Multibaggers Ideas

Few multibaggers pick are
1. Rajratan Global
2. NMDC
3. Jayant Agro
4. Sarda Energy & Minerals

 

Message on Moneycontrol Message Board: Stocks

Why Prozone as stock which needs to be valued differently : Prozone is owning a land bank of 17.79 mln square ft in Aurangabad , Nagpur , Coimbatore , Indore , Jaipur and Mysore . Aurangabad 15 lac 59 k sq ft , Coimbatore 30 lac 75 k sq ft , Indore 49 lac 03 k sq ft , Nagpur 42 lac 54 k sq ft , Jaipur 27 lac 76 k sq ft , Mysore 12 lac 16 k sq ft . It has started developing this and leasing . Leased income will be from total 45 lac sq ft annually . On conservative basis it will Rs.50 per sq ft per month , so 45 * 50 * 12 is 270 crores rent per year . Income from sale of properties 132 lac sq ft ( as per last 2 quarters selling price in these cities for prozone is atleast Rs.3500 ) , profit will be atleast Rs.1500 per sq ft . So for 132 lac sq . sale income will be 5000 crs and net profit will be 1995 crores , wow ...market cap of prozone is 600 crs and it will earn 2000 crs. Valuation of prozone needs to be done on these parameters . you can confirm these numbers by visiting website where prozone investor presentation gives regular updates every quarter . Intu properties is UK based REIT . At 2000 crs profit in 2 years and 270 crs annual lease income prozone is screaming atleast 10 x multibagger .

Please share your thoughts.

 

why you picked these stocks? reasons

 

All the above stocks rallied 6 to 10 percent in muhurat trading .NMDC slowly picking up volumes n momentum to head towards 150 in short term .

 

All above stocks has potential to generate 30-40% return in next 3 months with very little downside risk .

 

Bhansali Engineering Polymers Ltd (BEPL) – CMP 22.70

COMPANY : BEPL is a vertically integrated petrochemical company that Manufacturs ABS which acts as a raw material for leading companies dealing in automobiles, home appliances, telecommunications, luggage, bus body and various other applications.

With Joint Venture (50:50) front with Nippon A & L, Inc, Japan, a Sumitomo Group Company, company has started production of latest grades like ASA, AES, Transparent ABS and alloys like ABS PMMA and ABS PC enabling the company to have entire range of “product basket” for catering the pervasive requirement of clients and actively contribute towards import substitution.company has established state of the art research and development center at its Abu Road Plant, Ahmedabad. Nippon A&L Inc is a specialized company focusing on polymerization of styrenics and enjoys high reputation in the field of manufacturing and marketing of ABS, AES, ASA resins and SBR/PBR Latices.

Customers list include Auto:Bajaj Auto , Hero Motocorp,TVS Motor. Applicances: LG Electronics ,Samsung India ,Whirlpool Of India, Electrical:Anchor Electricals, Havells India ,Larsen & Toubro etc.

There are handfull of manufacturing companies in India which produce ABS and are not able to cater to the whole demand of ABS in India, so the deficit in supply is fulfilled through imports. Some of the key players in market are DSM engineering plastics, BASF India, Bhansali Engineering Polymers, Styrolution India and now Kingfa

Demand and Outlook : The global carbon fibre reinforced plastic (CFRP) market is expected to reach $ 27.98 billion by 2024 from $ 11.6 billion in 2015, according to a new report by Grand View Research Inc (GVR). Increasing composites demand in the automotive industry is expected to remain a key driving factor for global CFRP market. Automotive is the fastest growing segment of carbon fibre reinforced plastic market with a market share of 19.7 percent of the total volume in 2015.

Government initiatives including ‘Make in India’ to encourage domestic engineering industries including electronics, construction material and automotive is projected to propel the demand for thermoplastic elastomers (TPE) in the country. Asia Pacific thermoplastic elastomers market is estimated to reach over $ 7.82 billion in 2022 from $ 4.63 billion in 2014 due to growing consumption from auto part production. And India is expected to witness the highest growth of over 5.6 percent between 2015-2022.

Market is to witness significant growth over the next seven years owing to increasing automotive production and most automotive OEMs have been replacing metal and alloys with plastics from manufacturing of vehicle components to make vehicles light weight, thus propelling demand for TPE.Demand for ABS market during F.Y 2014-15 was 205000 TPA which increased to 235000 TPA during 2015-16 registering a growth of around 15%.

Future : To meet ever growing demand in Automative and Home Applicances first phase of expansion has been completed in the month of Mar-16 with the installed capacity of company from 51KTPA to 80 KTPA. Further expansion of 120 KTPA is proposed at some port based location with a view to save a lot on transportational expenses by March 2019 will take total capacity to 200 KTPA.Requisite project work has already commenced

Financial : Debt/Equity is 0.2, Interest Cover is 3.1 Cash reserve about 11+ Cr, Its operates with handsome ROCE=21%+, ROIC=22%+, MCAP/Sales=0.7.

Its Fixed Asset turn over has constantly on upswing from 1.42 to 2.29 over three years, Another interesting data itself receivable days is about 85 days far less than payables days of about 120 days..shows its operational and cost efficiency combined with superior realisation of its product. It capacity expansion from 51 to 200 KTPA will mostly through internal accruals and small debt show capital management by firm..

Management : Mr. Babulal M. Bhansali, Promoter and MD of the Company, is a first generation entrepreneur and a visionary leader in the business arena of ABS & SAN Polymers

Rational:

1 One of the leading producer of ABS and SAN in India and with tie up Nippon completes entire spectrum of product offering in Thermoplatic elastomers

2 With capacity expansion on 60% i.e. 80KTPA and further 250% expansion of 200 KTPA by March 19, would enable to give impressive growth for next few years

3 Company has also to maintain its current status of being a long term debt free company

4 It claim to be one of the lowest cost ABS manufacturers as its per KG power consumption manpower cost and overhead expenses are one of the lowest globally

5 In 2015-2016, Promoters enhance stake by 1.33% with total stake 51.5% in SEP 2017 promoters further scooped by about 9 lac shares from open market

6 Zero Debt company.MCAP/SALES of just 0.7 (FY17) with expected revenue growth of 18%, Profit growth of 48%..A bet not to be miss Included 30% expansion in FY17 and full expansion of 60% in FY18 revenue. NPM is expected to be range of 5.5 to 6%. Mega expansion of 120 KTPA will take company in next orbit from FY19.

In FY 16/17/18 company is likely to post a revenue of 530/700/870 Cr (18% CAGR) and register Net profit of 16.69, 38.50 and 52 Cr (48% CAGR), giving EPS for Rs. 1.00 for FY16, Rs. 2.30 for FY17 and Rs. 3.15 for FY18.

Included 30% expansion in FY17 and full expansion of 60% in FY18 revenue. NPM expected to be in the range of 5.5% to 6%.

Mega expansion of 120 KTPA will take company in next orbit from FY19.

 

I think JP infra can be a multibagger in medium term in view of debt reduction and available land parcel monetization .

 

Excellant picks sir..

 

We should keep an aye on Monnet Ispat (for Acquisition with JSPL) and Amtek (Tekfor Sale news) . These deals are likely to happen in 3-4 months.If it happens both can easily give 30-40% return .

 

Sir how do u pick stocks i nvr came across these scripts. Am really shocked when all of ur suggestions were multibaggers whn u proposed thm at oct 2016

 

Jayant Agro slowly picking the momentum

 

Jayant Agro can show good returns in view of week castor seed output forecast and strong export demand for castor seed derivates . Any fall is a good opurtunity to accumulate .

 

@Jayant Agro, poised to cross 800 mark...will steadily move towards 850 ....Can touch 4 figures based on Q4 data .

 

Keep a eye on PTC India ....Can cross 100 mark very soon

 

Jayant Agro..... Target of 900 achieved ......4 figure cmg soon
PTC India....... Just 4-5 Rs short of target
Amtek Auto ......18.5% up .....much more to come
Monnet Ispat ...... Touched 39 from 33 levels.......much more to come

 

Three Stocks for 3-6 month for 25% gain .
1. Karnataka Bank
2. India Cements
3. PNC Infratech

 

For Karnataka bank it is at its 52 week high, maybe one should wait for a correction.

 

In the present context of discussion on multibagger ideas, my one query ,asked many times before,has remain unanswered-What are the factors associated with a stock which make it multibagger? I request members to throw some light on it. How can I find potential multibagger idea? Where can I find it?

 

QGLP
1.Quality of business and management
2.Growth oppurtunities for the business
3.Sustainability of the business model
4.and most importantly reasonable/low valuation at which you buy the stock
If all 4 conditions are fulfilled, it is sure to become multibagger.