Shree Ganesh Jewellery House Ltd. - MULTIBAGGER CMP 155 --- BUY

The Shree Ganesh Jewellery House Ltd is a Rs.2300 crores (US$ 500 million), 4 STAR export house (govt. of India recognized) company and is the largest manufacturer and exporter of hallmarked and handcrafted gold jewellery from India. The group is promoted and headed by Mr. Nilesh Parekh and Mr. Umesh Parekh Headquartered in Kolkata, with subsidiary offices in Hyderabad, Chennai, Bangalore, Delhi. The group is into manufacturing of gold, diamonds and gemstone studded jewellery.

BUY FOR LONG TERM .. TGT 251 /325 / 500 +++

ZEE LEARN - MULTIBAGGER STOCK ..BUY FOR 3/5 YEARS

BSE: 533287  NSE: ZEELEARN.......BUY .....TGT  50++++

Zee Learn Limited is the education arm of Essel Group. Essel Group is a diversified conglomerate with interests in Media, packaging, Amusement Parks, Entertainment & Education among others. It owns some of the most famous brands in India such as Zee TV, Zee News, Dish TV, Siticable, Fun Republic, Esselworld , Playwin, Kidzee, Zee Schools, ZICA & ZIMA.

The group have the following 

• Mount Litera Zee Schools
• Kidzee pre-schools
• Mount Litera World Pre-school
• Mount Litera World School

School Innovations

• Zee Learn Gakken Science Academy
• School Management Services

Youth Vocational Education

• Zee Institute of Creative Arts (ZICA)
• Zee Institute of Media Arts (ZIMA)
• ZEE LEARN have a good market capitalization and good  assets worth 117.00 crores. sector also good as, education is the more attractive space now.the management is the well known group,it  started its businesses just now and have to go long run.Zee Learn had earmarked Rs. 500 crore for its various initiatives for five years, of which 40 per cent has already been invested in an university in Dehradun and schools . In 3-4  years you might see this stock around 100 levels. Enter around 21.00 or below and  hold it for atleast 4-5 years this one would be a sureshot  multibagger.

Multibagger : Vimal Oil & Foods Ltd. CMP 69 ....BUY FOR 2-3 YEARS .

The Vimal Group is conglomerate of 19 group companies.
These thriving companies broadly cater to seven categories: Edible Oils, Dairy, Micro Minerals, Electricals, Engineering, Ceramics and Real Estate.
The Group's flagship company Vimal Oil & Foods Ltd is also one of the most successfully publicly listed enterprises. Vimal Group has crossed 1500 cr. turnover in financial year 2008-09 and aims to reach 2500 cr. mark by 2012 .

Vimal Oil & Foods Limited (VOFL) is an India-based company. The Company has three segments: Integrated Oil Division, Powder Plant and Wind Mill. Its product range includes oils of cottonseed, groundnut, soya, mustard and palm. VOFL is the flagship company of the Vimal Group .In 1992, the group started Vimal Oil & Foods Limited for manufacturing Refined Edible Oil & De-oiled Cake. Looking at the abundance of raw material and demand of edible oils Vimal brand was introduced. In North Gujarat rapeseeds and mustard seeds are available in bulk & consumption of edible oil is high.
Cottonseed, Groundnut Oil & Rapeseed oil were offered under this brand name. Due to acceptance and growing popularity of the brand, the company planned an expansion. For this public issue in March 1994 was offered. One of the critical objectives of the issue was to part finance the project for setting up a 200 TPD Solvent Extraction and 150 TPD Edible Refined Oil Plant. The Company has at present a 150 TPD Refinery, 200 TPD Solvent Extraction Plant & 200 TPD seed Crushing facility at the oil-processing complex.

PROMOTERS HOLDING 65.13%

Multibagger : JSW ENERGY CMP 73.95/- ...BUY AND FORGET FOR 5 YEARS .

JSW Energy is the dynamic vertical of JSW Group. The company plans to foray in all areas of power: Generation, Transmission, Distribution and Trading. In less than a decade of its operations the company has crossed several milestones working on power solutions in the States of Karanataka, Maharashtra, Rajasthan and Himachal Pradesh.JSW Energy was incorporated in 1994, with the objective to develop, construct and operate power plants. Today JSWEL is one of the fastest growing Power Company and it is working towards becoming the top 3 private power producers in the country within the next 3 years.
JSW Energy raised Rs 4,500 crore through a public offer to part finance power projects with a total capacity of 3,000 mw. It plans to have total power producing capacity of 11,400 mw by 2015, AS COPMARE TO REL.POWER WHICH IS GOING TO COMMISSION Two units with total capacity of 1320 MW will be commissioned by Mar 12 .
 PROJECTS
JSW Energy Limited – SBU I (“JSWEL–SBU I”) – 260 MW Power Plant .
Raj WestPower Limited (“RWPL”) Phase I – 1,080 MW Lignite-Fired Power Plant.
JSW Energy (Ratnagiri) Limited (“JSWERL”) – 1,200 MW Coal-Fired Power Plant.
BEST POWER STOCK AS COMPARE TO PEERS REL.POWER , ADANI POWER, IB POWER .

CENTUM ELECTRONICS - BUY FOR LONG TERM 3-5 yrs .

Centum Electronics is a Bangalore based company promoted by Mr Apparao V. Mallavaravu and engaged in the business of designing and manufacturing of electronic systems,sub-systems and components.The  Singapore based multi national EMS giantFlextronics is also holding  about 5% stake in Centum Electronics. Recently company merged another company of the samemanagement into itself which was in the business of  Electronic manufacturing Services (EMS) and Printed Circuit Board Assembly.The new entity’s products are used in industries like Space, Defense, Aerospace,Communications and Automotive.It also have another  subsidiary in the name of Centum-Rakon whichis a joint venture between Rakon Limited,New Zealand .Centum Rakon is one of the largest  manufacturer of frequencycontrol products in India . Centum’s main  business includesthe manufacturing of Signal Conditioners,  Multiplexers, RelayDrivers, Power Processing Units, Control Electronics  Modules,Sensor Electronics Modules and Crystal Oscillators includinghigh-end SPXO, VCXO, TCXO and OCXO . In India ,company isexpecting more  orders for their products and a bright futuredue to the increasing  participation of private sector in Defensearena . Interest of  Flectronics in this company is helping it to tapthe international opportunities . Recently company got some bigorders from Alcatel and  Ericsson ,and it is planning anotherfactory in Bangalore to meet the improving order flow fromoverseas. Flextronics is reportedly planning  to invest anotherRs.25 Cr in Centum Electronics to increase the  capacity .For the nine month ended December quarter , Centum posteda turnover of Rs.123 Cr , net profit of Rs. 3 Cr and an EPS ofRs.2.25. Recently company announced a sourcing agreementwith L-3 communication group for their aviation products division.Company is  expected to perform well due to the revivalin western economies  , increasing interest of private sectorin Defense and Space in India,  new commitments ofFlextronics and new alliances with global leaders in defense andspace arena .Long term investors may consider a BUY  at CMP of Rs.94/-

FIIs return to India. To do what?

The Indian stock markets have had a bumpy start to 2011. The markets seem to be tracing the steps of a cardiac monitor that has gone awry. There are several reasons for it that include higher inflation rates, commodity prices hurting company results, higher interest rates and not to forget the infamous corruption scandals. But a major reason for the fall has been the FIIs, who have sold shares worth Rs 50 bn in just one month. In a recently published interview to a leading daily, the director of Deutsche Asset Management, Mr. Bill Barbour, has cited all of the abovementioned points as plausible reasons for FIIs selling their shares. He has identified inflation as one of the biggest causes. The RBI is expected to raise interest rates to control inflation, which will have a negative impact on the growth. Particularly for the companies who are already reeling under the pressure of higher input prices thanks to the higher inflation. It's a vicious circle.

However, he also states that the current fall of over 12% has made Indian stocks attractive in terms of valuations. So this would again attract FIIs. He has stated that the FIIs would return thanks to their strong belief in 'India's growth story'.

So if Mr. Barbour's words are correct, we may see the influx of FII money returning to Indian shores in the coming times. But what would this lead to? Higher prices. Expensive valuations. And finally market crashes when the FIIs pull out again. Mr. Barbour is right. It is a vicious cycle and we are all stuck in the middle of it.

Want a better option? Forget what the FIIs are doing. Look for companies with strong competitive advantage, run by an honest management team and buy into the same at attractive valuations. We virtually guarantee that this will bring you much better results than worrying about what the FIIs do next.

Reliance Power Ltd. CMP 109 ......BUY FOR LONG TERM 3-5 YRS

Reliance Power Limited is a part of the Reliance Anil Dhriubhai Ambani Group group, one of India’s largest business houses. The group comprises companies in the telecommunications, financial services, media and entertainment, infrastructure and energy sectors. The energy sector companies include Reliance Infrastructure Ltd, Reliance Natural Resources Limited and Reliance Power Limited. Reliance Power has been established to develop the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries has a portfolio of almost 35,000 MW of power generation capacity, both operational as well as under development.
The power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The company has 600 MW of operational power generation assets. The projects under development include seven coal-fired projects to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects to be fueled primarily by reserves from the Krishna Godavari Basin (the "KG Basin") off the east coast of India, and seven hydroelectric projects, six of them in Arunachal Pradesh and one in Uttarakhand.
The company has won three of the four Ultra Mega Power Projects (Sasan UMPP, Krishnapatnam UMPP & Tilaiya UMPP) awarded by the Govt of India till date. The UMPP is an initiative by the government to collaborate with power generation companies to set up 4,000 MW projects to ease the country’s power deficit situation.
Besides these, Reliance Power is also considering the development of coal bed methane (CBM) power generation projects based from CBM blocks being exposed by its affiliates. The company is also planning to register projects with the Clean Development Mechanism executive board for issuance of CER certificates to augment its revenues...BUY WITH A TGT OF 500+++ IN 3-5 YRS.

BSE Sensex Target 40000 +

BSE Sensex Target 40000 +

BSE Sensex Target 40000 + in this Bull Market

Immpossible?

Illogical ?

Hopeful Wishing ?

These are the first thoughts of a Person who is seeing sensex struggling around 20000

But let’s start logically

First the clarification

It is not going to happen in 2011

may happen in 2012 or 2013 or 2014 or 2015

 Any prediction or target can be set for 2 Reasons

1.Fundamental

2.Technical

1. Fundamental

Fundamental means Considering the Earnings and GDP growth and other things.

Sensex Rise and GDP Growth

There is one school of thought which says GDP Growth and Stock Markets are Correlated.If GD Growth is strong,it will translate into the good corporate earnings overall which will drive stock markets higher.

During the decade of 1980, Korean GDP grew at rate of almost 10 percent.And the stock markets grew at 18 percent per annum.

Similarly in the late 1970s in Taiwan GDP grew at rate of almost 8 percent and stock markets grew at rate of 9 percent per annum.

Instances of very high market returns occur only with high GDP growth.

Now India has very High growth rate of GDP ,So there is strong case of equity markets to grow to New highs .

2.FII investment

FII Investment is a factor  of Sentiment and Indian image.In Oct 2010 alone in 22 Days ,they have invested over Rs 13000 crores in Indian Stocks.

It may become negative Some month.But the important point is that the options of FII’s are very limited.With Developed economies in US,Europe or Japan etc growing at very slow rate  (in some cases there is pattern of  negative growth),They have to look to emerging markets to get good returns.And India is one of the most strong and Liquid emerging market.

3.Boom Bubble

All the Emerging markets have gone through a Bubble when they changed from Developing state to Developed State.This is part of normal developing process .

See the Example of US in Early 1920’s to late 1920 ’s

From Lows of 63.90 in 1921-1922 it rose to high of 381.17 in 1929-30 Nearly 6 times increase from bottom to Peak .

Now The Example of japan when it was becoming a developed economy

It also Rose 4 times From Nearly 10000 to nearly 40000.

Important Point is that when GDP start Growing all the Stock markets form Bubble which we can call boom Bubble and India is yet to form that Boom Bubble.

During Bubble Time Japan’s Nikkie Commanded a PE Ratio of over 100!!!

Now Some people say that we have already formed a bubble or are dangerously near it

Bubble Characteristics  : How to Spot a Bubble

• Majority of investors should start believing that the High Stock prices are here to stay.

This is not happening ,Every expert analyst is suggesting to be cautious

• There should be new theories to justify the Price Rise

Still waiting for them except this article!

• There Should be environment of euphoria in markets

No euphoria in markets  Markets are nervous right now

• Skeptics should be brushed apart by Majority

Majority is skeptic right now

• There should be entry of 1st time Investors who want to get rich quickly

yet to happen

• Media should be full of Positive reports about stock markets.(Non Financial magazines)

Even financial magazines are not too positive on markets

• Even the lowest paid persons are investing in stock market

lowest paid means the persons who are at bottom of Pyramid like waiters,Chai wala,Rikshawala,Your Washerman and other persons whome you least expect to invest in stock market.This is still not happening 

Technical Analysis

Trading Ranges constitute important part of technical analysis.Say if a stock is trading in Range of Rs 100-150 and it breaks Rs 150,technical analysis suggest that new range should be Rs 150-Rs 200.

Now see Sensex chart for last 3 years.

Sensex Peak in Jan 2008 was 21078

While the low was nearly 8000 in subsequent crash

The trading range is nearly 13000

if Sensex manges to scale  21078(it certainly will)

then the target of new range is

21000+13000=34000

Now add the bubble factors at the end of this Bull rally

That makes Target of 40000 plus in Sensex

Advice for Investors

Invest on every big Decline now and stay invested

PS:After 40000 what is next target

Ans :This is the most terrible part

See Dow Jones and Nikkie after Bubble  and subsequent crash

 

MULTIBAGGERS FOR 2011 -2013

 MULTIBAGGERS FOR 2011 -2013

FOLLOWING ARE SOME OF THE STOCKS WHICH ARE AVAILABLE AT VERY CHEAP PRICES , CAN BE BOUGHT WITH 3 YEAR PERSPECTIVE .

1. Jaiprakash Associates Ltd.   CMP  74 , 52wk High 162

2. Unitech Ltd.    CMP  34 , 52wk High 98        

3. Punj Lloyd Ltd.   CMP  65 , 52wk High 189

4. IFCI Ltd.  CMP  48 ,52wk High 80

5. Koutons Retail India Ltd.  CMP  27 , 52wk High 399

6. IDFC    CMP  126 ,52wk High 218

7. MTNL    CMP  40 , 52wk High 78

8. UCO Bank  CMP  94 , 52wk High152

9. HDIL     CMP  125 , 52wk High 328

10. Delta Corp  CMP  60 , 52wk High 141

11. Jupiter Bioscience Ltd. CMP  19 , 52wk High 149

12. Reliance Communication  CMP 90 , 52wk High 204

13. Reliance Capital Ltd.  CMP  400 , 52wk High 929

14. Welspun Projects ltd. CMP 65.20 , 52wk High 200

15. Well Pack Papers & Containers Ltd. , CMP 5.37 ... risky stock...can try in small qty .           These stocks have corrected more than 50 % and still expected another 20 % . Start buying in a staggered way . Average on every dips ,with returns of atleast 80% in coming 2-3 years.  

ALL THESE ARE COMPANIES ARE FUNDAMENTALLEY GOOD , DIVIDEND PAYIING ,IF YOU REMAIN INVESTED FOR 5 YEARS ,WILL GET HANDSOME RETURNS .

*More stocks to be added soon .

Why FIIs invest in India

Why FIIs invest in India????

Here I am taking an simple illustration .

The FIIs stand to gain much more than us Indians. Here is why?
The rupee rate is 48 rupees to 1 USD. Assume, we buy Nifty BEES (Benchmark ETF) at 480. This means Nifty is at 4800. We get to buy 100 units of Nifty ETF with 1000 dollars.
ow a couple of months have passed by and Nifty reached 5350. Our ETF rate has gone to 530. The Indians earn 10.41 pc rate of return. Now our friend Mr Bernanke continues with his low interest rate regime, interest rate of almost 0 pc, he prints some more dollars, gold rallies and USD weakens. Now 1 USD gives us 44 rupees. We decide to encash our Nifty BEEs 100 units. We get back Rs 53000 = 53500/44 = 1215 dollars. A return of almost 21.5 % and the game goes on.
If the rupee strengthens to 42, we make even more returns. Now, FIIs are always leveraged that is they for every 100 dollars they invest, they can buy up to 300 dollars worth of stocks. They can make triple the profit. At the opportune time, they sneak away and the game begins in some other emerging market.
This is the secret of the so called FII flows.Of course, one can go with the trend and aim to move away before the music stops playing.