Wonderla Holidays Valuepick Share Multibagger

Background

-Company was founded in the year 2002 and promoted by V guard Industries promoters Mr. Chittilapilly
-Owns and operates two amusement parks in Kochi and Bangalore Respectively
-Planning to start a new park in Hyderabad 
-More than 1 Crore visitors till now in Kochi since 2000 and more than 75 lakhs in Bangalore since 2005

Positives

-Inhouse Manufacturing facility of Rides in Kochi gives a cost effective competitve edge over others thereby increasing profit margins

-Ample Land parcels available with the company which can be fruitful for further expansions
81 acres in Bangalore 93 acres in Kochi and 49 acres in Hyderabad
gives them an edge over new players since land acquisition for developing is a very expensive process now.

-Rise in disposable income among youth and Positioning of parks as tourist destinations like Disneyland etc basically a holiday destination rather 'one day outing' will be a driving factor  

-Turnover has increased from 91 crores in 2011 to 192 crores in 2015


Negatives

-Very Capital intensive industry and Long gestation period 

-Continuous investment  needed in branding and marketing efforts to avoid brand dilution

-Competition and Concentrated revenue stream Since Revenue mostly depends on entry tickets a  reduction in entry price by a competitor will affect its sales as well although there are currently no large parks operational in bangalore and Kochi.


Recommended at current price of 275

Anil Limited Value pick Multibagger

Background

-Pioneer in Corn wet milling business with 70 years of experience
-Products include Native strach,chemical starch,Modified starches,liquid glucose,corn syrup and sorbidol.
-Caters industries including textile,paper,food and beverages,pharmaceuticals and chemicals.

POSITIVES

-New product development including coating grade starch,binder for mosquito coil,coke briquette binder,instant laundry starch,high temperature resistance starch for oil drilling

-Client list includes big heavyweights of industry Heinz,Cadbury,Proctor & gamble,Nestle,Hindustan lever,Parle,Ravalgon,ITC,Coalgate,Arvind mills,Century textiles,etc

-International markets include middle east,japan,sri lanka,south afric etc

-Sales have increased to 824 crores

NEGATIVES

-High debt is a big concern for this company 





Recommended only for high risk investors at current price rs 200

Roto Pumps Valuepick Multibagger

Background

-Founded in the year 1968 by Ram Ratan Gupta to manufacture progressive capacity pumps
-Manufacturing processes in the field of metal cutting and rubber processing.
-Expanded its manufacturing base in Noida on 20000 sq meters land TRIPLING the company's capacity.
-Overseas warehouses and Marketing offices in Australia,UK,Germany.

POSITIVES

- Pumps are needed by many industries from waste water to oil and gas and Paper,Construction,food and beverages to shipping and many more.

-therefore its directly linked with the above industrialization and infrastructure development

-Ganga Revival Plan will be a big opportunity for the industry

-Set up of 100 smart cities and home for all by 2022 again will be a plus

-With the startup of German and US Subsidiaries Export markets will be in focus and expansion plans will be ongoing there providing opportunity to grow

-Export Sales have increased though domestic sales have come marginally down due to lower spending by government but Oil and Gas and Ma

ring and Naval Expansion and upgradation will be beneficial in future for Roto Pumps

NEGATIVES

-Threats from Competition have significantly affected sales and margins

-Cheap Imports from China and Overseas affecting sales

-Exchange rate fluctuations affects the margins as well Since major sales compromises of exports only.

Recommendation

Highly recommended at current market price of 76 rs.

SHILPI CABLE TECHNOLOGIES LTD- a Value Pick Share Multibagger

BACKGROUND

-Part of 30 years of Shilpi Group founded in the year 2006

-The product range include cables,copper wires,wiring harnesses,cable accessories.

-Catering to Automotive,telecom and consumer durable sectors

-Engaged with E&Y for it's growth plan

POSITIVES

- New Capacities in Aurangabad,bahadurgarh and hosure operational,Revenues will get a substantial boost from these capacities.

-Company has started exports also to south america,africa,middle east and south east asia.

-Launching a initiative in B2C Segment for house wire and switches which will give to revenue boost

-Mobile Penetration is increasing and so is data consumption it will be imperative for telecom companies for solutions to address and capacity issues which is crucial for company's growth

-Vehicular production is increasing every year inturn consumption of domestic components is driven which is a growth opportunity for the company supplying cables

THREATS NEGATIVES

-Slow down in the economy is a major threat since its market is consumer companies driven.

-Ever increasing input costs for wire and cables 

-Although promoters have increased their share holding but they have pledged 78% of their shares which can have a negative impact on its share price.

CONCLUSION

Very good at cmp of 50.20 right now for high risk investors only.

FEW COMMON MISTAKES COMMITTED BY INVESTORS

1.) Indian consumers are great at bargaining items in the shopping market and finding great deals but when it comes to stock market they are not always value minded .Please do your homework before investing in any Stock,Commodity or any financial instrument.

2.) Behavioral mistake thinking that In front of the trading screen,you are a better stock picker or a gifted person with special power ,its not the reality .
Pick stocks on the basis of  analysis and due diligence.
Its your hard earned money.

Do not getting emotionally attached with stocks.You have EMOTIONS but Stocks/Companies, they don't have any.

3.)Constantly moving money around is costly and ill advised and at the same time a set and forget it can be just as damaging.
Give some time to stocks decide what you want short term or medium term gains or long term gains do profit booking accordingly then re invest in market.But generally Ideal is hold it for medium term atleast,long term will be great but donot forget it completely keep yourself update with whats happening in the companies of which stocks you hold.

4.)Buying whatever is performing well thinking they have missed on something and buying at higher prices like people buying gold and silver at higher prices few years down the line their investment has gone down as much as 50% , a classic example of Asset bubble.

Buying something which has performed well in past very few times its a reason to buy but assuming that share will rise because it has in past is road to ruins.

5.)Don't focus on one sector ,DIVERSIFY is the key Complete absence of Diversification can be a painful experience.

6.)Don't rush in,building positions on stocks ,keep cash in hand,invest in more measured fashion


7.)Last but not the least DON'T GIVE UP-Most common mistake is giving up and closing down their investment after a bad start.The key is not to make same mistake again and keep an open mind.

AVT NATURAL PRODUCTS LIMITED_BRIGHT FUTURE

BACKGROUND

-Promoted by AV Thomas Group specialising in extraction of colors and flavours from Natural Resources set up in 1996

-Marigold cultivation in 35000 acres of land with 100000 metric tonnes production with 30000 farmers on contract.

-Located in Kochi, Kerala and Post harvest Processing centres in Tamil Nadu and Karnatka.

-




POSITIVES

-AVT is in Proximity to the source raw materials and logistical advantage of import and export facilities with sea,air and road within its reach.

-Revival of feed grade price and in food grades,volumes has been dropped to meet client requirement

-Focus on innovation developing high yield hybrid for marigold production will be cost effecient

-in spices,high value niche products has paid off well

-made investments in Decaf business

-instant tea business is a challenge but since it's first supplies,future looks bright

-


Negatives

-Volatility of rupee is not encouraging

-has made new investments,time is required to establish in those markets

Recommended at current price of 30.80 rs

NAVNEET EDUCATION LTD Proven winner Stock , holds a lot of value!!

BACKGROUND

-Set up in 1959 is an educational syllabus based content provider in print and digital medium

Manufacturer of Scholastic paper stationary and publisher of general and Children books

-Published more than 5000 titles

-Products sold under the names 'Navneet',Vikas,Gala,Grafalco,FfUunN and Boss.

-State of Art Manufactruing facilities in Virar,Guma,Dantali,Silvassa.

-Ventured into Digital Learning with  eSense in 2009,used by 15500 classrooms uptil 2015 in Gujarat and Maharashtra.

-Forayed into Pre School Business under the name 'Leapbridge Education' with 7 Pre schools in Pune and Mumbai

-Acquired a minority stake in School Management company owning 61 state board schools in Andhra Pradesh and 12 cbse schools in Maharashtra.

POSITIVES

-Stationary segment grew 17% year on year basis

-Digital learning will continue to perform better with more penetration in state board schools in Gujrat and Maharasthra.

-Dominant Market share in Western India of approx 65%

-Exports of paper stationary adding up to volumes

NEGATIVES

-Rising Input cost ever increasing raw material costs

-Companies relies on intellectual property rights and propritory right which may not be adequately protected under current laws and the industry is prone to defamation suits etc

-Highly competitive industry with lot of changes happening every moment and need to adapt those changes to remain in business.

Highly Recommended at current market price of 94 rs for medium to long term.