Wednesday, June 5, 2013

Few More Multibaggers For Long Term

1) Ricoh India Ltd:
Ricoh is originally a Japanese company involved in multinational imaging and electronics business.
Ricoh India has a sales and service network, present across the country with 19 branch offices, 256 dealers, more than 300 company and 300 dealer service engineers, covering the remotest of areas besides being present in small cities and large metros. (This numbers might have increased as of today) :)
Company has been growing strongly since FY11. It has certainly made its presence felt in India.
Company came out with strong set of numbers in this quarter where they reported a 47% jump in revenues YoY. On yearly basis, company made revenues of about 633 Crs. Company has reported a net loss of about 1.3 Crs for the year, but from last few press releases from the company, it seems that they have strong plans ahead to expand their business in India. They are expecting 1000 Crs revenues in FY14
Few link to look at, thanks to my friend R.K. Agrawal for sharing those:
More Details will be shared in comments section.

2) Dewan Housing Finance Corporation Ltd:
Another great growth story. Excellent Q4 numbers help them show a 67% growth in revenues YoY, and a 47% growth in Net Profit in that same period. Company has been paying good dividends as well as Promoters have increased their stakes in the company off-late. Personally, I feel that re-rating should happen with this stock soon.
Only worrying factor is that, this company is already popular among investors. FII are holding nearly 40% stake in the company, and that is always worrying as far as I feel. Because, as per my experience, buying or selling by FII's is always like a Pied Piper Effect :) Hence it can take stock equally in both the directions.

3) Can Fin Homes Ltd:
Still a small organization when compared with Dewan Housing, but still, the company has been growing at a good pace.
Revenue growth seen is 23% and 37% YoY for past 2 years resp. Net Profit has been growing slowly, but that is never a parameter when looking for long term investment.
Dividend has also gone up in past 2 years.
Few good links to look at:

4) Suven Life Sciences Ltd:
Another stock in our list from Pharma Sector, but can't hold myself from sharing this also.
Growth Story has not been as great as Ajanta Pharma, but company still has shown enough to get my attention.
Sales has been growing at 20% per year, and we have seen some good numbers off-late posted by the company.
I expect the sales to grow further as company has been able to get patents of several products in past 2 months, and hence, they will also start contributing to sales.
a) Suven Life Sciences Ltd has informed BSE regarding a Press Release dated May 10, 2013, titled "Suven Life secures three Product Patents for their NCEs in Canada and Eurasia"
Link: Click Here
b) Suven Life Sciences Ltd has informed BSE regarding a Press Release dated April 17, 2013, titled "Suven Life Sciences secures 4 Product Patents for their NCEs in China, Mexico and New Zealand"
Link: Click Here
Promoters were buying the stock heavily around March-April, this year, especially the CEO of the company, which further enhances my confidence in the company.

I haven't made investment in any of the company mentioned above yet, as I am running out of cash for now.
But I have been trying to get into these scripts as soon as possible. Each one can do a bit of their own research before getting into these stocks.


  1. My friend R.K. Agrawal, also mentioned in one of the comments earlier, that India is the only country where a subsidiary of Ricoh is listed in stock exchange out of total 120 subsidiaries in various countries. Promoter holding in Ricoh India is close to 74%.
    Hence it can be considered a healthy delisting candidate also.

  2. Board approves Buy Back of Equity Shares:

    Infinite Computer Solutions (India) Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 05, 2013, have approved the Buy-Back of Company's fully paid up equity shares of Rs.10/- each from the existing owners of shares from open market through stock exchanges in accordance with the provisions of Section 77A, 77AA and 77B of the Companies Act, 1956 and the SEBI (Buy-Back of Securities) Regulations, 1998 at a price not exceeding Rs. 120/- per share payable in cash for an aggregate amount not exceeding Rs. 30 Crore. The offer size represents 6.89% of the aggregate of the Company's paid up equity capital and free reserves as on March 31, 2013.

  3. Granules Chairman has started buying the shares from open market once again, as he did last year...
    Looking at this, it seems, that expansion seems to be in good shape, and we definitely might see a 30% growth in FY14, which should take the annual revenues close to about 900 Crs....
    Lets hope for the best...

  4. Some more good news...

    Thangamayil - Opening of 30th New Branch at Eral - Tuticorin District
    Thangamayil Jewellery Ltd has informed BSE that the Company is opening its 30th branch at Eral on June 12, 2013 between
    09.00am and 10.00 am Admeasuring 595 sqft.

  5. And to add to that, Thangamayil Promoters have started buying few more stocks from open market...
    Recently they bought about 5000 shares...

  6. Dear kunal

    Your views on singer india for holding 1yr. Management change/better profitability/focus on consumer durables..

  7. Hi Peush,

    It doesn't seem that there are any issues with the fundamentals of the company.
    Revenues and profitability have been growing, strong promoter holding, decent reserves and zero debt...
    My only concern is the industry of its operations.
    If you look at most of the stocks that we have selected, they have been enjoying monopoly in one or more of their products. This is the only thing that I felt missing with this company....
    Still for investment purpose, it looks good with 75% promoter holding and a decent 20-22% growth in revenues in past 2 years...
    1 year seems too less to predict its price movements..... as there can be plenty of fluctuations in markets...and every stock somehow has to respect that also....
    But you can expect a decent returns if you go long, and of course, have to keep in mind that performance continuous in the right direction...

  8. Ricoh India launches SP 200 series printers; eyes Rs 1,000 cr turnover


  9. Good dip to buy Ajanta Pharma again for those who missed the rally earlier, and for those who are ready to wait for another 2-3 years....
    Promoters of the company has also used this dip to buy more...
    Other than Gabs Investment, who were involved in buying shares heavily in past 1-2 months, other board members also have started buying in this dip...
    Nandkishore Agrawal and Satish Agrawal, the others promoters, have bought 1000 shares each around 920-930 levels.....
    The move confirms that there is no change in the fundamentals....may be the stock went up too much...because of which it is consolidating a bit....
    The current trend is negative, and it wont be surprising, even if we see stock going below 800....but that should be temporary I believe....

  10. They will definitely cross 1000 crores !!! At the moment, dollar exchange rate is cause for worry !!! It will have stress on Profits !!!!

  11. But they have never been such a high profit making it should not affect the stock price, as far as I feel...

  12. Thanks a lot for ur upfront views. This helps investors in taking decisions.



  13. Small and mid-caps are suffering just for a single reason "There is no Retail participation" and even in the distant future there is no likelihood of retail participation !!!! Institutional investors hardly participate in small caps !!! Mid-caps also they are very selective. How these baby- shares will reach fair or superlative valuation? I fail to understand !!!

  14. Allotment of equity shares under DHFL Employees Stock Option Schemes:

    Dewan Housing Finance Corporation Ltd has informed BSE that the Committee of the Board of Directors at its meeting held on June 17, 2013, has allotted 1,07,558 (One Lakh Seven Thousand Five Hundred Fifty Eight) fully paid up equity shares of Rs. 10/- each to eligible employees of the Company in terms of the DHFL Employee Stock Option Schemes (ESOS) 2008 and 2009.

    The said equity shares rank pari-passu in all respects with the existing equity shares of the Company.

    Consequent to the issue and allotment of the equity shares under DHFL Employees Stock Option Schemes to the eligible employees of the Company, the paid-up equity share capital of the Company stands increased from the present Rs. 128,21,87,099 divided into 12,82,18,709 equity shares of face value of Rs. 10/- each to Rs. 128,32,62,670 divided into 12,83,26,267 equity shares of face value of Rs. 10/- each.

  15. Seems like we have another opportunity to enter Money Matters for those who missed it around 110 levels...
    Results were amazing but still, the stock came down from 175-180 levels to 155....
    The reason became evident yesterday...
    There were around 56000 shares traded yesterday on BSE with 100%...and today till now, there are 66000 shares already traded...
    I dont think anybody other than promoters have got this much capacity.....
    Earlier, if someone would have been following, promoters were able to accumulate only 3% shares around April this year.... so they still need to acquire 2% shares from open market, which I feel, they would be completing within 2 weeks....

  16. Ajanta Pharma has made a good comeback from those levels of 800 or less..
    But still, I feel the stock is strongly in hands of intraday traders.....
    Lets see what happens in AGM next month, and Q1 results to go with that.... so that we can decide what to do further....

  17. Close to 1 Lakh shares delivered today on Thangamayil including both the exchange...
    Should be another big hand from promoters...
    Looking at recent acquisition, it doesnt seem that company will report loss in Q1.... but still, we will have to wait and watch....
    But in any case, future looks great....

  18. It normal tendency that when there is a heavy downfall in markets, people tend to get out of stocks which have given them good profits already....
    This might be the reason why Ajanta is facing intermittent downfalls.... but I would suggest to make full use of such dips to enter again, for those who missed the rally earlier,, our final target on the script is still 1000 and above.....
    So, long term investors, should not think much about short term movements, and try to accumulate the script around 700-800 levels...for a target of 1000..
    Heavy promoter buying even in 900-1000 levels is giving me confidence to make such calls... People can take their own decisions before taking any action...

  19. As per our expectations, promoter buying reports on Money Matters are out now....
    They have acquired about 2.15 Lakh shares in past week from open market..

  20. Dear Kunal

    seek ur advice on pratibha ind, unity infra. IRB - They can be low PE traps or multibaggers on the upturn on economy - say double or triple in next three yrs. All managements seems okay.



  21. Frankly speaking, I am not a fan of Real Estate and Construction Stocks.....
    Haven't advised any stock from that sector till now....
    But still since you have asked, from my point of view, considering all the factors that we look for in a multibagger, IRB Infra looks best among the 3...
    It is highest revenue making company among the 3, and trading at a lowest value among the 3, considering a base face value for each......
    Company is sitting on a good reserves, and healthy promoter holding.....
    Can't comment anything more, as I don't look at this sector much, and hence have lesser ideas about their movements.....Sorry for that...


  23. Dear Kunal

    I have a point wherein I look forward to your view as an expert analyst.

    Good MNC's despite a high salary payout/overheads are able to log 20% growth and NPM of 11-15% or even upto 25%. Whereas some indian managements despite a high topline growth show only 3-5% NPM. can such managements be trusted and invested?



  24. Hi Peush,

    First of all, dont use words like expert analyst and all. I am just a normal retail investor like you are.

    To start with your query, I have a doubt as. I didn't understand what do you mean when you say that "some indian managements".
    If you go and check blue chip Indian companies, you will find that they all are posting a NPM of 20-25% annually, and they have indian managements only.
    For eg., TCS, Infosys, Sun Pharma, Cipla, ITC, HUL to name a few....

    If I am not wrong, I think you meant to say that Small Cap companies, are not able to show NPM of more than 10% or so.
    If that is your question, then what I feel is that, you should rarely think about the Net Profit in companies which are in the growing stage. The expenses factor are always going to be higher in small organization compared to a bigger and stable one.
    Employee Benefit Expense, and its increase in every quarter, is always going to be higher in smaller organizations, as it is difficult for them to retain resource and attract new resources, than a stable larger organization, where a few would just want to stay/join, because of the fact that company is reputed, even with a lesser pay or lesser facilities.
    Advertising and Marketing Expense, is the other thing, which is always going to be higher for a smaller organization. (The statement is self explanatory.) :)

    There may be more such factors, which accounts for such higher expense which takes the overall Net Profit down, due to which, the NPM gets lower.
    We can discuss it further, but first, I want a clarification on your question, as to what I assumed is correct or not?

  25. Dewan Housing Finance Ltd may buy majority stake in DLF Pramerica Life Insurance Company

  26. Suven Life secures two (2) Product Patents for their NCEs in Japan and USA

  27. Dear Kunal

    I believe, mostly MNC's have CLEAN financial practices - they are investor friendly too. whereas VERY few indian managements have a line of thinking MNC's. Those who behave like MNC's turn out to be like Tcs/Infosys etc Exceptions would be noticed everywhere.

    I do not have a intention to point at any management, however investment in any company would be much safe if managements got intentions of wealth creation. I felt, probably higher NPM is one of the factor indicating wealth creating management wherein I seek your opinion.

    You are correct, I meant for small caps specifically - who can turn out to be wealth creators in next 15-20yrs.

    warm regards,


  28. Money Matters Financial Services Ltd has entered into a strategic arrangement with Chicago-based Capri Capital Partners to set up a realty-focused asset management company (AMC) in India.

    This company will be a 50:50 joint venture, P.H. Ravikumar, Managing Director, Money Matters Financial Services, told Business Line.

    Money Matters, a non-banking finance company, is awaiting new guidelines from market regulator SEBI on the revised minimum capitalisation norms for AMCs.

    The Securities and Exchange Board of India recently indicated that it may revise the said norms for AMCs. The objective behind such a revision could be to discourage non-serious players.

    Meanwhile, Money Matters is in the process of changing its name to Capri Global Capital Ltd.

    “The Reserve Bank’s nod has been obtained for changing the company’s name. Shareholder approval is being sought. We are hopeful that approval from the Registrar of Companies will also be in place by the end July or August first week,” Ravikumar said.

    Ravikumar said talks were on between Money Matters and Capri Capital Partners to see how the latter could participate in the equity capital of the non-banking finance company.

    Quintin E Primo III, Chairman and Chief Executive Officer of Capri Capital Partners, will be offered a director’s seat in the board of Money Matters, it is learnt.

    “Price disparity issues are being sorted out,” Ravikumar said.

    Money Matters is currently focused on two verticals — loans to small enterprises and real estate development. “By the end of this year, we hope our small enterprises’ book will be bigger than the real estate book,” he said.

    Source: Business Line

  29. Ricoh India to Increase Prices due to Rupee Depreciation:

    Ricoh India Limited, a leading player in Printing & Document Solutions and IT Services, today announced a 5 to 8% increase in the prices of their Office Products & Services.

    “The Indian Rupee has dropped drastically, and is at a record low of Rs. 60.70 vis-à-vis USD. In spite of the huge depreciation of Indian Rupees, we have been trying to hold on to our sales prices to our Customers/ Channel Partners till now, hoping that the situation would improve soon”, Tetsuya Takano, MD & CEO of Ricoh India, said. ”The depreciation of INR is more than 12% since March 2013 which directly impacted the cost of imports of all our products, spare parts and consumables. We are now constrained to increase the prices of our Office Products and Services by around 5 to 8%, so as to at least partially cover the impact.”

    “India is a high growth market for Ricoh and we have ambitious plans here”, Mr. Takano said “from around Rs 300 crores in FY 11, we planned to expand to Rs 1,000 crores by FY’13. During the financial year ended as on 31 March 2013, we have already touched revenue of Rs 633 crores, which is around 47% over the previous year. We will continue to bring the best of technology at affordable price points to our customers, to rapidly expand across our businesses segments.”

    On enquiring on the possible effect of price increase on the sales, Mr. Takano said “Customers are now looking for true ‘value for money’ proposition rather than just low price tags. Hence, I don’t think this price increase will have any major impact on sales, as we will continue to focus on providing value to our Customers through Productivity, Security, Compliance, Workflow Improvement and Total Green Office Solutions.”

    The price increase will be implemented with effect from 1st July 2013.

    Source: Business Wire

  30. Replies from management of Granules and Photoquip on recent poor performance:

    1) Granules India:

    While the promoter group has pledged some shares, it’s quite low compared to the historical levels. Also, I don’t think it’s appropriate to suggest this is the sole factor behind the stock’s performance. There are many factors that impact the share price including the macro-environment as well as market perception behind mid-cap Pharma stocks.
    The expansion was completed and we are ramping up production. We are working with customers to get approvals and will continue to ramp up production.


    2) Photoquip India:

    Hi Kunal

    First of all my apologies for the delayed reply. I was unavailable and had limited access to connectivity.

    The year-end post-tax loss is Rs. 20.96 lacs. The loss is majorly on account of

    General slow-down in exports.
    Increased raw material costs (about 10% over last year) which we had to absorb.
    Increased marketing / brand building spend for corvi.

    We started corvi operations on 12.12.2012. Effective this date corvi contributed Rs. 250 lacs to the top-line. With our ambitious growth plans there would a substantial contribution from corvi during the current financial year.

    We are sparing no efforts at our end to turn the corner so to speak.


  31. […] Once again the company was successful in delivering numbers which proved to be way beyond expectation of many, and hence the stock continues to be in strong upside momentum. Below post was written on 4th June 2013, when the stock was trading around 25 levels, and in just 5 months, it has appreciated to 80 levels, the growth of more than 200%. […]

  32. […] of certain government policy. The stock was suggested in June 12, and the target given was 250 Rs. For now, I stick to that target, because we are not sure on what sort of policies are going to be […]

  33. […] considering its peers. Earlier, when I posted about the stock in June 13, I gave a target of 200 Upgrading it to 225 as of now, and of course, this is not considering any severe policy changes in […]

  34. […] itself. The stock was trading around 24, when it was suggested on this blog around Jun ’13: The management has been able to justify the price rise, and hence the stock is able to stay around […]

  35. AND once you have the book in the proper final format, you
    can also utilize the likes of to get your book out as a possible ebook to everyone
    the main online distributors, including Amazon for Kindle, Barnes & Noble for Nook, Apple i
    - Bookstore for i - Pad, etc. ' A bespoke website always looks much better than something
    'off the shelf'. If you're a graphic artist,
    it may beneficial for you to learn the difference between web Author Publishing Company
    and desktop publishing.

  36. If you, as an author, are clasping a protective hand over
    your wallet at this point in time, you have a right to be concerned.
    Create a short video invitation to post to You - Tube, Vine, Tumblr, Facebook and to email your friends.
    Look and understand your customers through the business they are dealing with,
    their suppliers etc so that you could understand and know them
    in a better manner.

    Also visit my webpage - Self-Publishing Company

  37. Listen from what Professors, Writing Teachers and Writing
    Coaches the planet over say about Stu Leventhal's new Creative Writing
    Guide Book:. Don't forget to depend on friends and family
    members when you require a little push. What about writing an appliance cover letter on your job search.

    my web page :: Author Solutions

  38. Many who have the creative flare to produce a work of art, say a novel, don.
    Signing up on one of the many e - Book seller
    platforms is a piece of cake.

    my page ... Self-Publishing Company