GRANULES INDIA
Granules India initially recommended at Rs.79/- ( Old posting HERE) and currently trading around Rs.190/-
Today company declared good results with a rise of more than 200 % in net profit compared with same period last year. Recommending to hold the stock for long term
For details and management's comment ,click HERE
For latest information on company's joint venture with Ajinomoto Omnichem ,Click HERE
HEG LTD
HEG Ltd earlier recommended at Rs.218 /- ( Old posting HERE) and currently trading around Rs.232/-
Company posted 165 % jump in next profit in latest September quarter,Recommending to hold it for long term
Granules India initially recommended at Rs.79/- ( Old posting HERE) and currently trading around Rs.190/-
Today company declared good results with a rise of more than 200 % in net profit compared with same period last year. Recommending to hold the stock for long term
For details and management's comment ,click HERE
For latest information on company's joint venture with Ajinomoto Omnichem ,Click HERE
HEG LTD
HEG Ltd earlier recommended at Rs.218 /- ( Old posting HERE) and currently trading around Rs.232/-
Company posted 165 % jump in next profit in latest September quarter,Recommending to hold it for long term
sir,
ReplyDeleteThe profit of HEG from operating activities after finance cost but before exceptional items has fallen considerably.The only reason the net profit rose is because the company did not report any forex loss in this quarter.
1.My first concern is that the company reported forex losses in the last 5 quarters.Does it indulge in aggressive currency hedging?
2.The profit from operating activities has fallen.Is is a healthy sign?
The only comforting factor is that the promoters have bought aggressively in this stock.Please share your views sir
Dear Sourabh
DeleteIN the case of HEG ,It is only due to the change in inventory position and stock in trade.In the case of forex loss ,it is only a notional factor .
Congrats to all who bought at lower levels. I also read that company is expected 2nd qtr to be better which is in line with what VP sir has mentioned.
ReplyDeleteThe company is expected 350 cr increase in topline in 2015 once their JV goes full stream.
To my surprise, company is expected to complete construction of their JV business by 2nd qtr of next year whereas we were expecting dec 2013 so its on stream and will be completed 1 qtr earlier.
Congrats to all and BIG THANK YOU to VP sir.
Thanks
Dear sir, have a basic question that why every qrtr result is compared with the same qrter in privious year and not with just privious qrter of same year?
ReplyDeleteMany companies have seasonal effect in their business
DeleteI am surprised sir, why does the market react with apathy to such good results of Granules? 228% is no small deal and the stock price hardly moved up!
ReplyDeleteDear Kumar
DeleteDon't worry .Market can't ignore any good company forever.Just concentrate on business growth ,reward will follow.
Sir,I had invested in granules 2000 nos @ 119 for long term.I like to know more about this company and their new plant started function or not.Kindly advice me.
DeleteVP sir, sometimes i dont get reason why stock doesn't move despite giving good results. For ex, see in the case of Granules, profit is up by more than 200% and still no movement. Generally stocks blasts after magnisifant results.
ReplyDeleteHow to look at or interpret such a situations?
I'm not suspecting granules fundamentals but just mentioned as an example with respect to other stocks.
Its because the stock market anticipates the results and the effects is reflected in the price.The only way a stock can rise as soon as the results are announced is to beat the market forecast.Generally the sharp rise and fall of the stock price post results is more like a knee jerk reaction .
Delete
DeleteIn addition to the points Sourabh mentioned above :
This is the trend we are seeing in many stocks during the result declaration time.Some short term players entering in stocks just few days before result and they are exiting on the day or following day of result for making some quick money .Irrespective of the quality of result they will exit and enter another stock which is due for result on the following days.This creates volatility in these days.In many cases they are taking positions without full payment and forced to close out position in stipulated time .Only after this phase stock price move in the true direction.Don't worry about these type movements .Stick to quality and take this type movements as opportunity to enter into good stocks.Our aim is create wealth over long term and not making few rupees over night.
Dear VP Sir,
ReplyDeleteHats of to your service for retail investors like us. We are very grateful to you in every means. I'm seeing good profits after a long time. I'm in mid 30's and a long term investor and will hold my stocks for at least another 10-15 years. I have a gut feeling that India's growth story just started and we are going to gain immensely. I just want to know your view on your past recommendation Sanco Transport. Is it still a hold for long term and can buy more?
Thanks,
Stanley
Stanley ,Hold it now.One more suggestion - many people saying this stock is good for 10 years, 20 years ..etc.In my opinion ,we can't guarantee that for a long time since the consumer preference ,technology .govt policies ..etc are changing very fast .So review ,revision and corrective steps are necessary periodically in any stock.
DeleteWill take this advice. Thank you Sir!
DeleteHi VP.
ReplyDeleteWhat's ur view on "Heritage Foods"?
Have a nice weekend!
Have fun.
Hold
DeleteHi Sir,
ReplyDeletePlease provide your view on CESC, considering HDFC MF bought shares worth 20Cr from open market an average rate of Rs.286.
Thanks,
Sunil
I don't like the way the entire RPG group treating minority share holders.So I will not recommend anything from this group .Price may move up or down , I don't bothered .A stock is good or bad for me is not entirely depends only on price movement.
DeleteDear Sir, have been reading ur posts and love the breadth of ur knowledge. can u tell me:
ReplyDelete1. how many stocks do u keep in ur personal portfolio and how do u decide on weightage?
2. what has been ur return for past 3 or 5 years?
purely for my understanding
regards
ashu
1, less than 10
Delete2,Not interested to disclose it in a public forum.
Dear sir,
ReplyDeleteWhat is your views on South Indian bank / Pricol / Ashok Leylend. I will hold for more than 1year.
Vijayakumar
gvijay2002@gmail.com
Not seeing anything great on these .
DeleteDear VP ji . I salute your knowledge and depth of coverage of the stocks recommended. Kindly suggest some basics on stock investing and the sources of information one should follow to make an informed decision like yours.
ReplyDeleteplease let me know your views on rolta, especially after recent results; and yes ....... keep up the good work
ReplyDeleteHEG:
ReplyDeleteDebt: 1088.41Cr and Debt to equity: 1.50
Promoter buying very aggressively is a good sign but isn't debt a concern?