One quality about Shankar Sharma that requires to be appreciated is that he is very careful about the stocks that he recommends to novice investors.
Several years ago, Shankar had recommended Tata Motors and Bajaj Auto as his favourite stocks. Both stocks are powerhouse blue chips and safe as houses. Investors who acted on his advice have benefitted immensely.
This time, instead of relying on trusted war horses, Shankar chose two micro-caps, Kiri Industries and A2Z Industries.
Because both stocks are untested, novice investors were a little wary. However, we need not have worried because Shankar had done his homework well and got his timing perfect.
Shankar’s logic for recommending Kiri Industries is that it is engaged in the manufacture of specialty chemicals and will benefit from the slowdown in China.
This proposition played out in full force today because Kiri spurted a magnificent 20% to rest at Rs. 357.
Prima facie, the reason for the exuberance in the Kiri Industries counter (and the counters of the other specialty chemical stocks) appears to be the decision of the Government to levy anti-dumping duty on Chinese exports of specified chemicals.
It is worth noting that in the ten days that have elapsed since Shankar’s recommendation on 3rd June 2016, Kiri Industries is up a mind-boggling 59%.
A2Z Infra, Shankar’s second stock pick, has also lived upto the high expectations reposed in it.
A2Z announced on 13th June 2016 that it has secured a major contract from the Nepal Electricity Authority.
A2Z Infra Engineering zooms 12% on winning Rs 90 cr overseas order https://t.co/oGX02PYiyF
— FirstBiz (@FirstpostBiz) June 13, 2016
Understandably, the stock has been surging with no inhibitions. Since Shankar’s recommendation on 3rd June, A2Z Infra is up 32%.
So, we have to compliment Shankar for getting both of his stock picks right and filing our coffers with riches. We hope that there will be many more such stellar stock picks in the future as well!
For people who have missed Kiri, here is another stock which could be a multibagger. Emmbi Industries. Manufacturer of highly specialised woven polymer products. In fact it is the world’s biggest woven polymer manufacturers. Boeing Aircraft Company, besides 10 other Fortune 500 companies are its customers. Out of its topline of 207 crores, 107 crores come from exports. From 7.3 crores EBIDTA in 2011, FY16 closed with 27 crore EBIDTA. OPM and NPM was a high 13% and 5% respectively. ROCE and ROE for FY16 is at 16.6% and 14.5% respectively. The stock quoted at 44 this February. Today it is at 99. It has a very large headway from here. Do check it out.
#Niveza #Review:
Kiri Industries operates in Dyes and Pigments segment. The top line of the business is going consistently at 18-20% rate for last few years. The company was loss making for past few years and has turned positive in FY 16 where they earned a net profit of 21 crores. The stock is available at PE of just 5. Debt to Equity for the company is around 0.4. So it is a typical case of turnaround of a business. Since the valuation of the stock is attractive and gradually turning profitable it is a buy stock on any declines and it can further give good returns in upcoming 1-2 years
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UK Central Bank Meet Today May Trigger Selloff In Nifty
ARCHIVE 16 Jun, 2016
Stock Market Today by Shailesh Saraf – 16th June 2016
Indian Market Outlook:
Bank of England’s monthly monetary policy is scheduled at 4:30pm on Thursday the 16th of June. This meet comes on the heels of the EU referendum which is due on the 23rd of this month. Survey conducted by the top polling bodies suggest that leave voters are ahead of the stay voters paving the way for Britain to exit the Eurozone. Indian markets can open gap down on Friday morning the 17th of June.
The minutes are expected on Friday and due to the Brexit uncertainty markets will remain in a panic mode. Polling will be held between 12:30pm IST on 23rd of June and 3:30 am IST on the 24th of June. Fifty percent of the vote count results is expected to be released at 9am IST on the 24th of June and the final results are expected around 12:30 in the afternoon the same day. Nifty is expected to open gap down at 8180 as per SGX at 8:20 am IST.
International Market Outlook
Global markets are still subdued after the FOMC meet yesterday night where The FED maintained status quo on its policy stance, signaling a gradual process in its rate hike trajectory. Nervousness is expected to stay over the BOE rate decision today and the BREXIT referendum results due next week.
Go to https://www.dynamiclevels.com/en/shailesh-saraf-stock-market-today-160616