessed a massive interest in technology and online ventures, most of them in e-commerce. Billions of dollars from various parts of the world were chasing India focused ventures. Venture Capital chasing ventures was unprecedented. In that backdrop we need to view Palred.   

Here we have an entrepreneur who started and scaled up this specialized niche e-commerce company with approx 30 crores. This is probably one of those rare listed pure play e-com company. Meaning, a company that sells products absolutely the e-way.   

As of now as only the e-com venture latestone.com is operational, let us look at Palred from that prism. If this was like any one of those other venture capital funded companies that are mostly privately held, we could have easily seen 10 - 20 million dollars invested in this company, if not more. When one has easy money, and that too lots of it, there is a tendency to do stupid things. 

Vast majority of the e-com ventures in the indian landscape are either still loss making after sucking millions or have gone bust. Under such circumstances, we have here a listed company that is available for less than 100 crores, while holding cash of 30 crores. Company has narrowed its losses and is on the verge of break-even and could even move into profitability over the next 2 - 3 quarters. This company has real products and paying customers.  

Right now there is only latestone.com; however looking at Srikanth Reddy's past and history, he will most definitely start off another one or two more e-ventures. There is also the technology company that also could be grown and taken to the next level.   

Lastly I remember reading somewhere that Palred promoter admires Amazon and its founder. If he can make Palred even 1% of Amazon, then we have a 10 or even 20 bagger on hand.     

Palred Technologies has tremendous multibagger potential!!  


Disclosure: I own shares in Palred.     


For commercial collaboration, consultation 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.

Pondy Oxides POTENTIAL MULTIBAGGER STOCK D14M11Y2016

Pondy Oxides & Chemicals is the leading secondary lead smelter in India. This south based company produces high quality lead and lead alloys to be supplied to battery and chemical manufacturers.  
For more info check, http://pocl.co.in/   

NUMBERS - THE LATEST   
Market cap: 91 crores                   CMP on Day14 Nov2016: Rs 163              BV: 78
Revenue FY16: 464 cr                   Net profit FY16: 10 cr approx                  FV: 10           

POSITIVES  
1. The company achieved highest turnover and profit for the financial year 2015-16 since its inception
2. Profit after tax registered an impressive growth of 51%
3. Out of total revenue of 464 crores, export revenue was around 136 crores.
4. Great to see that Pondy is an environmentally conscious company. A picture speaks a 1000 words. Greenery on the Annual report is nice to see.   

INTERESTING INFO      
1. Pondy Oxides exports to multiple countries, and has made significant inroads into USA, Thailand and countries in Europe
2. Company has set up a hedging desk with a London based broker to manage its metal price exposure
3. Equity capital of the company is only around 5.5 crore. There are only around 55 lakh shares held by around 8000 share holders
4. Statement on the Pondy Oxides annual report of FY2016 = "You can't change the past but you can change the future, Recycle for a better future"             

NEGATIVES - POSSIBLE RISKS          
1. Company is subject to currency rate fluctuation as it imports substantial part of its raw materials.
2. Raw material availability and commodity price fluctuation is a  risk.  

MY TAKE    
Pondy Oxides & Chemicals is a high quality company. This company is a leading player in smelting and producing secondary lead. The promoters and management have  a commendable experience in this field with a track record of over 2 decades.  

Company has declared exceptional results for Quarter ending September 2016. Revenue at 186 crores is almost up 80% year-on-year. Gross profit of 11 crores is almost 3 times higher y-o-y. Net profit of approx 10 crores for half year is almost equal to full year net profit last year. From current levels, this stock can easily multiply several folds. 

Pondy Oxides is an obvious potential multibagger!!             


Disclosure: I own shares in Pondy.          


For commercial collaboration, consultation 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.

GITANJALI GEMS POTENTIAL MULTIBAGGER STOCK D20M10Y2016

Gitanjali Gems is a leading jewellery player. This company owns some of the marquee brands like Nakshatra, Gili, Asmi, Hoop, Donatella, Kashvi and others. The company also owns international brands like Giantti, Color me Bella, Stefan Hafner and Porrati.      
For more info check, http://gitanjaligroup.com/                      

NUMBERS - THE LATEST        
Market cap: 820 crores               CMP on Day20 Oct2016: Rs 75                     BV: 360
Revenue FY16: 13,900 cr               Net profit FY16: 133 cr                               FV: 10          

POSITIVES          
1. Consolidated profit in Q1FY17 almost increased 3 times to 57 crore from around 19 crore a year earlier, demonstrating the turn-around.        
2. Long term debt has reduced from 750 crore to 520 crore in the last FY. Step in the right direction  
3. Gitanjali operations in India comprise of around 3000 points-of-sale including 200 own stores, 150 franchisees, 675 shop-in-shops and 2000 retailers.      
4. Global operations include 108 stores in the USA and 500 retailers, 4 stores in UAE and 50 SIS, Portfolio of Italian brands for Europe.     
5. After the debacle the company experienced 2 years ago, their TV and media adverts had almost stopped. However recently advertisements in various media has picked up indicating the company's direction.

Positive changes in FY2016 indicating a turn-around       
1. eCommerce sales of the company was over 210 crore through their portal Jewelsouk (recent TV adverts featuring Shraddha Kapoor)  
2. In modern retail (SIS = shop-in-shop) market share of Gitanjali increased from 58% to 72%   
3. Samuels, the American operations of Gitanjali, is the 4th largest speciality retailer in the US, in the worlds largest diamond jewellery market.   
4. Recognizing the dynamics of the market and the demands of the new generation, the company is focusing on fine jewellery from light-weight material and also platinum jewellery.    

INTERESTING INFO   
1. From a low of Rs. 110 in July 2006 Gitanjali stock made a high of Rs. 440 in Jan 2008 (a 4-bagger in less than two years)
2. From a high of 440 in Jan 2008 the stock sold-off to a low of 40 in Mar 2009   
3. Again, from a low of 98 in May 2010 Gitanjali stock made a high of 620 in Apr 2013 (a 6-bagger in less than three years)  
4. Once again, from a high of 620 in Apr 2013 the stock collapsed to a low of 32 in Mar 2016  

Will history repeat? That only time will tell.  
However, people venturing into this stock for sure can have a massive roller coaster ride. As long as you are in the right direction, this could be a profitable opportunity. In the wrong direction, you could loose big time.

NEGATIVES - POSSIBLE RISKS  
1. Clearly Gitanjali stock is volatile. Due to the sharp and massive up-moves and down-moves, this is not for the weak hearted.
2. Short term borrowings of the company is almost around 7500 crores. This could be mainly due to the huge working capital requirements. With new expansion in plans, the company needs to be prudent in managing this aspect of the business.  This could be a big factor in the determining the future of the stock.

MY TAKE   
Shares of Gitanjali being hugely volatile is an understatement. In less than a decade, the company became a multibagger twice only to collapse in a very sharp and brutal manner. So this is a risky stock.  

Having said that, looking at the track record of the business, its scope and potential growth, the company is currently available at a very cheap price. Also, the company is in the middle of a turnaround. If the management can successfully charter the minefields and steer the company in the positive direction, it could well become a multibagger once again.  

It is well placed to become a multibagger the third time around!!          


Disclosure: I own shares in Gitanjali.      


For commercial collaboration, consultation 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.