Monday, May 10, 2010


It is not very easy to put a BUY/HOLD /SELL tag on a company before it stabilizing somewhere ,especially if there is no other comparable companies in that particular space. Anyway let us look at some points.


* Talwalkar is the leader in a sector with huge potential and relatively untapped.

* Non promoter share holders in this company includes some smart guys like R.Damani and Shivanand Shankar Manekar ,both are well known for their smart moves and wealth creation in stock market.

*There was no 'offer for sale' from these non promoter holders in IPO ,which means they are expecting better days ahead.

* Most of the funds raised through IPO is going for expansion of business and repayment of loans

* Since 'Talwalkar' the brand name is well known,possibility of brand extension to other related products and services related with fitness segment is easy.

* Because of its financial strength ,company is in a better position to compete with un- organised players.

* Post listing ,Mutual fund are showing interest and Reliance Mutual fund bought about 15 lakhs shares today  ( Total shares offered in IPO was 60 lakhs)


Since there is no clarity about the usage of brand name among promoters and their  relatives , disputes may arise in future.

Company may forced to raise further  funds  for expansion in not so distant future either through debt or equity.


 * A theme + growth stock will not come at a cheap rate.
 * Very big chance to outperform the market ,considering the potential of the industry and the position of the company in it.

So I recommend a HOLD at current level and a BUY on decline for medium to long term investors having some appetite for risk  .CMP is Rs.162 /-


  1. Valuepick,

    Brilliant analysis. I liked really. You provide 360 Degree view.

    Thank you.

  2. sir,
    pls light on federalmougalgotez...

  3. Dear Naveen

    Not strictly following Fed.Mogul Goetze,feels better plays are available in auto sector.



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