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

Wednesday, November 2, 2011

Kanchan International Ltd:-Buy/sell/growth prospects and recommendation,news and results,target price and analysis,view and outlook,multibagger

Scripscan:Kanchan International Ltd

Story:Kanchan International is not a valuepick and not a stock for all.This is only for brave hearts ready to loose the entire investment for a possible multibagger.This high risk is mainly due to the hyperactivity of operators in this counter and the erratic price movements due to this factor.In 52 weeks ,Kanchan touched a low of Rs.33 and a high of Rs.219 with a series of upper and lower circuits and now trading around Rs.50/-.Kanchan is a well known brand in household appliances especially for their Mixer Grinders.They are also producing Pressure Cookers,Juicers,Food processor,LPG Stove,Electric iron,Microwaves,table fans..etc.Other than 'KANCHAN' ,company also owns another brand 'MARLEX'.Even if this company is in existence for the past 20 years ,it could generate a turnover of Rs.30-35 Cr per year even with a negative cash flow .I strongly feel that this is mainly because of the existence of more than one private companies in the same group and the sales are channelized through these closely held companies.Yes,all these are negatives .But what catching the attention at this point is the recent initiatives taken by the management.Recently promoters took 25 lac warrants and it is expected to convert into shares to hike their stake.Company also in a recruitment drive
to expand its operations mainly in marketing and servicing. Kanchan is targeting a turnover of Rs.150 Cr in two years which seems aggressive but the possibility of the merger of group companies with itself may save a lot of efforts in this direction.In the past ,company paid dividends whenever there is even minimum profit in any year.So all together there is lot of negatives like the integrity of management,lack of clarity of future course of action,negative cash flow etc ,but the other side is equally strong like the potential of the industry, re-rating of the sector,new initiatives of management.TTK prestige and Gandhimahi Appliances are the two listed players from this sector which re-rated substantially in recent past.Governments initiatives like National Rural Employment Guarantee scheme are keeping the flow of money to the rural sector which is expected to significantly influence the demand of products manufactured by companies like Kanchan. Future of Kanchan depends of many 'IF's but if everything clicks well this may turn as a multibagger.Since it is a high risk high profit situation,make your own due diligence before taking a decision.

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