Saturday, October 5, 2013

BRITANNIA INDUSTRIES / PERSISTENT SYSTEMS - UPDATE

Recently received lot of e-mails from readers  requesting to suggest current stand on two old recommendations , which hit their life time high  during this week - BRITANNIA INDUSTRIES and PERSISTENT SYSTEMS.


1) BRITANNIA INDUTSRIES LTD.





This stock recommended last year @ Rs.493 ,which recently recorded its life time high @ Rs 864 ( For old posting ,Click HERE ). Now  company is going through a transition phase from a low margin biscuit maker  to a high margin food company under the new leadership .Promoters are also taking more attention in these days to bring this company into forefront of their group businesses.Good monsoon is expected to keep  major raw material prices at reasonable level in next year.If the company can report similar performance which it reported in last two quarters ,share price may touch even four digit mark .Requesting to HOLD Britannia now and take a final decision post declaration of second quarter result.

2) PERSISTENT SYSTEMS LTD





This stock recommended @ Rs.430 which recorded its life time high yesterday @ Rs.677 .( For old posting ,Click HERE ). Considering its strong balance sheet ,good management ,operations in high potential areas ..etc making it one of the most promising software company from small / mid cap space.Recommending to HOLD the stock for long term.

31 comments :

  1. Sir, your views on Astra Microwave and Ashapura minechem, Why these stocks not performing well, any reason. Please let me know whether I cam accumlulate more at these levels.

    ReplyDelete
    Replies
    1. Many stocks from small caps and midcaps performed poorly in past few years. As you are aware FII's or Mutual Funds normally not interested in small market cap companies and retail investors are the only section taking interest in such stocks.Unfortunately Retail investors interest in stock market is at very lower level for the past few years.Frauds by managements,some anti investor rules like Periodic Call Auction by authorities and ultimately poor economic climate of our country ..etc may be the reasons.Small companies will be more vulnerable to overall economic growth .But we should not ignore the fact that many small companies including some stocks I recommended here like Ashapura ..etc reported excellent growth even in this tough period.Since retail investors are in a gloomy mood nobody is interested to buy and wait small caps for long term .But ,history of stock market showing ,when retail investor confidence come back to market, stock which shows resilience during tough times will become multibaggers ,provided there is no trade restrictions like PCA in between

      Delete
  2. Hi VP Sir,
    What is your view of GEODESIC LTD ?

    Thank you.
    Your ardent devotee

    ReplyDelete
  3. Hi Sir,

    I am following your blog for about a year. Please share your ideas on ion exchange, ksb pumps , BHEL and Timken india at CMP.

    Thanks,
    Sathish

    ReplyDelete
    Replies
    1. All these cos are related with the growth of Capital goods/infrastructure development related and these sectors are going through tough times due to govt's policy paralysis .So one need to wait till a new government formation to see some interest coming back.

      Delete
  4. Hi Sir..
    Pls share ur views abt C Mahendra Exports..

    ReplyDelete
  5. Dear sir,

    Kindly clarify about this news in the Hindu today about wockhardt:

    The Madras High Court has restrained pharma major Wockhardt Ltd., from manufacturing and selling ‘Dextyropropoxyphene’ (DPP) and the formulations containing it till the disposal of two writ petitions.

    Justice K.K. Sasidharan passed the interim order on petitions by the company and a distributor challenging a notification of May 23 this year of the Health and Family Welfare department suspending the manufacture for sale and distribution of the drug and the formulations containing it for human use.

    The company-manufactured ‘Dextyropropoxyphene Napsylate’ and it was sold under the brand names “Proxyvon” and “Spasmo-Proxyvon” which were widely used analgesic and antipyretic drug. They were used primarily for relief of high fever, headache, extremely acute pain that arose out of cancer and other similar oncological conditions or acute pain due to extreme orthopaedic conditions and complex fractures.

    The sale of “Spasmo-Proxyvon” alone fetched Rs. 168 crore in 2012-13 financial year. The turnover of ‘Proxyvon’ was around Rs. 100 crore per year. The deliberations of the meeting of the Drugs Technical Advisory Board in October 2011 resulted in the impugned notification.

    The manufacturer and the distributor sought an interim stay of all further proceedings pursuant to the May 2013 notification. The pharmaceutical company contended that the notification did not contain any valid reason to suspend the drug sale. Inputs like suggestions or representations from manufacturers’ association and other experts were not taken before suspending the drug.

    The Deputy Drugs Controller, Chennai, contended that DPP was withdrawn from the US market in September 2010 at the instance of the United States Food and Drugs Administration on the ground that the drug could cause serious toxicity to the heart even when used in therapeutic doses.

    The manufacture and sale of DPP in India was considered by an expert team which wanted to conduct further study in the matter. In the meantime, to stop further manufacture and sale of DPP and formulations containing it for human use, the impugned notification was issued.

    Mr. Justice Sasidharan said experts had taken a decision to suspend the drug for the time being till a close study was conducted regarding its adverse effect on human beings. The counter showed that the suspension was only a temporary measure pending final decision to be taken by the government after extensive study. Therefore, it was clear that the government was yet to take a decision to ban the drug permanently.

    The Judge also restrained the distributor from marketing the drugs. The other directions included that in view of the direction to take inventory of the drugs and to keep it separately no penal action should be taken on account of possession of the drug.

    If it was found that the manufacturer possessed the suspended drug or its preparations other than the quantity already disclosed, it was open to the Drugs Controller to seize the drug and take action. Mr. Justice Sasisdharan made it clear that the directions would be in force till the disposal of the writ petitions.

    ReplyDelete
  6. Some sentimental reaction is possible ,but in reality Company already withdrawn these products about 3 months back from market.

    ReplyDelete
  7. sir,
    can one can still buy Persistent systems?

    ReplyDelete
    Replies
    1. It is a good company and further chance for appreciation is there.

      Delete
  8. Sir,
    Any news about PCA? It is not helping to buy into small companies with good growth prospects for investor like me who can tolerate risk in small value stocks as my time horizon is normally 5-7 yrs??

    ReplyDelete
    Replies
    1. Generally investors are not showing any interest in such stocks.This may change in very long term.

      Delete
  9. Hi Sir,

    What are your views on CANFIN Homes?
    Do you see any impact of possible RE slowdown? Is it only PSU tag that is keeping its valuation low despite good performance and growth in branches and handsome dividend?
    Thanks for your guidance.
    Avid follower

    ReplyDelete
  10. Dear VP sir,

    What is Your view on orbit exports?

    Thanks

    ReplyDelete
  11. Hi VP ji,

    Could you share your views on PTC India Financial Services if you're tracking it?

    Thanks in advance,

    Vishesh

    ReplyDelete
  12. The 553cr claim made by british marine has been settled at just 22 cr by ashapuri minchem.is it true.? what is ur opinion about nitco. Rei agro sir pls give me advice

    ReplyDelete
    Replies
    1. Yes ,that's true.Company filed appeal against other three shipping cos saying that the claim demanded by them are highly exaggerated. Since company mutually settled one @ just Rs.22 Cr ,I think they can prove all similar other claims worth only an amount equal or around the settled amount.

      Delete
  13. Sarath RamakrishnanOctober 8, 2013 at 2:07 AM

    Hi VP,

    Stock price of Speciality Restaurants & Talwalkers Better Value Fitness seems to have bottomed out. Kindly share your views on both stocks on a long term investment perspective. Thanks

    ReplyDelete
    Replies
    1. Stocks are at attractive valuations ,but these sectors are spending related themes and may take some time to take off.

      Delete
  14. Sir, what's you views on below 2 companies, does it make sense to buy even at this levels?

    1. Polymedicure
    2. Balkrishna Industries

    Thanks,
    Mayur

    ReplyDelete
  15. Poly Medicure recommended in 2010 .Then it gave 2 times bonus and at CMP it already returned more than 400% .Still positive on this stock for long term.

    Not tracking Balkrishna Ind. ,Like Goodyear from tyre space which recommended in September @ Rs.300

    ReplyDelete
  16. Sir, what is your view on KPIT technologies?

    ReplyDelete
  17. VP,
    Any view on Sun Pharma advanced research company which is from Sun pharma group? The compay seems to have got few USFDA approvals.

    Do you see value for long term investors in the company at current price.

    thnx

    ReplyDelete
  18. Sir Can we buy Avanti Feeds at CMP for long term ?

    ReplyDelete
  19. Dear VPji,

    Does "Selan Exploration' qualify all the criteria to be included in core portfolio for long term?
    Debt free company with good fundamentals. What do you suggest? what price we can start accumulating? cmp is 277.

    Thanks,
    Shilpa

    ReplyDelete
  20. HelloVP Sir , Thanks for your commendable work .. Whats your view on Premier Ltd for a long term investment
    Thanks
    Suma Pune

    ReplyDelete
  21. Thank you for your analysis and I hope this is the very useful information for a fresher like me in stock market.

    ReplyDelete

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