Recall the "Guess the stock" which I recently penned?Check the link then
http://www.arunthestocksguru.com/2010/04/guess-stock-folks.html
Scripscan:Pioneer Investcorp Ltd
cmp:48
Code:507864
1)This company is run by a very efficient and influential Gujju guy named gaurang gandhi.As you people know a great visionary entreprenur is all what I desire in a company.
2)The Main Raw MAterial for its business is "Talent".They are having great brains working with them.The company has roped in G Alankara from SSKI to head its institutional sales and Anil Verma from Bajaj Allianz to head of its direct insurance business.
3) Pioneer has been growing at 150% plus CAGR from 2004 to 2008. 2009 results were an aberration for reasons known to all. On looking at last 3 quarters results its very clear that the company is back on track for FY2010 results. So looks like the stock can move from current levels to its old levels.It should be prudent to note that this is the same scrap which once commanded a price of 900 bucks in the bourses.
4) The stock is quoting at negative enterprise value. Company has 30 crores cash in hand and 50 crores in liquid investments as per the latest quarterly results, but the company is available at less than 60 crores mcap.
5) Company is quoting below book value, where as most of its peers are quoting at 3x to 4x book.That makes it a strong re-rating candidate.
6) The company has reduced its debt levels by clearing most of the debt. And promoters have been increasing their stake too. Promoters also issued warrants to themselves at above 100 levels which is really an inspiring thing.Confidence and conviction of the promoters are vital stuff and should be considered big positive.
Conclusion:In early 2008 citigroup was all set to acquire stake in it for a stunning 400crs.The total marketcap at present is not even 60crs folks.All this points makes pioneer investcorp a good sound buy for the longer term perspective.Downside looks very minimal but it can certainly surprise one as far the upsides are concerned.
Regards,
ARUN
9804589299
I can be reached at:arunanalyst@rediffmail.com
http://www.arunthestocksguru.com/2010/04/guess-stock-folks.html
Scripscan:Pioneer Investcorp Ltd
cmp:48
Code:507864
1)This company is run by a very efficient and influential Gujju guy named gaurang gandhi.As you people know a great visionary entreprenur is all what I desire in a company.
2)The Main Raw MAterial for its business is "Talent".They are having great brains working with them.The company has roped in G Alankara from SSKI to head its institutional sales and Anil Verma from Bajaj Allianz to head of its direct insurance business.
3) Pioneer has been growing at 150% plus CAGR from 2004 to 2008. 2009 results were an aberration for reasons known to all. On looking at last 3 quarters results its very clear that the company is back on track for FY2010 results. So looks like the stock can move from current levels to its old levels.It should be prudent to note that this is the same scrap which once commanded a price of 900 bucks in the bourses.
4) The stock is quoting at negative enterprise value. Company has 30 crores cash in hand and 50 crores in liquid investments as per the latest quarterly results, but the company is available at less than 60 crores mcap.
5) Company is quoting below book value, where as most of its peers are quoting at 3x to 4x book.That makes it a strong re-rating candidate.
6) The company has reduced its debt levels by clearing most of the debt. And promoters have been increasing their stake too. Promoters also issued warrants to themselves at above 100 levels which is really an inspiring thing.Confidence and conviction of the promoters are vital stuff and should be considered big positive.
Conclusion:In early 2008 citigroup was all set to acquire stake in it for a stunning 400crs.The total marketcap at present is not even 60crs folks.All this points makes pioneer investcorp a good sound buy for the longer term perspective.Downside looks very minimal but it can certainly surprise one as far the upsides are concerned.
Regards,
ARUN
9804589299
I can be reached at:arunanalyst@rediffmail.com
