There was sharp
appreciation in the price of gold in past few years.This is mainly due to a
shift in asset allocation by individuals and countries in favor of gold at a
time of financial turbulence around the glob.This unstoppable increase in gold
prices forcing lower class and lower middle class people to look into cheap
alternatives for the purpose of making ornaments / jewellery .This is not the
trend only in our country but in many other places too.This situation improving
the potential of another business – Imitation Jewellery. Beads is an important
part of this business.This business is dominated by unorganised sector and
there is only one listed company from this space – Banaras Beads which is
manufacturing in manufacturing and exporting glass beads, imitation
jewellery and other similar products.Banaras beads came out with an IPO in 1995
with a premium of Rs.75 per share. Thereafter there was some serious disputes
between the promoter family members which ends in a series of court cases and
intervention of company low board ( CLB).Trading of company’s stock suspended
from stock exchanges from 2003 to 2011.During this period company’s growth
severely affected and no dividend distributed.Now company almost
settled the disputed and cancelled the allocation of about 30 lakhs
shares issued to a group of family members according to the direction of CLB.
From a turnover of Rs.15 Cr in 2007 company grown to a Rs.35 Cr in 2011-12.Now
BBL is planning to tap the opportunities aggressively by expanding its design
and production facilities ,finding new export channels ,entering into new
territories ..etc.At present company exporting its products to about 60
countries including USA, Africa, Europe and Arabian countries.Company is now
adding another 75000 Sq Ft facility ta Varanasi which is expected to complete
in another few months.Recently company launched fashion jewellery items under
the brand ‘De-Lemon’ and also launched an online shopping portal for
Fashion Jewelery & accessories ( Link below).Even this industry is
dominated by un organized players ,company’s like BBL having advantage of most
modern designing facilities,adoption of contemporary styles,Image of brand
..etc. .FY 2011-12 was company’s first full year post re-listing .In FY 2011-12
,BBL reported a sales of Rs.34 Cr , net profit of Rs.4.75 Cr and an EPS of
Rs.7.10.Another point to note is its dividend pay out .Last year company
declared a dividend of 40 % .On the basis of current market price this
provided a dividend yield of 10% ( tax free) .I believe this was one of
the highest dividend yields last year.We can’t guarantee this will repeat in
future but there is possibility for the same since company is expected to
complete this FY too with similar level of profit. Since company is running
near its full capacity ,performance is expected to improve further with
the functioning of new facilities by next year. End of long dispute at
management level will help the company to concentrate in business from hereon
and demand scenario for imitation jewellery is expected to pick up further.
Even this company’s stock listed in both stock exchanges it frequently traded
only in BSE .Because of this low liquidity ,it is only suitable for those like
high risk high profit kind bets and not for average risk takers.Invest
only a very small portion of your corpus in these kind bets.BBL is
trading at a price close to Rs.40 /-
Link to Company's
online shopping portal HERE
Link to Company
website HERE
Sir wish u a very happy and prosperous New Year. I wanted to know about SUZLON. Should we buy Suzlon at these levels of 18.50 as the CDR is going to get final approval very soon ??????
ReplyDeleteI think so but must hold at least 2 years.
DeleteDear VP,
ReplyDeleteHave you done any study on Ricoh India? I am not talking about their delisiting prospects. I want to know what are your thoughts on its fundamentals. It is reporting strong growth in topline (50%) but with losses. As with many successful MNCs, the losses look suspicious in nature. The co management reported that they are targeting a 1000 crore topline by FY14. I must add that it is a pure trading company. They buy printers and copiers from Ricoh Global and sell them through Ricoh India. Will appreciate any thoughts.
Thanks!
Dear Rahul
DeleteThis trend is not rare just before open offer in India.We,retail investors are helpless till there is some changes in laws as in the case of US.Many cos independent directors are just rubber stamps.In this case I am not strictly tracking this stock .Since the company importing products from parent , sharp depreciation of rupee value may be a big negative in recent times.
In India ,majority of promoters treating minority share holder as their enemies after collecting money from them :(
VP Ji,
ReplyDeletePlease comment on following scrips at cmp for holding 1-2 yeras:-
1. Jai Corporation
2. Canfin home finance
3. Aurobindo pharma
Regards,
Manmohan Garg
Hold Canfin And Aurobino .Not tracking Jai corp
DeleteSir,
ReplyDeleteWish you rocking new year!!
What is your view on zylong. Looks like because of manipulation this stock lost its 80% market cap. Do you think we can enter in this stock for long term ?
I am not interested till its promoters are not interested. :)
DeleteSir,
ReplyDeleteI track your calls regularly, just wanted to know, from last 2 - 3 calls, the stock which you select are in T to T group, so unable to buy.
Regards,
Aajay
I don't know why you are unable to buy a 'T' group stock ,if enough fund is available in your trading account !!
DeleteMe too unable to buy T trade stocks, already i have mentioned here.Brokers told that T trade stocks is banned in their trading terminal.Fortunately I bought Heritage foods when it was not in T trade, that is not a problem when it comes to SELL but again i can't BUY heritage foods if it in T trade.
DeleteBala
Dear vp,
ReplyDeletecan u tell me about dishman pharma i m holding at 119/-
Hold
ReplyDeleteWhat is ur opinion on spicejet at the cmp?
ReplyDeleteHi VP Sir,
ReplyDeleteJagatjit has slightly similar story. Any update on Jagatjit? Holding for the last 2 years.
Please avoid repeating questions on same company in consecutive days .Commented about Jagatjit yesterday below 'Fluidomat - update'
DeletePls co-operate :)
Dear sir,
ReplyDeleteHappy new year, i am following your blog for the past 6 months & acquired lot of knowledge through it, thanks for that first, then you had suggested ing vysya & yes in banking sector, which one you most prefer at current cmp? & your thoughts about banking sector in 2013, since it had a good run last year.
Dear Satish
DeleteI like both ,a bit more- Yes Bank :)
Sir I hold Rossell India and am planning to add more and more at CMP. I have conviction in this company's business especially the food chain.
ReplyDeleteDo you suggest adding more at CMP or wait for below 40 levels.
Thanks
Dear Deepak
DeleteNothing is bigger than own conviction.Investors will benefit if the promoters de-merge the QSR business reach a critical size and able to stand on its own feet.
Hi,i am quite new in stock market wanted to ask in banaras beads there seems to be a difference of 9 points in bse and nse , so what does that mean if i buy in nse will i be able to get in 32 rupees only,,,and wanted your views on dhanlakshmi bank.. if u out some light it will highly appreciated
ReplyDeleteWhether one can buy it from NSE is the question.No frequent trading and volume in NSE.
DeleteNot tracking Dhan.Bank.
Dear sir
ReplyDeleteyour view on aarti industries n rennaisance jwellers..
Neutral on Aarti ,not tracking Ren.Jewl.
DeleteDear Sir,
ReplyDeleteHow to select banking stocks. I want to invest in this sector but pretty confused how to analyze banking stocks. Banking business are a lot more complicated than other sector. I will be highly greatful if you can write down one article on it or point us some link for this.
I don't think banking is a complicated business to understand but it is really boring ..
DeleteConcentrate in asset quality ,Capital adequacy, quantum of fee based services,treasury operations,ROE.. etc if other things remaining same.
Dear Sir
ReplyDeleteYour views on INDO WIND & WATERBASE please. Waterbase management seems good with their moderate expansion plans. Indowind has good business but seems to have very poor management.
Thanks
Jimmy
Not tracking both
DeleteSir thanx for replying my query on Suzlon. My next query is on VENUS REMEDIES. its EPS is nearly 60 and its CMP is just 281. why is it getting such a low valuations . whether there is any problem with management quality etc??? Should i buy it at Rs. 281 levels?????
ReplyDeleteBit skeptical about the management quality .Even the company showing high EPS ,its cash flow seems under pressure.Neutral on it.
DeleteSir,
ReplyDeleteAny updates on Kennametal please.
Regards,
Aajay
Nothing more than provided in the below link :
Deletehttp://value-picks.blogspot.in/2012/03/kennametal-india-book-partial-profit.html
Dear Sir,
ReplyDeletePlease may i know your view on motilal oswal financial services
your comments on claris lifesciences VP?
ReplyDeleteMany times discussed as comments,search
Deletesir,
ReplyDeletewhat is your view on madhucon projects?
is it properly valued at cmp?
Not bad at current price.But one should show patience till sector re-rating happens.
DeleteHow is astral poly, Accelya kale ,Uco bank n aditya birla Nuvo appear to you?
ReplyDeleteNot tracking Uco Bank other two stocks are already discussed,use the search option.
DeleteHow is Havells India n Karnataka bank .i recently entered at 655 n 185 in them .pl give your va
ReplyDeleteUnable advice
Hold Havells.Karnataka bank depends on many factors other than fundamentals .unable to predict the outcome.
DeleteSir,
ReplyDeleteYou mentioned that value will unlock if QSR business is transferred and run as subsidiary
My question is will the stock be attractive even though the company doesn't de-merge and retain the business under same umbrella?
There may be re-rating when the QSR business reaches a critical mass .But ,if at that time tea prices come down,it may not be a good scenario and the co may not get the valuation which is available to pure QSR plays.
DeleteWhich company share does this relate please
DeleteDear VP ,
ReplyDeleteI am holding Ganesha Ecosphere from past 1.5yrs.bought it at 65rs in good quatiites.on going through it's growth record..can i hold it or average it or exit..Please help me on the same.
Not tracking it.
DeleteDear Sir, per BSE/NSE latest anoucement on Granules -
ReplyDeleteDr A Bhaskar Krishna has sold 3168 shares worth Rs 5.17 lacs.
So my question is why the selling witnessed from promoters? is something cooking behind the scens? We all small investors seeking your views on this.
Pls advise.
http://t.in.com/3vp2
He is not a promoter or director but the CEO.Selling quantity is very small compared with the buying by the promoters in past few months.Anyway selling by an insider is a point to note and it is a negative factor if it is not for meeting some personal purpose and quantity is big.Wait and watch any further selling is happening.
DeleteYour views on Caplin point, Eimco Elecon n Vijaya bank please
ReplyDeleteHold
ReplyDeleteYour views on SKS Micro please
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteDear sir any View on PI Industries,Everon Education
ReplyDelete