Sumeet Industries.. CMP 28... Multibagger in Making....

Friends,

I came across Sumeet Industries recently… and found it very interesting story…. It has all guts to emerge as a potential multibagger in years to come…… I believe still the company is in nascent stage…. Good Things has started to come out now….

Market Cap : 115 Crores

Turnover : 370 Crores… ( 3 times from MCAP)

66% of Stocks are in strong hands…

The company started as a yarn manufacturing unit and has now grown in a huge conglomerate with various businesses with an annual turn over of Rs. 1200 million (USD 27 million).

See the recent announcements at bseindia website… they are quite interesting….

Sumeet Industries Ltd to Invest 530 Crores in the Green Field Project of 200000 tons per annum of new continous Poly Condensation (CP) Plant in next two years and further expansion in the production capacity of POY and FDY by 47000 TPA and another 26 MW Gas Based Genset Captive Plant.

Chairman Said that company is getting overwhelming response in the quality of POY/FDY produced from recently commissioned project and full results of this project will reflect in this year balance sheet. They are expecting to achieve turnover of 700 Crores in this financial year…. It means Just double from current turnover…. There are futher new mega expansion programs yet to be announced.,…..

In the first phase of expansion production capacity of POY and FDY will be increased from 53000 TPA to 100000 TPA(Just double) and setting up another 6MW Gas Based power Plant with total project cost of 130 Crores…. After completion of this expansion the total turnover of company will be increased by Rs200 Crores and EBIDTA by 40 Crores….

In the second phase of Expansion plan, new green field Project of 200000 TPA continous Poly condensation Plant (CP) will be setup to manufacture the Bright FDY Yarns, POY Yarns, Yarn Grade and Bottle Grade Pet Chips and setting up another 20MW Gas Based Power Plant with total project cost of 400 Crores… After completion of this project Company will achieve record turnover of 2500 Crores ………

There will be issue of Equity shares up to an amount of 60 crores through QIP/ADR/GDRs…… and this is going to be very interesting…. I don’t know at which price they will place share but guess is that it will be much higher….

Also they are going to allot preferential warrants to promoters upto a amount of 30 Crores….

Friends, this is just the beginning for this company to become a true multibagger….. it is showing all signs of a multibagger……

Till now no big brokerage house is holding its stocks...... I am sure everybody will try to catch it after a timeframe of 6 months.. when the real results will start flowing in........ Just watch it....

Last One Shining Year....

Friends,

I gave a call on UTV Software on Tuesday, December 29, 2009…… Now every big Broker House is recommending UTV Software for a Target of 750 Rs….. I think they are chasing me… lol….According to me it is gem of share to be held for long term.. i.e for atleast 3-4 years… I wrote that this stock has come down from sub 900 levels to 450 levels and is not running at all…. From December 2009 to till yet many many stocks has climbed the mountain… but this stock is where it was six months before…. I have mentioned many times that each and every stock suggested by me will run.. sooner or later… sabka time aega….. none of my call will give you average return… all are the candidates of becoming Multibagger from suggested levels…. Look at AK Capital.. I recommended it at CMP 333 and it has touched a new high of Rs427.. And that too in just 12 days…. What else one want….

I missed out to mention Nahar Spinning Mills when it was hovering at Rs70 Levels….. It is still along term buy…. Lot of steam has still left….

I am very bullish on educational space as every big Indian corporate house is try to enter into it… sooner or later Reliance will also enter it…. Nikhil Gandhi’s Own SKIL Infra has already taken a big stake in Everonn Systems.. I would like to mention some stocks here… Jetking Infotrain(I have mentioned it earlier also), FirstObject Technology, Visu International….. Keep an eye on these three….. Specially on Firstobject technology….

Excel Crop Care just double from where I have recommended…. In just one year… this was a risk free call.. I don’t know how many of readers has bought this stock at that time….

I would like to specially mention my old call of Atlanta… ON 15-July 2010 I have publishes a comprehensive list of some very good stocks… Atlanta was one of them… At that time it was at 65 levels…. Now Standing Firm at 322…….. Five times return in just one year… isn’t it a Multibagger?????

Asahi Songwon gave 4 times returns… Now at 74 levels….

Sharon Bio Doubled…. Now at 140 levels….

eClerex Services moved from 330 to 440…..

Zylog from 265 to 510…..

Voltamp Transformers from 725 to 1033…. Long way to go from here also…..

Jayaswal Neco(My Old Favourite) moved from 20 to 40…. It is a Buy Still..

JB Chemicals from 48 to 100… Still a Lot of Steam has left in JB Chemicals….

Many More to Count……

Some stocks like PSL, Sanghvi Movers, SBTL, SREI, HCC, Nitco, Kanoria Chemicals… Days will come for these also and when they will run nobody will be able to catch them…..

B and A (BSE Code: 508136)… Going Dirt Cheap

Friends,

Keep a watch on B and A…. bse code is 508136……

CMP: 155…. EPS: 25, PE: 6……… industry PE:14 ….. 65% Shares are in strong hands….

This stock has just started to move after a long stagnated period… It has a very small equity of just 3.1 crores…. This is a big positive… any positive news and good results can fetch good returns due to small equity… this company is in tea business… according to me tea is going to be a big business in next years… tea prices are poised to rise further…. I have more to write about this stock but due to time limitation I am keeping my note very very short…

Also, keep a close eye on Technofab Engineering…. Very limited floating stocks… anybody can jack up prices… I am not sure but its price can rise like ARSS Infra which was listed few months back…..

Small update

AK Capital recommended at Rs 303.. now at 420……

My Old Pick...Schrader Duncan is Rocking..

Now at 248…

Friends...

See my old call Schrader Duncan.... It touched a New High of 248 today..... It has still long way to go from here also.... I told that kabhi na kabhi to chalega.... just after my recommendation at Rs200 it started falling .. it came to 140 levels also… see, now it is going to cross 250 levels also…. The main thing is to hold and have patience to reap real profits

It has market cap of Only 90 crores and it has got 200 crores by selling its land.... 75% stocks are held in strong hands of promoters.... it has a very very tiny equity of 3.5 crores... What else one want from me??????????

Schrader Duncan closed up 19.99%, or Rs 41.45 at Rs 248.85, which is a 52-week high. It touched an intraday high of Rs 248.85 and an intraday low of Rs 235.

The company raised close to Rs 200 crore selling land in Mulund, Mumbai by selling 4.5 acres of land to Kalpataru Builders, reported a news story. The total land area is a little over 150,000 square feet with a floor space index (FSI) of two. However the management have not confirmed the deal.

There were 10656 buyers at the upper freeze...

Surana Corp…. CMP: 83… Excellent Pick..

Friends,

Surana Corp is my old favorite stock and I hold this stock in my portfolio as well…. Its profits are going year by year from year 2005….

Profit in 2005: 16 crores

Profit in 2006: 20 crores

Profit in 2007: 32 crores

Profit in 2008: 29 crores (its was due to global turmoil)

Profit in 2009: 53 crores

Now what is excellent is .. Market CAP is only 178 Crores but company is doing a turnover of 4000 crores…. Fantastic…. So to buy a business of 4000 crores one need to invest mere 178 crores….. To me its excellent…..

It’s a 10 Paid up share… lifetime high is 130… it’s a regular dividend paying company…. Going at PE of just 4.4, while Industry is PE is above 100……

Surana Corporation belongs to prestigious Surana Group…. Surana group is into Steel, Metal, Power, Infrastructure..

Surana Corporation is in Jewellery Manufacturign, Jewellery Outlets, Trading(Bullion, Steel), Power Generation(wind power)….. Surana Corporation has conceived a wind turbine project for the generation of Wind Power. At a total cost of Rs.170 crores, the company plans to install around 17 wind turbines to generate power of a total capacity of 25 WW which in turn will have a potential to produce 8,00,00,000 units of electricity per annum. The electricity produced will be sold to the Tamil Nadu Electricity Board (TNEB) with the permission granted by the state government for third party sales…..In long run this wind turbine project will add substantial amount of revenue in TOP and Bottom line of surana corporation.............Surana manufacture jewels with antique, artistic, trendy and innovative gold created with intricate artistry and delicate craftsmanship. The timeless art of superior craftsmanship comes alive in a glittering display of magnificent self-made designs……the jewellery unit of Surana Corporation has emerged as a key player in the national markets and has also established itself as an Export House with sound business in countries such as Singapore and Dubai. The company has envisaged an export of over Rs.350 crores during the year 2005-2006….

85% of shares of Surana Corporation are closely held in Strong hands… Only 15% Shares are floating with Public… this is a very big positive…. From last 6 Quarters Promoters are acquiring shares under creeping acquisition route…. This shows the sign of confidence in their own company…… This company has just started to run and still has a long way to go from here…..

In my views this company is a great company to hold for long term…….

Can Fin Homes... CMP- 127.. Needs Re-rating now!!!

Friends, I came across this stock today and I surprised how come I missed this GEM share….. according to me this stock is highly undervalued and under priced…. 10 Paid Up, Equity of Just 20 Crores…. From last 3 years YoY its profits are increasing … good reserves of 220 crores… regular dividend paying company… available at a PE of Just 7 while industry PE is at 25…. 66 percent of shareholding is in strong hands…….Isn’t it amazing….. Keeping in mind its business model it has to be rerated for sure…

Set up under the sponsorship of Canara Bank in 1987, Can Fin Homes is the first bank sponsored Housing Finance Company in India . The expertise gained by us in housing finance over the years gives us the confidence to come upto your expectations. A unique personal touch in service makes us different from others.

COMPANY PROFILE

• CFHL was promoted in 1987, the "International Year for Shelter for the Homeless" by Canara Bank in association with reputed financial institutions including HDFC and UTI. Now NHB is also an important equity holder in CFHL.
• CFHL was set up with the mission of promoting HOME OWNERSHIP and increasing HOUSING STOCK all over the country.
• The vision of Canara Bank on the relevance of having an exclusive outfit for providing housing finance at a time when institutional finance was not flowing to the housing sector to the required extent and banks had constraints in locking up funds in long term housing finance saw the birth of CFHL.

• Can Fin Homes Ltd. (CFHL) is the first and the biggest bank sponsored Housing Finance Company (HFC) in the country and one among the top players in the country's housing finance sector.
• The company has a standing of over 22 years.
• CFHL is one among the four HFCs selected by NHB in its first phase of securitisation programme.
• CFHL enjoys 5 Star rating from NHB for the purpose of refinance.
• CFHL's Deposit programme enjoys "MAA+" rating, which is the highest possible under High Safety rating.
• CFHL has an all India presence with a network of 40 branches.

Can Fin Homes is a close affiliate of Canara Bank, with the bank owning over a quarter of the total shareholding in our company. In tandem to this staunch support, we also have Unit Trust of India and HDFC as our major shareholders besides the public.

According to me this company is going to rerated by market sooner or later…. Though this stock has run during last few weeks but still I feel that it is a very long term story… its in still in its nascent stage and one has to look at its future potential….. housing insurance market in India is now booming and economy is coming on track now…. In coming years this company will find more and more customers and hence will make good profits…..