Saturday, February 21, 2015

IL&FS ENGINEERING AND CONSTRUCTION COMPANY LTD. - A RISING STAR IN INDIAN INFRASTURUCTURE SECTOR ..


 


 

Infrastructure is one sector where majority of investors are bullish, especially after the formation of new government in Centre . It is true that,  in a developing country like India ,  growth potential of companies operating in this sector is immense. But when we look through an investor’s point of view , potential of sector alone is not enough to make an easy choice.  
Strength of  balance sheet is equally important .  During last few years  , projects of many companies stuck at various stages not only due to economic recession but also on account of slowness in  decision making process of government authorities. Because of such delays , funds of even large companies operating in this sector stuck at different projects and they forced to borrow more and more to keep afloat and working capital requirements. Such a situation deteriorated the health of almost all companies - except few biggies- and make a choice from small caps space more difficult. 

                                        In this situation ,While selecting an infrastructure developer for investment , the main points we need to pay maximum attention are  their order book position , ability for execution and the strength of  promoters/investors financial muscle . Based on all these parameters , I have only one choice  from the universe of small caps space – IL&FS Engineering and Construction .This is the same infamous Maytas Infra , the company  owned by the same promoters of Satyam Computer . After the Satyam fiasco , Satyam  went into the hands of Mahindra and this one goes to Infrastructure Leasing & Financial Services Limited (IL&FS). Later this company renamed as IL&FS ENGINEERING AND CONSTRUCTION COMPANY LTD.The promoters , IL&FS is jointly owned by Housing Development Finance Corporation Limited (HDFC) ,Central Bank of India (CBI), Unit Trust of India (UTI),  State Bank of India, Life Insurance Corporation of India, ORIX Corporation - Japan and Abu Dhabi Investment Authority etc... .Pedigree of these firms and their ability to raise funds (if necessary) is  known to all of us  . I believe,  promoters of this company is in a better position in case of financial muscle in comparison with the other private promoters of similar infrastructure companies.On the execution side also IL&FS is well experienced and having capability to handle large projects from concept to execution stage.

The Real Attraction

The major factor distinguishing this company from other infrastructure developers  is the the interest of world’s largest construction firm - Saudi Binladin Group ( SBG)  – in it. I am not sure , how many of you are aware about the sheer size of  Saudi Binladin Group. Its turnover is almost  three times of the turnover of our construction conglomerate Larsen and Toubro. ( For more information about SBG , click HERE ) . After the take over of IL&FS Engineering by IL&FS from the old promoters( Raju Family) , Saudi Binladin Group ‘s  investment arm SBG Projects Investments Ltd took 20 % stake in this company . Later raised their stake to the current level of 27.89. Now in a recent development , they are  again going to subscribe additional shares to take their stake to 32.88 % . Some shares are also allotting  to IL&FS ,and post allotment both  IL&FS and SBG will hold equal stake in this company . ( Currently IL&FS is the largest share holder with 29.76 % stake and two directors representing SBG in IL&FS board)). SBG ‘s increasing interest in this company is an extremely positive point . The amount raising through this preferential issue is mainly meant for the redemption of 5300000 redeemable preference shares due for redemption on 25 March 2015 ( extended from September 2014). Both of these partners taking their interest beyond India and formed a subsidiary in the name of Maytas Infra Saudi Arabia ( MISA) last  year( 55 % stake held by IL&FS Engg and remaining with SBG)  and now they are  getting new orders from abroad too. 
 About Order Book Position and Financial Numbers
 Among the listed companies from  infrastructure space ,IL &FS Engineering is the one  received large number of orders in recent times . Its current order book position is close to 10000 Cr ( Ten Thousand Crore)  , which is more than  three times of company's last year turnover and it giving enough visibility for next few years .( Some Details HERE)  .We must realize that these orders are secured by the company even when the entire infrastructure sector is going through tough times. In addition to this , Saudi Bin Ladin Group’s influence and reputation in Middle East countries also helping company's subsidiary Maytas Infra Saudi Arabia ( MISA) to secure more orders in recent times .In latest December quarter Company reported a turnover of Rs.676 Cr ( Last year same period Rs.466 Cr) and a net profit of Rs.76 Cr (Last year same period Rs.58 Cr loss) . - Link to latest result HERE-  .But out of this Rs.76 Cr NP , an amount of Rs.53 Cr ( Rs.16 Cr) is one time income . After deducting this amount , still company turned to profit from loss .I am not claiming this company will dramatically turn into huge profit within next few quarters but I feel , with the strong and increasing support of word’s largest construction firm and well experienced and reputed Indian promoters , IL & FS Engineering to  emerge as a star in Indian Infrastructure space within few years is a good possibility. 
 Conclusion

IL&FS’s  familiarity  and project execution experience in India and Saudi Bin Ladin group’s financial muscle ,technical perfection and ability to handle projects with large size makes this company as the first preference from small cap infra space. On one side , this company’s total debt is less than Rs.2000 Cr where some of well known listed  infra companies holding a debt of more than 25000 Cr in their balance sheet. On the other side , ability of  promoters of other companies to raise further funds are very pathetic compared with this company which is backed by India’s major banks and world’s largest construction firm.  Company extended an amount of Rs.323 Cr as inter corporate deposit to Satyam Computer during the time of old promoters( Raju Family) . Fate of this amount  is still pending and the new promoters( IL&FS)  expecting fair chance to recover the same . As a note to December quarter result , company  indicated that this amount shown as “ Amounts Pending Investigation Suspense Account “ in the books of Tech Mahindra . If IL&FS can recover this amount plus interest  , it will be an additional relief for the company .For the nine months ended December ,company paid an amount of Rs.198 Cr as interest alone . I believe , in future , management will take prompt action to reduce this debt burden either through a rights issue or further preferential issue . Such an issue may expand its equity but I feel it can  be justified by the cost saving as reduction in interest payment.
Recent Price Movement and my opinion.

Ever since this company reported its turnaround performance in December quarter , its stock price is in an upswing  and  appreciated decently in recent times  .Because of this reason , low risk investors may wait and test your luck for a correction ( Though I am not sure whether any meaningful correction is possible in it at this moment,  especially at a time some positive announcements are expected in upcoming budget by next week and company planning to redeem part of OCCRPS in near future ) . Others can consider this stock which is still available a rate almost   50 % discount to the first open offer price of Saudi Bin Ladin Group and IL&FS  which happened at a price of Rs.195.72 . Investing in potential turnaround companies and make multi bagger returns is an art of testing patience too . Those who are in a hurry and need updates on a weekly basis can also skip this stock.I believe risk reward ratio is still favorable  for genuine long term investors .This is my preferred pick from Infrastructure space due to more than one reasons. Stock listed in both exchanges and trading around Rs.98
 Link to the website of Company HERE  
Link to the website of Saudi bin Ladin Group HERE
 Disc: Holding shares in IL&FS  Engg
 

220 comments :

  1. Sir lanco ind is still available at very low pe one can enter at this price

    ReplyDelete
  2. Lanco Ind currently trading about 100 % higher from suggested price

    ReplyDelete
  3. Dear value pick,
    Can u plz share view on Crompton after de merger division n also panacea bio thanks lot.

    ReplyDelete
    Replies
    1. Both stocks are already suggested and positive for long term

      Delete
  4. Gm sir,
    Sir can you give ur opinion on
    1 ashok alco chem
    2 kpr mills

    Which one should be preferred if any?

    ReplyDelete
  5. Replies
    1. positive on company and potential of its business,one can consider in corrections

      Delete
  6. Sir,
    Your views on odyssey technologies Ltd?
    Regards,
    Siddarth

    ReplyDelete
  7. Hi VP,

    Please if you could tell us if there is any change in views for ASIAN GRANITO post results? The stock has been falling continously since then. I believe a single entity is moving out of the stock..Please advise if I can buy at these levels?

    ReplyDelete
    Replies
    1. As per my understanding, There is nothing specifically negative for this company but the entire construction sector is still not out of woods

      Delete
    2. If you have patience to wait still sector revival, enter in an SIP route

      Delete
  8. Sir view HCC on these time, consistant performance of QoQ

    ReplyDelete
  9. Dear VP sir,
    I am new a investor. Pls suggest me some high conviction stocks at current market price that can give me a great return within 1-3 years.....
    I want to invest 2Lk......

    ReplyDelete
    Replies
    1. Not providing any stock recommendation services on personalised basis. My views are commonly sharing through this blog. Study the companies and take own call based on your conviction. Borrowed conviction will not bring anything to anyone.

      Delete
  10. Dear sir any views on Infinite computer

    ReplyDelete
  11. Thanks for the pick. But with in less than a month it is surged to almost 40% is it good to enter at this time or else can we wait for any correction.

    ReplyDelete
    Replies
    1. I think you read only the heading of posting , otherwise this doubt may not arise. Answer is already there

      Delete
  12. Hello Sir, What is your take on Sarup Industries?

    ReplyDelete
  13. Sir your view on spicejet,

    Thanks and regards,
    Uday

    ReplyDelete
  14. Sir what is your recommendation on Skipper

    ReplyDelete
  15. Sir Whats your view on Manali Petrochemicals?

    ReplyDelete
  16. Sir, what your view on waterbase?

    ReplyDelete
  17. Sir, Your views on Lincoln pharmacy as management is confident to going forward as they are increasing stake through prefrencial share allotment to promoters Also stock is trading very cheaper valuation compared to its peers .Sir; I needs your valuable advice I am holding stock from before Q3 at price of 105.

    ReplyDelete
    Replies
    1. It is not a stock for average risk takers

      Delete
  18. Sir, in the one time income of 53 cr, what is 16 cr you have mentioned in brackets.

    ReplyDelete
    Replies
    1. Last year same period there was an other income of of Rs.16 Cr

      Delete
  19. Sir your view on KSE

    ReplyDelete
  20. Dear sir please share your view on titagarh wagons limited

    ReplyDelete
  21. Whats ur view on one of your old recommendation Advanta in which promoter are continuosly buying from open market , it has surged quite a lot from your recommended price but due to recent activity do you think one can still enter at CMP... Thanks for your wonderful work... :)

    ReplyDelete
    Replies
    1. Advanta recommended around Rs.380 when its FV was Rs.10. Later they splitted FV from Rs.10 to Rs.2 and issued shares in 5:1 ratio .Now it is trading around Rs.380 range which is afive fold increase from recommended level. One can still HOLD it.

      Delete
  22. Sir please share your on titagarh wagons limited

    ReplyDelete
  23. Sir, any view on hbl power, rssoft..pls..

    ReplyDelete
    Replies
    1. HBL is a decent company , not tracking RS Software

      Delete
  24. There is no doubt about your ability but infra activities in saudi arabia is declining due to drop in oil prices. THANKS SIR

    ReplyDelete
  25. Hi VP sir,
    Whats your view on Capri Global capital ltd. It is in NBFC sector. The company is into wholesale/corporate lending,business loans etc.
    Company is debt free and with a good promoter holding. Also stock is trading at 177 with EPS of 26.

    ReplyDelete
    Replies
    1. I already explained my stand on this company . I don't like to recommend any stock to my readers if the company involved in any scam or something like that in the past under the same management . This company's old name was Money Matters Financial Services. Even though they changed their name to hide the past , can we forget it so easily ? . Whether price will move up or not is another matter but frankly I don't like to invest in such companies only for making money . You can go through the following links for more info :


      http://www.moneycontrol.com/news/cnbc-tv18-comments/loan-scam-who-is-money-matters_501465.html


      https://myeconomist.wordpress.com/rs-43453-crore-loan-racket-for-2g-scam/

      Delete
  26. hi sir

    any updates on capital first please

    ReplyDelete
    Replies
    1. Already commented post result to HOLD

      Delete
  27. Thanks for your recommendation. I will wait for correction and enter.

    ReplyDelete
  28. Dear vpji,
    After completion of coal block auction is it possible that we see revival in construction activities related to mining and power plants? Besides sunil hitech which companies can benefit from it .is mcnally one of them. I am asking about mcnally as recently rakesh zunzunwala has increased his stack in it.i hope you will answer the question

    ReplyDelete
    Replies
    1. Not tracking Mcnally Bharat

      I like the "OLD" Jhunjunwala not the new ;)

      Delete
    2. Sir, did u mean to say his old style of investment ? and Why not the new ?

      Delete
  29. Sir, Pls share ur views on himatsinga siede, sharon bio,carrer point

    ReplyDelete
  30. it has moved from 58 to 98 within a week just before your reco.
    Some operators can read your mind sir :-)

    ReplyDelete
    Replies
    1. It was @ Rs.58 before its December quarter result and moved after declaration of turn around result . Two situations are entirely different. If we are saying - stock price should not move based on their working result - on what basis we should invest in stocks ?

      For me , Whether a stock is worth at current rate based on its future potential is more important that what was its price in the past.

      Delete
  31. Thanks for your recommendation and detailed report Sir. I am a new learner, Can you please explain briefly OCCRPS. i as understand, company can issue redeemable shares for funds. and how it is different form pledging promoters shares?. In this case, company issuing the shares to open market ? and how many shares are they going to issue?. The following link tells they have already issued in November 2014
    http://www.moneycontrol.com/news/buzzing-stocks/ilfs-engineering-soars-18fund-raising-plan_1232765.html

    ReplyDelete
    Replies
    1. Frankly speaking I could not understand what you intended to say . Only because you mentioned as 'a new investor ' , replying for this . First of all , it is very easy to get details of most of the financial terms in the web itself ( Sites like investopedia ..etc) and you can refer the same without waiting for my reply . Using your common sense , then you can understand what is the difference between pledge and Redeemable Preference shares.


      Secondly I never mentioned anywhere that the company is now going to issue OCCRPS but mentioned they are planning to allot shares on preferential basis to promoters itself to redeem OCCRPS . You have provided a link to a news item appeared in money control about 3 months back . This news saying IL&FS planning to raise funds to redeem the said OCCRPS . But here you interpreted the same news as " They have ALREADY' issued" . Do you think both situation and their impact is same ?

      So when reading anything related with financial world and business , you should give more concentration and try try to understand clearly what is written there .Here each word is money and small misinterpretation may change the entire game. Here in this case , you didn't even took the pain to counter check whether the issue already happened or not by checking at least the concerned announcement part in exchange website.

      Investing in stocks and making money out of it is not similar to gambling as majority of people think , but it need lot of pain and effort . So , try to understand everything in right sense . Don't satisfied with informations available in the surface but try to dig deep and find something extra , then only you can succeed here .

      My to cents to a " new learner"

      Delete
  32. Sir,
    Motilal Oswal in its recent Wealth Creation report has suggested 7 stocks for 100 times appreciation from current market price. DCB is one of their stocks. Sir, Do you see it is possible for DCB to to reach Rs. 10,000 per share in future?

    ReplyDelete
  33. Lot of non serious messages received from 'Anonymous' in past few days . Earlier , I clearly mentioned that such messages from 'Anonymous' will not be entertained . Hence not replied to the messages posted by 'Anonymous'

    ReplyDelete
    Replies
    1. Sir, I know ur schedule is busy and you have to answer lot of questions. And recently I sent u some queries regarding ur previous investments and even I wanted ur some advice posted it thru my gmail a/c and not as anonymous.

      Delete
  34. Sir please let me know your views on INSILCO

    ReplyDelete
  35. Sir
    Since promoters are planning to issue preferential shares to themself, will the share price will get diluted? Is it better to wait to buy after the said preferential share issue?

    ReplyDelete
  36. Hi Valuepick, What is your view on Makers Lab, its one of the safest and cheapest stock in small cap available, market cap of 18 crore for sales of 64 crore, 3 qtrs of FY 15 earning already 4 times of full FY 14 earnings.They invest 0.08 p.c. of IPCA lab which itself is worth 7 crores. Also, the same Marquee promoter group of IPCA lab , hardly 20 lac shares worth 7-8 crores available in the market, there is absolutely no reason for stock to ever go down ... Do you recommend this stock at current prices especially for low-risk takers.

    ReplyDelete
    Replies
    1. It is an already suggested company years back . One major issue is - scale up of business is very slow.

      Delete
  37. sir,
    Whats your view on India Nippon Electricals?INEL

    ReplyDelete
    Replies
    1. India Nippon is a decent company . It stock price also appreciated substantially in recent times , hence some consolidation is a possibility before next move.

      Delete
  38. sir.

    LLOYD ELECTRIC is trading at very very cheap valuations compared to its competitors.
    Look at the following figures.

    Company Name PE

    Whirlpool 70.81
    Symphony 78
    Hitachi Home 390
    Blue Star 38
    IFB Industries 94.22
    Lloyd Electric 6.16

    what is your opinion sir, whether lloyd electric also will get rerated may not be those cray numbers as other companies at atleat a PE of 15 to 20 ?

    promoters are raising stake, brand builing is happening through advertisng (lloyd is world cup sponser). sale through flipkart and snapdeal.

    FII are buying stake, recently in jan 2015 orange mauritius bought 6% at Rs138 .
    sales increasing, foriegn subsideries also dooing good bussiness.

    will it get better valuations in future?

    Is it a good bet?

    Thanks

    ReplyDelete
    Replies
    1. Value and image of brand is an important factor affecting stock price . No meaning in calculating P/E based on last FY EPS when 9 months already gone in this FY . On that basis all of your above figures have no relevance. You calculated the P/E of whirlpool as 70.81 based on last year EPS of Rs.9.7 where it already reported an EPS of Rs.12.25 in 9 months of current FY. More than that , if there is no manipulation is going on , higher P/E always happening when investors expect better business growth and earnings going forward.

      Delete
  39. Respected vp sir
    Whats ur view on bharat electronics ltd for long term I have 20 shares at 3920 cmp

    ReplyDelete
  40. my dear vp sir
    thanx for the excellent company sir i m already invested in the company @ 62 rs now i m more confident on the company after ur recomendation . sir i wants u to ask about (gujarat borosil for 2 to 3 years or more) and (lypsa gems for shortterm) thanks in advance......

    ReplyDelete
    Replies
    1. Guj Borisil facing some temporary issues , let us hope the same will be resolved soon

      Not tracking Lypsa Gems

      Delete
  41. Hello sir,

    Can u tell ur view in LML?
    Is there any possibility of turnaound?

    ReplyDelete
  42. Thanks for the reco. Will dig into it a bit more. Any thoughts on CCL products?

    ReplyDelete
  43. dear value pick sir,
    kindly share ur view on disa india ltd(500068) for long term.

    ReplyDelete
  44. hello sir , i saw many times when you refer a stock next day its goes upper circuit ......dnt know why might be FIIs also follows your blog nw what to do IL&FS up 10% at 109 how to enter now could you guide please thanks

    ReplyDelete
    Replies
    1. If any stock not move up , one section of readers will complain

      If it move up , another section will complain and raise allegation that I am an operator and rigging price . I have no control over price movement in this market where thousands of investors are active and not known any short cuts to enter or exit in/from a stock

      Delete
    2. What i observed is after any suggestion, its rocketing high but within few days its consolidating, you just need to have patience. Dont be in a hurry as long as you are not a trader. Salzer, MIC, samkrg etc have all consolidated at some stage.

      Delete
  45. Hi,
    What are your views on VA tech WABAG post dec results?

    ReplyDelete
    Replies
    1. Wabag already appreciated 250% from suggested level . Long term investors can still hold.

      Delete
  46. SIR YOUR VIEW IN KAKATIYACEMENT ,ZENTECH AND AVANTEL

    ReplyDelete
    Replies
    1. Avantel is a stock already suggested to enter and later to book profit

      Not tracking others

      Delete
  47. Sir one almost unknown script Birdhi Chand Panna Lal Agency Ltd have so much price momentum, it is hitting upper circuit since last few days instead of continue selling by non promoter entity in off market mode. Do you see any particular reason for it? Kindly Reply. Thank you.

    ReplyDelete
    Replies
    1. In a market like this stock may move even without any solid reasons . If your investment decisions are based only on price movements and not backed by fundamentals it may create trouble when market mood changes. Fundamentally good companies may not move like rockets but you will not get trapped in such stocks , on the other side fundamentally weak stocks where operators and promoters are playing may move like rockets but the same may nosedive when they attain their goal . Choice is ours

      Delete
  48. Sir, Your view on KOEL plz...

    ReplyDelete
  49. Dear Sir, Its great pick , please let me know your thought on Plastiblends India Ltd ?

    ReplyDelete
  50. dear sir.
    whats ur view on following stocks
    1. kabra extrusion technik
    2. shivam autotech
    3. BF investment
    4. Balmer Lawrie & co.

    ReplyDelete
  51. Dear sir, please let me know your views on INSILCO? WAITING for reply. Y mail id is maheshrana146@gmail.com

    ReplyDelete
  52. Sir,
    Motilal Oswal in its recent Wealth Creation report has suggested 7 stocks for 100 times appreciation from current market price. DCB is one of their stocks. Sir, Do you see it is possible for DCB to to reach Rs. 10,000 per share in future?

    ReplyDelete
  53. Sir, if possible, give your views on 1) FAG Bearings 2) SKF India 3) Bayer Cropscience and 4) Pfizer. All are MNC related players in the indian equity market. I am interested in them for long term, so wanted to know your opinion before deciding my level of stake in them :) Thanks for the great work sir.

    ReplyDelete
  54. Sir, will you recommend any share this weekend? as it is 3 rd week of the month.

    ReplyDelete
    Replies
    1. This question is ok , but while selecting stocks for investment better to be more vigilant .

      Check your Calender once again :)

      Delete
  55. Dear VP, Is it right time to enter DHP India ?

    ReplyDelete
    Replies
    1. DHP recommended around Rs.29 and later commented to book profit

      Delete
  56. Hi sir , What is your view on
    Moserbaer and indosolar? ? And which stock is good according to u in solar sector?? And available at a good buy Price.

    ReplyDelete
  57. Ur View about Ril? y dont u recommend it.. It is such a value pick at these levels. Or u r just interested in small caps where price rigging is easily possible. Even if u claim that u r not involved in price rigging but there are some elements who have now identified your blog and do rigging to fool geniune investors and as a result ur name is getting bad.

    ReplyDelete
    Replies
    1. 70 % of stocks suggested in this blog in past 5 years appreciated . If you believe all these happened because of my price rigging and not because of improved business growth of identified companies , you have full freedom to ignore this blog . Nobody is compelling you to buy stocks suggested here . Anyway thanks for your concern on my name getting bad and the given advice to avoid that .

      Delete
    2. dear VP ,
      Kindly ignore such comments. Blessings of many like me who have benefited from your blog are with you.
      I am sure many like me believe in your integrity and moral sense.
      regards

      Delete
    3. Dear sir
      You don't want to give explanation to him.he dont no the meaning of value pick.

      Delete
    4. Hi Mukesh, may be RIL is value stock(i doubt that). You can't compell anyone to recommend your choice just because you have that stock.

      Delete
    5. Why are you compelling VP sir to recommend the stock you own? If you feel you have a list of value stocks, start your own blog. The problem is you would be the blog owner and only reader of that blog.

      Delete
  58. Sir your views on
    ilfs transportation ?
    Snowman?
    Zenstar?
    Mahindracie?
    Ujaas?

    ReplyDelete
    Replies
    1. Not strictly tracking any of the above

      Delete
  59. Many times asked to you that your present view on aksh optifiber and orchid chemical

    ReplyDelete
    Replies
    1. It is not my fault . Don't compel ,I should answer to your specific query itself even if a question about same company answered to someone in recent times. Take the case of Aksh Opt , I have answered about this stock as a reply below Suzlon Update and requested to take a call based on Govt's implementation plan of NOFN project ( at least wait till budget and check whether there is more allocation for that ) .Do you think it is practical and necessary to repeat same answer to 10 readers even if the same question raised on the same day or within one or two days . Please co -operate and spend 5 minutes before repeating question to check whether question about same company posted in recent times ,that will help to avoid wasting valuable time of both of us.

      Delete
  60. Dear sir please share your view on Ashiana Housing

    ReplyDelete
    Replies
    1. Not tracking Ashiana Housing . Only Sobha Ltd and Godrej Property are tracking from this sector

      Delete
  61. Sir,
    Thank you very much for helping us, small investors with your knowledge & stock picking techniques, Would like your opinion on one of your old recommendation Butterfly Appliances. Is it still worth holding ?

    ReplyDelete
    Replies
    1. No need to hurry , performance is not improving in past many quarters

      Delete
  62. Sir,Your Views on Oricon Enterprise.Sir Please Suggest

    ReplyDelete
  63. Valuepick, whatvis your view on Coral lab??

    ReplyDelete
  64. Replies
    1. Don't think return from stock market is like return from FD and long period will ensure more return. One should periodically analyse company's business and take decisions accordingly. The funds committing for investing in stocks should be for long term but that not means return is assured if buy and blindly wait for long period.

      Delete
    2. Well said Mr. VP .. very true ... IL&FS engineering touched a high of 1144 in Nov 2007 and a low of 19.4 in 2014! (figures from Moneycontrol). I believe the key to wealth creation is in, as Mr. VP says, to identify a potential stock and regularly track it.

      On another note, Mr. VP, do you know what factors caused IL&FS stock to crash so much over the past 7-8 years?

      Delete
    3. Pai, Please read the post again...It was under Satyam Raju as Maytas and you know rest of the story

      Delete
  65. Hello VP Sir

    I am holding Aimco Pesticides & Sequential Scientific ..I am not clear about your current view post quaterly results.Pls advice..Also i couldn't find the blog ..

    ReplyDelete
    Replies
    1. Already replied questions about same companies post Dec result - Those with some risk appetite and long term view can still hold it

      Delete
  66. Valuepick what is your view on marksans pharma purchased at 11 sold half at 54 ...still holding the other half....thanks

    ReplyDelete
    Replies
    1. Expecting only market performance hereon

      Delete
  67. Dear VP sir...in one of the comment u said tracking only godrej properties and sobha ltd from reality space...what is your view on poddar developer and godrej properties. poddar dev seems good bet on low cost housing story.

    ReplyDelete
    Replies
    1. What question is this : :) .How I can say something about a company I am not tracking ? .Godrej Property is a decent one from this sector, but sector revival is the key.

      Delete
  68. Sir, Whats your view on Emmbi Industries?? Promoter is buying from open market and showing decent growth during the past few quarters along with consistent divident paying history too..

    ReplyDelete
  69. Hi Vp ur views on HOV Services. Thx.

    ReplyDelete
  70. Sir,
    What are your views on Goodyear India.
    The company is highly undervalued amongst it`s peers despite having such strong fundamentals, continuous growth, debt free, healthy dividend payout and huge cash and bank balances in it`s balance sheet.
    I feel there is virtually no downside from these levels.
    I would like to quote some significant observations I made while going through some Special Resolutions which the management is proposing to pass via Postal Ballot:
    ” The company may purchase it`s own shares or securities”
    “A new Article 50A be inserted: ” Subject to the provisions of the Act, the company may issue securities by way of Bonus Issue, Rights Issue, Private Placement, Issue of Sweat Equity shares or any other manner as may be applicable”
    Do refer to Page no 2 of the proposed postal ballot for the above amendments.
    These amendments to the Articles of Association of the company give a feeling that the company may have plans to either propose a buyback or issue bonus securities in the near future.
    Do share your valuable inputs on the same.

    Thanks

    ReplyDelete
    Replies
    1. Stock already appreciated more than 100 % from recommended level .One can still hold it ,even without any of the mentioned proposed actions, it is worth for long term

      http://value-picks.blogspot.in/2013/08/goodyear-india-one-tyre-for-your.html

      Delete
  71. Dear sir, I think you missed my question by chance, but if possible take out even 1 min to answer this because it will help a fellow investor. Please give your honest views on 1) FAG Bearings 2) SKF India 3) Bayer Cropscience and 4) Pfizer. All of them are MNC related players in the indian market. I am interested in them for long term, so wanted to know your opinion before deciding my level of stake in them :) Their zero debt and parent holding is what attracted me towards them. Thanks for your great work sir for us.

    ReplyDelete
    Replies
    1. All of there are good for long term passive investors. Don't expect vibrant movement but good compounders

      Delete
  72. Dear VP sir,

    Your view on Natural Capsules? They seem to have been doing well this year. Also the stock is available cheap.

    Thanks sir :)

    ReplyDelete
  73. sir your view on shivam auto tech. thanks.

    ReplyDelete
  74. Thanks sir for this jem.
    sir I want to know your view about roto pump.
    also advice is it benificial from swachha bharat abhiyan?
    Thanks sir

    ReplyDelete
    Replies
    1. Stock suggested around Rs.90 , before stock split . Now it already gained more than 5 times ( adjusted to stock split) . Neutral at CMP

      Delete
  75. Sir hindtin Cmp is better for to average?

    ReplyDelete
  76. Hello Sir you old recommendation
    Himalaya International
    Basant Agro Tech (India)
    Govind Rubber
    Cenlub Industries
    Sterling Strips
    Span Diagnostic
    Banaras Beads
    Aksh Optifibre

    Till now this stock not performing well. Can i add this stock now for long term, can its now also value buy for long or now i avoid it. please reply sir.
    Thanks Sir

    ReplyDelete
    Replies
    1. Later commented and posted about all of these stocks

      Delete
  77. Sir,
    I m holding oriental carbon and want to add more..wots ur view on this script...can we add more at the current price or should wait...

    ReplyDelete
    Replies
    1. Oriental Carbon is a stock suggested @ Rs.93 which is currently trading @ Rs.443 .

      I prefer to HOLD it ,


      http://value-picks.blogspot.in/2010/03/oriental-carbon-and-chemicals.html

      Delete
  78. Sir,
    I want o buy Stampede Capital @ 215 & bse code 531723.Please guide me whether I can enter into this at this level.Thanks.

    ReplyDelete
    Replies
    1. Personally I prefer to avoid this stock because of the poor promoter history. If I am not mistaken , it is owned by the same promoters of Green Fire Agri ( Formerly Northgate Technologies ) which crashed to just 0.53 paisa .

      Anything is possible in a bull market , so it depends on your risk . But I have nothing to suggest .

      Delete
  79. Whats your view on Dunlop India, and Speciality Restaurants. ?

    ReplyDelete
  80. Thanks for your valuable ideas. could you share u r views on following stocks for long term.
    1. Gmr infra
    2. Unitech
    3. Punjlloyd
    4.deepindustry

    ReplyDelete
  81. Dear sir please share your view on kaveri seeds

    ReplyDelete
    Replies
    1. Stock already given 17 times return from recommended level ( adjusted to stock split) , nothing new to say at this moment

      Delete
  82. sir your views on pochiraju will be highly appreciated

    thanks

    ReplyDelete
  83. pls share your view on

    Shreyans Industries Limited Paper & Paper Products
    it quoting at 0.5 p/b and with decent roe

    ReplyDelete
  84. hi
    can you share your view on

    Shreyans Industries Limited

    currently trading @ 0.5 p/b with decent roe

    ReplyDelete
  85. Dear sir ,
    I have been following your blog since i decided to invest. Can you share your views on helios and matheson ? Is there any profit this company will make in near future.?

    ReplyDelete
  86. Sir please let me know your view on Ambuja Cements

    ReplyDelete
  87. Hi sir,
    Would like to know your views w.r.t the latest open offer by IPCA LABS to buy KREBS BIOTECH @54 ( as reported in tv channels yesterday).

    ReplyDelete
    Replies
    1. Company reported the same to BSE last week itself. Krebs is a company I already covered here.Ipca took approx: 30 % stake in it along with current promoters . Another 11 % is held with Ranbaxy . Krebs was an excellent company with high margin business 10 years back .But unfortunately both of their plants shut down for years due to various reasons . Its plants are situated in 100 Acre land and it is one of the very few companies in the world manufacturing Pseudoephedrine through fermentation technology . Permission to get this product is also difficult . Now they informed that both of their plants are going to open in near future .Let us hope positive result will start to reflect from June quarter result onwards.Ipca's open offer is a mandatory one and nothing going to happen even if they didn't get a single share . Already purchased and going to subscribe almost 30 % stake through market and pref allotment .

      Delete
  88. Sir, Will you please share your view on Navin Flourine and Gati- Madhava

    ReplyDelete
  89. Sir, I tried to search your view on Menon Bearings on this blog. But didn't find it. May I request you to have a look on it and share your opinion.

    ReplyDelete
  90. Sir, sorry to brother you , could u please u r view on
    1. Iob
    2. Andhara bank
    3. Vijaya bank
    shall i go for long term ?

    ReplyDelete
  91. sir, your views on wanbury ltd will be highly appreciated

    ReplyDelete
    Replies
    1. Company is expected to improve in future.

      Delete
  92. Sir Hindustan tin works ltd reached 59.. u suggested @70 after reaching 110 through UP Ckt continues downfall...any bad news or bad result or what? shuld I avg this stock ?

    please sir share ur view having 300 qty @95.

    ReplyDelete
  93. Sir

    Lot of rumors spreading in MMB about a sell call given by you for SKm Egg product .Please clarify

    S.Elangovan

    ReplyDelete
    Replies
    1. We can't shut the mouth of Rumor mongers . On what reason I should give a Sell Call for SKM ?

      I would prefer to buy it if it falls further .

      Delete
  94. Sir, I am holding Piramal Phytocare. Will you please compare latest result with previous. I am holding this only because of able management. Any positives?

    ReplyDelete
    Replies
    1. Result is nothing to compare , first they need to scale up the business

      Delete
  95. VP Sir,

    Your valuable input for OCL India at the CMP of 520/-. I am holding it with some profit.

    ReplyDelete
    Replies
    1. Not a bad company . But Industry in which it is operating is still not out of wood, So , movement may be range bound

      Delete
  96. Hello VP Sir,
    IFB Agro Industries is available at Rs.268 now and it was down from 52 week high of Rs. 520. This stock is one of Dolly Khanna's portfolio. Is this advisable to enter at this price? Could you please give your valuable views on this stock?

    Thanks
    Nagaraju

    ReplyDelete
  97. Dear VP. Just an afterthought. Gone through the Godavari drugs report. Well, the company manufactures drugs formulations for other companies. It doesn't have anyvknown brands. Isn't that a disadvantage?Read your comments on direct selling but is it visible in market?

    ReplyDelete
    Replies
    1. Try to understand the business model of CRAM companies.

      Delete
    2. VP ji,

      CRAM Companies Means? Plz help to understood ..

      Thanks,
      Rajiv

      Delete
  98. Sir,

    Kindly share your views on kse ltd.

    Thanks.

    ReplyDelete
  99. Bought Samkrg pistons @209.. Now trading at 175 level...
    Do you recommend me to hold it for long term? Book loss? Buy more at these levels?

    ReplyDelete
    Replies
    1. Samkrg Piston suggested @ Rs.163 . Only in your case it is better to exit,because even completing two months you are started to ask ' What to do ?' ,which clearly indicating you are not a long term investor and the stocks recommended here are not intended for short term players like you.

      Delete
    2. 163 to 230 uc in lock..how can we buy at your price??talk on actually price on that we buy Sir..

      Delete
  100. Dear Value pick ji, I am a longterm follower of ur blogs. Gained a lot becoz of ur recos. My question is... is this a very good time to accumulate quality Sugar stocks which you recommended sometime back for long term ? The sector is still in downtrend and looks like it will take few more quarters to show profits becoz of more than sufficient sugar availability in the market. Since it is a cyclical sector I think, sometime in future it has to climb up. Already it had seen 6 years of downtrend. Your valuable opinion please...thank you.
    Regards
    Senthil

    ReplyDelete
    Replies
    1. No company can make profit only because of short supply of its products in the market and price rise due to it. It also depends on lot of other factors too. Take the case here , if the reason is short supply of Cane itself company's many not benefit as our expectation. Here the main villain is inconsistent policy of state and central govts on price control, cane pricing, Ethanol sourcing price..etc...etc. So track all these factors and take a call. In long term there may be improvement, but as you see above if you are a person loosing patience beyond two or three months holding , it is not for you .Otherwise you can buy and forget.

      Delete
  101. Sir, I have purchased Greenply at the rate of 1005. I thought that the housing sector will grow and the demand of wood will increase which prompted me to buy this but the stock price was high at the time of purchase.

    I am willing to hold it for long term. Could you give me your view for long term.

    Thanks,

    Anil yadav

    ReplyDelete
  102. Respected VP Sir,

    I would like to know your opinion on Stampede Capital.

    As far as my impression goes, they are in a novel segment and their scope may be huge.

    But, you know, we always trust your expert opinion before being very sure.

    Even if you do not track the stock, can you please put a few comments about the credentials of the promoters? I've heard from the MMB Board that their promoters have bad reputation.

    I need your guidance.

    Regards,
    Dr. Bishan Basu

    ReplyDelete
    Replies
    1. I don't know why are you again posting it ! . Try to spend at ;east five minutes to check whether the same qn answered recently . This same quastion answered to someone below this same posting above.

      Delete
  103. sir any stop loss for aimco please suggest ihold at 89.

    ReplyDelete
    Replies
    1. Aimco Pesticides suggested to buy @ Rs.45 and not @ Rs.89 .
      I am not a trader to suggest stock loss. For a long term investor fall in price without change in fundamentals is an opportunity to buy more.

      Delete
  104. Can one initiate investment in Opto Circuits now, from long term point of view of about two to three years? Shall be grateful for your view.. Regards.

    ReplyDelete
    Replies
    1. Not seeing any improvement as of now.

      Delete
  105. Sir, will you please update me about Narmada gelatin I have just entered this stock 2 weeks before but its getting downwards day by days what your view.

    ReplyDelete
    Replies
    1. Recently replied below the posting available in the following link:

      http://value-picks.blogspot.in/2015/02/v2-retail-ltd-update.html

      Delete
  106. Sir, my query is regarding BCL Industries & Infrastructures. Pls see it for 1 min and tell me your view on it. Its a small size, regional co. but last quarter was extraordinary which drew my interest towards it. It has debt though. Any opinion is deeply appreciated sir. Thanks. :)

    ReplyDelete
  107. Dear VP,

    I think apart from your Blog - you provide wealth of information on individual companies - through your (surprisingly and wonderful) tens of replies to individual queries in comments section.

    To find your reply on specific companies - instead of someone like me asking again - I will prefer to check it first. And you can put a headline above - indicating - before asking - check.

    But the search option in the blog - does not seem pick up - from the comments section. For example - I want to know about Pochiraju Industries - and I realise through your comments under IL&FS blog post - you have already mentioned - that you do not track Pochiraju. But the search option does not through that comment up. We need to evalue this search feature - so that your valuable time is not wasted for same thing - and it will be wonderful for readers of your blog also.

    Thanks once again for the wonderful blog. I have started sharing this link to my friends and colleagues.

    Regards..
    Anil


    ReplyDelete

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