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

Monday, August 2, 2010

Pioneer Investcorp Ltd:-Hidden gem

Scripscan:Pioneer Investcorp Ltd
Duration:6-7 months

Business:Pioneer Investcorp Limited primarily provides merchant banking services, as well as securities market related services in India. Its services include investment banking, securities trading, and investment advisory. The companys investment banking services comprise private equity and mezzanine finance, private investment in public enterprise, mergers and acquisitions advisory, debt syndication and structured finance, structured and special situation transactions, operational and financial restructuring, and global capital markets. Its securities trading services consist of equity research, cash equities, equity derivatives, and investor conferences. The companys investment advisory services include funds management and portfolio management services. It also offers insurance advisory services, including general insurance and reinsurance brokerage.

Why I like the company:-

1)This company is run by a very efficient and influential Gujju guy named gaurang gandhi.As you people know a great visionary entrepreneur 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.The company restructured and reinvented itself in the last fiscal and all to deliver stunning results in the fourthcoming quarters .It should be prudent to note that this is the same scrip which once commanded a price of 900 bucks in the bourses.

4) The stock is quoting at around par to its enterprise value. Company has 30 crores cash in hand and 50 crores in liquid investments.The marketcap is just 84crs as on date.

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 85crs 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.Pioneer investcorp is not a play on PE or any other valuation metrics but its a play on potential,prospects and business dynamics.I assign a buy on the counter with a target price of 96rs to be achieved in the next 6-8 months thereby generating a return of 40%.

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