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

Saturday, September 19, 2009

Indag Rubber Ltd and JJ Exporters Ltd:The small cap gems

1)Scripscan:Indag Rubber Ltd

Story:It is very interesting, this Warren Buffet approach, that how much can I buy the entire company for as opposed to buying just chunks of it. This company is very attractive because the market cap is about Rs 30 crore to Rs 33 crore, and so for Rs 33 crore you can buy the entire company. So, if one is buying the entire company what does he get. If one factors in a 15-20% EBITDA margins,cacluate the figure.So I like this stock because if one thinks of how much are you paying for the entire company and how much are you getting back in terms of EBITDA, it’s a simple approach. I believe if one takes a simplistic approach, it often pays off in the long run.I like this stock because first you can’t do without retrading in the country; secondly there is going to be a huge increase in roadways. This is one of the spin-offs of the road infrastructure boom. It has an extremely low market cap and an interesting story is coming up.The coming quarter result should be good and that may help investors to make it a part of their core portfolio.

2)Scripscan:JJ Exporters Ltd

Story:This is a different kind of story. JJ has absorbed a group company called JJ Spectrum, which was a company with high equity, big assets, modern machinery and equipments, etc. Now because of the high shareholding that JJ Exporters had in JJ Spectrum, following the merger, there was an equity shrink. So the equity increase has not been in proportion to the increase in assets and the increase in potential turnover.The other sub-story in this stock -- it is relatively a high-margin business. They are into silk fabric export.People may have overlooked this counter because there is no aggressive growth coming up, although it is relatively low profit, it has got interesting valuations. One of the points people have missed is that following the merger, equity shrink has made it attractive. Its more of a restructuring play which is not completely played out, hence the bargain.

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