After Daljeet Kohli’s stock pick, Sharon Bio-Medicine, delighted investors with a quick-fire 40% gain (in less than 30 days), it is now the turn of Dharmesh Kant to promise similar gains from Hester Biosciences.
Let’s straightaway note Dharmesh’s core reasoning on why Hester is such a compelling buy at present:
“Hester Biosciences Limited (HESTERBIO) is country’s leading diversified play on veterinary business. Through its state- of- the-art manufacturing facility at Mehsana district, Gujarat, it offers wide range of products and services. Products include vaccines for avian, swine and large animals, vitamin supplements and scientific diagnostic aides for disease diagnosis while services focus on seroprofiling for poultry flocks and mastitis control program for cattle (which help improve milk quality and quantity in buffaloes and cows).
….
Hesterbio stands on firm financials. Its revenue and net profit has grown at a CAGR of around 10% in last 5 years. Last two quarters has seen a remarkable turnaround. Q1FY15 saw sales rise by 45.62% y-o-y and PAT by 119% y-o-y along with improvement in profitability margins. PAT margin has been consistently improving sequentially over last four quarters from 10.78% in
Q3FY14 to 18.63% in Q1FY15
9) The stock is currently available at P/BV of2.17x (ttm basis) and P/E of 13.60x (ttm basis) at cmp of Rs. 199.20. The company stands on a strong balance sheet having minimal long term debt at 0.25x of shareholder’s fund. Historically, it has funded its capacity expansion primarily through internal accruals.
10) Assuming the company is able to sustain its growth momentum picked up in last two quarters, we expect Hesterbio to deliver over 30% revenue growth in FY’15. Based on annualized PAT margin of 17%; its FY’15 EPS works out to be Rs 15. Historically, the stock price has traded in the range of 17x to 21x of P/E multiple (ttm basis). Valuing the company at near higher band of historical P/E multiple of 20x for FY’15 based on aforesaid assumption of high growth and stable profitability margins the target stock price comes at Rs 300.
We recommend buy and accumulate on ‘Hesterbio’ for a target price of Rs 300.”
As you can see, Dharmesh’s recommendation is based on solid logic. He has foreseen a target price of Rs. 300 for Hester, which means a whopping 50% gain from the CMP of Rs. 200.
Interestingly, IndiaNivesh Securities, which employs Daljeet Kohli & Dharmesh Kant, holds a massive chunk of 88,972 shares of Hester. I expect that the top brass of IndiaNivesh would also be holding the stock in their personal capacity. So, if the analysts are trusting their recommendation with their own money, then, is there any reason for you to not do the same, is what you have to consider.
Is Liberty shoes an good buy as per sir daljeet recommendation.????
It is also entirely possible that the top brass of IndiaNivesh has purchased Hester at much lower levels, and the analysts’ reports have the intention of talking up the stock! Perhaps I am being cynical, but better cynical than lose money 😀
Agree with Arun!
already in upper circuit today and at 230 levels today morning. Shortly, you will see another post that gloats that 30% results delivered in 1 day and all that !!
NOt so positive comments at CRISIL website
CRISIL has suspended its ratings on the bank facilities of Hester Biosciences Ltd (Hester). The suspension of ratings is on account of non-cooperation by Hester with CRISIL’s efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Hester is yet to provide adequate information to enable CRISIL to assess Hester’s ability to service its debt. The suspension reflects CRISIL’s inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria ‘Information Availability Risk in Credit Ratings’.
Well, Mr. Specialist, that is not a very fair comment, is it ? I am just a reader like yourself, and a new one, but it’s clear that the calls here are not given by Arjun, who is just another investor like ourselves, as also is clear that most of these calls are fundamental driven and not some hazy technical ones. If I owned this site and published this matter, I’ll feel proud to be “gloating” (as you call it) if any stock mentioned by me gave a return of 30% in a month.
One can visit the sites owned by the so-called “analysts” and see that they have certain levels for trading based on their own technical mumbo jumbo. I am just a normal guy, and things like ROE, ethical management, return to shareholders are the things I look for. This site provides some of the best recommendations, free of cost.
Agreed ..fair point Abhi.. I take it back, what I said
These crooks recommend only when the stock is at all time high. The so called dollys and kohlis sell to us and book their profits.
Well Said Abhi, even I have some stock which were recommended by “Arjun & Vidhi” like Cera Sanitory (Dolly) took at 700 now CMP 1310, Ajanta (Kohli) took at 1084 now CMP 1625, Alembic (Kohli) took at 254 now CMP 349, Shilpa (Kohli) took at 424 now CMP 526, Nilkamal (Dolly) took at 216 now CMP 364, Himatsingka (Hem Sec) took at 61 now CMP 80, jb chem (Kohli) took at 115 now CMP 173,… there are many in my portfolio which are doing good,.. and some are in negative (but fundamentally strong) ….. we need to appreciate the efforts of Arjun and Vidhi Khanna, “in this world everybody is charging there is no free service to anything or any serivce”, these people are serving free of cost, we should be grateful to them….. but some recommendation may go weird which are not their in anybody’s hand… especially with the recommendation of “Microsec” (in this case we need to think and invest) if other people are not interested in this website please don’t follow…. comments are welcome…..
Hester Biosciences which was recommend on 30 July is showing mindblowing growth.On 5 Sept(Today)
it surged 10% and touched all time high of 384.15 just 15 point away from 100% appreciation i.e. 400. leaving the target of 300(50% appreciation) much behind ………hates off