Guess The Stock (5x Potential)

Alpha Invesco have sent email that they have identified new stock with 5x potential. Only subscribers are entitled to see the stock.

IF YOU ARE SUBSCRIBER Of ALPHA INVESCO DON'T DISCLOSE NAME OF STOCK AS IT IS NOT PROPER

However, if you are not subscriber, we can play guessing game of what the name of stock is.

I think the stock is AIA Engineering. It is top quality company available at beaten valuations because of difficulties in mining sector. It is perfect contrarian stock to buy and hold.

If anyone else has guesses, please say so.

https://us9.campaign-archive2.com/?u=c974216a7f2d6f7969bfc8414&id=1f047b361f&e=13897a113d

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An Engineering Stock That Is Turning Around With Huge Potential
Recently we added a new stock to our BUY list. The stock has been consolidating for almost a year & its fundamentals have improved quiet significantly. The stock is up by a small 10-15% from initial price, but is still trading around the recommended range.

We are accumulating the stock & expect it to turn out a 5x plus stock over medium to long term.


Company Focusing on High Margin Businesses
We recently covered this south india based engineering company. The company has undergone a huge change since 2011, and is focussing on high margin businesses. Despite meltdown in steel prices, its sales are steadily notching up.

Margins Have Improved For 4 Quarters In A Row
The company has posted improved margin performance for more than 4 quarters in row, and we believe the best is yet to come.

• Major Beneficiary Of Government's Economic Reforms
• Limited Downside Risk ( not more than 15-20% )
• 5 to 7x Or Even Higher Upside Potential In Med To Long Term
• The Stock Is Out Of Favor With Markets. Best Opportunity To Buy.

 

what is it?

 

AIA is similar to the above but charts are not matching.....

 

AIA is not south India based, isn't it Gujarat based?

 

The stock is Pennar Industries

 

Yes, it is Pennar industries. Chart and the financial figures match. Thanks Sroutaji and nprao

 

I have been following this stock for six months now. It's a value migration story - they are shifting away from commodity steel business to producing value added high margin products for railways, solar, and pre-engineered building customers. Also Ashish Kacholia owns a 2% stake in the company.

 

Great. Thanks nprao, Karthikeyan and Sroutaji.

 

Wow we could crack quiz so fast. Congrats to everyone. I hope Alpha Invesco has no objection. They posted quiz and we answered it legally. Hope they do not mind

 

The stock is easily guess able. Any catch?
Catch or no catch I am expecting it to give decent returns in the medium term.

 

Main risk for the business is scalability. They are getting a lot of orders but can they execute on time? In 2Q they had to delay execution of some water treatment orders because of supply chain issues. But they have promised to fix this issue in 3Q. Also Integrated Coach Factory has complained in the past that Pennar needs to increase its capacity for railway coach products faster.

Also, prospective investors should be aware that in mid-2000's when the company was a low margin steel producer they had to go corporate debt restructuring. But all that is in the past and I think the promoters are much wiser and smarter now. Instead of madly chasing growth they have said primary focus will be on expanding margin.

Their investor presentations and conference call transcripts are available on their website. I would encourage anyone who is interested to take a look.

 

Would it make a difference if they object/mind?