Saturday, July 19, 2014

KOPRAN LTD- REPEAT


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My two Cents 

In the past 4 years ,through this blog I suggested more than 250 companies from small and midcap space.Since the number of IPO's are very small and due to  recessionary situation during this period ,number of quality companies eligible to suggest is limited now. Hence from now onwards , new stocks will be suggested only on first and third Saturday's ( only 2 stocks in a month). Updates  will be done on already recommended stocks as and when necessary. Received lot of mails in my new mail id  but replies may be delayed  to some per-occupation.

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In the past I  recommended many pharma stocks like Caplin Point Lab,SMS Pharma,Granules India,Biocon..etc. KOPRAN LTD itself is one one of my old recommendations @ Rs.27 (HERE) .Now this stock is trading around Rs.42 .Considering the bright prospects and increasing interest of management ,repeating this stock again.

Once this  Parijat Group company was among the largest manufacturer of Amoxycillin and share price was at par with today's biggies like Dr.Reddy's Lab ..etc . But due to some change in business environment including cheap Chinese import of Company's product , some mismanagement and their inability to cope  with changed business scenario ,this stock came down drastically from a price level of Rs.830 in 1994 to single digit in Rs.2008.After a long gap, now the management seems taking active steps to revive the company .From March 2013 to March 2014 ,promoters hiked their stake by 5 % ( The maximum permissible limit through creeping acquisition route in a Financial year). Company recently recruited lot of people to strengthen its marketing channels .One notable point is its receipt of approval from UKMHRA  for its Khapoli facility which produces Finished Dosages.This is one important trigger and company is expected to start gaining business from the next quarter of this Financial Year. Apart from Pharma , company planning to launch few FMCG products too ( Details available in Company Website HERE).

In financial side,Kopran reporting steady improvement in past few years .I hope this will accelerate going forward  once the export to UK and EU starts in near future.


                                            Click on the image for a better view

In addition to this ,Kopran is now taking efforts to concentrate in high margin segments like Oncology ..etc I hope ,company's new efforts will pay off and still there is room for substantial appreciation going forward.Suggesting this stocks for investors with enough patience which is currently trading around Rs.42 .Stock listed in both exchanges .



Disc: It is safe to assume that I have vested interest in all stocks I am suggesting .

98 comments :

  1. Thank you sir..... am very welcoming your decision...

    ReplyDelete
    Replies
    1. Sir
      eventhouh new to your blog i am very much impressed by your success rate of recommendations which is quite useful for novice investors lime me. I will you regularly and thanks for your service.

      Delete
  2. Hello sir, I needed your views on atul auto, can be a multibagger from current levels also, as it is expanding its production capasity , pleasereply thanks shailesh

    ReplyDelete
  3. Dear Sir,
    Many thanks for your recommendation. please let me know what would be the price expectation for one year.

    ReplyDelete
    Replies
    1. Atul auto already turned as a multi bagger for my old readers .Stock recommended @ Rs.71 and thereafter it gave 1:4 rights and 1:2 bonus and currently trading @ Rs.540 .

      At current price one can Hold

      Old Rec in below link

      http://value-picks.blogspot.in/2010/06/atul-auto-shining-in-crowd.html

      Delete
  4. Every saturday, it has become a habit for most of your followers to check your blog page early in the morning without fail. We will be missing you value pick ji... We know how difficult it is to collect information before every recommendation. You don't have to give new recommendations every weekend. But try to keep posting updates every week. Thank you. May god bless you.

    ReplyDelete
  5. thanks a lot sir. you are of immense help for small investors like us .

    ReplyDelete
  6. Sir, I have Balmer Lawrie & Co at avg price of 340. I held for last 3 years.
    Current year dividend is Rs.18/share and every year it falls substantially once is goes ex-dividend. Post the LTC scam and govt officials asked to purchase tickets directly instead of thru BL, their revenue is also unpredictable. Now, at current levels of 578, is it wise to sell them instead of waiting for dividends?

    ReplyDelete
  7. Sir, Your View on Banco india and GMM Pfaudler...

    ReplyDelete
  8. Dear vp,can it be bought at cmp as a fresh investment?

    ReplyDelete
    Replies
    1. Either I could not understand your question or you could n't understand my posting

      Delete
    2. Hahahahahaha!!!!

      Delete
  9. I am really disappointed after this post sir.. Atleast 3 stock recommendations will be good.. But its your thought and your wish as you are the owner and we r all just readers... Thanks Prabu

    ReplyDelete
    Replies
    1. Rather I would prefer to have only one recommendations on monthly basis. Its nearly impossible to invest in each 4 recommendations for small investors. N for,traders even 10 picks a month hardly matters..
      Mayur

      Delete
    2. It will happen in future otherwise will affect quality . I think quality is important than numbers

      Delete
    3. YES SIR VERY TRUE 2-3 quality recommendations per month will be great
      thank you Sir

      Delete
    4. VP is absolutely right. One pick in month is a herculean task for even any leading brokerage house with so many analysts. VP's genius is proven here. But more than VP's incontrovertible genius , common investors can only invest in limited no of picks. VP's decision is therefore welcome! Warm regards--Follower

      Delete
  10. Dear sir,
    What's your view on Force motors? Is it a Buy at cmp? Pl suggest me sir.
    Thanks in advance.

    ReplyDelete
    Replies
    1. Do you people just like that raise a query? Don't u hav d habit of reading through all comments/queries raised/answered while u read through the blog? I'm completely upset with this query.. This was answered hell lot of time .. VP sir pls do not answer this question.. Let them Chk out ur blog n get to know!

      Delete
  11. Dear VP sir

    Thanks for your latest pick. Purely from a value investing perspective requesting your views on Vardhaman textiles and technocraft industries. Thanks
    Shankar

    ReplyDelete
  12. Dear VP, Your view on Kwality ( Kality diary) at CMP of 51 for long term investment.
    Thanks and regards ,
    Avinash

    ReplyDelete
    Replies
    1. No idea about its promoter quality

      Delete
    2. Kwality has been recommended as multi bagger by some traders to benefit themselves when it was @ 58.

      After researching myself its not the stock for long term.
      The repeated UC happening because of traders creating hype and fooling small investors

      My suggestion better be out of it.

      Delete
  13. AGL has also started advertising in television. I dont know if anyone noticed it but it was advertising during the FIFA World cup matches. What does this indicate?

    ReplyDelete
    Replies
    1. What would you do if you own AGL? VP recommended this a month back and from your curiosity/anxiety it seems that you are expecting 10 times return in a month. If VP has any advice or suggestion he will tell.

      Even still you don't understand : First a company establish itself generate money and this money is used in expansion/marketing.

      Delete
  14. I am interested to about your "recessionary situation" comment at top. Are you talking about short period or you are seeing recession coming in Global or Indian market. Please reply.


    Thanks,
    Satya

    ReplyDelete
    Replies
    1. What I mean is - recessionary situation of past few years makes the BL of many cos in a difficult situation ,in some cases unable to come back to normalcy

      Delete
  15. REQUEST to all Followr new and old.
    PLEASE READ THE DISCLAIMER AT THE TOP
    Second:
    This blog is for investor ONLY AND NOT. for TRADERS/Speculators.
    VP Sir has time and again told in humble tone , please don't ask for Price Target , time frame investment , why not hitting UC , how much you are holding . Every stock VP Sir recommends ,he mentioned at the bottom
    Disc: here he writes the disclosure .
    So we shall better give him more time to concentrate on stock rather then pushing him too far.
    This is my Humble request to all.

    ReplyDelete
  16. kindly share your view regarding dlink india

    ReplyDelete
  17. Respect and appreciate your decision

    ReplyDelete
  18. Thanks, VP. Actually, I could nevrr thank you enough for all the market wisdom you spread. Keep well and may the powets that be, give you more power in all you do.

    ReplyDelete
  19. VP SIR do you think bajaj finserve is a good company to buy and keep it in portfolio
    thanks and best regards,
    nadgauda

    ReplyDelete
    Replies
    1. Yes,suitable for long term passive investors

      Delete
  20. Dear VP sir
    Right decision it is more help to small in esters like me sir I wish to know your view on Podder Pigments Pl.
    Venkatesh

    ReplyDelete
  21. No response on the Auditor's Comments on Kopra's investment of 56Cr in Kopra Research.

    ReplyDelete
    Replies
    1. Dear Murthy

      To a great extent ,success in stock market depends on taking calculated risk ,but the risk reward ratio should be positive. I think this is such an opportunity.

      Delete
  22. Sir respect the need of your own & family time , as you rightly mentioned quality rather than quantity matters , small investors have lost a lot in the past & your recommendations will heal those wounds . I am newl to your blog & liked the previous views not only on stocks , but in general . Thanks to your family & you for the time devoted . -- Ravindra .

    ReplyDelete
  23. Sir, any views for dhanuka, lg balakrishnan bros, amtek auto?

    ReplyDelete
    Replies
    1. Hold Dhanuka and LGB

      Not tracking Amtek

      Delete
  24. Hello, did you get a chance to look at hov service. Or any possibility of an update in near future. Would help if you can share your thought by giving a quick glance at the valuations. Many thanks.

    ReplyDelete
    Replies
    1. Market is speculating on the stake sale of its subsidiary . No idea about the promoters and hence I am not in a position to assess what they will do with the money even if the deal materialize . Hence keeping fingers crossed

      Delete
    2. however I think the investors i.e Citibank and PE funds should give comfort of money usage.

      Delete
    3. Citibank and other investors have control on its subsidiary as they are investors in that subsidiary .If money came to HOV on sale how they can control HOV mangement's decision to utilise it

      Delete
    4. Thank you Sir...Appreciate you taking time out for the query.

      Delete
    5. Indeed quite amazing so patiently answering most. This shows ur luv n passion towards work. Which should also be learned.

      Delete
  25. Dear VPJI
    most of the ppl are saddened about reduction in no if stock suggestion per month. but i guess its a good move. rather you should given 1 high quality stock in 1-2 month so that we can accumulate the money and invest.
    regards
    vikky

    ReplyDelete
  26. This comment has been removed by the author.

    ReplyDelete
    Replies
    1. Govt policies , situation of economy..etc are changing . can't give an answer in general.One should check it in case to case basis.

      Delete
  27. Hi sir,
    Is there any possibilities in changing circuit limits for United Drilling Tools and Galaxy Entertainment.

    ReplyDelete
    Replies
    1. Why one need to bother about it.If a company deserves better valuation it will reach there.

      Delete
  28. Eventhough you are too polite to answer repeated qns n giving links to the investors who are all new to this wonderful website, ur very few of readers aren't maintaining the code of conduct when replying. Actually a response isn't expected from them, n are asking to u only. U may not interested to answer it too. That's ur wish. Y they answering unnecessarily. Pl make note of it VPji.

    ReplyDelete
    Replies
    1. readers r answering bcoz unnecessary & repeated questions r a waste of time for them as well..
      so everyone shud little bother abt whatever they post here..

      Delete
  29. Dear vp sir could you pls provide your views on madhucon projects,also sir what is the difference between standalone results and consolidated results,i am just 20 years and entered stock markets recently,i have been a trader till now and have realised that in the long run investors always win,i plan to start investing from now onwards with no time frame, buy the company,trust its business and hold till its performing well,keep reviewing it periodically and i have read your blog and your way how you find stocks,just brilliant,one prime example where i bought camlin fine science at 30 and sold at 33 within a week for 10% profits,just to see it touch 105-110 in 3 months,i hope you post this msg, want to say all your blog readers that hold a co till its growth story is intact,never keep targets and time frame, you are my role model and i will definitely follow your foot steps :)))

    ReplyDelete
    Replies
    1. Bit worries about the performance of its subsidiaries .Not sure about the gain from upcoming power projects. Consolidated numbers including the result of subsidiaries.

      Delete
  30. Sir can you suggest something on Tata Coffee for long term perspective.

    ReplyDelete
  31. Sir,
    Could you please share your views on Gati, Vinyl Chemicals, AVT naturals for 1-2 years prospective ?

    ReplyDelete
    Replies
    1. Nothing to comment about time bounded investment in stock market .If you need that money after some specific time ,it is always better to avoid investing in stocks with such money.

      Delete
  32. Dear Mr VP, what are your views on Photoquip?

    ReplyDelete
    Replies
    1. I doubt about the scalability of their business

      Delete
  33. Sir your views on freshtrop

    ReplyDelete
  34. Sir your humbleness and politeness is the success of blog, the confidence which an investor gets before his investment is remarkable, Of course results too. New people joining the blog will soon learn a lot from VP. Sir I appreciate your efforts.

    ReplyDelete
  35. Sir,any comment on arrow coated?thanks.

    ReplyDelete
    Replies
    1. Not special comment at this point - Hold.

      Delete
  36. Dear VP Sir,

    Could you please share your views on Grauer and Weil (India)?

    ReplyDelete
  37. it was imposible to buy throughout the day...near about 2L buy orders but no sell orders,open at 49...lakhs of people following you vp sir..

    ReplyDelete
    Replies
    1. It was not in circuit throughout the day . Opened in circuit ,came down Rs.2.50 and again locked in circuit

      Delete
  38. Bought small quantity in igsec heavy eng as the stock has shown continuous growth from last 6 years .. Any views .. No sellers at lower levels... So bought 30% of the investment qty

    ReplyDelete
  39. Public holding in kopran is very high and promoter holding is around 35% ... And contingents liability of 52crs for a market cap of 160cr ..

    ReplyDelete
    Replies
    1. No meaning in expecting Sun pharma or Cadila quality balance sheet for rs.180 Cr market cap

      Delete
  40. dear v.p. g
    plz share ur view abt ester ind cmp 21 and redinton cmp 99. waiting for ur reply thank u.

    ReplyDelete
  41. Sir any views on Rohit Ferro-Tech @ 13/= ?

    ReplyDelete
  42. Dear VP Sir,

    Thanks for all your valuable suggestions/service.

    Can you please tell us your suggestion on Gujarat Apollo industries & Genera Agri as a long term investment.

    Thanks in advance.

    Thanks & Regards
    Rajkumar

    ReplyDelete
    Replies
    1. Not tracking any companies mentioned in above three queries

      Delete
  43. Hi Vp,

    I am holding Multibase Ltd with 50% profit. Shall I hold it for Long term? Pls advice.

    ReplyDelete
    Replies
    1. I hope you bought it after own home work . Whether to exit or not depends on your risk profile.

      Delete
  44. can you give your opinion on trident ltd

    ReplyDelete
  45. Sir,How it this company - indian hume pipe in your view?

    ReplyDelete
  46. hello SIR - you are doing wonderful job - God bless you with lots of success - Sir can you pls advise your website name or are you on any social platform like Facebook or whats up or twitter? pls tell me SIR.

    ReplyDelete
  47. Sir i had 1050 shares of shasun pharma @ 148 now cmp 170 i want to hold it for 3 months so Sir i need your suggestion on shasun.

    ReplyDelete
    Replies
    1. In short term stock price depends more on market sentiment that a true reflection of business fundamentals. I am unable to predict ir hence nothing to comment about short term.

      Delete
  48. Sir, Please advice on south Indian bank and trident ltd (abhishek industries)

    Regards,
    Vinay

    ReplyDelete
  49. Dear Sir. I have certain queries on Kopran :

    1) Do you like the fact that the management has ventured into the FMCG-Toothpaste space, where stalwarts like Hind Lever are struggling. Doesnt it bother you that it is an unrelated diversification? When the management is increasing their stake as their is increased visibility on the core business, with valuations on their side, does it really need to venture into the oral toothcare segment?

    2) Also, on checking the company website, i am amazed to learn that they have launched their toothpaste - 'Sparkle' worth Rs 79/- which they are offering with a DVD worth Rs 399/- free (due to their tie-up with Walt Disney). Isnt it worrisome?

    Also, your conviction on the stock is on the core business or on the new segment?

    ReplyDelete
    Replies
    1. 1) It depends son the quality of product , managements efficiency ..etc . Though it is not very easy it not impossible too .

      Few years back there were only few major players in 3 wheeler space like Bajaj or Ape and nobody expect a small company like Atul Auto can capture decent market share by competing with this biggies . But now ?

      Are you serious about second question or just kidding. Do you believing the actual cost of CD available for company is equal to its MRP as published by company ?

      Delete
  50. Sir, I am Khalid here from Mumbai, I am following your blog since last two months and am really happy to see the kind of in depth knowledge you provide along with your value picks. I am thankful to you for helping new stock market entrants like me to learn pure value investing.

    ReplyDelete
  51. WHR I CAN VIEW UR STOCK TIPS

    ReplyDelete

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