In a difficult economic environment like the present
one, stock selection for investment needs extra care ,especially in the case of small and
mid caps.At present there are many challenges for Corporate India like slowing
demand,mounting interest burden,sharp
fall in Rupee value ..etc.etc..As far as the investors in small and mid caps are
concerned another important threat is the frauds and foul plays by the
promoters and fudged balance sheets.
This
week, let us look into a company – BLUE STAR INFOTECH(BSIL) - which is suitable
for Investment on many counts in this tough situation.This Mumbai based mid
size IT company belongs to the reputed Blue Star Group .Considering the history
and reputation of promoters there is no chance for Zylog Systems,Glodyne Techno
..etc type developments in this company
.Company operating in different verticals of IT like
Business intelligence and Analytics , Cloud computing,Mobility
Computing,Product Engineering,Testing ..etc. Company concentrating mainly in
Healthcare,Pharma,Manufacturing ,Travel and Hospitality and Media and
Entertainment sectors.BSIL’s operations
span across USA, UK, Europe, India, Japan and Singapore. A major portion of
income is deriving from US market.Revival in US economy is expected to bring
more growth opportunities for the company going forward.In recent times company
also trying to grow through inorganic route.Last year BSIL acquired Singapore
based Infostack Solutions, that specialises in providing value chain management
solutions.Recently company invested in the equity of Activecubes, which is a
global firm operating in the Decision
Management space. In the last few quarters ,company reporting out performance and high growth rate compared
with other companies from the same space.In the latest June quarter ,on a
consolidated basis ,company reported a turnover of Rs.47 Cr ( Rs.31 Cr) and a
net profit of Rs.4 Cr ( Rs.89 lakhs) .BSIL already reported an EPS of Rs.4 in
June quarter alone which is close to its last full year EPS. Company having an
un interrupted dividend paying record for the past 13 years.
A zero debt company with good balance sheet from a reputed business group and earning major portion of income from overseas is a good choice in the current circumstances.Stock is currently available even below its book value @ Rs.72.Recommending
a BUY for long term @ CMP.Stock listed both in NSE and BSE
10 Year Performance at a glance :
Link to Company Website HERE
Disc: I have vested interest in BSIL
Sir,
ReplyDeleteRequest your views on Havells(@610), Emami(@440) and Asian paints(@410). I think these are good buys at current levels for the long term, but would like your views as well..
Regards,
Anand
Many experts are now writing off FMCG stocks on the basis of higher valuation and slow growth in last quarter.But I believe , there is no reason for the same only because of the slow down in one or two quarter and the premium valuations of FMCG stocks will continue mainly because of their 'difficult to replicate' business model and better cash flow compared with other sectors.So FMCG cos with good brands are BUY for me in every dip for long term investors.
DeleteDear sir,
ReplyDeleteKindly suggest one bank & fmcg stock, so that in this market we will have a chance to grab it...
With all negatives,I still prefer Yes Bank for long term Investment .Considering the volatility buy only in SIP mode.From FMCG one can consider Britannia
ReplyDeleteDear sir,
ReplyDeletepl advice on sesa-sterlite after merger.
if we consider market value of it's holding in HZL and cairn india are itself more than sesa-sterlite market cap..!!!
we are getting iron ore, copper, aluminium, Energy aseet at free of cost..!!
Due to multiple issues of our economy, nobody can predict the bottom of market.Investors with long term view can buy sharply corrected stocks in SIP mode .Never buy stocks with borrowed or time bounded fund in these kind of market.
DeleteHi Sir, whats your view on sequent scientific do u think its a good time to enter this stock now ... plz reply......
ReplyDeleteNo change in previous opinion on Sequent
DeleteSir, what is your current view on Rossell. Promoters are buying regularly and have now reached 74.86% .
ReplyDeleteShould we accumulate it
Not tracking strictly post inclusion in Periodic Call Auction
DeleteSir,
ReplyDeleteOrient Bell has come to Rs 40 range
Is it right time to average it down.
looking for your advice
Thanks
Arun
Stocks directly or indirectly connected with Interest rates may take more time to recover.
DeleteSir,
ReplyDeleteRequest your views on HCC, i have bought @40 level, should i keep it or exit or accumulate?
Please reply please
Not tracking HCC
ReplyDeletehi,
ReplyDeleteits surprise to see kaveri seeds results, are you sure those figures are accurate and not "fudged"? they dont pay excise duty, very meager tax, it resembles like some specific IT companies results and later vanished. the biggest seed company in the world monsanto is having somewhat same sales for last couple of years, and kaveri is showing 100 percent growth yoy.
thanks,
jayesh
Dear Jayesh
DeleteAs per Indian Tax laws ,Income from sale of seeds is treated as agricultural income .You will get a clear picture of tax treatment on such income from the below link which will clear your doubt about the lower tax paid by Kaveri
http://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html
Hi VP,
DeleteBut monsanto is having stagnated growth in sales and kaveri is showing 100% yoy, what is so special about them against the world giant to show such kind of growth, if they have special seeds/genetical engineering techniques than everyone else then why they are not marketing those seeds or techniques outside india? so many questions :), if you are going for AGM it will be nice to ask
Thanks,
Jay
Monsanto is a world giant but the listed company in India is not a giant.In other words they are cheating the minority share holders of listed company by launching all new products through their unlisted company which is a direct subsidiary of the parent company.Only two products ie, Roundup herbicide and Dekalb Maize seeds are marketed through the listed Monsanto.As you are aware seed is not a products like any industrial product and its products can't increased in short notice even there is more demand.More than that varities required for Indian market or even certain regional markets may not suitable for overseas .If there is sufficient demand for whatever they can supply ,why they need to go for out side India ? .Now they are planning to enter in northern market.
Deletehi sir .. wats ur view on biocon .. Seems the profile luks gud .. wats ur suggestion on this.
ReplyDeleteStock recommended many times in the past,no change in views
DeleteHi Sir,
ReplyDeleteRequest your views on NHPC, I have bought @ 27, I want to hold for 10 years. Please advice me on this.
I am not positive on NHPC
DeleteKinldy let me know your thoughts on JP associates. I have bought @78.
ReplyDeleteFrankly speaking I don't like the management of JP Group ,so not tracking any of the cos from this group.In the past they took many anti minority share holder friendly decisions.
DeleteDear VP
ReplyDeleteShall be thankful if you could give your comments on Lakshmi Energy.
Regards
It is known that the promoters of Lakshmi Energy having some exposure in NSEL related issue.This may be the reason for fall in Lakshmi's share price.
DeleteDo you track Ybrant Digital? Whats your take on Westlife Development, they are finally started trading shares :-)
ReplyDeleteAlso last one Assam Company?
Not tracking Ybrant and Assam Company.Even with the Mc donald tag ,CMP of Westlife is very high.
DeleteDear Valuepick, do you have any idea on Nucleus software? There were some strong recommendation on this stock in 2008-09. But as a product oriented IT company its performance has been dismal. Growth seems to be an issue; don't know whether leadership / management team is an issue. How does it compare with Blue Star Info?? I have burnt my fingers in 2008; entered @ 170 level on recommendation of some analyst.
ReplyDeleteAny idea about Heleos and Metheson. Business India has run a corporate story on this in the latest issue. But I found some shares pledged by promoter.
regards!-Follower