Monday, 27 November 2017

Wealth Creation Idea : Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has 8 Plants- in Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. It offers more than 2,600 options in ceramic wall & floor tiles, vitrified tiles, designer tiles. Kajaria Ceramics exports to more than 30 countries round the Globe.

Financial Performance :
  • M-cap:  INR 11633 cr
  • CMP:  732 INR (27th Nov 2017)
  • EPS: 15.13 INR
  • PE: 48.3
  • Debt equity ratio :0.17
  • Book Value: 82 INR
  • Promoter Share holding is 47.39 %.
  • DII/FII/FPI Share  holding 29.14%

Why Kajaria Ceramics?
  • Company has consistent profit growth of 27.25% over 5 years.
  • Distribution Network of strong and loyal 1200 dealers all over the country.
  • Company is going to Expand the ‘Prima Plus’ channel network from the current 41 showrooms to 100 showrooms by March 2019.
  • Good return on equity track record: 3 Years ROE 27.33%.
  • According to CLSA, India expects to build 60 million new homes to be built between 2018 and 2024.
  • Smart Cities Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation, Urban Transformation (AMRUT) and Housing for all by 2022 is expected to provide significant impetus to the demand for tiles.
  •  Biggest organized player in Ceramics business in India.
  • 29 Year of Business Experience. 
  • Due to GST implementation, Organize player like Kajaria get preference in consumers as Price difference between organize and unorganized player decrease.
For long term investment this stock best suited. Next 5-7 year Kajaria ceramics can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Tuesday, 21 November 2017

Power My Portfolio Value Pick: Tata Elxsi Ltd.

Tata Elxsi is part of Tata Group providing design and technology solutions. It servers broadcast, consumer electronics, healthcare, telecom and transportation, Infra industries. Company is Leading player in Big Data Analytics and IoT solution. Tata Elxsi’s Industrial Design division helps customers develop endearing brands and products by using design as a strategic tool for business success.
It won International iF Design Award 2017 for design excellence.
It’s Transport Design Portfolio includes Indian Multi-Role Helicopter (IMRH), Kochi Metro Rail, Light combat helicopter, Business jet interiors etc. Tata Elxsi's Visual Computing Labs (VCL) is one of the leading animation and visual effects studio in India.Company has good consistent profit growth of 38.35% over last 5 years

Finance Performance:
  • M-cap: INR 5804cr
  • CMP: 932 INR (21 th Nov 2017)
  • PE: 28.4
  • EPS:32.7 INR
  • Book Value: 91 INR
  • Share capital is 31.14 cr of FV 10.
  • Promoter Share holding is 44.63 %
  • FII/DII share holder include prominent name like Morgan Stanley, LIC, Motilal Oswal

Company is Smart Solution provider for Auto, Transport, Infra segment. And India’s Smart City project will generate huge demand in this segment. IoT, Big Data, Virtual Reality are emerging technology and Tata Elxsi  Market Leader in this technology in India. For Next 5 years , Tata Elxsi can outperform the market. It can deliver 3x-5x Return in next 5 year.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Power My Portfolio Value Pick : Nilkamal Ltd

Nilkamal is the world's largest manufacturer of molded furniture and Asia's largest processor of plastic molded product. 
Nilkamal Core Business  include:
  •     Material Handling Solutions,
  •     Moulded Furniture,
  •     Nilkamal Mattrezzz,
  •     Nilkamal Home Ideas,
  •     @home, the Mega Home Store Retail Chain

Company has 8 large manufacturing plant across the Indian.Nilkamal products are available in as many as 30 countries. Mr VAMANRAI V PAREKH is the Chairman of the Nilkamal Board of Directors. With 60 years of experience in the plastics industry.Nilkamal Furniture sold on most of the store in India and also online shopping site like Amazon.

Current Price of Nilkamal is 1610 INR (21th Nov 2017).
Market cap: INR 2399 cr
EPS:79.38 INR

Being dominant player in its sector, this stock has huge growth potential.
For next 3-5 years view, this stock can deliver multibagger returns.

Be Smart. Invest Smartly.
Disclaimer : Please take advice of your financial advisor before any investment.

Saturday, 14 October 2017

3 Deadly Sins of Stock Market.

Have you ever think why new investors most of time failed in market.  ? Why only few make real money in stock market? What new person in stock market should do or should not do?  If yes I have answer to the root of this problem.

There 3 common mistakes that most investors do. I call them 3 Sins of Stock Market. 

1.Losing Money:
Most Investor knows this basic rule “Never Lose Money”. But still they end up losing money.  Because they keep holding the looser in hope of recovery. Simply say if you have purchased stock and it went down by 20%. And you wait as you not want to lose money. But this same stock has capability to go more 20% down. Not taking loses in market is biggest mistake most of investors do. Short term downside is normal, but if stock is going down for years or not moving for years then this is also one kind of loss as you are missing opportunity to allocate this money to some other good stock.  Remember there is no Successful investor who didn’t book loses. Taking lose is part of Journey and Investor must accept it.

      2. Buying Quantity then Quality:  
      Every new investor does this mistake.  They like buy 100 stocks of 10 over 1 stock of 1000.  Cost is same but he thinks he will get better chance with 100 stocks then 1. But in market price doesn’t matter.  In both case investment amount is 1000. And in both cases if stock goes up 10% you make 100 profits. So your buying decision should not be just on price factor. I have seen stock worth of 5000 in my career which I didn’t added because of price and same stock is now 22000 in 4 years and still going up. And I also seen stock which was 20 buck 4 years ago and still around 20 odd today also. Yes I am taking about Eicher Motors and Suzlon.

         3. Selling Winners:
       This is where successful investor standout form ordinary investor. Buy Right and Sit Tight. When you get stock which has shown potential to go up, you should not sell it for ordinary profit unless it’s really necessary. Stock which went up 50% has capability to go 100%. Smart Investor is one who adds stock on raise not on fall. Averaging should be done for stock which has shown its potential to go up not for stock which has shown its potential to go down.  Buy correct stock and let compounding do its magic.

     "To make money in stocks you must have the vision to see them, the courage to buy them   and         the patience to hold them. Patience is the rarest of the three." — Thomas Phelps

                                                            Be Smart. Invest Smartly. 

Friday, 12 May 2017

Tax Saver Mutual Fund is not just Tax Saver.

Around April most people seeking  for tax saving option and ended up buying product like PPF or Money Back Insurance plan which might the not need at all. Better planning ahead could give you better option to save tax also get good return on your money. Equity Link Saving Schema(ELSS) is the finest way to save tax and generate handy return.

ELSS Mutual Fund investment give you tax benefit under Section 80-C of the Income Tax Act. Also ELSS funds come with locking period of 3 year which minimum of any tax saving option available in India.

ELSS Fund just not tax saver but also great option to generate good return over the period of time.
Let have look of ELSS fund return vs. PPF return.

SBI Magnum Tax Gain SchemaPPF
Date of Investment01-05-200001-05-2000
Investment Amount1000010000
Return %Market Driven8.8 %approx. (average of 17 years)
RiskModerateAssured Return
Current Investment value13916031946
Total Return on Investment1391.6%319.6 %

Just look at the numbers, ELSS beat PPF by huge margin. With SIP option one can reduce the amount of risk in ELSS and generate better than average return. There was time when PPF come with 12% return but now it’s come down to 8.1. So investing in PPF now is not wise.
Reliance Tax Save Fund(G) is our pick from all fund.  Its high performance fund in ELSS category. One can start with minimum 500 INR SIP in ELSS fund. Investor can directly invest in Reliance MF from link: Reliance Mutual Fund.  Start your journey of Investment with Tax saving today.

Not taking risk is the biggest risk in life
Be Smart. Invest Smarty.