Category Archives: Stock Tips

Best Investment Tips for Those Who are New to the Stock Market

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Stock market has lot of potential to offer lucrative returns to the investors and while sometimes can also seem to be very harsh upon the investors. There are people who have made lot of money through stock trading while many of them have also lost lot of their earnings here. So stock market is unpredictable. You need to be extra careful, patient and a conscious observer of things gathering knowledge of the better investment strategies and trends in the stock market, if you want to make considerable money from your investment in stock market. As a beginner you need to take advice of the experts who can lead you safely through world of the stock market as put your first steps here. All you need to do is to find reliable experts who can offer you the most beneficial advisory services for successful investment in stock market within your budget needs. Most of these firms can offer consulting services for various requirements of the investor including advisory services for equity, tips for commodity trading, intraday trading, stock market investment and much more. They can tell you the exact time when to invest in stock and provide you information regarding why and how to invest in stocks.

Following are some of the essential tips which experts of Profit Krishna offer to the beginners to help in their initial stages of investing in stock market.

Knowledge of Stock Market is Necessary

The most essential thing required to gain success in stock market is the knowledge. It is very important for an investor to know where exactly the market is heading towards. Gathering information on trends in stocks regularly can help an investor make a useful strategy with a future prediction so that investment for better returns can be planned while avoiding the losses.

Smaller Investments are Better

Begin with smaller investments. Small cap stocks are usually good to make an initial investment to start with, because lesser money is involved in small cap stocks and therefore lower are the losing risks here.

Do not be Greedy. Be Patient with your Investments.

Always make an investment which you can afford for. Never get greedy and cross your financial limits in order to gain more profits from investment. Be patient enough and let your stocks grow over a period of time for better returns.

Try out for an Investment Management Software as Your Friend for the Initial Stages in Stock Market

Investment management software will help you keep your investment data organized while offering you a better understanding of your investment. Some of these software allow online stock trading which can make your stock trading process much easier, while you can readily track the stock you want to buy next, hunt out a good opportunity for investment and do various other things for stock trading from the convenience of your home.

Stock Advisory Services are Always Helpful

Taking help of advisory services is always a good idea initially as you begin out in the world of stock market. The stock market experts have a better knowledge of the market trends. They are experienced investors who have an idea of various techniques and strategies which can help an individual gain success in stock trading.

For those looking to hire advisory services for investment in stocks can get the best help from Profit Krishna, the experts having years of experience in guiding individuals for profitable stock market investments with their quality advisory services. Visit http://www.profitkrishna.com/ for further details.

Multibagger Stock Tip – Emami Limited

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EMAMI LIMITED

Company Overview:

Emami Limited is a leading Fast-Moving Consumer Goods player in India. It has been in the health, beauty and personal care since the last 35 years and has sustained its prominent position in Ayurvedic products. It was founded in 1974. The founders was Mr. R.S Agarwal & R..S Goenka. Headquarters Situated Kolkata, West Bengal.

 In 2008 the company announced that it intended to offer baby care products & also health products unit offers tonics for colds and coughs as well as Nutraceuticals.

Company Revenue Back-Ground:

The company posted elegant numbers for the quarter ending December 2012. The Revenues for the quarter ended December 2012 of Rs 548.66 crores rose by 21.30% from Rs.452.36 crores y-oy driven by strong volume growth across all the key product categories. Operating profit surged 13.30% at Rs.162.43 crores as against Rs.143.36 crores in the like period last year due to steep increase in menthol prices. The company has reported 21.65% rise in its net profit at Rs 114.96 crore for the quarter as compared to Rs 94.50 crore for the same quarter in the previous year. EPS for the quarter stood at Rs.7.65.

Boroplus showed volume growth in the range of 28%-30% aided by good winter season; Balms grew between 18%-20%, in Fair and Handsome it is about 10%-12% and in Navratna Oil it is about 5% in the quarter ended December 2012.

The entire influence brands reported strong and consistent performance during the quarter despite various challenges in the macroeconomic environment and input cost pressures. In value terms Boroplus grow by over 30%; Navratna grow by 13%; balms grew by 17%; Fair and Handsome grow by 19%. Healthcare division comprising of the OTC, ethical and generic products also performed credibly in this quarter, registering a very strong growth of 25%. Zandu Pancharishta sales tripled in this quarter.

Company Valuation:

Among increasing penetration, sustained sales momentum, powerful brands, judicious price increases and new launches; Emami’s growth prospects looks capable. The Company is trading at an attractive valuation at 28.84x and 24.95x of FY13EPS of Rs 20.77 and FY14EPS of Rs 24.01. We bet to Grab Share around 380 for Target 500. In Time Period of 9-12 Months

Multibagger Stock Tip – Supreme Industies Ltd.

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Supreme Industries LtdSUPREME INDUSTIES LTD:

Supreme Industries Ltd is an Plastic Processing Industry Founded in 1942 and its Head Quarters in Mumbai. The Company manufacture Industrial and engineering moulded products, storage and material handling crates, multilayer sheets, multilayer films, packaging films, expanded polyethylene foam, PVC pipes and fittings, moulded furniture, sataranj mats, disposable EPS containers.

During recent precedent the company is increasing its focus on value added products like cross laminated films, protective packaging products, CPVC pipes and premium moulded furniture. By end of March 2013, company is going to launch its new products in market like Hitech Swr system, Bathroom fittings and Composite LPG cylinders. These innovative products would help them to capture more business opportunity and higher abundance in near expectations.

The production of cross laminated films with capacity of 4000 tones has already begun after completion of 1st phase of expansion in Halol, Panchamahal Disrtict in Gujarat State. Supplementary expansion by end of Mar 2013 will increase its capacity to 12000 tonnes. Correspondingly plastic piping system with capacity of 50000 tonnes in Malanpur, Bhind District of Madhya Pradesh is expected to be operational by end of March. Supreme Industries is building up raw materials inventory to avoid procuring raw materials at higher rates.

The Company has reported a sales turnover of Rs 814.28 cr and net profit of Rs 62.17 cr for quarter ended Dec 12. We bet the Grab the Share at 320 for Target 380 in time period of 9-12 Months Key Support is at 290.

Multibagger Stock – Havells India

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HAVELLS INDIA:

Havells India is an Electrical Equipment Industry founded in1958 in New Dehi by Qimat Roy Gupta now it working Nodia as Head quarters.

It’s traditional category of products Industrial & domestic circuit protection switchgear, cables & wires, motors, fans, power capacitors, compact fluorescent lamps (CFL), luminaries for domestic, commercial & industrial applications, modular switches covering household, commercial and industrial electrical needs, water heater and domestic appliances.

Havells India is having 12 manufacturing plants in India are located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and 6 manufacturing plants are located across Europe, Latin America & Africa. It has a 20,000 strong global distribution network.

Havells India has registered decent numbers for the quarter ending September 2012. The revenue for the September 2012 quarter is pegged at Rs.964.22 crore; about 13% up against Rs.850.39 crores recorded during the year-ago period; despite degrowth in industrial cable division without which growth in revenue is 24%. In service profit remained flat at Rs.119.16 crores due to higher advertisement and sales promotion expenses. The advertisement cost was Rs.34.8 crores in Q2FY13 as compared to Rs.14.2 crores in Q2FY12. The net profit reported a growth of about 24% to Rs.86.97 crores from Rs.70.24 crores.

The Revenues from the switchgear business grew 15% at Rs.255.12 crores as against Rs.221.77 crores y-o-y.

The Industrial cable division registered a decline of 16% on a y-o-y basis due to slower industrial and commercial activities.

The Domestic cable has registered a growth of 42%. Collectively cable division has grown by 6% during the quarter.

The Revenues from Lighting & Fixtures business climbed 14% on a y-o-y basis at Rs.156.11 crores.

The Electrical Consumer Durables revenues jumped sharply by 33% at Rs.162.34 crores on a yearly basis.

The Company is trading at an attractive valuation at 19.93x and 16.42x of FY13EPS of Rs.33.78 and FY14EPS of Rs.40.99

We Bet to Grab the Share around 630 for Target 800 in Time Period of 6-9 Months.

Multibagger Stock – Colgate-Palmolive (India) Ltd.

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Multibagger Stock - Colgate-Palmolive (India) LtdColpal:

  • Colgate-Palmolive (India) Ltd was incorporated in the year 1937. In the year 1983, the company introduced their successful product Colgate Plus toothbrush in the market. In the year 1988, CPIL received a license for producing 24,000 tonnes per annum of fatty acids.
  • They also registered with DGTD for production of 30,000 tonnes of toilet soap per annum. In June 1988, the company established a wholly owned subsidiary at Hetanda in Nepal to manufacture the toothpaste and tooth powder initially.
  • In the year 1991, the company launched new Colgate Gel Toothpaste, Palmolive Extra Care and new Palmolive soap. They also re-launched a high quality Colgate Plus and other toothbrushes.
  • In the year 1994, the company acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd.
  • In the year 1996, the company introduced the Colgate fresh stripe toothpaste and Palmolive naturals soap in personal care products segments, Keratin Treatment Shampoo and Palmolive optima in Hair care segment. Also, they established a modern facility at Aurangabad to manufacture Dicalcium phosphate, a key ingredient for toothpaste.
  • In the year 1998, the company launched Colgate Double Protection toothpaste for the entire family.
  • They launched the ad campaign for their new product Colgate Double Protection toothpaste in competition with rival brand Pepsodent from the Hindustan Lever stable. In the year 1999
  • In the year 2000, the company introduced two new variants to their Palmolive Naturals soap range and revitalised their sandalwood soap. Also, they launched two new variants in their Palmolive Naturals range of beauty soap lime and milk cream. The company re-launched their Colgate Gel as Colgate Fresh Energy Gel. During the year
  • During the year 2000-01, the company launched Colgate Herbal Toothpaste, Economy Toothpaste, Colgate Zig Zag Toothbrush, Colgate Navigator Toothbrush and Transparent Skin Care Soap in the year market
  • During the year 2001-02, the company re-launched Colgate Fresh Energy Gel with a refreshing falvour in a unique first-of-its king transparent tube and economy toothpaste
  • During the year 2003-04, the company launched Colgate Herbal White striped toothpaste with lemon extracts, eucalyptus and mint. They launched Colgate Navigator Plus Toothbrush in the market.
  • During the year 2004-05, the company established a state-of-the-art additional toothpaste manufacturing facility at Baddi, Himachal Pradesh to meet the growing market demand. The first phase of the facility became operational in April, 2005
  • During the year 2005-06, the company established Oral Care Category Innovation Centre works closely with the Technology Centres in India and U.S.A. to shape ideas into products that meet today’s consumer needs. They launched Colgate Advanced Whitening, Colgate Active Salt, Colgate MaxFresh Gel and Colgate Super Flexible Toothbrush with Unique Tongue Cleaning Feature
  • During the year 2009-10, the company acquired the remaining 25% shareholdings in Professional Oral Care Products Pvt Ltd and CC Health Care Products Pvt Ltd at a total consideration of Rs 2.40 crore and Rs 69.07 lakh respectively
  • In June 2011, Essel Propack Ltd signed a long-term agreement with the company to set up a plant in Goa at an investment of Rs 400 million.
  • The toothpaste volume market share has increased to 54.3% (Jan’12 – Sept’12) as against 52.3% for the same period of the previous year with strong volume growth of 11% through its flagship brands “Colgate Dental Cream”, “Colgate Active Salt”, “Colgate Total” , “Colgate Max Fresh”, its highest since 1998, a rare instance of a market leader gaining new ground. The Company has also registered a strong growth momentum in the toothbrush category with volume market share of 39.0% (Jan’12-Sept’12) The Mouthwash category continues its growth momentum with market share at 26.8% (Jan’12-Sept’12)
  • The Company has posted the revenue for the Q2FY13 at Rs.773.77 crore. The YoY growth is 17.73% and the QoQ growth is 5.12%. However, growth in underlying volumes has moderated from an average 13 per cent in the earlier quarters to 11 per cent in the Q1FY13. Colgate-Palmolive (India) net profit rose 45.55% to Rs 145.08 crore in the Q2FY13 as against Rs 99.68 crore during the Q2FY12. Operating margin is at 22.18% as against Q1 and 302bps up as compared to Q2 of last year.
  • Presently Colgate stock trading is at a valuation of 37.37x and 32.78x of FY13EPS of Rs.40.33 and FY14EPS of Rs.45.97. We Bet to buy Share at 1540 for Target 1800 in a time period 9-12 Months.

Roll of Equity Advisory Services

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Profit Krishna Equity Advisory ServicesAn equity advisory service is a group of experts in stock market and other investment options. They are skilled and having in-depth knowledge of stock market trends, investment in companies and their analytical progress charts, present and future trends of stock market and commodity market.

Why it needs Equity Advisory Services-

Equity investment is the money investment in share market that fluctuates based on the market and company conditions. Equity investment is not as secured like bank FD, Government bonds and other securities. It carries a risk factor based on the type of equities in which you have made investment. Thus it needs your full concentration, time and money to watch continuously your investment. If you are doing job or business, it is difficult to spare time for investment in stock market.

Equity advisory services consists the team of stock market professionals, who are continuously working on stocks trading and transactions to earn out good profit from the investment. They save your time, efforts and keep rolling your money in different investment options as per your instructions to fetch out maximum returns in short duration. Even if you are novice to stock market, they can guide you, advice you and suggest the investment plans based on your risk carrying nature.

They let you know when to invest in stock and why to invest in stocks along with stock tips, company analytical chart, fundamental chart and technical chart for your information which can help you in deciding your stock investment.

Equity advisory functions transparently to let you know your investment portfolio at each point of time through online access of your account. Based on your earning requirements from stock market, they define a custom plan for investment that can help you to get additional earning from stock market in stipulated time.

One can avail stock advisory services, even though you intend to deal in stock market full time or part time. As per the modern trends, stock investment carries various types of risks that need continuous updates and efforts to manage the investment portfolio in a diversified manner, though the long term equity investment in good stocks gives good returns.

Equity advisory services are a great way to invest and manage your money in stock and commodity market. It helps to the people, who want to earn good profit with professionally managed portfolio.

Multibagger Stock to Grab – Maruti Suzuki India Limited

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MARUTI

About Company:

Maruti Suzuki India Limited referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has a market share of 44.9% of the Indian passenger car market. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company’s headquarters are on Nelson Mandella Road, New Delh and Manufacturing Plants at Gugon & Manesar in India.

Sales &Services:

Maruti 800 ,Omni, Gypsy, WagonR, Alto, Swift,Estilo, SX4, Swift DZire, A-star,Ritz Eeco, Alto, K10, Maruti Ertiga, Maruti XA Alpha, Maruti Alto 800.

Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.

Other Projects:

In 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.  Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.

Financial Back Ground:

In Q2FY13 net revenues stood at Rs 83bn (+6% YoY, -23% QoQ) driven by better than anticipated improvement in average realizations (+16% YoY, -1% QoQ) while overall volumes declined -8.7% YoY/-22.1% QoQ. EBITDA Margins for the quarter came in-line with our estimate at 6.1% ( -20 bps YoY, – 120 bps QoQ). RM to sales at 79.6% increased +100 bps YoY/+180 bps QoQ impacted by adverse product mix (lower diesel share), higher overall discounts and adverse forex. This was offset by lower other expense to sales at 11.4% (-110 bps YoY/ -120 bps QoQ) which benefitted from lower royalty payment and operating expenses. Net Profit declined 5.4% YoY/ 46.3% QoQ to Rs 2.2 bn but was ~18% above.

FY14. We expect Maruti Suzuki to benefit from both capacity expansion in diesel cars and demand revival in petrol cars this should help clock a 17% volume growth in FY14. We build in 300 bps margin expansion in FY14 over Q2 levels driven by lower discount/car, richer product mix, operating leverage benefits and slight benefit from currency.

Estimates for FY13/FY14 upwards by 3%/8% driven largely by benefits of a richer product mix even as we largely hold on to volume growth expectation of 7%/17% in FY13/14. We believe that the current stock price fully discounts a favorable macro environment for the company in FY14 and see limited upside potential. Key risk to our investment argument remains a sharp improvement in the macro environment and favorable currency.

We Bet the Stock Grab at 1460 for stock target price 1580. Keep stop loss 1400 In time Period 5-6 Months. Long Term Target 1700.

Multibagger Stock Tip – Tube Investment of India Ltd.

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TUBE INVESTMENT OF INDIA LTD.

  • Tube Investment of India Ltd. Belongs to Murugappa Group is a Chennai based Indian Conglomerate. Being a market leader in several of them it has a total of 28 businesses and has manufacturing facilities spread across 13 states in India.

It Has Classified in Four Business It Shows:

  • One is the engineering business where it produces precision tubes, which used in automotive industry and general engineering industry.
  • The second business is cycle business where company has acquired 30-31% of market share. Last year it sold about 4.5 million cycles.
  • Third is a metal formed product business wherein the company manufactures automotive chains, industrial chains and car doorframes. In the car doorframes business the company is a market leader with a market share of almost 60% and supplies to almost all the major passenger car manufacturers.
  • The fourth is a finance business – it holds 54.5% of equity stake in its subsidiary Cholamandalam Investment, the company does vehicle financing, home loans and as well as gold loan business. We can expect considerable increase in bottom-line due to Cholamandalam Investments.
  • Recently company has undertaken a capex of Rs 5 billion whose impact we will witness soon in upcoming years. Expectations Company has showed consistent growth in NPM & bottom-line. EPS has grown from 3.06 to 9.7 over five year’s period nearly 316%. For 2014-15, we are expecting the EPS to be around 19-20.
  • It Shows Expanding Triangle pattern at 165-170 levels. We Bet the Share Grab at 173 for Target 195 In Duration of 6-8 Months Target 225-250 For Long Time Traders in Period 1-2 Years.

Multibagger Stock Tip – Apollo Tyres

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  • Apollo Tyres, mechanized automobile tyres, tubes and flap for Passenger Vehicles, Commercial Vehicles and Off Higway Tyre, have manufacturing presence through 9 units across India (Kerala, Tamil Nadu, Gujarat), Netherlands, Zimbabwe and South Africa.
  • India’s largest producer and exporter of passenger car tyres, its product portfolio comprises of 6 brands flagship Apollo, Dunlop (brand rights for 32 African countries), Vredestein, Regal and Kaizen for truck-bus tyres and Maloya passenger vehicle tyres. Company had bought South Africa-based Dunlop Tyres International Ltd in 2006 and Dutch tire-maker Vredestein Tires in 2009.
  • In the midst of capacity of 1,590 metric tonnes per day, Apollo commands about 40% market share in the Rs. 30,000 crore Indian tyre market, 70% of which is comprised of the top 5 players – Apollo, Birla, Ceat, JK Tyres and MRF.
  • Stand-in market, which makes up 70% of the India market, mirrors the company’s revenue pie, as it accounted for close to 73% of its annual revenues. It exports to over 118 countries and earns approximately one-third of its revenues from exports.
  • Since of 30th September 2012, promoters hold 43.37% in the company, having pruned their stake from 46.94% as of 30th June 2012. The company enjoys good institutional patronage, with 128 FIIs holding 22.80% stake in the company and 103 DIIs 11.23%. Among its shareholders, it counts marquee names such as Merrill Lynch (1.32%), CLSA (2.9%), ICICI Prudential (5.33%) among others.
  • During FY12, it reported consolidated sales of Rs. 12,153 crore, becoming the first Indian tyre company to cross the annual revenue milestone of over Rs 12,000 crore or US $ 2.5 billion. EBITDA for FY12 was at Rs. 1,299 crore, with EBITDA margin of 10.7%.
  • Apollo Tyers net profit for FY12 was Rs. 410 crore, resulting in an EPS of Rs. 8.13. Accounting for Rs. 327 crore of depreciation and Rs. 82 crore deferred taxes, its cash EPS was Rs. 16.23, on equity of Rs. 50.41 crore (face value Re. 1 each). For FY12, dividend of 50 paise per share was paid.
  • For Q1FY13, financial performance showed expansion in margins on near flat revenues. While consolidated sales were Rs. 3,165 crore, net profit jumped to Rs. 138 crore, leading to an EPS of Rs. 2.74 and cash EPS of Rs.4.59.
  • EBITDA for the first quarter of the year stood at Rs. 361 crore leading to EBITDA margin of 11.4%, up from FY12’s 10.7%. Net margins also expanded to 4.4% in Q1FY13 from 3.4% in FY12.
  • Apollo Tyers net worth, as on 30th June 2012, stood at Rs. 2,968 crore, leading to BVPS of Rs. 59. It has debt of about Rs. 2,550 crore.
  • The share price has corrected lately on fear of steep penalty from the Competition Commission of India (CCI) for alleged cartelization in the tyres industry. We believe that current price has corrected more than warranted, as the fine will not be as harsh as those imposed by CCI on DLF and cement companies previously.
  • The Party also plans to raise Rs. 800 crore via a qualified institutional placement (QIP) in November, for which the board approval is in place. To facilitate the same, FII investment limit in the company has also been hiked from 30% to 40%.
  • As well, news reports suggest that the company may acquire US $ 1.2 billion market cap and world’s 10th largest American tyre firm Cooper Tire & Rubber Company for about US $600-800 million (Rs. 3,200-4,200 crore), to tap the latter’s strong foothold in the global replacement tyre market.
  • Intended for FY13, Apollo (without effecting the potential acquisition) is expected to have an EPS and cash EPS of close to Rs. 12 and Rs. 22, respectively. This implies discounting the share price, based on yesterday’s closing price of Rs. 88, by PE multiple of 7.3 times on current earnings, and by just 4 times, based on expected current year cash earnings.
  • Better replacement demand, expanding margins, recent correction in stock price due to CCI penalty fears have made valuation attractive.
  • Our stock tip to bet the Share for grab at 85 for target 105 for 6 Months Time Frame. ONE YEAR TARGET 125.