Due to new SEBI guidelines, approximately 2100 stocks were moved to illiquid stocks category, effective 8th April 2013.
Circular prepared by SEBI for illiquid stocks.
Link: Click Here
How to trade an illiquid stock:
1) 6 periodic call auction sessions (1 hour each) would be held daily.
First session will start at 9.30 AM, and the last would be at 2.30 PM. From a session of 1 hours, 45 minutes will be for order entry, order modification and order cancellation, 8 minutes will be for order matching and trade confirmation and remaining 7 minutes shall be a buffer period for closing the current session and facilitating the transition to next session.
2) To trade, one can place the order between 9.30 AM and 10.15 AM, and respectively going ahead for every session. User won't be allowed to place any orders from 10.15 AM to 10.30 AM. This time period will be used for settling trades. If a matching trade is found between yours and someone else's order (buy and sell), that will be settled in 15 mins period.
3) If there is no match found for your order, in that session, your order will be cancelled. It wont be carry forwarded to next session. Hence, you will have to place your order again, if it doesn't get executed, in a particular session.
Because of the above rule, one cannot place the order in the morning and leave, like what it was, before. One has to keep an eye on a particular session, to get his order executed.
Among all the stocks suggested on this site, Photoquip India, Money Matters Financial Services, Gulshan Polyols and Cravatex are trading in this category.
I have tried my best to explain trading on illiquid stocks categorized by SEBI.
Still, if someone is unclear, please feel free to post your queries here.
Monday, May 6, 2013
Tuesday, April 30, 2013
Ajanta Pharma - Latest News
Ajanta Pharma - Financial Results & Results Press Release for March 31, 2013
Link: Click Here
Ajanta Pharma - Press Release
Link: Click Here
Ajanta Pharma - Board recommends Dividend
Ajanta Pharma Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2013, inter alia, have recommended Dividend @ Rs. 6.25 per equity share of the face value of Rs. 5/- each, subject to approval of Shareholders at the ensuing Annual General Meeting to be held on July 13, 2013.
Ajanta Pharma - Allotment of Shares under ESOS, 2011
Ajanta Pharma Ltd has informed BSE that the Compensation Committee of Directors at its meeting held on April 30, 2013, has allotted 16,800 fully paid up equity shares of Rs. 5/- each. These shares have been allotted upon exercising of options granted to the employees under Employees Stock Option Scheme - 2011 of the Company.
My Views:The results to me looks outstanding as I can see the revenue growth of 40% for 3rd consecutive quarter, which can be considered nothing less than an unbelievable performace by the company.
Hats Off to the management!!!!!!!
If one asks me, I would say long term investor are advised to stay invested (But, everyone can take their own decision)
I expect a target of 1000 by end of year. (If the growth story continues in similar fashion)
I wont be commenting on any short term movements... :-)
Link: Click Here
Ajanta Pharma - Press Release
Link: Click Here
Ajanta Pharma - Board recommends Dividend
Ajanta Pharma Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2013, inter alia, have recommended Dividend @ Rs. 6.25 per equity share of the face value of Rs. 5/- each, subject to approval of Shareholders at the ensuing Annual General Meeting to be held on July 13, 2013.
Ajanta Pharma - Allotment of Shares under ESOS, 2011
Ajanta Pharma Ltd has informed BSE that the Compensation Committee of Directors at its meeting held on April 30, 2013, has allotted 16,800 fully paid up equity shares of Rs. 5/- each. These shares have been allotted upon exercising of options granted to the employees under Employees Stock Option Scheme - 2011 of the Company.
My Views:The results to me looks outstanding as I can see the revenue growth of 40% for 3rd consecutive quarter, which can be considered nothing less than an unbelievable performace by the company.
Hats Off to the management!!!!!!!
If one asks me, I would say long term investor are advised to stay invested (But, everyone can take their own decision)
I expect a target of 1000 by end of year. (If the growth story continues in similar fashion)
I wont be commenting on any short term movements... :-)
Saturday, April 27, 2013
Granules India - Latest News
Granules India expects 30% growth in FY14
Link: Click Here
Granules India - Financial Results for March 31, 2013 (Audited)
Link: Click Here
Granules India - Press Release
Link: Click Here
Granules India - Allotment of Equity Shares:
Granules India Ltd has informed BSE that the Share Transfer and Shareholders / Investors Grievance Committee at their meeting dated April 25, 2013 has approved to allot 5,000 equity shares in consequent to exercise of options under ESOP 2009.
Granules India - Board recommends Final Dividend:
Granules India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2013, inter alia, has recommended a Final dividend of Rs. 2.00 per share representing 20% of Paid Up Capital for the financial year 2012-13.
Link: Click Here
Granules India - Financial Results for March 31, 2013 (Audited)
Link: Click Here
Granules India - Press Release
Link: Click Here
Granules India - Allotment of Equity Shares:
Granules India Ltd has informed BSE that the Share Transfer and Shareholders / Investors Grievance Committee at their meeting dated April 25, 2013 has approved to allot 5,000 equity shares in consequent to exercise of options under ESOP 2009.
Granules India - Board recommends Final Dividend:
Granules India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2013, inter alia, has recommended a Final dividend of Rs. 2.00 per share representing 20% of Paid Up Capital for the financial year 2012-13.
Tuesday, April 9, 2013
Money Matters Financial Services Ltd (Capri Global) - The Comeback Journey
In 2010 end, there was a big housing loan scam that rocked the nation, and Money Matters Financial Services Ltd.(MMFSL) was proved to be the biggest culprit in that scam.
The stock was trading at 712 Rs on 16th Nov 2010, and the same script hit a low of 47.5 Rs on 16th May 2011. Promoters sold 15% shares from open markets as soon as the scam hit the media, and the CEO of the company was put behind the bars.
Link For Details Of Scam: http://en.wikipedia.org/wiki/2010_housing_loan_scam_in_India
The good thing was that promoters knew that they didn't do anything wrong with the results of the company or anything like that, hence it was always on the back of their mind that they will rise again one day.
2-3 consecutive quarters after the scam, they reported heavy losses, but they ensured that they cleared all their debts (generated because of scam) in that same period.
When the script hit a low of 47.5 Rs, the promoters of the company bought back 5% shares from open market (Around 23rd May, 2011). That was the time, we felt like, a better future can be expected from the company. After those 2 horrible quarters, they went back into profits, and that boosted my confidence in the company and their future.
Then in 2012 again, as soon as the month of April came, Promoters again bought back 5% shares from open market at an avg price of 75-80 Rs.
The journey of revenues for company since Sept 2011 has been unbelievable.
Sep 11 - 83 Crs
Dec 11 - 149 Crs
Mar 12 - 183 Crs
Jun 12 - 214 Crs
Sep 12 - 293 Crs
Dec 12 - 508 Crs
The month of April is here again. And as expected, the promoters have started buying again.
On 4th and 5th of April 2013, they have acquired around 4.71 Lakh shares which are worth almost 5 Cr Rs.
As per my calculations, 5% shares would be equivalent to 16 Lakh shares (approx.)
Hence we can expect the acquisition to continue for few more days.
The Major Worry: Lots of people have asked me about the safety of investing in a company, which has already been in one of the scam. The worry among investors is pretty much valid, and probably, that is the reason why stock hasn't gone up more than 180 Rs levels, even after spectacular performance quarter after quarter.
I believe in this script doesn't mean that each and every one following this board should.
Each one is requested to analyze the script themselves and take decisions further.
Also, if anyone is afraid, calculate your risk taking ability before investing in the company.
Disclosure: I have invested in the company since May 2011 at an avg price of 53-54 Rs, and will continue to hold, as I can see further 5% acquisition by the promoters in the company.
Success is not in never falling, but rising everytime you fall!!!
The stock was trading at 712 Rs on 16th Nov 2010, and the same script hit a low of 47.5 Rs on 16th May 2011. Promoters sold 15% shares from open markets as soon as the scam hit the media, and the CEO of the company was put behind the bars.
Link For Details Of Scam: http://en.wikipedia.org/wiki/2010_housing_loan_scam_in_India
The good thing was that promoters knew that they didn't do anything wrong with the results of the company or anything like that, hence it was always on the back of their mind that they will rise again one day.
2-3 consecutive quarters after the scam, they reported heavy losses, but they ensured that they cleared all their debts (generated because of scam) in that same period.
When the script hit a low of 47.5 Rs, the promoters of the company bought back 5% shares from open market (Around 23rd May, 2011). That was the time, we felt like, a better future can be expected from the company. After those 2 horrible quarters, they went back into profits, and that boosted my confidence in the company and their future.
Then in 2012 again, as soon as the month of April came, Promoters again bought back 5% shares from open market at an avg price of 75-80 Rs.
The journey of revenues for company since Sept 2011 has been unbelievable.
Sep 11 - 83 Crs
Dec 11 - 149 Crs
Mar 12 - 183 Crs
Jun 12 - 214 Crs
Sep 12 - 293 Crs
Dec 12 - 508 Crs
The month of April is here again. And as expected, the promoters have started buying again.
On 4th and 5th of April 2013, they have acquired around 4.71 Lakh shares which are worth almost 5 Cr Rs.
As per my calculations, 5% shares would be equivalent to 16 Lakh shares (approx.)
Hence we can expect the acquisition to continue for few more days.
The Major Worry: Lots of people have asked me about the safety of investing in a company, which has already been in one of the scam. The worry among investors is pretty much valid, and probably, that is the reason why stock hasn't gone up more than 180 Rs levels, even after spectacular performance quarter after quarter.
I believe in this script doesn't mean that each and every one following this board should.
Each one is requested to analyze the script themselves and take decisions further.
Also, if anyone is afraid, calculate your risk taking ability before investing in the company.
Disclosure: I have invested in the company since May 2011 at an avg price of 53-54 Rs, and will continue to hold, as I can see further 5% acquisition by the promoters in the company.
Success is not in never falling, but rising everytime you fall!!!
Sunday, February 10, 2013
Tough times Never Last, But Tough Stocks Do
Looking at the quick success achieved by Ajanta Pharma and Thangamayil Jewellery, it seems that making money is so easy in Indian Markets, but it isn't.
They were able to achieve the early success because they were able to post numbers beyond expectations most of the times.
In small caps, as they say, posting numbers which are just as expected doesn't light up the eyes of big investors who actually has the capacity to take the stock to new levels.
For eg., We saw in Ajanta Pharma that, it used to make nearly 10000 volumes a day, on a consistent basis. But suddenly, from 23rd Jan (i.e. the day when they declared results), I haven't seen the stock doing volumes even less than 1.5 lakhs in a day. So, was there a sudden change in fundamentals of the company?
The answer is No. It is just that, big institutes, suddenly fell in love with the company's fundamentals and they took the stock to new levels. And this could happen any day with any company. Not just the day when they post strong numbers.
If we go back and say that Ajanta Pharma posted a strong Q3 numbers due to which the stock went up, then let me remind all, that this time, Ajanta Pharma's revenues went up by 40% YoY and net profits went up 75% YoY, whereas if you check Q2 results, their revenues again went up by 40% and net profit actually went up by 85%. But still the stock got hammered after Q2 results, it came down from 447 to 358 levels and this time, it went up from 409 to 670 levels. So, this is something, I feel, one cannot predict, but we atleast try to be sure, that it will happen some day.
They were able to achieve the early success because they were able to post numbers beyond expectations most of the times.
In small caps, as they say, posting numbers which are just as expected doesn't light up the eyes of big investors who actually has the capacity to take the stock to new levels.
For eg., We saw in Ajanta Pharma that, it used to make nearly 10000 volumes a day, on a consistent basis. But suddenly, from 23rd Jan (i.e. the day when they declared results), I haven't seen the stock doing volumes even less than 1.5 lakhs in a day. So, was there a sudden change in fundamentals of the company?
The answer is No. It is just that, big institutes, suddenly fell in love with the company's fundamentals and they took the stock to new levels. And this could happen any day with any company. Not just the day when they post strong numbers.
If we go back and say that Ajanta Pharma posted a strong Q3 numbers due to which the stock went up, then let me remind all, that this time, Ajanta Pharma's revenues went up by 40% YoY and net profits went up 75% YoY, whereas if you check Q2 results, their revenues again went up by 40% and net profit actually went up by 85%. But still the stock got hammered after Q2 results, it came down from 447 to 358 levels and this time, it went up from 409 to 670 levels. So, this is something, I feel, one cannot predict, but we atleast try to be sure, that it will happen some day.
1) Granules India Ltd:
The company, right now is going through the toughest time of their career in stock markets, even after posting a record revenues of 195 Crs this quarter. The reason being, people expected it to post numbers which included the revenues from the capacity expansion by the company in this quarter. The only option left for management to get back the faith of investors (atleast those same investors, who took the stock from 55 to 230 levels within 9 months), is to make some positive announcements. One can be further promoter buying, for the remaining 0.5% allowed for the year, one can be through a notice suggesting the completion of capacity expansion and making sure that they contribute to sales for this quarter, and last one would be to wait and watch this quarter results directly in April.
Somehow, the company needs to get out of the tough times.
The company, right now is going through the toughest time of their career in stock markets, even after posting a record revenues of 195 Crs this quarter. The reason being, people expected it to post numbers which included the revenues from the capacity expansion by the company in this quarter. The only option left for management to get back the faith of investors (atleast those same investors, who took the stock from 55 to 230 levels within 9 months), is to make some positive announcements. One can be further promoter buying, for the remaining 0.5% allowed for the year, one can be through a notice suggesting the completion of capacity expansion and making sure that they contribute to sales for this quarter, and last one would be to wait and watch this quarter results directly in April.
Somehow, the company needs to get out of the tough times.
2) Cravatex Ltd:
The company posted Q3 numbers on 8th Feb, and not surprisingly, they were again below expectations. The revenues went down by 10% YoY and net profit took a severe hit, and was down almost 58% YoY.
They would find it difficult to get back to heavy profits, unless the rupee gets stronger. Till then, they should find ways to grow their revenues more and more.
The updated website looks cool and promising, but it is definitely going to be tough for them, as the investors had lots of expectations from the company, just a year back, when it made a high of 799 Rs around April, and that was after the company provided bonus shares 1:1
Let's see, if the company is able to weather this storm and get back the confidence of investors in future.I have found a quote for both the companies and it says:
"Prosperity is a great teacher; adversity is a greater. Possession pampers the mind; privation trains and strengthens it"
The company posted Q3 numbers on 8th Feb, and not surprisingly, they were again below expectations. The revenues went down by 10% YoY and net profit took a severe hit, and was down almost 58% YoY.
They would find it difficult to get back to heavy profits, unless the rupee gets stronger. Till then, they should find ways to grow their revenues more and more.
The updated website looks cool and promising, but it is definitely going to be tough for them, as the investors had lots of expectations from the company, just a year back, when it made a high of 799 Rs around April, and that was after the company provided bonus shares 1:1
Let's see, if the company is able to weather this storm and get back the confidence of investors in future.I have found a quote for both the companies and it says:
"Prosperity is a great teacher; adversity is a greater. Possession pampers the mind; privation trains and strengthens it"
Saturday, October 13, 2012
Granules India - Fastest Growing Pharma Company
Granules India Limited is an Indian pharmaceutical company, founded by C. Krishna Prasad. Granules is a large-scale, fully backward integrated formulation manufacturer which partners with market leaders to provide products throughout the pharmaceutical value chain. The Company manufactures Finished Dosages (FDs), Pharmaceutical Formulation Intermediates (PFIs) and Active Pharmaceutical Ingredients (APIs) which are distributed in over 50 countries.
Granules manufactures several off-patent drugs, including Paracetamol, Ibuprofen, Metformin and Guaifenesin, on a large-scale for customers in the regulated and semi-regulated markets.
There has been an aggressive promoter buying seen in the counter in past 6 months or so. Also, the founder of the company, C Krishna Prasad has released nearly 14 Lakhs Shares from Pledge in past 3 months, which is a great, great confidence booster for investors.
Stock Price Estimates:
This is one stock where I feel that even when the stock has risen from 55-60 levels in Dec 2011 to 230-235 in Sept 2012, it is still not late to enter the script as I expect the price to touch 250-290 very soon, mostly within next 3 quarters.
Further I expect the stock to go on increasing with time, till it reaches 4 digits.
According to the information that I have from company's management, it is expected that Granules India will be a 5000 Cr Revenue company by 2017 from 500 Cr Revenue company today.
As per the report declared by the company, they expect Q2 and Q3 of Fiscal Year (FY) 2013 to be the breakout quarters for their company. Lets invest and hope for the best.
Disclosure:
I have invested heavily in this company and have a good number of shares at an avg price of 139. But, still, I expect everyone to do their own research and consulting before investing in the company.
Friday, September 28, 2012
Few Small Cap Multibaggers For Long Term
1) Photoquip India Ltd:
Photoquip owns most powerful brand for digital flashlights in world for sales in India and exports to its Swiss owner which sells across the globe. The brand is Elinchrom. It would be an understatement to say that Elinchrom is to digital flashlights as Tag Heuer/Omega to watches or Ferrari to Cars. There are only a handful of other brands like Bowens , Alienbees, Profoto and Hensels at the summit of photographic flashlight pinnacle which come close in some aspects of photographic flash equipment . Photoquip have long term relationship with Elinchrom since 1984. It would be rather germane to say Elinchrom is to flashlights what Bugatti or Lamborghini is to Cars or Rolex to watches, Rolex too is a Swiss brand like Elinchrom
Source: Amit Arora's Research
Stock Estimates:
This is one company where I feel that stock is pretty much undervalued with book value close to 70. One reason for that is, slightly cunning Management. As per the rules guided by SEBI, promoters of the company are allowed to buy a maximum of 5% shares from open market per year and this can go on, till a maximum of 75% holding by promoters. Right now, they have 53.5% holding which can be taken to around 75% in coming 4 years. During these 4 years, the management might try to keep the stock price as low as possible, so that they can accumulate at lower levels. Once promoters are done with their buying, we might see dividend also getting declared by the company and the stock might shoot up heavily.
Invest to get multiple returns but not necessarily in short term. The time taken is dependent on management and their thinking.
2) Cravatex Ltd:
There can be 2-3 names that can be given to this company. Many call it Proline Fitness or many of them, FILA India. Whatever you call, it represent Cravatex Ltd., the future in Indian Health & Sports Industry.
Reason for going after such stocks is that I believe, the Health & Sports industry is one indutry which is expected to grow at great pace in coming years, especially, here in India.
Recent Achievements:
1) Cravatex Ltd has informed BSE that the Company has successfully concluded negotiations with the brand owner and has reached a mutual agreement to extend the Sub-license Agreement for the use of "FILA" trademark for India, Bangladesh, Pakistan and Sri Lanka for a period of 30 years starting from January 01, 2013.The Company has also acquired the License for Nepal and Bhutan for the same period.
2) Cravatex Ltd has informed BSE that the Company has successfully concluded negotiation to extend the Exclusive Distribution Agreement for products of Johnson Health Tech. Co. Ltd (Taiwan) till December 31, 2025 for India, Bangladesh and Sri Lanka
This is one company where I genuinely feel that no matter how much I write, its always going to be less. So, its better, if someone ask me related queries rather than me posting more & more details.
Stock Price Estimates:
I started tracking this stock when it was 160 ex-bonus, from where it went to 892, then the price got splitted to about 450. It again went to 800 (799 to be precise), which can be calculated as 1600 (ex-bonus).
I have seen the stock rise 1000% from the day I started tracking.
Off-late the stock has seen some sell-off, due to rupee depreciation as their main business is buying products from overseas and selling it in India, plus the fact that selling of luxury products go down when there is fear of recession. These 2 were the prime reasons of it recent downfall to about 400-450 levels.
But as far as I think, considering long term, India will some day overcome these issues and thing will get back to normal.
Disclaimer: Both of companies are very small cap company right now, hence there is always enough risk associated with it.
Each one is requested to do its own research and consulting before investing. I have invested good amount in both the stocks.
Photoquip owns most powerful brand for digital flashlights in world for sales in India and exports to its Swiss owner which sells across the globe. The brand is Elinchrom. It would be an understatement to say that Elinchrom is to digital flashlights as Tag Heuer/Omega to watches or Ferrari to Cars. There are only a handful of other brands like Bowens , Alienbees, Profoto and Hensels at the summit of photographic flashlight pinnacle which come close in some aspects of photographic flash equipment . Photoquip have long term relationship with Elinchrom since 1984. It would be rather germane to say Elinchrom is to flashlights what Bugatti or Lamborghini is to Cars or Rolex to watches, Rolex too is a Swiss brand like Elinchrom
Source: Amit Arora's Research
Stock Estimates:
This is one company where I feel that stock is pretty much undervalued with book value close to 70. One reason for that is, slightly cunning Management. As per the rules guided by SEBI, promoters of the company are allowed to buy a maximum of 5% shares from open market per year and this can go on, till a maximum of 75% holding by promoters. Right now, they have 53.5% holding which can be taken to around 75% in coming 4 years. During these 4 years, the management might try to keep the stock price as low as possible, so that they can accumulate at lower levels. Once promoters are done with their buying, we might see dividend also getting declared by the company and the stock might shoot up heavily.
Invest to get multiple returns but not necessarily in short term. The time taken is dependent on management and their thinking.
2) Cravatex Ltd:
There can be 2-3 names that can be given to this company. Many call it Proline Fitness or many of them, FILA India. Whatever you call, it represent Cravatex Ltd., the future in Indian Health & Sports Industry.
Reason for going after such stocks is that I believe, the Health & Sports industry is one indutry which is expected to grow at great pace in coming years, especially, here in India.
Recent Achievements:
1) Cravatex Ltd has informed BSE that the Company has successfully concluded negotiations with the brand owner and has reached a mutual agreement to extend the Sub-license Agreement for the use of "FILA" trademark for India, Bangladesh, Pakistan and Sri Lanka for a period of 30 years starting from January 01, 2013.The Company has also acquired the License for Nepal and Bhutan for the same period.
2) Cravatex Ltd has informed BSE that the Company has successfully concluded negotiation to extend the Exclusive Distribution Agreement for products of Johnson Health Tech. Co. Ltd (Taiwan) till December 31, 2025 for India, Bangladesh and Sri Lanka
This is one company where I genuinely feel that no matter how much I write, its always going to be less. So, its better, if someone ask me related queries rather than me posting more & more details.
Stock Price Estimates:
I started tracking this stock when it was 160 ex-bonus, from where it went to 892, then the price got splitted to about 450. It again went to 800 (799 to be precise), which can be calculated as 1600 (ex-bonus).
I have seen the stock rise 1000% from the day I started tracking.
Off-late the stock has seen some sell-off, due to rupee depreciation as their main business is buying products from overseas and selling it in India, plus the fact that selling of luxury products go down when there is fear of recession. These 2 were the prime reasons of it recent downfall to about 400-450 levels.
But as far as I think, considering long term, India will some day overcome these issues and thing will get back to normal.
Disclaimer: Both of companies are very small cap company right now, hence there is always enough risk associated with it.
Each one is requested to do its own research and consulting before investing. I have invested good amount in both the stocks.
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