I was just looking at the charts of GAEL. This is a 10 yrs chart and here is what I see.
1. in 2003 Split adjusted GAEL was quoting at 1.8-5 per share. Right now the stock is quoting at Rs 23.5 which would mean GAEL on a 8 yrs period has multiplied wealth 13.05 to 4.7 times ie a return of 1305% (if invested at Rs 1.8) or a more modest 470% return (if invested at Rs 5 per share).. Anyway we look at it GAEL has given us great returns if we stick with the company on a long term basis.
2. GAEL Stock has been technically forming a higher bottom and there is a strong support at 22.35 level.
3. The stock has consolidated long term and will be a strong buy if it crosses 30 we will have some resistance at 40 and then its all open blue skies. The sky is the limit as they say.
Conclusion:
I have never really looked at the technical charts but come to think of it 2012 looks all set to be an exceptional year for GAEL technically and with the new Maize Derivatives plant it all looks like the stars are getting aligned. Also long term the company has delivered. We know GAEL is a consistent dividend paying company with conservative management with eyes set at "Maize Derivatives" business as the money spinner.
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11 comments:
Sir,
Hats off to your conviction. I have about 25% of my portfolio in jayant and GAEL. I am assuming you might be having huge portion in these two stocks. Is it not a little risky to have such a concentrated bet consisting of small caps. Apart from these two which are the others are you very positive on now.
Thanks and Regards
Sid
Sid:
Best Buy's are The Best Buys! ie. NHPC, GAEL, Jayant, Tata Communications. Stocks I hold are:
ADC India, Agro Dutch, Batliboi,Camlin Fine Chemicals, Diamine, GAEL, Hester, IFB Agro, Jayant, Manugraph, NHPC, Nile Pitti, Regency, SKm, Super house, Tata Comm, Universal, Venky's, SRZ, ACTC.ob
=happy investing
whatsup-indianstockideas.blogspot.com
abey whats up, whats down ki baat kyu kar raha hai?
Hi Whats up,
What is the weightage of Jayant and GAEL in terms of percentage in your portfolio ? Will it be more than 80%? Just wanted to know? Thanks
Anonymous:
I am an HNI Investors (for than 1 lakh facevalue stock holding in Jayant, GAEL and SKM) Jayant and GAEL is more than 80% of my portfolio.
Other stocks holdings are in 100-1000 range
=happy investing
whatsup-indianstockideas.blogspot.com
Hi WhatsUp,
Thanks for your disclosure of your stocks.
I bought GAEL last year after your recommendation 10k@20. Watching the price movement for 20 to 50 now back to 20. Now many stocks are beaten down- eg- Spicejet/IVRCL/IDBI etc..Is it wise to add only GAEL without diversifying the portfolio???
Anonymous:
Rome was'nt built in a day.. GAEL has given us 38% topline growth and 56% bottomline growth in one year (FY 2011-2010)
I see no need to move as the management knows where it is going and is also very focused on keeping the leverage to minimum..
Just give them time I feel the next leg up could be already in as the management will de-bottleneck current capacities and is also adding a green field plant in Karnataka..
The latest Chart also shows we are right at the bottom and all set to rise further ..
Pls note it is your money so you have to take a final decision if you want to diversify .. I dont think airline stocks are worth buying.
=happy investing
whatsup-indianstockideas.blogspot.com
Hi whats up , thanks for your sugestion.
POsted on June 2011:
http://www.business-standard.com/india/news/gael-to-expand-maize-processing-capacity-by-70-in-fy12/439374/
Additional Land Approved by Karnataka Govt.. High Margin business is going to fly...
Purushottam:
Yes GAEL looks like a great deal anyway you look at it.. here is the list of clients of GAEL in Indian:
- ITC Limited
- Amul Dairy
- Heinz India
- Britannia Industries
- Dabur India
- Hindustan Lever ltd
- Parle Products
- Vadilal Industries
- Priya Gold Biscuits
- Colgate Palmolive India Ltd
- Paras Pharmaceuticals
- Goodrick Group of Companies
- Biocon Ltd
- British Biologicals
- P&G Pharmaceuticals
- Choice Laboratories
- Balsara Home Products
- JP Laboratories
- Agiomed Ltd
- Manisha Pharma Plast
- Goran Pharmaceuticals
- IPCO Industries
- Anchor Health and Beauty
The link to my old Blog where we have the product video (link has been updated as it was broken)
Its simply one of the Best Companies out there to invest in India.
http://whatsup-indianstockideas.blogspot.com/2011/02/company-gujarat-ambuja-exports-company.html
Once again thanks for the link to the news article about GAEL new plant in Karnataka.
=happy investing
whatsup-indianstockideas.blogspot.com
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