Thursday, 9 March 2017

Man behind D-Mart: Radhakishan Damani.

D-mart is very well known in India.  Retail market chain which is changing the future of Indian retail market with its sound business model.  Since 2000 when D-mart is started, it has not shut a single store of it. This only justifies strategy and sound business model of it.  And the brain behind this successful business model is Indian Stock Wizard RK Damani.
Rakesh Jhunjhunwala consider Mr Damani as his Guru in his success journey of stock market. Mr RK Damani himself is on of value investor. He has made big fortune in Indian stock market by investing in great Indian corporations in late 80’s. At last known equity portfolio value of Mr RK Damani is around INR 2665cr.
Mr Damani started from almost nothing. At age of 32 with absolute no knowledge of Stocks , he enter the family  business of stock broking. He began as a speculator at the stock market. within no time, he understood that watching was not the best way to make or grow capital, and hence, taking inspiration from the legendary value investor Chandrakant Sampat, he started playing for the long term. His philosophy was long term, say 5 to 10 years. He would see if the product has the potential that far in the future. Gradually, his judgement began getting right, and within the next couple of years he was standing at par with the ranks of the biggies on Dalal Street.
As his nature Mr Damani in 2001 , entered in new unknown space which he has no knowledge about, Retail Business. In a market where more recognized and larger counterparts such as Spencer’s (RP-Sanjiv Goenka Group), More Store (Aditya Birla Retail), Star Bazaar (Tata Group-owned chain of hypermarkets) and Hypercity (Shoppers Stop-owned). In such a competitive market   D mart has successfully managed to crack the code in just about a decade.
Now there is an unsaid rule in the market that – “one must not open any store within a 1km radius of Dmart, simply because, no one can beat them on prices.”
As now   D- Mart is coming with IPO on 8th March , Mr Damani stake of  90 percent will be valued around INR 1600 Cr.  All broker house has given high rating to Dmart IPO so as we also consider it good buy even if one not get hand on IPO,  Investor can buy it after listing long term.
Be Smart. Invest Smartly.

Friday, 3 March 2017

Portfolio2- High-Beta of Tomorrow

Hello Investors,
It’s past 5 months when we have published our first model portfolio undervalue-gems and since then it has delivered stellar 32 % upside so far against Sensex’s 3.69% return.
Now today we bring you our second model folio. This folio we count for investor who has above the average risk profile. So without waiting lets go to our list of high-beta stocks.
Suzlon EnergyMarksan                Pharma   South India BankManali Petrochemical
SectorRenewable        EnergyPharmacyBankPetrochemical
Current Price (23thFeb )18.0549.720.5534.85
M cap(cr)906920343704599
Industries P/E2727.6824.0330.29
Divined Yield00.242.431.43
Book Value1.2310.0230.5716.43
Our Folio allocation (%)30302020

As you notice here we have listed 4 stocks where two are priced high in valuation with PE above industries PE  where other two are at low PE.
Now Suzlon and Marksan Pharmacy are two stock we picked which are currently coming from negative to positive trends. We strongly believe that this two stocks are turnaround story. You can read our last article on Suzlon ‘Suzlon- Wind is Started Flowing’. On other had Marksan Pharm recently got UK regulatory approval from its GOA plant. Year ago due to non-compliance issue stock halved and hit 40 from 100.
For rest two stock South India Bank and Manali Petrochemical, we find that market has valued this stock very low and any positive even can bring them to eye of market. Also both stocks are consistent dividend player which added in its value.
So if you are ready with fund and want some phenomenal return on long side with ability to withstand higher risk then you can pick this folio in one go.
Here we are keeping investment horizon more than 2 year because diamonds took time to get in shape and then shine.
Be Smart. Invest Smartly