LML Buddy - A Winner??

Hello Investors,

As many of my followers know, in the past, I recommended TVS Motors when it was at Rs 40.00. What was the reason when most analysts were pointing TVS as junk, Shah Stocks saw a ray of hope in TVS Motors? 

Shah Stocks saw a company making a comeback with lots of things changing in the company. The technicals as well, were very much favorable. To tell the trurth, at that time even I wasn't expecting such huge returns. Rs 530 now, a true multibagger in real sense. I felt, it would be good even if the company reached level of Rs 150.00, but rest is the history.

Coming to the main point, Shah Stocks is amongst the first few who gave investment idea in LML, when it was at Rs 7.00. So why I am betting on LML, are there any chances of revival of the one time great LML, which used to compete the legendary BAJAJ. 

LML in last few years have tried a lot many things, but it hasnt been able to make a comeback till now. Sole reason I feel, LML had a habit of Tie-up and it was successful only when Piaggio was attached to it. It tried its luck in 2 wheeler bikes with SHAHRUKH KHAN as an brand ambassador. Though everything was a foul play. They couldn't penetrate the market. Service was not that pleasing either. As a matter of fact, the company didnt changed its ideologies with changing time and it wasnt able to know what a customer requires.

Now, LML is again trying a comeback, with a product called BUDDY which is surely unique and according to me, there is no other product in this segment, meaning there can be a whole new market that LML can cover. Just like few years back, a segment of LUV came in Car industry.

No other auto company has found a huge gap between 3 wheelers. (Famous as CHHOTA HAATHI mini truck and manual 3 wheeler cycle) BUDDY is a product which will bridge this gap.
You can check the section of LML Buddy here for more details. 

http://lml3wheelers.com/

Again, the technicals of LML are in great support of the upmove that we saw. Consolidation phase is going on and we can expect a great great upmove from here on. All they have to do is market the product properly. All the other things have already been in support. 
I became more sure when one of my close friend visited Ahmedabad for an Auto Expo and he himself saw the preparation of LML in coming months. Keep the Fingers crossed. There is a huge probability of LML turning into a MULTIBAGGER. SHAH STOCKS wishes LML all the best for the upcoming products and hoping to see those golden days back for the company.

NOTE: Shah Stocks has done its research before posting any recommendation,  but its always advisable for any individual to research or consult its investment advisor and then invest in any stock. Shah Stocks is not responsible for any loss, if incurred by the investor.

Shares that will be in FOCUS next week...

It will be an interesting next week, with many shares that will be in Focus. Listed below are some small caps shares that will remain in focus due to the news associated with them.

Now we all know that CDR have played a major role either on Upside or Downside for any company.
Recently, when Pipavav Defence announced that the board has approved a debt restructuring package, the company’s stock started rising. The news came in after market hours on March 31. The next day share price went up 5.59 per cent to Rs 60.45 during intra day trade.

Similarly, positive movement in stock prices were seen when other companies received approval for CDR. These include companies such as Hanung Toys & Textiles, Shriram EPC and Gammon India.

News that will help the trades in next week in some small caps share re :

1. MSP Steel & Power has executed a Master Restructuring Agreement (MRA) on March 28, 2015 as per the CDR Guidelines. The company had earlier on March 27, 2015 received approval of the Corporate Debt Restructuring Package by the Corporate Debt Restructuring Cell.

2. Other company which has bypassed CDR, Balasore Alloys will also be affected by the news released by mangement.
Balasore Alloys Ltd has informed BSE that the Company stands exited from Corporate Debt Restructuring (CDR) System on payment of recompense amount.

3. Another shocking news coming from Care Ratings for Sanghvi Forging & Engineering.
Sanghvi Forging had earlier CARE Rating of BB-  as per report of 1st April 2014 http://www.careratings.com/upload/CompanyFiles/PR/SANGHVI%20FORGING%20&%20ENGINEERING%20LTD-04-01-2014.pdf

In recent news, Credit rating agency, Credit Analysis & Research (CARE) has revised the ratings assigned to bank facilities of Sanghvi Forging & Engineering. The credit rating agency has revised Long-term rating and Short-term rating to ‘D’. 

Credit rating agency, Credit Analysis & Research (CARE) has revised the ratings assigned to bank facilities of Sanghvi Forging & Engineering. The credit rating agency has revised Long-term rating and Short-term rating to ‘D’. - See more at: http://money.livemint.com/news/company/news/care-revises-ratings-assigned-to-bank-facilities-of-sanghvi-forging-367921.aspx#sthash.GBgHVyOi.dpufMSP Steel & Power has executed a Master Restructuring Agreement (MRA) on March 28, 2015 as per the CDR Guidelines. The company had earlier on March 27, 2015 received approval of the Corporate Debt Restructuring Package by the Corporate Debt Restructuring Cell. - See more at: http://www.moneyworks4me.com/company/news/index/id/146944?utm_source=twitterfeed&utm_medium=twitter#sthash.gbJyqO8e.BrwwGRdX.dpuf

MSP Steel & Power has executed a Master Restructuring Agreement (MRA) on March 28, 2015 as per the CDR Guidelines. The company had earlier on March 27, 2015 received approval of the Corporate Debt Restructuring Package by the Corporate Debt Restructuring Cell. - See more at: http://www.moneyworks4me.com/company/news/index/id/146944?utm_source=twitterfeed&utm_medium=twitter#sthash.gbJyqO8e.BrwwGRdX.dpuf

MSP Steel & Power has executed a Master Restructuring Agreement (MRA) on March 28, 2015 as per the CDR Guidelines. The company had earlier on March 27, 2015 received approval of the Corporate Debt Restructuring Package by the Corporate Debt Restructuring Cell. - See more at: http://www.moneyworks4me.com/company/news/index/id/146944?utm_source=twitterfeed&utm_medium=twitter#sthash.gbJyqO8e.BrwwGRdX.dpuf

Stocks to BUY now

Again updating and adding Undervalued stocks that you can buy at current levels.


IFGL Refractories:

P/E 14.16 vs Industry P/E of 32.9
Company is terribly Undervalued. The company has nice amount of subsidiaries performing exceptionally well and the growth history is really encouraging. Big name of the group and diversified business makes it more attractive.
Company's website: www.ifglref.com

Archid Ply

P/E 14.38 vs Industry P/E of 40.90
Company has nice business model and has penetrated interior markets with good branding. Though its market share is not one of the best but it has increased significantly over last 3 years and the stock has remained undervalued. Add the stock at around Rs 30.00 levels for Long term. Nice returns expected.
Website: http://www.archidply.com/

JVL Agro

P/E 3.27 vs Industry P/E of 14.29
Company's Jhoola brand is famous in Bihar and UP side. Also the company has nice assets and they are diving into business of food park. All the clearances have been made and the work is in progress. In coming years, the copany will surely be benefited from it and there is a huge scope and potential for it to move up.
Website: http://www.jvlagro.com/

Ganesh Housing

P/E 8.11 vs Industry P/E of 29.3
One of the biggest real estate player in the most influential city of Ahemadabad. The company has nice projects going on and huge landbank with it. It also has IT SEZ Million Minds coming up with GIFT City in progress. The promoters have also been releasing pledged shares recently. The company at this level is a great BUY for a long term. Company regularly pays dividend even though it has debt. Many FII's and DII's have entered here due to the growth story seen in Ahemadabad.
Website: http://www.ganeshhousing.com/ 

Hilton Metal Forging Ltd

P/E 16.50 vs Industry P/E of 58.52
The company has nice export track record and have been a big player overseas. Most of the company sales is outside India, export oriented and so its a big player overseas. The company is trading very cheaply. The only problem with the company share is DRY Volumes. Otherwise the company has great potential in coming 2 years as the company is also into defence segment. Keep an eye on it.
Website: http://www.hiltonmetal.com/

Thank you

STOCKS to BUY in this correction.

I have already suggested one stock that is undervalued and wrote a blog few days back in which I have shown whole analysis of the company. That's Usher Agro.
In that post, you will be able to get every required information why its is a BUY at current levels. You can check here http://shahstocks.blogspot.in/2015/03/stock-analysis-usher-agro-ltd.html

So list is here:

Usher Agro 

P/E : 2.10 vs Industry P/E of 51.06. 
Imagine the upmove it can give, The company has shown extra ordinary growth in last few years and expanded its capacity with huge volumes. Even started new manufacturing plants with different products which are n demand. Owner of a famous brand 'Rasoi Raja'.
Website: http://www.usheragro.com/

Ganesh Housing  

P/E is 8.44 vs Industry P/E is 29.69. 
Promoters on spree to release theie pledged shares. A huge positive. One of the pioneer company in Ahemadabad with nice set of projects in the city. Even clearance for GIFT City approvals last Sunday will be very beneficial to Ganesh Housing
Website: http://www.ganeshhousing.com

Sudar Industries (Risk involved) 

P/E is 0.92 vs industry P/E of 49.03
A rare share which has below P/E below 1. EPS of last year is more than the current share price. Diversified business due to risk involved in textile industry. I wrote Risk Involved due to high pledged shares of the promoter and the shortage of cash in the company's balance sheet.
Website: http://www.sudarindustries.com/

Neo Corp 

P/E at 5.00 vs Industry P/E of 26.76. 
Well managed and a big name in packaging industry. Company has also incorporated many subsidiaries which has shown awesome growth and has turnover of over Rs 1200 crores last fiscal and has market cap is mere 111 crores. 
Website: http://www.neocorp.co.in/

Ruby Mills  

P/E 2.70 vs Industry P/E of 7.69.
Company has good presence over the years. The company owns property of Ruby Tower which is first skyscraper in Dadar, Mumbai which is a prime location for many offices. Ruby Tower has corporate offices that the company has given on rent/lease. The value of that property itself would be more than Rs 1000 crores. Company is projecting similar project with spare land available next to Ruby Towers.
Website: http://www.rubymills.com/
http://theruby.in/home.html


Panacea Biotec 

Great R&D Company with nice assets and brand value. Nice Tie-Ups  in last quarter and the order inflow started from worlds best organizations for the vaccines.
Check why I have recommended strong BUY on it: Panacea Biotec Stock Analysis

Will be adding more stocks as and when I get time. Hope the information was useful. Also do contact me if you want more investment ideas.
Another stocks which are undervalued in another post: http://shahstocks.blogspot.com/2015/03/stocks-to-buy-now.html

Thank you

Market Correction..!!! An opportunity to BUY?

Everyone is optimistic about the Bull Run that we are seeing in Indian Markets, Sensex and Nifty.
So, the market managed to jump quite a bit in last 1 year just because of the hope that new MODI government brought. That was not the only case. The world economy even got better and the business outlook for India changed as well. As we know, there was a phase of Recession or 'Mandi' globally which affected even Indian markets due to slow decision making of the earlier government. So, is it really a BULL Run? Even if it is not, we finally are getting a great opportunity to buy the stocks that are really undervalued. after the new govt came, all the stocks surged and made the market little expensive and it was tough to find gem like stocks which was is my best hobby. When I started investing Big in market, it was before 3 years. I was so happy at that time because I could find the shares that were highly undervalued and I used to say, why cant this be bought at these levels? Some of the cases are Neo Corp. All I used to ask myself is why shouldn't I buy this? If I was unable to get any answer, I used to invest atleast some portion of my savings into it.

Then I kept buying shares that I felt were undervalued yet strong. Over 6-9 months year, my portfolio was not doing that great. There I could see that many people told me that I dont know how to choose the stocks. But then after 6 months, I saw one of my favorite stock Asian Granito shooted like rocket to make new HIGHs. I invested in Asian Granito at Rs 30.00. Everyone asked me what would be my target? I always used to say them that my target is not fixed. Reason? Because when I invested in Asian Granito at Rs 30.0, I felt that its true potential would be somewhere around Rs 150.00 but by the time the share reaches Rs 150.00 levels, the fundamentals will change further and then I will change my targets for even higher as the Industry P/E also changes with time. This is one stock I would buy even at levels of Rs 200.00 due to growth it has shown.

Similar was the case with IFB Industries. I knew its a pioneer company that has a great monopoly of washing machines all over the continent. I saw the company's strategy of capturing even the smaller markets. They also started with franchisee system and were very aggressive on it, because they had started IFB Points even in smaller cities (smaller cities because they opened in my city as well). One concept that I loved about IFB is their another marketing strategy of selling through website. They sold a whole appliances set to a new bride. Now, I know not everyone an afford it but surely many did. One of my friend got the same gift from his dad. I felt it was too undervalued at Rs 67.00. Also the monopoly could not be ignored. After some 6 months, it also surged and sky rocketed to levels I wanted. 

So, finally I realized let the people say their stuff. I have gave nice and enough inputs in my research before buying though I was always open for discussion. I invested in many other picks with strong Fundamentals. I also started looking into opportunities where there was risk involved but if that risk is overcomed, the stock would fly real High, increasing little of my exposure to risk.

Then the market went UP after election results and I was clueless as to what to BUY. I used to invest in most of the stocks that were undervalued. After the market surged, I couldn't get any stocks that were really undervalued. So, I invested in stocks which I picked earlier and were still undervalued.

Now I have got a chance to buy the stocks that are undervalued due to correction. So, if you have missed the rally and are looking to invest the stock market, start investing in tranches so that risk is diversified. 

Not a question whether its a BULL Run or not, we have stocks that are available cheap now after a long time.

Check my next post for the name of the stocks that are undervalued at the moment. Thank you for reading.

Happy Investing..!!!

Analysis of Stock - Part 2

I dont know why but the site www.blogspot.com was not allowing me to save whole article in one post. So have to add another post which is continuation of 'Analysis of Stock'.

After checking the Fundamentals and Griwth History of the company, we need to check the current fundamentals of the company. Following part will explain which and how those parameters are to be analyzed..

Promoter Holding:

Now that it has passed the test of the Growth concern, check whether the promoter holding is good. Check promoter holding of last few quarters, whether they have bought, sold or kept their holding intact. If they have bought the shares, it’s a good sign. If they have sold the stock, it is not a very good sign. 

Shares Pledged By Promoters:

We need to consider Pledged Shares while checking Shareholding Pattern. Please search Google for more details regarding Pledged shares. It should be negligible (Best if there are no pledged shares). Also positive if the Pledged shares percentage is decreasing.

This page will show the total number of pledged shares. In Neo Corp’s case, they have reduced the number of pledged shares. So once again, that’s positive.

FII's/DII's Holding:

Invetsments by FII’s and DII’s adds better sign for the company.

Public Shareholding more than 1% :

Check the Top Public shareholders, if any Ace investors have invested. It is also taken as a positive sign.

Study Balance Sheet and Cash Flow:

You need to study it as I can’t explain it here. You need to learn it from the internet or some books. Check if the company gives dividend when they have cash with them.

Check the Company's website:

The basic info regarding any company nowadays is displayed on its website. There are many companies which don’t even have website or has very poorly managed website which is not updated for years. I don’t like the companies which doesn’t update the website and keep up-to-date information. Website need not necessarily be fancy but the basic developments happening should be listed there. You also can find the clientele there (Clients list). If its all good , move ahead.

Check the Corporate Governance:

Many companies have black background associated with it due to the stock operators like Ketan Parekh, Nirmal Kotecha etc. or some other issue, like IPO listing fraud. Check the clarifications of the company regarding any issues if they have encountered this type of issues and check if the issue is resolved.

Most Important Parameters:

You can check Dividend history on chart directly.

For all the parameters below, you need to study well and this may take time. Better to get it analysed by expert if you are unable to solve it. This parameters will tell whether the share is worth buying.

• Lower P/E than Industry P/E is a very good sign to BUY.
• Check the Book Value of the company. If the Book Value is higher than the current Share price, its again good indication to BUY.
• Price/Book if less than 1.00, shows that the share is undervalued.

There are many other rules. Not all of them matters, it varies depending on share.

If you find a share that have all the things positive, 

Congratulations!!! You have found a multibagger. Share that stock as much as possible so that all the investors can take benefit of the research done by you.


If anyone wants the copy of this file (Manual) in Microsoft Word format, click link below to download  
ShahStocks Stock Analysis Tutorial