Sunday, December 4, 2016

Multibagger stock

THE VERY FUNDAMENTAL ASSUMPTION OF STOCK INVESTMENTS (for that matter any investments) ARE TO MAKE MONEY WITH SUITABLE PORTFOLIO OVER A PERIOD OF TIME. MANY RETAIL INVESTORS QUITE OFTEN FAILED TO RECOGNIZE THE BASIC RISKS INVOLVED AND ALSO IGNORE THE FUNDAMENTAL RULES TO BE STRICTLY FOLLOWED TO MAKE MORE MONEY FROM THE STOCK MARKETS.
Ace Investor Ideology:
Every Investor bestowed with equal opportunities to make lots of money from stock market investments provided think & invest like an institutional investor does. No matter how big or small money available for investments, doesn't matter whether BUY a small-cap, mid-cap or Large-cap but the approach to investments in markets makes a person rich or multi-millionaire.
Most of the stock market retail investors follow their legendary investors stock investments. It is not wrong to follow a successful investor's ideology but what matters most is the suitability to one's needs and requirements. So always understand the concepts of an Ace Investor strategy & sector allocation then develop a workable strategy that suits well but don't just follow blindly.
Who Rules...?
The Stock price action gets activated from Low to High and High to Low due to a determined tussle between BULLs & Bears that enables smooth transfer/exchange of VOLUME to acquire/offload the stock. During good times BULLs command the most, while BEARs take charge when gloominess runs but the underlying attraction point that turn tables is neither Bulls nor Bears but the PRICE. The STOCK PRICE attracts the interested parties to become BULLS or BEARS to command and enjoy the future returns. The possibility and future prospects propel the participants to decide their position and sustain their view till the PRICE reaches its realistic value.
Trade the Price:
Stock trading/investments open the doors of opportunities to many players like Day-traders, Swing traders, Positional traders, retail/small investors & Institutional investors..etc with a bouquet of investment opportunities in different companies in various sectors. The growth stocks always build their strong base during the times of bad periods/recession time and emerge as winners and find pinnacle place as tide turns their favour with a tag as most sought/favoured stocks. It is always advisable to "Trade the Price" to make more money from markets even in multi-bagger stocks once the valuations reach very high. In case the overall market take a Southward journey, these counters also deserve a trade but don't exit from the stock. This situational position sizing and building the portfolio is very important to enjoy long-term multifold returns. (Ex: Recently Rakesh Jhunjhunwala sold Delta Corp at Rs 160+ levels range and re-entered @ Rs105+)
Build Capacity to Hold:
The capacity to hold with large quantities for a reasonable period makes a big difference in enjoying the multi-bagger stocks upward journey. Many seasoned investors know that the Elliot principle plays a big role and most retail investors get out of the stock during the first leg of the up move or in the retracement levels.
Many successful investors who learned hard lessons from their experiences shared the importance of Position sizing. Their initial investment experiences are bitter to digest and some blew their accounts with an anticipation to make HUGE profits in short period, turned sour. The psychological exuberance while buying blue-chips and excitement to hold large quantities of quality stocks for multi-bagger returns encouraged them to ignore current high valuations. All the more, got trapped in LEVERAGE loop, find it hard to hold for a longer period during the downfall forced them to exit for a loss or nominal profits from that possible multibagger counters. These experiential situations are common to many investors.
MULTI-BAGGER INVESTMENT STRATEGY:
NO-DOUBT, STOCK-MARKETS ARE ONE OF THE BEST AVAILABLE AVENUES FOR INVESTMENTS TO SMALL INVESTORS TO LARGE INSTITUTIONAL PLAYERS. THE STOCK-MARKET INVESTMENTS MADE IN MULTI-BAGGER COMPANIES, MANY A TIMES REWARD INVESTORS WITH MANY FOLD RETURNS TO THOSE WHO “SPOT THE RIGHT OPPORTUNITY AT THE RIGHT PRICE” AND POSITION THEIR INVESTMENTS ACCORDINGLY.
  • The multi-bagger companies carry a unique business model with high-end products&services and less competition "Buyer Requests & Seller Demands" mode.
Ex: 8K Miles (Rs 18 Low in 2012,Rs 2550 High in 2016)
  • Once, well-established companies ran into doldrums with underutilized capacities, later get a new drive, turn-around story with better economic prospects to garner the unfolding opportunities.
Ex: INDO COUNT INDUSTRIES (Rs 5.0+ Low in 2012,Rs 1248+High in 2016)
  • Management rejuvenate their entire team with positive energies to increase revenue and profitability with 20-35% QoQ growth.
  • The stock hardly falls from the consolidated floor price range gained in its upward journey
Conclusion: There are many good stocks available in Indian stock markets to become multi-baggers in next 3-5 Yrs. It is very important to identify good stocks to BUY and Hold, but at right price is even more important.

Thursday, March 24, 2016

HOUSING DEMAND AS ECONOMIC REVIVAL!!


Housing for all gets Rs 82,000 cr boost

Tags: Policy

Govt to use socio-economic data to spot beneficiaries

Housing for all gets Rs 82,000 cr boost
The central government’s ambitious ‘housing for all by 2022’ plan got its most major boost on Wednesday. The Union cabinet gave its green signal to prime minister Narendra Modi’s pet initiative to build one crore pucca houses in rural India with an investment of Rs 82,000 crore in the next three years.

Briefing newsmen, communications minister Ravishankar Prasad said all poor people — below or above poverty line — without houses or those living in dilapidated houses, would be eligible for financial assistance under the pradhan mantri awaas yojana (PMAY).

Huge investment planned for rural housing is expected to give a big boost to the construction industry, 250 other ancillary industries, generate millions of semi-skilled and unskilled job opportunities, apart from spreading transport services in rural areas.

The government expects that houses for rural poor would positively impact education and health apart from nutrition, sanitation and over all economic security.

President Pranab Mukherjee in his address to Parliament on May 2014 gave the first hint of government’s resolve to provide houses for all by 2022 with water, electricity, sanitation and access to public services.

Finance minister Arun Jaitley followed up this address with an action plan in his budget for 2014-15.

Under the project, rural houses would be built across the country, barring Delhi and Chandigarh, where the cost would be shared between the Centre and states in the ratio of 60:40.

In northeastern states and hilly areas, the Centre will pay for 90 per cent of the construction costs, while 10 per cent cost would be borne by states. Hitherto, Indira awaas yojana, under which assistance up to Rs 75,000 per household was available, would now be subsumed into the PMAY. Under the earlier scheme, about 351 lakh houses were built with an investment of over Rs 100,000 crore.

Under PMAY, Rs 1.2 lakh would be provided as assistance to those seeking to build houses on plains. This amount will be enhanced to Rs 1.3 lakh per family in inhospitable terrain and hilly areas. Apart from budgetary funds, additional finances worth Rs 21,975 crore will be mobilised through Nab­ard to be amortised through annual budgets after 2022.

The government will use socio-economic and caste census data of 2011 to identify rural beneficiaries for houses under the project. It will also set up a technical su­pport agency to ensure that one crore houses are constructed. To ensure transparency, the government plans to get the list of beneficiaries vetted by gram sabhas. Village panchayats will offer reasons for any changes made to this list.
badarinath@mydigitalfc.com

http://www.mydigitalfc.com/policy/housing-all-gets-rs-82000-cr-boost-065
badarinath@mydigitalfc.com

Saturday, February 20, 2016

HIMADRI CHEMICALS












Quarterly results in brief
(Rs crore)
Dec' 15Sep' 15Jun' 15Mar' 15Dec' 14
Sales305.51310.18275.92341.86326.95
Operating profit53.5035.9216.716.4729.01
Interest25.4230.3727.5016.2230.34
Gross profit25.961.83-14.19-10.90-0.19
EPS (Rs)0.15-0.25-0.52-0.41-0.25




Himadri Chemicals & Industries Ltd, the flagship of Himadri Group, is the largest manufacturer of coal tar pitch in India. The company was founded to develop, manufacture and market chemical products with a special emphasis on coal tar and its derivatives. They supply coal tar pitch to well-known domestic aluminium and graphite industry players like Nalco, Balco, Hindalco, HEG, Graphite India and international players like Dubal, AOG, Graftech and SGL. The company is a leader in the domestic market for the supply of coal tar pitch and other by-products with around 70 percent share of the market.

The company has five state-of-the-art coal tar distillation plants in India. The company has two plants in Howrah, West Bengal, one in Hooghly, West Bengal, one in Visakhapatnam, Andhra Pradesh and one in Korba, Chhattisgarh. Himadri Chemicals & Industries Ltd was incorporated as a private limited company in July 1987. In November 1991, the company was converted into a public limited company. In the year 1996, the company developed a technology for producing impregnating pitch and in the year 1997, they completed the expansion and modernization of their Howrah and Visakhapatnam plant. In the year 1999, the company set up third state of art coal tar distillation plant at Howrah. In the year 2001, they formed the corrosion protection division and starts manufacturing coal tar based pipe coating product at Visakhapatnam. In the year 2002, they introduced Liquid Pitch, which are supplied to the consumers in specialized and dedicated tankers. In the year 2003, the company set up their fourth modernized coal tar distillation plant at Hooghly with capacity to produce 1,20,000 MT of Coal Tar Pitch per annum. During the year 2005-06, the company commissioned a by-product plant in Hooghly for the manufacture of value added products. They   also commissioned a pilot plant for the manufacture of advanced carbon material used in lithium ion batteries with in-house technology. 

The company expanded the production capacity of the coal tar pitch at Hooghly form 28700 MTPA to 63700 MTPA. The company commenced the supply of coal tar pitch to Dubai Aluminium co, manufacturer of the highest purity aluminium in the world. They also commenced a representative office in China. During the year 2006-07, the company incorporated a wholly owned subsidiary in Hong Kong to manage their customer presence and facilitate the acquisition strategy. They set up a plant at Korba in Chhattisgarh as a precursor. They commissioned two windmills, which can generate 2.50 MW wind energy in the Dhule district of Maharashtra. In the same year, the company completed the first phase of expansion at Mahistikry, West Bengal to manufacture naphthalene. Also, they installed a granulation unit used for cooling coal tar pitch from more than 300 degrees centigrade to atmospheric for onward conversion into solid pencil form. The company expanded the coal tar distillation capacity in Hooghly from 91000 MTPA to 170000 MTPA. During the year 2007-08, the company commissioned their melting plant in Korba plants to build dedicated melting facilities near major customers' plant to accelerate just-in-time delivery. 

The company has undertaken a project at Mahistikry in West Bengal for the manufacture of Carbon Black with an annual capacity of 50000 MT and a capitive power plant of 12 MW capacity based on waste heat gas through forward integration. In September 2008, the company through their wholly owned subsidiary company, Himadri Global Investment Ltd entered into a joint venture contract, with Chinese company to takeover existing coal tar distillation plant in Xiaoyi, Shanxi.
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http://articles.economictimes.indiatimes.com/2012-02-06/news/31030975_1_capacity-expansion-himadri-chemicals-tonne-capacity
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http://articles.economictimes.indiatimes.com/2011-07-01/news/29726284_1_organic-growth-capacity-expansion-expansion-plans

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THANKS TO BS, REDIFF,ICHARTS AND ET FOR THEIR INFO SUPPORT.....

Sunday, February 14, 2016

Gas prices may dip...BOON TIMES!!

Gas prices may dip 17% to $3.15 in April

On a net-calorific value basis, the gas price is likely to be $3.50 per mmBtu as compared to $4.24 currently.

Press Trust of India  |  New Delhi 
prices in India are likely to decline 17 per cent in April to $3.15 per unit, further straining economics of developing discoveries in deep sea.

As per the new gas pricing formula approved by the NDA-government in October 2014, gas prices are to be determined on a semi-annual basis and calculated based on a volume weighted average of rates in gas surplus nations of the US, Canada and Russia, based on the twelve-month trailing average price with a lag of three months.

Using benchmark prices for the period of January 1, 2015 to December 31, 2015, gas price for the period April 2016 to September 2016 is likely to be about $3.15 per million British thermal unit as against $3.82 currently, sources said.

On a net-calorific value (CV) basis, the gas price is likely to be $3.50 per mmBtu as compared to $4.24 currently.

Development of numerous existing discoveries in the blocks operated by state-owned Oil and Natural Gas Corp (ONGC) as well as Reliance Industries are dependent on remunerative price.

Chairman and Managing Director Dinesh K Sarraf last week stated that developing finds in the firm's (KG) basin block KG-DWN-98/2 or KG-D5 was economically unviable at current price.

The company has asked the government to raise the rates to make developing the explorations economically viable, he had said.

Goldman Sachs had in a recent report stated that "Indian domestic natural gas prices that are linked to prices in gas surplus economies remain materially below the costs to develop marginal and deep-water fields and hence do not incentivise exploration and production capex."

This has resulted in Indian producers potentially losing $2 billion annually in value added assuming they can replace imports entirely, it added.

"We believe the current gas price regime is not incentivising domestic capex sufficiently as we expect prices under the current formula to decline in 2016-17 while cost for new deep-water discoveries ranges between USD 6 to USD 7 per mmBtu," Goldman had said.

Gas price in India, it said, is lower than $9 per mmBtu in China, $10.5 in the Philippines, USD 6.5 in Indonesia and $8 per mmBtu in Thailand and Malaysia.

Sources said going by current price trends, gas price may rise marginally to $3.32 (on gross calorific value or GCV basis) in second half of 2016-17 fiscal.

They may further rise to $3.36 per mmBtu and $3.42 in the first and second half of 2017-18 fiscal and would be around $3.45 in the following fiscal.

http://www.business-standard.com/article/pti-stories/gas-prices-may-dip-17-per-cent-to-3-15-in-april-116021400189_1.html
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===A BOON TO GAIL AND IGL, PETRONET
A CURSE TO EXPLORATION COMPANIES...
BUT GAS BASED POWER PLANTS AND FERTLISER COMPANIES WILL GET THE FULL ADVANTAGE....

Saturday, February 13, 2016

ANY FUTURE TO STOCKS...!


NAGESWARA RAO BAMMIDI
CFO-MIHIR MOBILE SOLUTIONS, bnr789@gmail.com
HOW TO DEAL STOCK MARKETS- BRIGHT FUTURE AHEAD..!!
ALL MARKET PARTICIPANTS KNOW THAT THE PROFITS FROM STOCK MARKETS ARE THE DEALS MADE FOR A DIFFERENTIAL AMOUNT REALIZED FROMBUY & SELL or SELL & BUY...!!! 
FOR DECENT PROFITS "BUY LOW and SELL HIGH" - GLOBALLY ACCEPTED and WELL ACKNOWLEDGED ADAGE IN STOCK MARKETS ....
MANY EXPECT, GET THEMSELVES PREPARED BUT MOST RETAIL INVESTORS HATE BUT SURPRISES ARE VERY COMMON IN STOCK MARKETS. THE WELL INFORMED FOREIGN INSTITUTIONAL INVESTORS, NETWORK ESTABLISHED INSTITUTIONS, SEASONED HNIs, OF-COURSE BACKED WITH DEEP POCKETS, TEND TO ACT PROMPTLY WITH RIGHT DECISIONS AND MANAGE  GLOBAL STOCK MARKET TRENDS WITH THEIR NETWORKS AND EXPERTISE! TO ENHANCE THE  SPROUTING EUPHORIA OR ENLARGE PANIC SITUATIONS TO CREATE MORE TURBULENCE AS THE CASE MAY BE, AND FINALLY MAKE PROFITS FROM THE MARKETS...!!, BUT HOW MANY RETAIL INVESTORS AND PARTICIPANTS GET THESE ADVANTAGES??..
FEAR & GREED RULES:
THE SERIOUS SELL OFF FROM HIGHS IS A GREAT CONCERN TO MANY RETAIL INVESTORS WHO TEND TO HAVE THE TEMPTATIONS TO CATCH THE SHOOTING STOCKS AT THE HIGHS WITH OUT FUNDAMENTAL VALUE AND PRAY FOR THEIR SUCCESS AS THE RISK IS HIGH. ALTHOUGH, KNOW THAT THE MARKETS WENT UP SUBSTANTIALLY BUT GREED EARN AND TO ACT SMART TEND TO BUY, WAIT FOR THE "OTHER FOOL"
COMMON MISTAKES: WHEN MARKETS TOOK A SERIOUS BEATING, AGAIN RETAIL INVESTORS WITH FEAR OF FURTHER LOSS TEND TO SELL AT THE BOTTOM WITH AN INTENTION TO CATCH THE STOCK AGAIN AT THE LOWER LEVEL, BUT FAIL TO GARNER THE OPPORTUNITY, AGAIN A SIMILAR MISTAKE AS THEY DID AT THE HIGH POINTS.
https://media.licdn.com/mpr/mpr/shrinknp_800_800/AAEAAQAAAAAAAAboAAAAJDQwOGNhYWNmLWI5YTQtNDQ0ZC1iYWFkLWE0YjRkZTI0NDc4Ng.png
JUST TECHNICALS:  STUDY THE SCENARIOS DEVELOPED OVER A PERIOD OF TIME...
FROM LOW TO HIGH, MADE A JOURNEY OF 4000 POINTS SINCE AUG-13,NFTY LIKELY TO GET SUPPORT AT 6500-6550 LEVELS. 
NIFTY TOOK A DECENT JOURNEY FROM 5100 LEVELS TO 9100 LEVELS IN TWO YEARS AND EVERY BODY MADE A WISH FOR FURTHER HIGHS WITHOUT CONSOLIDATION AT ANY LEVELS. THE NEW GOVT.  FORMATION TRIGGERED HIGH EXPECTATIONS, WERE SOLD TO RETAIL INVESTORS AND NOW EXPERTS SAY THAT NO MAGIC WAND AVAILABLE TO CHANGE THE ECONOMY IN A DAY OR TWO WHEN GLOBALLY WELL CONNECTED AND INTER DEPENDENT....
CONCLUSION: THE FUNDAMENTAL ANALYSTS/INVESTORS GRAB THESE KINDS OF SELLOFFS TO BUY AND HOLD FOR A REASONABLE TIME  AS THE VALUATIONS MATCH THEIR EARNING.
THOSE WHO STUDY THE FRACTALS, WAVES OR FIBONACCI CAN EASILY CALCULATE THE NEXT MOVE.....
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https://www.linkedin.com/pulse/how-deal-stock-markets-bright-future-ahead-nageswara-rao-bammidi?trk=hp-feed-article-title-publish