Tuesday, 28 March 2017

4 STOCKS IDENTIFIED FOR SHORT TERM QUICK GAINS

# SHALIMAR PAINTS 
#FEDDERS LLOYD CORPORATION LIMITED
#HBL POWER SYSTEMS LIMITED
#MANGLORE CHEMICAL


Shalimar Paints Ltd (TAKEOVER CANDIDATE) 

Traded in:Nse-bse

Cmp:Rs.151
Target:Rs.225-300
Duration:12-15 Months



Story: If you see the paints sector, there are five major players there.
 #The largest, of course, is Asian Paints ,which does a turnover of close to Rs 15410 crore and commands a market cap of Rs 101005 crore.
Then comes Nerolac Paints, Berger Paints, Akzo nobel india and Shalimar Paints. If you see the valuation of these companies, there is a huge valuation gap between the fourth and the fifth largest player, even though there may not be such huge differences in the size of their business.
#Berger does a turnover of Rs 4100  crore and has a market cap of Rs 23000 crore, while #Akzo nobel India does a turnover of close to Rs 2687 crore and has got a market cap of Rs 8375 crore.

#Shalimar does a turnover of close to Rs 415 crore and has a market cap of just Rs 286 crore. There is a huge valuation gap between the fourth and the fifth largest player in the sector, which I believe should narrow down. Not many people are aware of the fact that this is a company, which belongs to the Delhi-based Jindal group. This is a 100-year-old company, which was acquired by the Jindal's along with an NRI investor in 1989. Since the company is 100 years old, it is sitting on assets, which are valued at historical cost.
Ø *The replacement value of the assets would be many times more than the market cap of the stock, which is at the number one position.
Ø *Secondly, the huge differential in the market cap, which is there between the fourth and the fifth largest player will narrow down.
Ø *Takeover Candidate. All other Paint companies having huge cash in books looking for buyout.
Ø *Raw material prices at lower levels may push Margins.

At the current price of Rs 151, one does not have much to lose in this stock, but if one hopes that the profit margins will improve in the near future, which the management is confident of, then one can see a much higher market cap for this stock. Added bonanza can be the news of promoters looking to sell partly a stake to strategic investors/paints majors-reasons can be anything but the shareholders tends to gain the most if that happens at all. Paint behemoths like Asian Paints and Berger paints have shown huge interest in the company. This is the sector which has been growing massively over the last 20-25 years. If any takeover or stake sell happens expect a minimum price of 225-300 Rs for the counter. So both on the fundamentals and on the speculation front Shalimar point provides ample spice to make some good bucks on.


SUMMERS PLAY
FEDDERS LLOYD* LEADER IN AIR CONDITIONING SERVICES *NEW PORTFOLIO PICK*FOR 30-40% UPSIDE TARGET Rs. 110+ 

EPS Rs. 7 Per Share 
P/E 11.25 
Mcap 264 Cr
Book Value Rs. 135 
Industry P/E 45 

TURNAROUND STORY 
COMPANY IS EXPECTED TO CLOCK GOOD PROFITS IN COMING YEARS. BIG PLAYERS EYEING THIS STOCK.

ONE CAN ACCUMULATE FOR 40-50% RETURN IN 6-9 MONTHS TARGET Rs.80-90

#BIGGEST BENEFICIARY OF GOVT. FOCUS ON RURAL INDIA 


SUMMERS PLAY :::::::::HBL POWER SYSTEMS LIMITED 
BUY HBL POWER AROUND 42-43 KEEP SL 39 TARGET 50/56 
JAI SHREE SHYAM !!



Tuesday, 7 March 2017

BF INVESTMENT LIMITED (VIRGIN STOCK) --------- KALYANI GROUP COMPANY

BF INVESTMENTS LIMITED 

BSE Code: 533303
Book value :Rs. 265
Face value : 5
EPS: 6
P/E :26
P/B: 0.65
Market cap : 629 cr
Promoter's Holding :72.71 %
Debit : ZERO

BF Investment Analysis
BF Investment Ltd. (BFIL) is a part of USD 2.4 billion Kalyani Group.
BF Investment  is an investment holding company for the Kalyani Group ( flagship Bharat Forge Ltd.) with investments in related promoter companies.BF Investment was formed as a de-merged entity that took over the investment management business of BF Utilities, and was listed on the exchange starting 14th January 2011.
BF INVESTMENT HIDDEN VALUE

INVESTMENT: 

# DEBT FREE
# RESERVES 900 Cr (AS PER CONSOLIDATED RESULTS)
# 3000-4000 VALUATION OF HOLDINGS DIRECTLY & INDIRECTLY

# IF WE CONSIDER RESERVES + 15% OF HOLDINGS VALUATION MCAP SHOULD BE AROUND 1300-1400 Cr

FROM CMP OF Rs.167 WE SEE 50-60% UPSIDE TGT Rs.240-265