TIME FOR MIDCAP SHOPPING

THIS IS THE TIME FOR SMALL INVESTORS 

FOR MIDCAP SHOPPING

Stock market basically consists of small investors, for the small investors, by the small investors. Others market participants like FII’S, DII’S, MUTUAL FUNDS, HNI’S, OPRATORS, HEDGE FUNDS provide spice to the stock market. Truly speaking small retail investors are the backbone of a healthy stock market. Yet the most ignored are the small investors. Most of the rules of stock market are Anti-small investors. Small investors are the easiest target for the stock market manipulators again and again. In this recent meltdown small investors suffered the most for no faults of their own.

It‘s the high time that small investors should rise to capture their rightful place in the investing world. The 1^st thing they should do to correct their trading strategy, upgrade their trading resources, be adaptive in nature for a profitable strategy and learn quickly from the mistakes.

The 3 most important basic things of market are:

Booking profits, protecting capital and limiting losses, but in reverse order. Well disciplined investment approach works wonders in all market conditions. Follow certain simple and basic rules while trading.

Use trailing stop losses. Keep the price target or stop changing as per the market conditions. Online people instead of putting stop use stock alerts or simply put stop on say 1 share to know the stop trigger.

Most important of all In spite of all these precautions if the trade goes wrong just close the call and forget. Never ever try to repair a wrong trade. It is not a shoe. It is a share. Well you may curse me on this, how can I forget my hard earned money?

Well my dear investors do not waste more of your precious resources on the door which has already been closed rather look for the doors that is about to open.

In the recent panic meltdown all midcaps irrespective of their caste, creed or color beaten down with the same stick. So this is the time to separate men from boys to pick your favorite hidden gems at throw away prices. We have selected at least 4 hidden gems to buy tomorrow. This is the high time to re look at your portfolio, re assess each stock potential and discard the rotten eggs to make some space for the new ones.

HAPPY TRADING.

Multibagger Idea …. “ NAGARJUNA FERTILISERS AND CHEMICALS Ltd” (BSE Code: 500075) at 28/- Target of 39/-, 75/-, 150/- & 500/-

Nagarjuna Fertilisers and Chemicals Ltd Trading in BSE (BSE Code: 500075) and NSE at 29/- .

Presetly Stock Trading at  Cheepest at 29/- Stock in Oil & Gas Sector.

Recently NFCL declared Decent Results with Net Income 330 Cr and Net profit of 27.35 Cr Compared to Last year raise 25%.Nagarjuna Fertilisers and Chemicals Ltd doing Fetliser Business and     

NFCL having Availability of Natural Gas at the cheapest Rate in comparison to others for next few decades.NFCL Plannign to Demerge 2 companies 1. Nagarjuna Fertilisers Ltd and 2. Nagarjuna Oil Ltd. More than 71% stake in Nagarjuna Oil, Only Refinary in Tamilnadu, expected to
be commissioned during 2011-12.

Face Value 10/-;

Book value 24/-

Eps 2.7/-

Dividend 5% to 10% yearly.

Share Holding: Promoters 37.89% (with Foreign Promoters)

Investment Ideas - Jyothy Laboratories--BUY.

Launched in 1983, Jyothy Labs’s Ujala is a 26-year old brand and is the largest in the fabric whiteners segment. Ujala Supreme commands 72% an all-India market share by value for Sept 2010.
Investment Argument:
Earlier a single product company, the brand portfolio now comprise of Ujala, Maxo and Exo. Maxo
is expected to grow by 20% in FY11 according to the management while Exo is expected to grow by 25% in FY11.Maxo Safe & Soft which is based on DEPA technology is expected to contribute significantly by FY12.At the current prices of Rs 280, the stock is trading at a PE of 19.7x and 16.8x its FY12E and FY13E earnings respectively which is still cheap compared to its peers.
Jyothy Fabricare Services, its laundry business venture is set to benefit immensely once it is able to achieve scale and size. It is expected to breakeven by March 2011 and will be followed by its national launch.The Company has zero debt on its balance sheet since FY05 and enjoys a negative debt-equity ratio over FY07-FY10.

At the current prices of Rs 275, the stock is trading at a PE of 19.7x and 16.8x its FY12E and FY13E earnings respectively which is still cheap compared to its peers. BUY.

Investment Ideas -------- Jubilant FoodWorks

Jubilant FoodWorks Ltd. (JFL) is the market leader in the organized pizza market with a 50% overall market share and 65% share in the home delivery segment in India. JFL with presence across 320 stores pan India operates its stores pursuant to a Master Franchise Agreement with Domino’s Pizza International.
 

Investment Argument:
 The Indian pizza market, estimated at Rs7bn (in FY09), is expected to grow at 35-40% over the next two years to ~Rs17.2bn in FY12E (Source: Food Franchising Report 2009). We consider JFL a play on India’s growing QSR industry. We expect significant benefits of operating leverage setting in with rise in total number of stores. its EBIDTA margins are expected to expand from the current 15.7% in FY10 to 17.7% in FY13E. We forecast 28% CAGR growth in revenues for FY10-FY13E period with total number of stores growing  from 306 to 511with increased penetration in Tier II and Tier III cities.

At 47x FY13E EPS, the stock looks richly valued. On EV/EBIDTA basis, JFL is trading at 22.7x FY13E
while its global counterparts are valued between ~10x. Given the tremendous growth opportunity, the
premium seems justified. ACCUMULATE.

Investment Ideas -------- BUY DISH TV

Dish TV is India’s largest DTH service provider and a strong brand name, with a 33% share of the 23 mn
DTH subscriber base at end June 2010. The Company has a vast distribution network of about 1400
distributors & 55,000 dealers that spans around 6600 towns across the country.
Investment Argument :  Dish TV is a play on India’s growing DTH subscriber base. According to FICCI-KPMG report, 2010, DTH sub numbers will rise at a CAGR of 22% for 2009-14 as
consumers are likely to prefer better quality digital platform.
At the CMP of Rs 63, the stock is trading at EV/EBIDTA of 12.9x its FY12E earnings which is reasonable
given the huge growth potential in the industry. BUY
 Operating leverage is expected to set in as the Company has achieved critical mass in sub base which
is expected to improve the operating margins substantially from 10.3% currently to 27.3% in FY12E.
 We forecast programming and other costs to decline to 30% of total revenue in FY12 as significant
proportion of these costs now not linked to subscriber base and have become fixed in nature.

At the CMP of Rs 63, the stock is trading at EV/EBIDTA of 12.9x its FY12E earnings which is reasonable given the huge growth potential in the industry.

NATIONAL PLASTIC INDUSTRIES LTD (BSE CODE: 526616) AT 23/- TARGET OF 57/- & 75/-

STOCK  : NATIONAL PLASTIC INDUSTRIES LTD.  Trading in BSE CODE : 526616

Target : 57/- to 75/- in Short term and Medium terms

Equity  : 9 Cr

Promoters  Holding : 56% ; Body Corporate : 5%; Public Only 39%

Face Value : 10/-

EPS : 6.5/-  above (As per 20010-11 September Quarter) Estimated EPS for Full Year above 9/- ( Expansion Income will Add)

Book Value: 29/-

Dividend History : 2010 --- 10%; 

National Plastic Industries Ltd having Good Land Bank at Mumbai and Bangalore near 100 Cr above Per share 100/- above; and Valuable Assets.

National Plastic Industries Ltd Expanding plans is very Aggressive.

For 2010-11 September Quarter Posted Net Income of 12.36 Cr and Net Profit of 1.48 Cr with Equity 9 Cr. As per This EPS is 6.5/- Annualized But in coming Quarters Expanding Income will add So Expecting EPS for 2010-11 is 9/-. Stock Trading at 34/- PE just 5 Industry PE is 14. As per this Stock will zoom to 100/- levels in 6 Months time.

The Company Having Good High Value Ideal Real Estate Property at

1)Andheri (East) Mumbai

 2) Virla Mumbai

3) Kashi Mira Road in Thane District

4) Bangalore Near Satellite Bus Stand and Big Bazar

5) Gaaziabad UP;

All these Lands are very good Value; But Equity is just 9 cr and Land Value near to 100 Cr per share 100/- above Value and good Book Value and EPS 6.5/- Dividend Paying company. Just watch it Stock will go 100/- to 200/- in Near Future.

National Plastic has been marketing their products under the brand name " NATIONAL". Today ‘National Plastic Industries Ltd’ is an ISO - 9001:2008 ACCREDITED COMPANY and “NATIONAL” products are available across 36 countries including America, Australia etc.

Positive Points for this stock for Up moving:

1)  Company is in Plastic furniture and others Business;  company Circle people and Operators are accumulating at current price. Because Company Stock Good Value at 34/- Good Profit making company and Book Value at 29/- and Good dividend paying company.

2)  Equity is very small at 9 Cr promoters Holding 56%

3)  Company recently going Expansion Plans for Real Estate and and Power Buisness.

4)  Good Profit Making Company for 20010-11 EPS 6.5/- Annualised and Expecting EPS for full     year is above 9/-because Expansion income will add next Quarters.

5)  Company having Good Book Value 29/- and Good Land Bank and Good Assets.

6)  Company having lot of Land Bank in Mumbai, Bangalore and UttarPradesh; Total cost of this land is Nearly 100 Cr above per share will come 115/- above and Expansion Plans in Future .

7) FII’s Eyes in this stock. If they will start buy Stock will zoom to 150/- levels like SE Investment (Call Given at 175/- Now including Bonus and Split 1250/-) and Bihar Tubes Ltd (Call Given at 57/- Now 165/-).

8) Risk Free at Current Market Price, Its very Cheap price Trading at 34/- Compare to companies Reserves, Assets and Value and Equity and Profits and Future Plans and power Generation.

Happy Invest ……….. Good Fundamentals and will give good returns from 100% to 500% returns with short and medium terms and Long terms.

21 CRORE CAN BECOME 500 CRORE IN JUST 4 YEARS ONLY IN THE INDIAN STOCK MARKET

Well Ace investor cum trader Rakesh Jhunjhunwala‘s investment of 21 crore in A2Z maintenance in 2006 now worth more than 500 crore. The Most beautiful place to make a fortune on earth is the stock market. Easiest and fastest way to build empire is the stock market. Well the meteoric rise from a humble Chartered Accountant to Mr. RAKESH JHUNJHUNWALA is the glaring proof of my statement.

The rules of successful trading are also simple. But most of the small investors never follow these rules.

Most of the small investors repeatedly do these common mistakes again and again. How to rectify? Well my dear investors follow this simple rule. Never buy on euphoric day and never sell on a panic day. If you cannot gobble the pressure take a trading break. The price at which a stock should be purchased depends on your conscious decision about the future of the company and the time at which to sell the share should depend on your risk appetite not the external market conditions. Never ever buy a wonderful company but always buy a company at wonderful price. Make a habit to fix profit margin and stop-loss depending upon your capital and risk bearing capacity and trade in accordance with it.

The next commonest rule for a profitable trading never ever dictate your terms to market, Market is supreme always respect it and follow it. Easiest way to swim across is to ride the wave not to oppose it unless you have enough force to turn the tide in your favor.

In-spite of all the caution if a trade goes wrong close it at your earliest realize your mistake, forget the trade and march ahead for a new opportunity. Never waste more energy on a wrong trade. Well you may say easier said than done? Well go ahead practice it practice make a person perfect.

Success and failure are part of the game accept it gracefully as success is never final and failure is never fatal. Remember my dear investors’ failure is always the first step to success.

Remember this million dollar line, my dear investors the most successful tool to make money in the stock market is Intuition and ignorance.

ENJOY TRADING.

NELCO LTD @ Rs.122/-

stablished in 1940, a part of the leading business house-The TATA group, NELCO LIMITED is focused on system integration and product management for industrial controls, power, electronics, defence electronics, VSAT networks and automation.

Nelco specializes in the areas of security and surveillance for Defence and Civil applications, Traction, Electronics for Locomotives, Turnkey projects involving SCADA (Supervisory Control and Data Acquisition System); AC and DC drives; Real time and Embedded software and Network Management System with VSAT based networks .

The Company caters to some of the core industries like Defence, Railways, Steel, Cement, Automobile, Oil and Gas, Paper, Ceramics and Services

Alert:- Something Big Cooking

TARGET

Rs.142/- Rs.170/-

PETRONET LNG LTD @ Rs.115 /-

Petronet LNG is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

TARGET

Rs.140/- Rs.172/-