What will be next 10x. or 100 x multibaggers stocks

Piramal Enterprises :
Here is the concall transcript on impact of demonetization

https://corporates.bseindia.com/xml...B3A298_B4EC_45D7_A944_E0DE978D4E7F_194329.pdf

 

Piramal Enterprises:
Piramal Fund's south India investments surpass Rs 10,000 cr

Piramal Group's financial services arm Primal Fund Management (PFM) has surpassed Rs 10,000 crore in aggregate investments in South India, the company's proprietary book stated.

This forms one third of the firm's commitment to clearing Rs 32,000 crore debt and equity to real estate developers across India.

According to Piramal, the Rs 10,000 crore milestone was aided by a focused approach in treating Bangalore, Hyderabad and Chennai as a single region, where synergies were drawn with tier 1 developers from existing and new relationships, besides leveraging Piramal Fund's ability to sanction large deals across the capital stack.

"Piramal Fund Management is committed to enabling liquidity in the ecosystem and as markets consolidate, we will extend our partnerships in South India by underwriting multi-city relationships with tier 1 developers. We have consistently increased our exposure across Bangalore, Chennai and Hyderabad over the past few quarters. Consolidation is a healthy sign which will make the end users recognise tier 1 developers' track record and execution capabilities," said Khushru Jijina, managing director, PFM on Tuesday.

According to Jijina, the fund's Hyderabad portfolio was growing at an impressive pace on the commercial real estate front, after PFM re-entered Hyderabad's market a year ago.

PFM's exposure in the south extends to residential as well as commercial segments, including a recently launched flexible Lease Rental Discounting (LRD) product and the customised funding for plotted land developments.

The first phase of Piramal's preferred partner programme, under which a credit line of Rs 15,000 crore was extended for selective development, has been utilised by 50 per cent at present. The second phase of the programme is likely to be launched in the upcoming financial year targeting, among others, selected developers in the southern region.

Around 50 percent of the utilised line of credit under the partner programme comes from Bangalore and Hyderabad, the company said.

According to the PFM, the company's three-fold strategy to expand its product offerings, portfolio companies and geographical reach, has enabled a steady growth of more than 80 percent CAGR in the last two years.

A number of tier 1 developers from Bangalore such as Prestige, Purvankara, Salarpuria and Mantri, have forayed into Chennai and Hyderabad. In what appears to be the next logical step, the PFM is actively underwriting transactions with exisiting developers from tier 1 cities across multiple projects.

Some of the major deals signed in the region inlcude a Rs 1,000 crore project with the Adarsh Group and a Rs 1,050 crore deal signed with the Ozone Group. Piramal Enterprises has recently reported a consolidated revenue of Rs 1,936.4 crore for the second quarter that ended on September this year, while accruing a net profit of Rs 254.36 crore in the same period.

https://www.business-standard.com/a...ents-surpass-rs-10-000-cr-116112900456_1.html

 

Patel Engineering Ltd:
The allotment committee of the company has approved allotmentof 8,01,88,409 equity shares of face value Re. 1 each at a price of Rs. 52.20 per share (i.e. price for conversion of debt into equity determined as per RBI circular dated 8th June 2015) to the lenders on preferential basis, as per Strategic Debt Restructuring Scheme (SDR).

https://corporates.bseindia.com/xml...D3BEAE_97B7_4834_9102_40C03F4A1C0C_164358.pdf

The current management will continue to run the operations. Just that now the banks hold more shares in the company then the current management.

With the banks now controlling a major stake, they would be looking to monitise the assets and bring down the debt.

This augurs well for the company in the medium to long term. This also serves as a wake up call for the current management to either perform or be replaced.

I think the Capital dilution was already factored in. The Market reacted positively to the fact that we have just of half of equity dilution than originally envisaged. Now most uncertainty is off the table.

With HCC to receive 75% arbitral award amount of appx Rs. 2000 crore within 4 to 6 weeks. This news has spurred Patel Engineering today. Hopefully there will be similar arbitral award amount reaching Patel Engg. also. That will be the trigger for stock to appreciate much much further from the current levels.

Also Patel engineering has 5000 crores potential inflow out of which 2000 crores is near term. This is ignoring potential inflows by selling non core assets. So potential 500 crores plus addition to PBT due to eliminating interest cost. Post tax potential 50 to 60 EPS impact. The order book will be around 14000 crores 7x of current sales mostly in EPC model which is asset light. With a potential debt free balance sheet and a high growth with 20 PE one can compute the potential if things pan out. I do foresee 4 digit valuation.

And Congratulations to all the investors who had held their nerve and patience with Patel Engineering. Do not make the mistake of exiting in a hurry. The infra boom has just started. We are at the cusp of beginning.

 

Looks like this has spooked the Market - Swati A. Piramal selling 0.12% shares of Piramal Enterprises Ltd.

December 07, 2016 - 2,00,000 shares.

Management Response:
Response from PEL with regards to promoter selling :

Dear Sir,
Thanks for your mail. The response to your query is as under:

The 2 transfers from Piramal Corporate Services Limited (PCSL) are consequent to exercise of ESOPs (PCSL is the Corporate Trustee of the Piramal Welfare Trust).
The transfer from Piramal Employees Ltd Senior Employee Welfare Trust is consequent to exercise of ESOPs.

The transfer from Dr. Swati Piramal is an off market transaction on account of Gift.

Trust this clarifies.
In case of any further query, please do not hesitate to contact us. Thanks.

 

Indiabulls Housing Finance:
BLOCK DEALS on BSE:

Qty: 450,072, Deal Price: 646.75, Value: 29.11 Crores on Dec. 21st !!!

Qty: 210,000, Deal Price: 646.50, Value: 13.58 Crores on Dec. 20th !!!

BLOCK DEALS on NSE:

Qty: 116,130, Deal Price: 637.00, Value: 7.40 Crores on Dec. 22nd !!!

BLOCK DEALS on BSE:

Qty: 318,008, Deal Price: 637.50, Value: 20.27 Crores on Dec. 22nd !!!





SELL :

 

Indiabulls Housing Finance::::
Mortgage firms interest rate war to cheer home loan seekers in new year

https://economictimes.indiatimes.co...-seekers-in-new-year/articleshow/56208880.cms

 

Piramal Enterprises:
Ajay Piramal to hike stake in Shriram Capital

https://economictimes.indiatimes.co...e-in-shriram-capital/articleshow/56429424.cms

Ajay Piramal continues his strategy of merging Shriram and Piramal group. Rajesh Laddha CFO of Piramal group to become CEO of Shriram Capital.

 

Piramal Enterprises Q3:
Net Profit Up 32% At 404 Cr Vs 307 Cr (YoY)
Income Up 31% At 2,342 Cr Vs 1,786 Cr (YoY)
EPS at 23.42 vs 17.79, Up 31.69%

 

Piramal Fund Management Sanctions Investments of around INR 2000Crore within three months of launching of Flexi Lease Rental Discounting (LRD)

https://accommodationtimes.com/pira...nching-of-flexi-lease-rental-discounting-lrd/

 

Indiabulls Housing Finance will be included in Nifty 50 along with IOC.

It will replace BHEL and !dea

 

Does this means Nify 50 included stocks will perform well?

 

Performance of stock depend upon business only not upon any kind of inclusion. Inclusion in Nifty 50 enhance the confidence on business for investors.

 

yes , i agree with you , but one point is there .... Nifty bench mark mutual funds invest in only in nifty stocks ,
in all over India and FII's and Hedge funds they prefer Nifty stocks , if any stock removed from nifty they will exit
and invest in newly entered nifty stock , so some kind of buying support will come from them , but if stock is not perform well or bad news or bad results , stock effect negatively

 

Piramal Enterprises : Motilal Oswal Initiating Coverage - Target Rs. 2200/-
My Take: Looks like more value in this one !!!

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Read More:
institution.motilaloswal.com/emailer/Research/PIEL-20170217-MOSL-IC-PG038.pdf

 

IDFC bank has disappointed till now,but I feel that from next financial year ,it may start performing.It is still a10 bagger stock which is fairly priced in over heated market ,but only for those who can keep patience for atleast two years and can see its under performance for atleast six more months.All Banks with corporate finance books like ICICI bank,axis bank ,SBI etc are also going through pain,and IDFC bank had also major corporate loan book so is taking time to settle .What ever Modi ,Chelas and his Bhakts preach ,but Demonetisation has also extended pain of banking sector by one more year.I expect corporate banks pain to persist for one more year due to Demonetisation and after that it may be recovery,but only if Modi did not fire any misguided missile like Demonetistion again.

 

Piramal eyes 3rd spot in domestic OTC market by 2019
Consumer Products division has grown by 44% in 9 months to December 2016

Having grown from the 40th position in 2007 to the 5th currently in India's Rs 14,000 crore OTC market, Piramal Consumer Products has not only done well, but is now hoping to become one of the top 3 players in this segment by 2019, a year ahead of its target.

Buoyed by a string of acquisitions last year, the consumer products division actually grew by 44 per cent in the last nine months. The organic segment of its business has grown by 20 per cent while overall CAGR in the last seven years has been around 24 per cent. It had ended FY16 with a topline of Rs 397 crore.

Kedar Rajadnye, president and chief operating officer, consumer products, Piramal Enterprises Ltd explained, “We are growing at 44 per cent despite demonetisation. OTC industry is growing roughly around 10 to 11 per cent. We should be ending the year at rank close to 5th.”

The company has set a three-year plan or a 2020 plan to become Rs 1,000-odd crore, which implies it would have to clock a growth rate of around 30 per cent. “We are planning for that and we are trying to see whether we can actually do our 2020 target by 2019,” Rajadnye was upbeat.

Piramal entered the OTC market in the late 90s with two joint ventures -- one with Reckitt Benckiser and another with Boots Plc -- to market and distribute brands.

After the global acquisition of Boots by Reckitt Benckiser, Piramal decided to separate and established its own independent OTC business in 2008. The business had three brands in its portfolio (Saridon, Lacto Calamine and Polycrol) and catered to 24,000 outlets through an 80-people team. It had a topline of Rs 113 crore and was ranked 40th among all OTC companies in India.

Rajadnye mentioned that the overall business has grown by 24 per cent in the past seven years.

It now has 10 brands of which six feature among top 100 OTC brands in India. The business services 350,000 outlets on a weekly basis through a 2,000 strong team. It now has strong brands such as i-Pill, Waterbury's Compound and others in its kitty.

He added, “We believe there is a huge scope to grow the market because there are many categories in India which are OTC globally but not yet OTC in India. And players like us, who are full time into the OTC space can launch these brands.”

As for the inorganic route of growth, Piramal Consumer Products has made close to five acquisitions in the last three to four years. Recent acquisitions include products and brands from Little’s, MSD and Pfizer.

Rajadnye said, “Whether it was Pfizer set of brands, Merck, almost all acquisitions that we have done have, are actually ahead of their projection that we have done. And most probably will pay back much ahead of their own, both on top line terms as well as gross margin terms we have been much ahead.”

https://www.business-standard.com/a...mestic-otc-market-by-2019-117022100562_1.html

 

Piramal Enterprises - Motilal Oswal Target Price - Rs 3044/-

https://institution.motilaloswal.com/emailer/Research/PIEL-20170518-MOSL-CU-PG030.pdf

 

With Motilal Oswal giving 166.8 EPS ...for FY2019, 2020 EPS will be 225 odd.... and stock at 2830 levels is trading at 12.5 estimated PE for FY2020

With 30PE for FY2020, stock can go towards 6750-7000 odd levels by 2020 !!!!
Immense value left in this stock !!!!!

But with Ajay Piramal, targeting for 30-40% CAGR growth & de-merger story unfolding... exciting times ahead for investors...

Just keep holding this GEM for long term !!!!

 

Minda has given 2X for me within a year, waiting for syngene to start paying off

Cheers
G1

 

IDFC bank ,rather IDFC twins has not participated in on going financial rally.Now IDFC twins are going for inorganic growth and even if merger with Sri Ram group goes throgh,we may see them going for M&A again in next two years.Stock is attractively priced at low level .
.No advice to buy but just for discussion.IDFC twins has been laggard and has disappointed Investers,but that can be one of the reason for expected good performance in future and it is hard to find a company which has not a good run in past few years .