GANDHIMATHI APPLIANCES - OPPORTUNITIES UNLIMITED , BUT ......

There is number of examples in Indian

stock market for promoters inability/laziness

or their negative attitude towards other share

holders wasting chances of immense wealth

creation. Gandhimathi Appliances is such a story.

Gandhimathi is making household appliances

like LPG Stove, Pressure cooker, Mixer

Grinder ..etc in the brand name 'BUTTERFLY'.

This is the No.1 brand in case of LPG Stove in

South India and also have a good

market share in other products. But the

financial side of this company is not a

robust one. We can’t blame anyone who

suspect that the promoters are siphoning 

of  funds generated in this company and

divert the same to companies privately

owned by the same/related parties. Presence

of other companies of promoters in the same

line of business is a real misfortune  to the

minority share holders of Gandhimathi

Appliances.Any way , earlier this company

went for BIFR and later as per a scheme the

promoters bring more funds to the company

to revive it. Now ,company is going

to merge another group company

Gangadharam Appliances with itself

and  final decision regarding merger

ratio ..etc are expecting soon. It is expected

that after the merger is completed company

will sell its surplus land and pay back dues

to strengthen its balance sheet. Some of the

recent indications from the management

giving some hopes about the change in the

attitude of management. I suspect ,

the huge wealth created by peers like TTK

Prestige and Hawkins

Cookers in recent past may also be a  reason

for  a second thought for the management of

Gandhimathi. If the management is really

willing to change its attitude and ready to

consolidate its operations in the listed company

and show good corporate governance 

the scope is very vast and this may be a

multi bagger even from current level. Since

its future is depends on many ‘IF’s  only high

risk takers can consider this .Now it is

trading around Rs.73/-

* Earlier discussed in MMB around Rs.55/-

* with inputs from friends

TRANSPEK INDUSTRY - BOOK PROFIT

I have recommended a BUY on TRANSPEK INDUSTRY at Rs.100/-  on 18th  July 2010 .(YOU CAN READ THE OLD REPORT HERE ) After one  month,now it is quoting around Rs.160/  - an appreciation of   60 %. Requesting profit booking at current level.

SANGAL PAPERS - BOOK PROFIT

I have recommended a BUY on SANGAL PAPERS at Rs.17/-  on 11th  May 2010 .(YOU CAN READ THE OLD REPORT HERE ) After three months,now it is quoting around Rs.30/  - an appreciation of  more than 80 %. Requesting profit booking at current level

RAM RATNA WIRES - BOOK PROFIT

I have recommended a BUY on RAM RATNA WIRES at Rs.48/-  on 15th  April 2010 .(YOU CAN READ THE OLD REPORT HERE ) After four months,now it is quoting around Rs.109  - an appreciation of  more than 100 %. Requesting profit booking at current level

SIYARAM SILK MILLS LTD - BOOK PARTIAL PROFIT

I have recommended a BUY on SIYARAM SILK MILLS LTD at Rs.168/-  on 29 April 2010 .(YOU CAN READ THE OLD REPORT HERE ) Now it is quoting around Rs.360  - an appreciation of 120 % in four months. Those who are not interested to take high level of risk may SELL 50% of holding at current level and keep balance 50% cost free.

TWO FACES OF INDIAN STOCK MARKET CELEBRITIES

Below is a part  of an interview published in Economic Times last week with Shankar Sharma  and his wife Devina Mehra  of  First Global Stock Broking :
=============================
Q , Shankar, at 18000, are you a bull, are you a bear or I should make the standard assumption that you do not like the markets?

A ,Shankar Sharma: It should not be a standard assumption, but I do not like the markets and again just to answer your previous question all over again, it is our belief and very strong belief that it is almost impossible for anybody as an aggregate class to make money in stock markets. Stock markets are meant to enrich a handful of people at the expense of the vast masses. That is the long-term history of stock markets and I am willing to argue with anybody with any amount of data. I always have that perspective when we are going out there and talking about markets, the guy listening to this point of view should be very clear and it is a damn tough game to make money in markets, even with professionals like us.

=============================
Yes , If anybody in Indian Stock Market have right to say this ,that is only these two guys.Because they have played a vital role in previous stock market crashes  and took the money of retailers and later caught and punished by authorities like SEBI and SAT. But the irony is that popular media like CNBC and Economic Times are giving undue coverage to these type of  Culprits and presenting such peoples are the great personalities of Indian Stock Market.

These are the type of people guiding us through media .So ,Don't swallow the comments of Celebrities and Media , Think yourself before investing your hard earned money


You can access some reports on Sharma from below links.

1)
http://www.moneylife.in/article/8/4301.html

2)
http://www.india-today.com/itoday/20010409/cover-modus4.shtml
3)
http://www.indianexpress.com/oldStory/10020/
4)
http://www.suchetadalal.com/?id=990e923c-3029-eb1a-492e82209011&base=sub_sections_content&f&t=First+Global+Stockbroking%3A+Are+they+victims+or+villains%3F

JK AGRIGENETICS -DOUBLED IN 32 SESSIONS ,TIME TO MAKE IT COST FREE

I have recommended a BUY on JK AGRIGENETICS at Rs.170/-  on 11 July 2010 .(YOU CAN READ THE OLD REPORT HERE ) After just 32 trading sessions ,now it is quoting around Rs.340  - an appreciation of 100 % in these few days.Now it is known from sources that the hearing of the pending case of de-merger again postponed by the court. Those who are not interested to take high level of risk may SELL 50% of holding at current level and keep balance 50% cost free.

VIMAL OIL AND FOODS LTD -BUY

VIMAL OIL AND FOODS is one of the largest
listed  companies in edible oil sector. It is the
flagship company of VIMAL group based in
Gujarat .Its products list includes cottonseed
oil, groundnut oil, mustard oil, Soyabean oil,
Sunflower oil and Corn oil. Company having
a strong marketing network with 50 depots ,
1500 distributors and presence in 5 lac retail
outlets across 21 states in India . Company is
selling its products under the brand name
‘VIMAL’ and ‘LIPI’ . Company has also
entered in the space of Table Margarine with
‘VImal Lite’ .Another company producing
margarine is Zydus Wellness . Companies
from the edible oil and food space are going
through a re rating in Indian stock Market.
Another comparable company is JVL Agro
which is in the same space has appreciated
many fold in the recent past. Vimal
posted a turnover of Rs.622 Cr and a net profit
of Rs.3 Cr in last full year.(This is a low margin
high volume business) . But ,for the three months
ended June qtr alone ,company has improved its
performance and posted an EPS of Rs.5.24 .
When we look into the share holding pattern ,
in the first instance we may feel that the promoter
holding is low as 19% .But the entire share
holding put under the large public category is held
by the associated of promoters itself ,thus it takes
to 59%. Moreover , company is now going to
issue 70 lac shares on pref.basis to the promoters,
which an an indication of their confidence in the
company .Using this fund company is planning to
add more value added products and improve its
marketing network. All together , it is a risk less
BUY at CMP around RS.60/-

APM INDUSTRIES - BUY

APM INDUSTRIES is a Rajastan base Synthetic blended

yarn manufacturing company  with a capacity of 49280

Spindles . Company is performing well for the past

many years . Recently company has initiated various

steps to improve its capacity utilization and cutting

costs which is expected to augur well for the company

to reap better financials in near future. At a time of

re-rating in textile sector stocks are going on ,

one may add in small quantity for decent return in

medium term. For the full year ended APM posted a

turnover of Rs.196 Cr a net profit of Rs.6.6 Cr.

On an equity base of 4.32 Cr. ,EPS is around Rs.15/- .

For the June qtr ended 3 months ,Company posted a

turnover of Rs.54 Cr v/s Rs.44 Cr and a net profit

of Rs.3.16 Cr v/s Rs.1 Cr .EPS for three month is

Rs.7.3 v/s Rs.2.5/- on FV 10 Share . Company’s corporate governance

quality is a bit concerning factor and limiting an

aggressive BUY call .So take limited exposure at

current market price of Rs.69/-