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Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
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Archives : Old artciles

Friday, June 27, 2014

The aspects of markets and RS Software ltd:-The E-Commerce play

The aspects of markets:-

Last week a member was promised a detailed note about the so called 'Opportunity cost'.OC simply put would be the cost of an alternative that must be forgone in order to pursue a certain action.Put another way, the benefits you could have received by taking an alternative action.OC relates much to the value investing aspect where you opt for deep value counters in place of growth counters thereby availing yourself a long waiting period.A growth stock may well double or triple but chances of the same happening to a value stock remains low.There's a long waiting period,it will likely bore you to death,you may well tear your hairs noticing every cats and dogs turning out to be multibaggers with your owned value bets moving nowhere.But if you could endure a long long waiting period,there's special moolah waiting at the end.If you have got the counter right,it may even single handedly make you rich provided the allocation is on the higher side.Yah am talking about those most craved about 30-40 baggers.So the decision for you members would be which boat are you in?In the growth counters with rich valuations with growth rate or in those value picks with tremendously attractive valuations but attached to the OC factor with a long gestation period backing it up?I used to opt for lot of microcaps in my earlier days which though performed well over a long period of time but certainly they ensured my patience matched the level of the Scotland King-Robert Bruce.They took many many years to perform.Several counters moved massive but those value counters remained in the vicinity of my purchase price.I really got habituated in getting okay with a no return for years period.But as the personal experiences grew and acquaintances became many,the strategy changed to be a more of a mix of both.Jim rogers adage of buying cheap,if not very cheap, with a positive trigger helped me bigtime.The returns started flowing much faster than what I could anticipate.The CAGR saw a betterment with the near banishment of OC factor from the portfolio.

Nowadays even if I come close to a good quality microcap,the screaming excitement of finding a ciger butt no longer prevails.A plethora of questions sets in automatically.Why in earth is it so cheap?Is it kinda we are unaware off certain negative factors in the counter?Its a microcap so mutual funds and FII's cant get in.HNI'S too would be interested at a higher level.It ought to have a low liquidity and the OC factor.Portfolio allocation too would be abysmally low as even 2-3% allocation may get me a 3-4% stake.Thus overall returns even if its a 10 bagger ultimately would be nothing.Also cant even recommend to you guys,you members would chase it and ensure it forcefully remains in the upper circuit for weeks.Ones you folks have pocketed with your's heart content, it will start to drift low due to lack of follow up takers.

A reality check to the recommended counters of mine would speak everything.Tata Elxsi moved to nowhere in the last 5 years till month of October 2013.It suddenly jumped 10% due to a great quarterly result,then when they stated they plan to make it a TCS on its own sector and the result most likely to remain upbeat,the whole game changed.Tata elxsi subsequently was recommended as the special Diwali call with the counter tripling in a matter of 4 months.So think about it folks,what would you have preferred?A tripler in a matter of 5 year and 4 months or just in 4 months?Take the case of recent call on Canfin homes.The company was doing amazingly well,thanks to the efforts of the MD-Mr C llango.It remained in the 170 range for nearly 18 months before moving to 220,all in a matter of a week with good deliver volumes.It was probably the cheapest bet in the sector,thus with even a 30% rally the multiple hardly went by 1.The call was given then even when a lot of members argued about a 30% rally in a week's time.But the factor remained it only moved 30% in a matter of 18 months.Canfin since then has moved to 360 in less than 3 months.There's a nomenclature of similar examples.From Atul auto to symphony to kajaria to hcl info to ratnamani metals etc.Thus its not a crime to buy something higher.A higher price or a higher PE often hints at a lot of clarity.Stronger hands,better perception and the breakout factor.There's also the incredible factor of buying something higher and getting that high conviction.Then those HNI's creeps in eradicating the last bit of negative vibes putting the stock higher.The MF's suddenly finds the particular stock which they long argued not to have owing to several factors, much convincing as it enters into the so called limit of their minimum marketcap requirement.The promoters and the management they too joins the bandwagon seeing the rise in the stock price,putting more efforts to perform,doing conference calls,analyst meets,Tv interviews.Lastly the FII's with billions in pocket,aiming to grow at high single digit ensures it remains in the overbought high multiple territory zone for ages.So if we consider all this thoughts and put together the actions in a 10 PE 100rs stock,growing at 30-35% CAGR and slated to grow at the same rate for coming 3 years,what would happen?The stock would move to 1000 bucks,resulting in a 10 bagger with a PE of just over 40 times.Can you guys name one such stock from my recommended stable?Well why one,take the case of Cera and Relaxo.Hope have been able to help you in learning a tad more about the aspects of markets.Happy investing folks.





Stock idea:-

Scripscan:RS software ltd
Traded in:Nse-bse
CMP:230rs
Target:300rs
Duration:6-9 months
Return percentage:30%

Quote:q)Who are the key influencers for the company?
Ans)The rapid growth in electronic payments volumes and new payment types forces payment providers to constantly revise their strategies, shorten their time to market, and create new products and services. RS Software provides solutions to help them meet these challenges.A close glance to the director report gave me everything about the company.Just ignore everything and concentrate on the quintessence.Think e-commerce-electronic payment-online payment gateway-mobile payment and their potential.Add up a visionary management,debt free growing company with lot of cash in books.Attractive valuations and Moat.You got the whole RS story folks.

Story:Story:Founded by the US based entrepreneur Raj Jain, RS began with a clear vision of providing quality software services to international markets. The company researched and instituted global best practices in the areas of People Management and Process Architecture to build a world-class organization. With rigorous attention to world standards, the company acquired ISO 9001:2000, SEI CMM Level 4, P CMM level 3 and ISO 27001:2005 certifications.RS Software is a Kolkata based IT company focussing on electronics payment domain. They have their own products which they sell as solutions.Playing a pivotal role for the Payment Industry, RS has developed and maintained mission critical applications for leading Payment networks in North America, Japan and UK. RS Software’s offices are located in the US, Canada, UK and India, employing over 1000 professionals to deliver high quality solutions for Payment networks, Processors, Acquires, Issuers, and other Payment Industry companies.Today RS Software is on course to be the leader in using its domain expertise to enhance the most powerful Payment Networks globally, and provide leading edge technology solutions to all stakeholders in the Payments industry.

Clientele:RS Software seems committed to its aggressive growth strategy.This company caters to the need of topline clientele which includes the likes of Visa, Visa EU, Visa CEMEA, Maclane, Pemco, Vignon etc.The cornerstone of RS Software’s value proposition is its understanding of the payment transaction’s entire life cycle, and a unique methodology customized for managing software applications for the electronic payment industry, in the areas of development, maintenance, migration and support. The experience of working in this industry over the past 20 years continuously enhances the knowledge pool that is managed by RS’ knowledge management system, with a goal to cross train in all areas of work. RS constantly refines the unique methodology to meet the dynamically changing requirements of its customers.RS Softwares is a niche player working on patent pending solutions in the mobile payments area.

Positive trends of the payments industry to continue:Few aspects which would speak about the positive trend of the industry.Nearly $11 trillion is spent globally each year (cash and cheques)providing a robust foundation for the growth of the electronic payments industry.The global electronic payments industry is experiencing an unprecedented growth on account of an irreversible shift from paper to electronic payment forms, processing tens of trillions of dollars of payment transactions.US payment transactions processing just on Visa & MasterCard networks have grown from 18% of non-auto retail sales in 1991 to 77% of non-auto retail sales in 2012 (estimated at $4 trillion).US consumer payments using cards are estimated to rise from 40% in 2006 to 60% by 2016.This industry has grown 10,000% since its inception in 1970. RS Software is well positioned to capitalise on this global opportunity and has a well laid out strategy backed by a comprehensive understanding of each client’s business.

Mobile telephony potential:While the global population is around seven billion, the total number of mobile phones is close to six billion, a global penetration of nearly 85%.Developed countries like the US, the UK and Germany have a penetration of over a 100% while Hong Kong and Saudi Arabia have a penetration approaching 200% even as the mobile phone penetration indeveloping countries like India and China is close to 70%, representing a scope for expansion.Mobile phones are extending financial services in lieu of an underdeveloped banking system with transactions involving SMS-based payments, direct mobile billing using PIN and onetime password (OTP) authentication and mobile web payments.The room for smartphones to grow is huge considering that there are only 1.5 billion smartphone users as against 6 billion mobile phone users in 2013.The global volume of money spent using mobile phones was around $106 billion in 2011, rising to $171 billion in 2012, and expected to grow to about $617 billion by 2016.

Words from Raj jain:The US economy has revived in the last few quarters. It is expected to continue to grow over the next few years and possibly be the best performing economy in the developed world.About 84% of our revenues comes from US. We should be strengthening this further. The US is the largest market for payments industry. We are starting to explore the India market, which has large potential but is currently limited as compared to US and Europe. We are today operating in four continents.However, our clients operate across the globe. We work with them globally. We have an excellent foundation to be a domain leader from India in the IT services industry, which is still largely focused on general outsourcing requirements.We continually evaluate good opportunities for acquisition globally . We have significant cash on our balance sheet and any acquisition if undertaken will make it possible to enhance our strategic capability and add value to our clients.The company’s global delivery model and knowledge transfer disciplines ensure that the company’s cross-culture experience enables maximum value to the customer from start to finish.

Sunidhi-Brokerage call on it:RS has seen demand recovery in the U.S. which bodes well for its business given its exposure to the market. RSSIL continues to put significant thrust on innovations and in building competencies through the Payments Lab and School of Payments.RS is building a robust global sales engine that complements the high priority accorded to the company's dominant customers and leveraging at the same time unusual growth potential.Longer term operational and strategic planning is being put in place.With its foundation for growth well laid out, RSSIL is poised to confidently approach the other leadership companies engaged in the one trillion dollar Electronic Payments space globally mitigating its risk of depending on a few clients. RSSIL is encouraged by its initial traction in the market place and the quality of the dialogue with new prospects/customers.RS remains committed to constant renewal of its abilities to deliver high performance.RS sustained focus on merchant acquiring aspect of the payment landscape, procedural improvements in CRM, focus on e-mail marketing to generate strong business response and undergoing initiatives to strengthen the team and process - all give strong revenue visibility going forward.

Few cool aspects:RS Software has appeared for the first time in Forbes ‘Asia’s 200 Best under a Billion’ in 2012. Steady growth in revenues, profit and earnings per share has placed theCompany in this elite group.RS Software has been listed as one of the ’30 fastest growing companies in India‘, by Outlook Business.Ranked at #17, RS Software has moved into the spotlight of high performing organisations across all sectors in India.

Numbers:Company has grown at CAGR of 24 percent in revenues for the last 5 years.PAT has seen a massive CAGR jump of 53 percent.Company delivered consolidated revenues of 381crs in fy13-14 vs 317crs in fy13-14.PAT jumped to 51crs vs 35crs in the same period.OPM and NPM stood at 22.0% and 14.0% Vs 17% and 11.9% respectively in FY13.The company is expected to grow 22-25% in the present fiscal.Reveneus should increase to around 470crs,PAT is expected to inch up to 64crs.EPS will stand at over 50rs for fy14-15.

Conclusion:RS software is an amazing play on the e-commerce boom.This fine business boasts of 30%+ ROE does not burden the oarsman.Debt too is nothing leaving balance sheet squeaky clean.The company has generated free cash flow year after year.The marketcap of the company is only 295 crs.As at 31 March 2014,the cash &cash equivalent including deposits and investment stood at 61.5 crore or 48 per share.Thus we are getting the company for just 230crs.The dividend declared for the year has been 6 rs per share.A debt free, dividend paying company which has been a consistent performer over the last several years operating in a sunrising industry, commanding a trailing PE of less than 6 is a massive bargain for the investors planning to own a pie of it.The company is expected to deliver an EPS of 50 for fy14-15.Keeping the same trailing PE of just 6 for fy-15,helps me to arrive at my target price for the counter.Its still an unnoticed gem which whenever gets attention would move on to a different orbit.One can safely buy it for solid returns in the coming months and years.

BTW:People looking for midcap/smallcap positional call professional service may rush a mail at my mail id arunsharemarket@gmail.com to know more about it.

118 comments:

Unknown said...

making a move today...,,,

Anonymous said...

dear sir. please need your advise about Sterlite Tech Vs Birla Ericsson
thanks in advance.

Bhavin Mehta said...

Arun ji,
Pleas share your view on Trigyn Technologies ( a micro cap with good fundamentals).thanks

Anonymous said...

Sir, your views on Albert David Ltd?

Ashiq mehraj said...

Sir please your view upon hubtown ltd emami infra and JM financial which one is too good for investment thanks sir for you great job

Arun Mukherjee said...

1)Better to bet on the leaders and thus sterlite.

2)I dont understand IT and hence no views on IT.Also its been one heck of a wealth destroyer since the 2k IT boom.

3)Albert david is a long term defensive buy.

4)JM financial may do well.No views on emami infra.Would pick godrej properties in place on hubtown.

Santosh Hegde said...

Dear Sir,

Advice me on KRBL & Genuis Power & Infra

Regards

Tanay said...

Amazing tip on RS Software boss, went up for more than 30 RS in a day.

Vivek Chandrakar said...

Sir, your view on Govind Rubber & Sanghvi Forging pls? Thanks!

meenakshi nayak said...

Hi arunji....I have bought Asian granito at 76...is it a good bet.....and how to get your paid recommendation....

Rahul Ramchandani said...
This comment has been removed by the author.
Anonymous said...

Hi Arun,

Please if you could track TV today and Venus Remedies and help us with their potential as I find Venus as the cheapest pharma stock available.

Please share your recommendation on these.

Rahul Ramchandani said...

Arun ur view on Idea Cellular?... At Cmp its near its 52 week low... nearing technical support of 128. Is it a buy at Cmp?..

Anonymous said...

Hi arunthanks a lot for helping small investors like us, god bless you, regards,shailesh

Anonymous said...

Hi arun ji, pls share ur view on pondy oxide.

Arun Mukherjee said...

1)Krbl and genus both are good long term bets.

2)Govind rubber and sanghvi not that great companies.Always buy the leaders.

3)Asian granito looks a good bet at around 60 levels.For paid services you can mail me at arunsharemarket@gmail.com

4)I own a lot of TV today in my personal portfolio.I dont understand pharma business,so no comments on venus.Also quality companies would never quote cheap.Find out the negatives which you arent aware off.

5)Idea is a fine company but needs to deliver.Though should be a steady compounder.Pondy oxide is an interesting company.Read its crisil analysis to understand the company dynamics.

Urvish Raval said...

Dear sir..please share your view on welspun syntex from textile sector.

Anonymous said...

Dude. What's your take on EPC irrigation. Will budget help this sector?

Anonymous said...

Whats your view on MAYUR UNIQUOTER

Anonymous said...


What is the impact of high crude oil prices and 50% (expected, can be lower also ) rainfall on the share market and overall economy ??
Should we stop investing money in the markets now as we all have made money and stay aside for a while and look into the markets after a year and half ..
I stay in Pune (Maharashtra )and we are facing a serious fraught problem ..

Venkat Reddy said...

Sir,
Whats your view on KPR Mill and Blue star infotech.

Anonymous said...

hi Arun,

Whats ur view on firstsource solutions , Nalco and emco.

U r doing a great service. May god bless you.

Regards
Preeti

Arun Mukherjee said...

1)Textile sector is a sector where mostly money gets siphoned off.People hardly rely the sector.Welspun syntex not that exciting a company.You may look at raymond,orbit exports etc.

2)Agriculture remains the priority of the govt.We as a country are totally dependent on it.EPC with mahindra backing will do well.

3)Few days back I twitted about mayur and how I made 8 times multiplication with it.The company from 2007 been a 125 bagger probably.One of the finest managed companies.Remains a steady compounder.

4)Never bother about markets.Recession,drought,crude blah blah will come and go but if your company is managed well,it will make money for you irrespective of the market sentiment.I have never bothered about markets in the last 11 years and have done pretty well too.

5)Blue star is a good one.Can perform well.Not tracking kpr mill though a mate of mine very bullish on it.

6)Nalco is a commodity with a psu tag.So will avoid.Emco will do well in the near future.Dont quite understand IT but a lot of analysts are pretty bullish on firstsource.

Anonymous said...

sir what is your view on summit securities?

Anonymous said...

Arun, your view on fedder lloyd. Heavily invested. Pls.

Anonymous said...

Arun, are you tracking or positive on Piccadilly agro?

Anonymous said...

Sir, NILKAMAL a good buy? Do you track or recommend?

Anonymous said...

Arun , jhs a completed story or any turnaround possible. Can hold or book loss?

A tech saavy said...

Dear arun today r s hit 302 what will be ur advice of next target and time frame pls help with these details

Viswa said...

I purchased Gmdc @ 170 can we hold it for long term. What would be the target in one year

Anonymous said...

Hi, what's your stand on Godawary power?

Anonymous said...

Sir,we want to buy fedders lloyd for 2 years perspective.We think it is associated with defence,railway,wind power,infra which are hot fields in Modi sarkar.What is your opinion ?

Anonymous said...

Have you started copying from Moneylife recommendations, ha ha

Rahul Ramchandani said...

Vpji... Whats your view on Accelya Kale at Cmp.. I know its your past reco.. But whats your view at CMP. Also in its current qtr result there is a disclosure of one time 15cr income from a contract termination. Whats the impact of the same. Also dont you think there is still value in this at pe still less than 10

Arun Mukherjee said...

1)I dont track summit sec.So cant comment.Fedder lloyd is a good long term bet.I have commented about jhs 100 times,go through them and you would have your answer.

2)Piccadily has got lot of value in it.GMDC can be highly rerated if those disinvestment program starts again.RS software note is almost fully of its annual report as mentioned in the blog.

3)On the 1st place why did you buy concurrent?Listening to me?Something doubles and you loose everything in a counter,that cancels up.Just like many success stories,will have some flops too.Isnt it?Sell it when it relists.And I have made lot of money and will make more just by sleeping with stocks.Pumping/dumping are not my cup of tea.

4)Godavari has got lot of potential and value.Not tracking kale oflate,would have a look and get back to you.RS will probably hit higher levels.Best to play with trailing stop profit.Have recommended nilkamal at 95rs,couple of years back.

Anonymous said...

Hi Arun,

when Concurrent going to relist...if so min at what price, i got stuck badly in this stock... any chances of relisting in next 1 yr.

Thanks,
Ganesh

Anonymous said...

Hi Arun ji, I m hving Celestial Bio. Please suggest ur views.

Anonymous said...

Arun sir I am having kohinoor food please suggest your views

Anonymous said...

Hello Arunji, missed the RS rally. Can it still be bought for a long term perspective?

Anonymous said...

Hello Arunji, missed the RS rally. Can it still be bought for a long term perspective?

Anonymous said...

Hello Arunji, missed the RS rally. Can it still be bought for a long term perspective?

Anonymous said...

Hi Arun,
could you please share your thoughts on Vst tillers, bliss gvs Pharma, and lt foods

MOB HOME said...

Sir, how GOODYEAR looks to you?

Arun said...

Hi,
May I know your views on "Chaman Lal Setia Exports"?
It seems to be an extremely undervalued stock (P/E of 2.5) with very good fundamentals. The last 2 years have been exceptional in terms of financial performance.
THanks...

Anonymous said...

Hi Arun...Now Tv18 is controlled by reliance.what is ur view about this stock?

Anonymous said...

sir bought anil ltd after your advice at 120. should i hold for long time .seek your words .thanks in advance.

Anonymous said...

sir bought anil ltd after your advice at 120. should i hold for long time .seek your words .thanks in advance.

Anonymous said...

Hi Arun ji, I m getting good profit in freshtrop fruit, should I exit or wait?

Anonymous said...

Hi Arun,

Please share your view on Gujarat Borosil.Can it be a multibagger?

Anonymous said...

Hi Arun,

Please share your view on Sterlite Technology.Can it be bought at CMP ?

satishdevata said...

Hi Arun,
What is your view on Tata steel for 5 Years. I thought to shift from Tata steel to Ratnamani metals. Is it a good idea to buy at current price?

Karthik S said...

Hi Arun, What do you think about Radico Khaitan? Any major reasons why one should not invest in this scrip? Thanks for your view.

Anonymous said...

Hi Arun, Please give your view on Lakshmi machinary works (LMW) had a steady run up in the last 3-4 months and reached to its lifetime high today. What you suggest this could be hold or some fresh buying can be done at this level's also. Please guide.

Anonymous said...

Hi arun, plz give me ur view on jvl agro, arvind remedies, and poly medicure

Anonymous said...

Hi Arun..
Wht do you reckon of Reliance power?


Thanks.

Arun Mukherjee said...

1)Conc will relist but will take lot of time.

2)Celestial bio is under my radar.Some exciting developments about to happen in the counter.

3)Kohinor foods needs to show some commitment towards the shareholders.Company is a lethargic one conservatively managed.

4)Buy RS at dips.A great proxy to e-commerce with very attractive valuations.

5)VST tillers is an amazing counter, a safe long term compounder.I dont like the management of lt foods.Bliss gvs is a very sound company too with great products under its belt.

6)If bafna can achieve the turnover target mentioned by Mahaveer Bafna,co will be a big multibagger.

7)Never sell your winners.Keep holding symphony.Its been a 49 bagger for me and now and still counting.

8)There's no volumes in ravindra and hence scrip hardly trades.

9)Goodyear is a great company.Under good tyre times,this will rock more.

10)Chaman lal is one of the least discussed stock even after having decent fundamentals and very low PE.Let see when investment fraternity take notice of it.

11)Neither I like reliance nor Raghav bahl.Shift to tv today.

12)Keep holding anil.

13)Keep holding freshtrop with trailing stop profit.

14)Gujrat borosil has all the ingredients to become a multibagger but it moved too fast.Buy at lower levels.

15)Ya sterlite tec can be bought for long term perspective.

16)LMW is a monopoly with tremendous efficiency.A greatly managed company.A sound long term compounder.

17)Never liked Radico khaitan.Too lethargic management.

18)Tata STEEL should do well as steel cycle about to start in.Leaders will outperform.Ratnamani is a delight of a company but been a tripler in little time.

19)Poly medicure is one heck of a company.Amazing to say the least.Accumulate at declines.Jhunjhunwala vanaspasti or jvl agro should do well too.Dont follow arvind.

20)I dont like any reliance related counter.Indiabulls power or orient power looks good.Even techno electric will do well.

meenakshi nayak said...

Hello arunji....I bought Jain irrigation at 125 and sequent scientific at 370....can these stocks be multibagger from current levels...

Anonymous said...

Hi arun, Your view on Universal cable. Purchased at higher rate. Any turnaround possible in this counter?

Anonymous said...

what's your view on Kernex Micro?

Ashiq mehraj said...

Sir please your view upon Mirza international ltd is it a multibagger stock if I will hold for 1 to 2 year

Anonymous said...

Sir, your view about HPCL and Engginers india?

Anonymous said...

Hi Arun,

Any news regarding JHS, i have been averaging this stock.

Thanks,
Sanjay

sunilagarwal01 said...

Hi Arunji

Please share your valuable view for marksans pharma, charms industries ltd and istreet network

Thanks
Sunil Agarwal

Anonymous said...

wts ur view on multibase india.. parent cmpny is dow chemical...foreign promotor unique business...can it be an multibeggar

Anonymous said...

Hi Arun,
Can I buy RS Software at CMP of 288?

Anonymous said...

Hi Arun, Do u have any views on Dhanuka agritech, Visa steel, tech mahindra, lg balakrishnan? Should i buy them at this level?

Anonymous said...

Rss may consider bonus during its sheduled agm on 18 july, 2014.

Anonymous said...

On 18th agm the company may consider issue of bonus shares

Anonymous said...

Are you bullish on South Indian Bank at CMP for long term ?

Anonymous said...

Thanks Arun for your reply on Concurrent....lot of time means approx how many years, can you please let us know coz stuck very badly :(. As per your recomendation I planned it for my retirement.

Ganesh

Anonymous said...

Sir,
What's your view on fluidomat? It has been hovering around 130 level for last one month. Hold?

Thanks

Anonymous said...

sir your views on piramal ent please

Anonymous said...

Hi Arun,
My patience is getting tested with TV Today. Any idea why it is not moving??

Ramesh Raju said...

Sir
Can i buy super tannery.plz sujest

Anonymous said...

Hi Arun

First of all many thanks for your beautiful recommendations of RS Software. I wanted to know your views on Kitex, National Peroxide, AVT and Vikram Thermo

Regards
Ravi

Arun Mukherjee said...

1)Jain and sequent both lovely companies.Multibaggers or not but they will provide steady long term returns.

2)I dont quite track universal but its always better to stick to the leaders.Sterlite,finolex etc.

3)Kernex micro though got some potential but management seems bit lethargic.They need to show some consistency.

4)I have always preferred relaxo and liberty in place of mirza.However redtape is a good brand.Mirza can play a bit of catch up too.

5)Eng india will fetch a huge sum if divested.Regarding hpcl,Only govt knows what it will do with its omcs.

6)Nothing on jhs.

7)Relisting takes 2-5 years,requires a lot of work.For recent example octant got listed after 3 years.

8)Marksans remains a buy at dips.I wanted to acquire the whole company of charms industries once,for a reverse merger with a clients company.Not tracking it though now.No idea about istreet network.

9)I do track multibase,studying it too but its management is very reluctant to interact with anyone.Not able to get much details from them.

10)RS software is a class act.Ya can go for it at dips.

11)Dhanuka should double in the next 3 years.Dont track visa.LG bala is an awesome company with a great neat management.Should do well.Tech mahindra will be a 15-20% compounder.

12)Ya very bullish on south indian bank.Mohnish pabrai's entry is a great confidence booster.

13)Fluidomat is one of my favorite counters.I own a lot of it since 55 levels.

14)Piramal enterprise is an amazing bet.Already recommended to members at 500 bucks.A 20% compounder till Mr piramal remains alive.

15)Tv today didnt move in the last 11 years and you got bored in 2-3 months?It can further test patience for a long time.

16)Dont track super tannery,cant comment.Kitex,avt,nat peroxide are good long term buys.Vikram thermo got some health related issues I believe.

Viswa said...

I purchased pc jewellers at 140 can i hold it for 1 yr what could be the target

kamal koli said...

Sir I bought excel industries at 219 and it is down ..what can I do sir...hold or sell ..pls sir advice ..

Anonymous said...

Dear Arun,

What is your valuable view on Marico Kaya @287.00.

Please give your comment.

Regards
Jitendra

Anonymous said...

Arunbhai,

Your comment on Alphageo & jai Balaji Ind. @CMP.
Will it be good to buy for 1-2 years.

Thx.


Anonymous said...

Hi Arunji

Pl. give ur view on rohit ferro.
it is at 12

Anonymous said...

If you don't have any idea on It how you have commented on rss software your reply for trigyn you said no idea of it contra

Anonymous said...

request you to pen a comment on fresh purchase of asian tiles at current rate .thanks

Arun Mukherjee said...

1)Rs obviously is a buy.Got no idea on trigyn I meant.

2)Jai balaji now more of a 5 month story as coal block will dictate its fate.

3)Rohit ferro has been very inconsistent which market hates.Market gives premium valuations to consistent counters.

4)Marico kaya at 300crs is a good business but it never made profits in the last decade.Am having an eye on it.Since its a seperate entity now,management can focus and make it profitable.

5)PC jewellers is a good long term bet.Excel a buy around 150-155.

Anonymous said...

Hi arun, want to get cash out for emergency purpose Pls guide me. I need to sell either Patels airtemp or kirloskar oil. Sorry for inconvenience. Pls reply

Anonymous said...

sir, which is good bet to invest for long term, EPC vs Jain irrigation and rallis india.

thanks

Ashiq mehraj said...

Sir your view on orchid Chen and ADF food

Anonymous said...

bro , ur take on sagar cement ...???

Anonymous said...

Sir
any views on Subex System.
thanks

Anonymous said...

Pls give your valuable view on bajaj hind buying price is 31.

Anonymous said...

Sir your View on Alok Industries?

Anonymous said...

Hi Arun sir.
Plz give your expert opininion for sundaram multipaper. Can it be a huge multibagger from current level? I have bought a huge quantity....
Moreover what will be target for ptc finance now?

Anonymous said...

Sir, iam long on AMTEK AUTO, ARROW COATED, IFGL AND SHARON BIO.what is ur view?

madhav said...

Sir ur suggestion on gmdc, mm forgings, prism cement

Anonymous said...

any comments on transcorp international and contry club India?

Ashiq mehraj said...

Sir I find stock kaushalya infra and I think it will be a big multibagger stock my target about 50 in two years what is your view sir thanks

Anonymous said...

sir after this correctiom can we enter in ANIL &Bheema cement

Anonymous said...

Arun,

What's your view on Sintex, Jain Irrigation, Astra Microwave and Finolex Cables at CMP for long term (2-3 yrs? I know all these stocks had good run up during last 6 months. Are they good enough for fresh entry after recent correction in stock market?

Thanks for your help.

Anonymous said...

Arun,

Do you track Capital First? Is it a good bet for long term? How much its fundamental has changed after it came out from future group?

Anonymous said...

How is Deepak Fertilisers for long term? Is it a value buy or value trap?

Anonymous said...

dear sir, please give your opinion about Capital First Ltd.
Thanks in advance.

Arun Mukherjee said...

1)EPC,jain,rallis all can be bought at present levels.

2)I dont like orchid but like adf foods a lot.

3)I used to like sagar cements few years ago but orient cement seems a better bet at dips.

4)Subex in a mess.Would need to survive first.Till promoter buys from market,it would find hard to move big.

5)Dont like any commodity counters.But I do interact with Narendra murukumbi,the MD, often.A gem of a guy.

6)I prefer orbit exports to alok in the textile arena.

7)Sundaram multipaper is kinda an albatross.Moves with the wind.Dont feel would be a multibagger unless operator plays big.

8)Amtek auto is a doubler in 3 years.Ifgl is a great company.I may recommend it soon.Sharon bio suffers from negative cash flows though a fine company else.Arrow coated is all great,auditor qualification being the spoiler though.

9)Prism is also a good cement bet.MM Forgins prospects are bright.GMDC would move big once divested.

10)Grauer & weil promoter is known to me.Great businessman but selfish.Make out your answer.

11)Country club is an amazing story.But again managed by guys who would make themselves rich but not the shareholders.

12)KIDCO or kaushalya is a very tiny company with limited capabilities.What makes you feel it would be a multibagger?

13)Dont track bheema.Anil is a buy at dips.

14)Sintex,jain,astra,finolex all will make lot of money for their shareholders in the coming years.

15)I have recently bought Capital first.

16)Deepak seems a good value play at present levels.

Mohit Dudheria said...

what is your on ratnamani metal and sarda energy in near term ? currently facing loss in both stocks.
thank you !

LakshmiPathi Raju Poranki said...

Hi,

I would like to know your comments on PTC India Financial

Thanks in advance

LakshmiPathi Raju Poranki said...

Hi,

I would like to know your comments on PTC India Financial

Thanks in advance

Anonymous said...

Sir, please compare capital first Vs manappuram and muthoot..

expecting your comments

thank you.

Anonymous said...

Pls share your views on Coromandal International, Patel Airtemp, Ricoh India
Thanks again!!

Anonymous said...

Your view on Rossellini India ?

Anonymous said...

City union bank & Mayur uniquoter are better bets at current level

Sonu said...

what do you think about the following 11 small cap multibagger stocks.

These are small cap stocks.
I have created this list after looking thier last 10 quarters revenue and profit that is rising.
I have also checked their return on equity and debt.
I have also looked at their price graph.

1) Poly Medicure ltd.
2) Sharon Bio
3) Manjushree tecno
4) Alkyl amines
5) Wonderla holidays
6) Rs Software
7) Kesar Terminals
8) Natraj proteins
9) Chaman lal setia
10) Premco global
11) Intec Capital

Thanks

sunilagarwal01 said...

Hi Sir

As you had said in yr previous comment that once you plan to buy CHARMS ltd entire equity shares of company due to reverse merger with client company

Do you think it still buy at CMP in huge quantum say 1 or 2 percent of total equity for long term

Thanks
SA

Arun Mukherjee said...

1)Ratnamani is an amazing company which I recommended few months ago at 150 odd.Been a tripper since.Its been a 250 bagger in last 12 years probably.Sarda and ratnamani will do well in the medium to long term perspective.

2)PTC finance is a darling company which again was recommended at 11 bucks few months ago by yours truly.It will double in next 3 years.

3)Capital first 70% loan book from mortgage,say your property.So will you default?No as thats your home.Also real estate prices in India will only move higher so capital first will earn even more if its loan taker defaults.Muthoot and manappuram are gold loan companies which basically means you will only take the gold loan after you have exhausted all your earning means.Also the gold price volatility and RBI's cumbersome regulations takes one's night sleep.Hope you understood.Read about V Vaidyanathan to know what this guy is capable of.

4)Coro and patel airtemp are good bets.Ricoh would get delisted sometime soon.

5)Rossel is under my radar.Studying it,would get back to you soon.

6)CUB and mayur uni are both great long term bets.

7)Charms would only move if someone acquires it and makes his own company list it through a reverse merger.If you believe in that,can have it.Else no.

8)1) Poly Medicure ltd-Great company.I own it since last many years.

2) Sharon Bio-Good prospects,negative CF.

3) Manjushree tecno-Have recommended to paid clients at 80 odd.Great company.

4) Alkyl amines-Good company under a visionary leader.

5) Wonderla holidays-VGuard group,a high cash flow generating business.Always would quote at 30-40 PE.

6) Rs Software-One of my hot favorities since last 3 years.

7) Kesar Terminals-Good business,not sure about the management quality though.

8) Natraj proteins-Will look it.

9) Chaman lal setia-Low quality management.If they show some commitment,scrip can be a multibagger.

10) Premco global-Met their management.Management is hopeful of growing at a high rate.

11) Intec Capital-Good business but almost everything has been swallowed by Motilal oswal and its owner.Can be a multibagger.

Anonymous said...

my dear arun...
thank u so..... much for your reply about capital first...
God bless you..dear...

Anonymous said...

sir,
your view on NHPC..
holding last 3 years..

prabhu kumar said...
This comment has been removed by the author.
prabhu kumar said...
This comment has been removed by the author.
prabhu kumar said...

Hi arun.. i have IFGL bought @ 196 for qty 2000 and edelweiss bought at 66 for 4000 qty.. can you advise on this to hold these till march 2015..? whats your view on these

Sameer Gogri said...

Arun, are you adding to the stock after the recent clobbering its got?

Best,
Sam

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