10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, August 21, 2008

New stocks for investments

Legendary investor Peter Lynch believes retail investors, through their hands-on experience,can make fairly smart investment decisions —at times smarter than those made by analysts and fund managers. An oft-quoted instance is that of Mr Lynch buying a company that makes lingerie,after his wife mentioned how popular the brand was with women.

Stretch that logic, and retail investors at this point may want to own the stocks of some companies that supply goods for home interiors. With a booming real estate market and rising wealth levels, the increasing popularity of home interior products (either for new homes or for renovations) is likely to continue for a long time.The boom in real estate is there for everybody to see.The obvious winners are the builders and developers. But step inside a house and view it a la´ superman with his X-ray vision and you’ll see the things which go into converting that 500 or 1,000 square feet of carpet area into a full-fledged home.

To start with, there are those switches and miniature circuit boards (MCB).Copper wires run like the nerves of human systems carrying power through your homes. Remove the carpets, and there are the floor tiles. Every 1,000 square feet carpet area of space roughly requires 1,000 tiles. The house needs a fresh coat of paint once every four years. What is a house or an office without furniture — either wood or its substitute particle board?

And all the woodwork requires adhesives.Home improvement is another big segment, which involves decorative bed sets among other textile items. Lights, fans, sanitary-ware items like commodes, kitchen sinks, granite slabs are the other inputs that go into transforming that 1,000 square or more feet of space into what we call ‘home’.

I looked at a preliminary list of around 104 stocks that were in the related business of home interiors. Of the lot, Havell’s India, Finolex Cables, Orient Ceramics, Pidilite and ICI seemed reasonably priced at current market prices.

Havell’s India is the number one maker of MCBs;the industry is growing at the rate of 20-30% per annum. The company doubled profits over the last few years.The company has ventured into new products in the past three years and is present in nine verticals including switches, wires, cables, fans, compact fluorescent lamps (CFLs) and bathroom fittings. It is the second-largest player in the wires and cables business operating in the low-tension space. At a forward P/E of less than 11, it is reasonably priced.One can buy the stock for decent returns.

I can be reached

No comments:

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner