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Friday, May 21, 2010

Best Buys



Best buy is a collection of stocks that I personally believe to be really good and hold tremendous value for a Value investors. Here is the current crop of best buy Indian Stock recommendations:

Dec 25,2009: Gujarat Ambuja Exports
May 15,2010: Jayant Agro Organics
July 12,2010: NHPC: National Hydro Power Corporation
Nov 27,2010: Tata Communications: Long Term Multibagger

42 comments:

• Manikandan R said...

Post more stock specific recos.

- http://www.buzzingstocktips.com/

What'sUp Prahalad said...

Manikandan:

Best buys are just these two..
Gujarat Ambuja Exports
and
Jayant Agro Organics..

there are a host of other recommendations.. like Superhouse, universal cables, Regency Ceramics, Camlin Fine chemicals..

but Gujarat Ambuja Exports and Jayant Agro are really really great buys!!

You can also look at: Vippy Industries.. Bhatinda Chemicals.. Agro dutch Industries (speculative) but these are nowhere close to GAEL or Jayant Agro organics in quality or potential..


=happy investing
www.Whatsup-indianstockideas.blogspot.com

D'SOUZA said...

hi Prahalad,
Wanted to know if MOIL IPO is worth the buy considering zero debt , profit making company , only company in manganese ore productions.
or is it better to wait for HINDUSTAN COPPER FPO.

Regards
DSouza

What'sUp Prahalad said...

Dsouza:

I really dont know.. but generally speaking Govt disinvestment stocks are a good buy as govt would try and give a little price appreciation for public after all the public votes govt to power.

I would say buy .. (Pls note I am not buying personally)

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

Prahalad-ji

I happened to chance upon your blog. I went through some of the posts and found your blog to be well-thought and informative. I also want to appreciate the fact that once you give a recommendation on a stock, you follow it later with regular updates.

Please keep up the good work.

Regards,
Rupesh

What'sUp Prahalad said...

Rupesh bhai:

Thank you for your patronage..

I must confess that as the list of stocks grow I will not be able to update the data for all stocks..

and generally I follow up on a select few stocks ..

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

Dear Prahalad,

Thanks a lot,

I have benifited quite a lot from your analysis in this blog. I have a good exposure to both Jayant and GAEL.

I had come across Vinati Organics in some of the other forums as having a good potential. I would request you to spare some time to look at it.

Warm Regards
Sid

What'sUp Prahalad said...

Sid/Anonymous:

Vinati looks good though fairly priced.. I think the company is growing for the next year or so..

It would be best to take initial exposure and add more when the stock is available at a lower level

=happy investing
whatsup-indianstockideas.blogspot.com

Sid said...

Thank you very much,

Regards
Sid

Apoorv said...

Hey Prahalad, What are your thoughts on Nilkamal? It has a very good business and the balance sheet looks pretty decent. Let me know your thoughts on it.

Apoorv said...

If you have time please have a look at Supreme Industries along with Nilkamal. Thanks a lot in advance for your time.

What'sUp Prahalad said...

Apoorv:

Nilkamal: CMP: 288
MArket Cap: 425.52Cr
Debt: 278.73Cr
Reserves: 238.39
Enterprise Value: 674Cr
Gross Profit TTM: 123.94Cr
Net Profit: 47.86Cr
ROCE: 19.28%

So looking at these numbers Nilkamal looks fairly priced.
=========================
Supreme:
CMP: 152
Market Cap: 1931Cr
Debt: 229Cr
Reserves: 351Cr
Enterprise Value: 2115Cr
Sales TTM: 2245Cr
Gross ProfitTTM:358Cr
Net Profit TTM : 170Cr
Enterprise value is more than 10 times Net Profit .. and equal to one times sales..

I would say fairly priced..

Please note with Crude prices rising all things dependent on crude could see a fall in demand and a squeeze in margins..

=happy investing
whatsup-indianstockideas.blogspot.com

Apoorv said...

Thanks a lot Prahalad for your valuable time.

Apoorv said...

Hey Prahalad, what is your opinion on IFCI from 1-2 year perspective? The stock looks cheap to me. Would greatly appreciate your advice. Thanks

WhatsUp said...

Apoorv:

I really dont know how to value a finance company.. so I would pass the buck..

I had heard Mr kotak of Kotak mahindra bank speak.. and I think midsize banks which have a good deposit base would be good buys from an investment perspective..

as they could be bought out by new banks..

=happy investing
whatsup-indianstockideas.blogspot.com

Apoorv said...

Hey Prahalad, what are your views on Surya Pharmaceutical from a long term perspective (3-4 years). I find it to be undervalued and like their business a lot. I particularly like their VIVA Chemsit chain. They have been making a couple of expansions and once they are doen with it, their bottom line could improve and lead to a serious re-rating. Let me know your thoughts. Thanks.

Amitabh Agrawal said...

Sir,

Your both best buys are steadily declining. Jaynat lost more than 40% in last 9 months and GAEL is also near 52 week low. So any second thoughts ? Expecting more correction? Or is it the best time to enter?

Amitabh Agrawal said...

Thanks in advance for valued feed back!

What'sUp Prahalad said...

Amitabh Agarwal:

GAEL has increased its profits by more than 50% from 60Cr to 94Cr in the past 1 year.

Jayant Agro has also increased its profits from 12.46Cr to 24.57Cr a 97% increase in profits.

Now both company stock have not yet responded to these numbers ..
then are actually cheaper than the prices at which they were recommended..
GAEL and Jayant both have also increased their dividends..

My understanding is that these companies are ultra cheap as management is well established and sound..

I would say "Buy!!"

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

HI WhatsUp, the results of Jayant for this quarter is posted in NSE website under Jayant.COnsolidated EPS is 6 while standalone is only 4...Regards...

Anonymous said...

Hi Whatsupji,

I have bought GAEL and SKM EGG going by our recommendations 3 yrs back and now making gr8 profits on them.

Could you recommend 2 more best buys as on date apart from jayant agro?

What'sUp Prahalad said...

Anonymous ji:

Jayant Agro is the best bet.. as its independent of any political developments or even world wide turmoil.. as its got a secular growth and demand..

6-7yrs of consistent growth with no corresponding increase in stock rice.. means... its like a coiled spring with all the potential energy ready to be released..
-----------------------

other choices worth investing are: NHPC and tata comm..

Another stock worth considering (with some exposure is "Bajaj Hindustan" which has the largest sugar processing capacity in Asia .. and dirt cheap due to losses and -ve sentiments surrounding UP mills)

So:
1: Jayant Agro,(60%)
2: NHPC (10%)
3: Tata comm (20%)
4: Baja Hind (10%)

=happy investing
whatsup-indianstockideas

Anonymous said...

Hi Whatsupji,

Whats your take on Assam company at CMP?

What'sUp Prahalad said...

Anonymous ji:

there was a time when I used to be attracted to such stocks .. but nowdays avoid it..

stock could move on operator activity.. but nothing worthwhile in the company as such..

Personally I would avoid investing in Assam company..

Stock to buy is Jayant Agro Organics .. Monday to friday..


=happy investing
whatsup-indianstockideas

Unknown said...

hi
this is raklaw from mmb.
can u take a look at Prima plastics and Rubfila International.

What'sUp Prahalad said...

Raklaw ji:

good to see you here..

Rubfila I have been invested since IPO days.. but I dont think its cheap, company reduced face value from 10 to 5 to become +ve networth eating into publics shareholding..

I will have to fish out my physical shares to sell ;-) ..

Prima plastics is a verysmall company.. I dont think it has any unique qualitites which would suggest an investment..
================
biggest problem in investing is to stick with your investment to profit from it.. Jayant Agro is the stock to hold .. which will give great returns in the future...

there is no use fishing for new ideas when what you own is already a good one..

=happy investing
whatsup-indianstockideas.blogspot.com

What'sUp Prahalad said...

Raklaw ji:

good to see you here..

Rubfila I have been invested since IPO days.. but I dont think its cheap, company reduced face value from 10 to 5 to become +ve networth eating into publics shareholding..

I will have to fish out my physical shares to sell ;-) ..

Prima plastics is a verysmall company.. I dont think it has any unique qualitites which would suggest an investment..
================
biggest problem in investing is to stick with your investment to profit from it.. Jayant Agro is the stock to hold .. which will give great returns in the future...

there is no use fishing for new ideas when what you own is already a good one..

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

Hi Whatsupji,

Could you recommend a multibagger stock which is below Rs 20 CMP?

I hold your recommendations of SKM and GAEL and both have given me gr8 returns. Thanks a ton!

What'sUp Prahalad said...

Anonymous ji:

I think tilaknagar is attractively priced.. could be a multibagger(CMP:30/-) but buy and hold.. (sit tight!)
------------
best bet is Jayant Agro(125/-) .. in the latest Annual report(March 2014) the Jayant Agro Management discussion clearly states that Jayant is moving from being a small cap to a Mid Cap.. I expect 10x in the long term..
-------------
world wide Oil is in its last leg.. (current drop in prices could be linked to whole sale shift of industries from crude oil based raw material to other resources.. )

we could see the end of industralization (or US style use & throw consumerism..) within the next 10 yrs..

before that there could be population reduction efforts at a global scale..

time to start buying
1. "silver"/"gold" (small quantities)
2. productive farmland..
3. Place to live with ample water and energy resource to be self sustaining..
4. firearms.
5. Joint Family Systems..
6. Learn basics of farming..

Hope for the Best.. but Plan for the Worst!!

=good health & happy investing
whatsup-indianstockideas

Anonymous said...

Whatsupji,

What are ur best 4 top picks as on today from ur list of recommendations?

What'sUp Prahalad said...

Anonymous ji:

best buy's are long term stocks which can be bought and conveniently forgotten.. I would still stick with the 4 best buys :
ie. GAEL,Jayant,NHPC & Tata Communications

=happy investing
whatsup-indianstockideas

Anonymous said...

Hi Whatsupji,

What ur take on GAEL now? Its been going down. Now almost 35 levels.

Also do u still feel Tilaknagar industries is a good buy at these levels?

What'sUp Prahalad said...

Anonymous ji:

tilaknagar if you see mutual funds held around 1.29Cr shars in March 2014..

but in Dec 2014 its Zero!!

So there is a lot of downward pressure on Tilaknagar industries..

Does the stock have value ?.. Is tilaknagar industries going to be present 10 yrs hence?: yes...
will tilaknagar Industries have a valuation greater than now 10yrs hence?: Yes!!

Will it start rising from current levels(CMP:21.30): Dont know

Will it fall further down from current levels?(CMP:21.30): Dont know.
==============
Conclusion: There is tremendous value in tilaknagar industries stock.. All liquor companies are going through a tough time and all stocks are attractively priced..
In Tamilnadu the largest Brandy Market in India .. Premium segment has been set free (no restrictions on selling..) the problem is the company that used to manufacture/bottle Mansionhouse for Tilaknagar in tamilandu has come out with its own premium brand and stopped producing mansionhouse .. so tilaknagar is facing a double punch.. but is it possible to get out of this condition: Yes..

is the management capable: Yes..

I would say start buying tilaknagar SIP .. on a weekly monthly basis and on every dip.. Long term very high Value Buy!!
===============
GAEL is now a 100Cr Net Profit company with market cap: 524cr cmp:37.90, zero long term debt..
Its a must have multibagger in your portfolio..

=happy investing
whatsup-indianstockideas

Anonymous said...

Hi Whatsup ji,

I have been your follower from 2010 and have added GAEL and Jayent agro to my portfolio from that time and am making good profits and all thanks to you.

Could you suggest another stock on similar lines where I can make a investment currently? thanks in advance.

What'sUp Prahalad said...

Anonymous ji:

A stock which has deep value in current market (market close to lifetime highs??)
valuation.. Well there is one stock which was recommended in 2010 and is still underperforming..

Manugraph India CMP:57.65 (recommended in 2010 @ 50 levels..)
Market Cap: 175Cr.. update is company has been able to turn around DGM and renames Manugraph Americas..
https://youtu.be/MtS1msX9AG8

Manugraph has also entered into Flexible package printing business..
http://www.pressideas.com/2017/02/14/manugraph-to-manufacture-c-i-flexo-machines-at-kolhapur/

Company is market leader in its space.. and gaining market share even as some of the foreign competitors are going turtle..

With Flexo machine its another engineering space where soon manugraph will dominate (hopefully)
Pls note this is a long term investment..

=happy investing
whatsup-indianstockideas.blogspot.com

Anonymous said...

Hi Whatsup ji,

Whats your take on GAEL at the current levels? What is the upside level you see for this stock?

What'sUp Prahalad said...

Gael has lot of underlying value to be discovered.. with 250cr worth of shares.. means free reserves should be 2500cr minimum.. so it can go up 100% minimum.. only question is timeline ... when it will rise..
Still lot of value left
-happy Investing
Whatsup-indianstock ideas

Anonymous said...

Hi Whatsupji,

Could you please recommend a stock which is deeply undervalued in the current market and has potential of giving returns like GAEL and Jayent agro?

What'sUp Prahalad said...

Anonymous ji:
on April 16 2017 I had mentioned Manugraph India as a good stock to buy which has deep Value.. (price on April 16,2017: 57.65 Mcap: 175Cr..

I would stick to manugraph in this period of skyhigh valuations.. Sensx:30,000 and Nifty 9300..
5-10 yrs down the line Manugraph could be @ 600 so that's a 10x as I expect its topline to improve as it settles into the "Flex packaging machine market and gains market share from foreign and domestic manufactures..

Manugraph: CMP: 59, Market Cap: 179.6Cr Zero Long Term and Short term debt..
Sales March 2016: 327Cr (consolidated) Net Profit: 6.39Cr

=happy investing
whatsup-indianstockideas

Anonymous said...

Thanks Whatsupji for your valuable inputs. All thanks to you for your recommendation at the right time on GAEL and Jayent also.

What do you feel would be the price GAEL would touch? Do you expect it to touch Jayent's levels?

Anonymous said...

Hi Whatsupji,

Whats your take on Electrosteel?


Anand said...

Checked Sept 17 results for Manugraph and sales is 25cr compared to 65 cr in 2016.

Also see employee cost at half (7 cr in sept 2017 compared to 14 cr in 2016)

Only good sign is the EPS showing improvement over last 6 months

Is long term story still intact

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