***Archit Organosys - Multibagger Stock***

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Sapna Reddy, May 9, 2018.

  1. Sapna Reddy

    Sapna Reddy Member

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    Archit Organosys (BSE 524640) is a specialty chemical company having 24 years of manufacturing experience in MCA, SMCA, CAC which is used in the synthesis of various Agricultural Chemicals, Cosmetic Surfactants, Oil Drilling Chemicals, Plastic Additives etc. It has also entered into the Adhesives & Sealants segment by the brand "AOL" which offers various range of Sealants. They are one of the leading companies operating in the global MCA market. http://www.architorg.com/about-us.php

    Archit Organosys can consistently grow 25% CAGR, from the current price I am expecting minimum 200%+ returns by end of next year i.e. Rs 171.

    Big companies have small moves, Small companies have Big moves.” ― Peter Lynch

    The trick of identifying Multibaggers is when the financials turn from negative to positive along with increase in Promotor holding, strong visibility of earnings growth. Archit Organosys meets all these parameters.

    Know what you own, and know why you own it” ― Ian Cassel

    • Excellent Promotor track record of 24yrs backed by First generation entrepreneur Mr. Archit Amin, who has studied in U.S.A with specialization in chemical industry.
    • Promotors have bought shares from open market at Rs 46 in Feb & March 2018, thereby increasied their holdings from 27% to 51.6%.
    • The Bhavnagar Facility plant has expanded 3times and will add to the production capacity of MCA, SMCA & CAC therefore revenues will increase drastically with Higher capacity utilization.
    • Sales have doubled from Q3FY18 of 23.28cr vs Q2FY18 of 11.27cr.
    • In recent Postal Ballot shareholders have approved funds to be utilized for clearing debt, for this purpose they will not pursue one of their secondary product Pac.
    • Rupee expected to depreciate 12 percent by FY19 will be an advantage for their export sales.
    • New product launched "AOL" (adhesives & sealants) is used for residential & commercial buildings.
    • Company has developed in house quality products of SMCA powder in to crystal form for the first time in Indian market.
    • Operating margins are expected to increase in coming quarter & cost raw materials will be benefited by GST slab rate.
    • Industry wise domestic utilization rates are expected to reach high levels of 90 % by the end of 2018 & there is growing demand for Agrochemicals.
    @RAMA MURTHY SASTRY CHALLA What more does an investor want? I hope your negative points mentioned below are addressed.

    Disclosure: I had bought shares at Rs 37 and I am not SEBI registered, will not be responsible for any of your profit/loss.


    Note: All above information can be verified on BSE website & Annual report 2017

    https://www.bseindia.com/corporates/ann.aspx?scrip=524640&dur=A&expandable=0
    https://www.bseindia.com/xml-data/corpfiling/AttachHis/B6AA081B_26BA_4C4B_A94D_EFF46AC29FDC_172418.pdf
    https://www.bseindia.com/xml-data/corpfiling/AttachHis/105D865E_5CBB_4E16_84A8_4951C9F7C355_180904.pdf
     
    Last edited: May 13, 2018
    Srouta Mukherjee likes this.
  2. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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  3. Sapna Reddy

    Sapna Reddy Member

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    @RAMA MURTHY SASTRY CHALLA

    I have revised my first post and added more information on fundamentals of Archit Organosys, hope your negative points are addressed. What more does an investor want?.
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    IMHO better to go for bluechip stocks like Dewan Housing (DHFL), JB Chem, Minda Corp, Parag Milk. All sooper stocks with good business model and management of good quality.
     
  6. Sapna Reddy

    Sapna Reddy Member

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    @Srouta Mukherjee

    Moneylife had also written about Best Steel Logistics the stock is up 95% in just few months ;), not to say that Archit Organosys will do the same, but it surely is a Multibagger :).

    "Stop responding to all the negative people and critics in your life. You can’t let yourself be available to these people because it will drain all the energy you need to move forward".
    -Ian Cassel
     
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  7. Sapna Reddy

    Sapna Reddy Member

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    Its the investors to chose if they want Fixed deposit returns from the market or Multibagger returns :)
     
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  8. adi16

    adi16 Member

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  9. adi16

    adi16 Member

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    High Risk investing is good for the young blood :)
     
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  10. Kritesh Abhishek

    Kritesh Abhishek Member

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    I agree with Murthy Sir. Sales and margin are not improving. Archit Organosys has a high debt and low ROE. There are more negatives than positives. 171 by end of year is really difficult.
     
  11. Sapna Reddy

    Sapna Reddy Member

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  12. Sapna Reddy

    Sapna Reddy Member

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  13. Sapna Reddy

    Sapna Reddy Member

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  14. adi16

    adi16 Member

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    Do you know when the new plant will be operational ?
     
  15. Sapna Reddy

    Sapna Reddy Member

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  16. adi16

    adi16 Member

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    Thanks. Once the second phase starts running at max utilization , we should have fireworks.
     
  17. Sapna Reddy

    Sapna Reddy Member

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  18. shakti khanduri

    shakti khanduri Active Member

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    How much return do you expect from multibagger? How long should be holding period? If you are investing in the company- not on the basis of stock price-do the activities of traders impact your conviction level? I am just a learner,kindly make me understand.
     
  19. Sapna Reddy

    Sapna Reddy Member

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    Encourage you to read the below article, you will get your answers :)

    "Smoking may kill you in 20 years, but trading in stock futures can kill you the next day"

    https://economictimes.indiatimes.co...ill-you-the-next-day/articleshow/64255528.cms
     
  20. Sapna Reddy

    Sapna Reddy Member

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    Follow me on twitter :)