Company History CMP Rs.- 90
Company was promoted by first generation visionary technocrat Dr C H Krishanmurthi Rao also known as 'Water Man' of India . He brought several technologies in the field of chemical industry and giving India its first reverse osmosis-based desalination technology. Company was the first to introduce the Monopolar Electrolysers in 1985. Recently company become first to instal BiTAC® Electrolysers for its Chlor - Alkali plant. Dr. Rao passed away in 2012 when company has planned to expand it production capacity. Expansion plan hampered by National Green Tribunal, South Zone, in an appeal filed by a party, granted an ex party stay, restraining the construction activities pertaining to the expansion and operation of the plant without valid consent order. Chairman Suresh Krishnamurthi Rao (Son of Dr CH K Rao) has taken wise decisions and direction to take the company to new heights.
Story about Our Investment Interest
The Chlor-Alkali is process for the electrolysis of sodium chloride. It is the technology used to produce chlorine and sodium hydroxide (caustic soda), which are commodity chemicals required for various industries like textile, paper, food processing, pharmaceutical, soaps and detergents, petroleum, cleaning agent, mining, refining etc. Electricity and salt are the major items costing 70% to 80% of total production cost. The electrolysis process has a high energy consumption.
After seeing the delay from the court for capacity expansion and vacating the stay. Chairman Suresh Krishnamurthi Rao has taken decisive decision and went for backward integration to increase the profitability of existing plant by implementing below mentioned two initiatives.
- Replacing old plant with latest high energy efficient Bipolar BiTAC® Electrolysers Plant from CEC, Japan. It can save 40 to 50% of total energy consumption of the company. New plant was commissioned in the month of March 2015 after stabilizing the operation it will improve overall operational efficiency of the company in coming quarters.
- The Company has acquired and developed 632 acres of salt fields and the production of salt is expected to commence from this quarter. These salt field can fulfill entire salt requirement of the company.
Key Favorable Factors
- Investor friendly company and long history of paying high dividend.
- Low equity base - 91,71,697 share of Rs 5 FV and 75% held by promoters.
- Strong balance sheet with reserves of Rs 140 crores
- With new energy efficient plant and captive salt field will result considerable growth in net profit and EPS. Company is going to add some new products, it will give further boost in EPS
- Court has canceled and vacated the stay and Company has filed petition seeking directions to authorities concerned for the grant of Consent to establish (NOC) for the expansion. Hopefully company will get approval with in year time and company has sufficient cash reserve to complete it without taking major debt.
- Currently stock trading at Rs 90 and market capital of company is only Rs 82 crores. There is scope of major appreciation in coming quarters.
Hi madam thanks
ReplyDelete.
DeleteThank u mam
ReplyDeleteThanks very much
ReplyDelete.
DeleteThanks for the new recommendation. Picking it up first thing on Monday. Cheers
ReplyDelete.
DeleteThanks for posting this a day earlier than the announced date.
ReplyDeleteQ1 results are not great. Should we wait for the stock price to move further down considering market trend due to yuan devaluation etc.or should we buy at CMP.
As I have mentioned in blog that new plant and salt field will give benefit in coming quarters. Once new plant operation get stabilize and salt fields start giving regular production.
Deletemam plz check below article in equitymaster
ReplyDeleteChemfab Alkalis: Not a professionally run firm
https://www.equitymaster.com/outsideview/detail.asp?date=07/29/2013&story=12&title=Chemfab-Alkalis--Not-a-professionally-run-firm-Luke-Verghese
though this article is old
It was good article in 2013 but now company came out of that situation.
DeleteIf Tata Moter or Tata Steel need some software will they go to any other company than TCS or Elaxi ? Answer is no, similarly Chemfab getting services form sister company. Several companies siphoning the money or posting the loses without any disclosure. If this is the case with Chemfab than why they will show any profit and why they will give any dividend. They have disclosed ICD to TCL and mentioned in AR that it is recoverable.
Luke has also mentioned "this is a share that can be looked at closely" in the last line.
Thank you madame, what eps and stock price can we expect in coming quators? uf you see any risk to the plan, please let us know.
ReplyDeleteThanks
EPS dividend and stock price will get double in coming years.
DeleteThanks Mam, is double in eps so interesting? the eps was ~24 in March 13 compared to ~9 now, yet the stock price is higher now may be due to new highs in the market. So if the eps doubles it is definately good but there are risks to it well, please help us understands the risks also.
DeleteThere was risk after death of Dr Rao and court stay in 2012 -13 but company has gone trough tough time, successfully. Now company has already implemented its plans now it is time to gain.
DeleteHi Dolly
ReplyDeleteAppreciate your recommendations. What portfolio allocation you suggest for your latest pick.
Regards
Parvez
Around 10 to15 %
DeleteDear Dollyji,
ReplyDeleteThanks a lot for your new stock review and posting of view.
This stock Q1Fy16 results have shown negative growth on Q-Q Basis.The performance of last three years is flat and profitability is down continuously. I am tracking this stock since last 4-5 years and has not seen any upward movement except small spike. Their power & fuel consumption is not improved in June, 2015 qtr as compared to Mar Qtr. However, it may improve in coming Qtrs.
I am also of the opinion that this stock will be good value creator in future because of their capacity of Electrolyzers.
Please submit your views on above.
What is your target price for this stock in next 3 years time.
As mentioned in the blog that company went into trouble during expansion than it went for backward integration to cut the power and raw material cost. Even during rough period company has shown good results and given decent dividend. In three years it can give 200 to 300% return.
DeleteLooking at big picture on market which is currently in selling mode, how many shares or volume someone can buy at this current market price?
ReplyDeleteIt is similar to food for our body, we should take food according to appetite, if we take less than feel hungry and more may cause indigestion.
DeleteHi Dollyji ,
ReplyDeleteTusi great ho ,tumhe salam !!
Your list of followers is growing big keep up the good work and help novice investors like us.
Thanks
Anurag
.
DeleteHi Mam, thank you for suggesting good value stock.Could you please provide some more insights like who are the top competitors and where it can potentially stand down the line among those companies?
ReplyDeleteTata Chemicals, Aditya Birla Chemicals
DeleteThank you mam and God bless you.
DeleteThanks Mam for new recommendation.
ReplyDeleteMam thanks are you also holding the share and what %
ReplyDeleteDefinitely I hold it, recommending stock without holding it is against my ethics.
DeleteMam can you please add holding to some of the stocks you have recommended so that your name comes in 1% holders. it will give us a lot confidence when buying them. Some stocks(like dtil) will be just a lakh which is pocket change for you.
DeleteIn future you will see some of the stock with 1% holding at that time these stock will be out of reach from small investors. The trend I have seen that most of new investors likes the stocks trading below 50,even though equity base is above 20crores. Stocks with low equity trading at 250 or 400 they don't like due to lack of knowledge.
DeleteThanks a lot Madam, I hope investors will learn the right things from you, the stock price is meaningless by itself its the equity base that matters as you have rightly said.
DeleteThank you mam for your new reco.
ReplyDeleteThanks dollyji
ReplyDelete.
DeleteThanks a lot.The world moves coz of selfless service by u Dollyji & many other noble souls.Best of luck & god bless u
ReplyDeleteThanks a lot Mam for suggesting one more great stock.
ReplyDelete.
DeleteMadam,
ReplyDeleteWhat are the triggers for top-line expansion in this fiscal year for this company? You have mentioned that sanction of NOC might take 1 year and as I understand capacity is fully utilised presently.
There are two major triggers mentioned below
DeleteReplacing old plant with latest high energy efficient Bipolar BiTAC® Electrolysers Plant from CEC, Japan. It can save 40 to 50% of total energy consumption of the company. New plant was commissioned in the month of March 2015 after stabilizing the operation it will improve overall operational efficiency of the company in coming quarters.
The Company has acquired and developed 632 acres of salt fields and the production of salt is expected to commence from this quarter. These salt field can fulfill entire salt requirement of the company.
Nameste Dolly Ji,
DeleteCan you please reply below two questions:
1) Regarding Replacing old plant with latest high energy efficient Bipolar BiTAC® Electrolysers Technology: How do we know that it can potentially save around 40%-50% of energy bills? I do not see this 40%-50% saving information anywhere, or is it like your best guess?
2) Regarding the 632 acres of salt fields. I read all documents, I see no such information. where do you get information that this is expected to commence from this quarter?
Appreciate your Guidance.
http://www.chlorine-eng.co.jp/en/product/electrolysis/bitac.html
DeleteYou can refer above web and study for below two points. You will get the answer. It is all about electric resistance and current density (kA/m2) due to this reason I have attached comparison diagram with basic electrical consumption data in this post.
Feature 1: Low Power Consumption
Feature 2: High Current Density Operation
You have to refer recently uploaded Annual report 2014 -15 and financial results for March 31, 2015 ( point # 10) for salt field information
Madam,
DeleteThe factors you have mentioned will contribute to reduction in Salt and Electricity costs and hence will increase net profit and eps. Can you please let me know how will sales of company increase, given capacity is now constrained? (Sorry if I am wrong, learning the basics of investing)
Major change in production capacity will come only after expansion. New Bipolar BiTAC® plant will increase production 5 to 10% only.
DeleteThank you mam for the new recommendation...highly appreciate it..
ReplyDeleteIf you can give your view on the current situation of the market (China's economy-yuan devaluation)..Pls..
many rumors about the same.
Market will continue to fluctuate up and down. It is part of business. Only alertness and awareness required and any major down trend or up trend should be taken as opportunity buy and sell the stock respectively. No one can time or predict it.
DeleteMam What's ur view on keerthi industries. Stock is available at 2.75 P/E
ReplyDeleteSorry not tracking above stock.
DeleteDear Dolly,
ReplyDeleteI have gone through the stock advice. Few early concerns which I have if you can help clarify:
1) Inter company deposits to Teamec Chlorates Ltd (TCL) of Rs. 14.7 cores outstanding as on Mar15. As per AR pg 67, TCL balance sheet is completely eroded. This amount is roughly ~15% of EV and 18% of the market cap which needs to be written off in our valuation. Moreover, if the company continues to bail out TCL in future the way it did in 2014-15, it would certainly erode on Chemfab networth. Moreover this puts a qs mark also on the promoters' ethics. Besides there are many more related party transactions from TCL and Titanium equipments
2) Power tariffs has been increased in Pondicherry by ~5% w.r.f Apr 15 on top of which regulatory surcharge of 2.5% is applicable. Combined together this would chew on the savings from energy efficiency in the new technology. Outlook for power tariff is such that it would increase 5% y-o-y at least as I understand from the JERC tariff order.
3)Timelines of production from new salt field is not clear, it has been delaying from last few years.
4)Expansion plan approval is not in place and what is the guarantee that they would be able to achieve higher than industry utilization of 80%. If not, then with high depreciation, interest etc would affect the earnings in short-term specially.
5) What would the expected price increase y-o-y of caustic soda and chlorine!
If Tata Moter or Tata Steel need some software will they go to any other company than TCS or Elaxi ? Answer is no, similarly Chemfab getting services form sister company. Several companies siphoning the money or posting the loses without any disclosure. If this is the case with Chemfab than why they will show any profit and why they will give any dividend. They have disclosed ICD to TCL and mentioned in AR that it is recoverable.
DeleteSalt field is already filled (salted) and it will give output from Q2 onward.
Caustic prices bottomed to 310 $/Ton and it is moving up to its normal rate $400- 450 / Ton
Thanks Dolly ji, for the clarification.
DeleteI understand your view however as per the AR auditor's they dont look positive about the recoverability "As stated in Note 33 to the financial statements, an amount of Rs. 14,70,45,171 is outstanding towards Inter Corporate Deposits (ICD) provided to Teamec Chlorates Limited (TCL) as
at 31 March 2015. Whilst the net worth of TCL has been fully
eroded as per its latest audited financial statements and it has
made an application to the Board for Industrial and Financial
Reconstruction (BIFR), the Management of the Company, based on the discussions with TCL / and considering certain other
developments, believes that no provisioning is required to be
made for the outstanding ICDs at this stage.
However, considering the aforesaid financial condition of TCL and in the absence of sufficient and appropriate audit evidence,
we are unable to comment on the recoverability of the outstanding ICDs amounting to Rs. 14,70,45,171 from TCL and
the consequential effects thereof on the financial statements."
I am not concerned too much about this ~15 crores, there is enough margin of safety for that. What I am more concerned about is what if the company decides to give some more ICDs to bailout the company.
Management has submitted clear note about it.
Deletehttp://www.bseindia.com/corporates/resultNotes.aspx?Scrip_cd=506894&scripName=CHEMFAB%20ALKALIS%20LTD.&qtrcode=85.50
7. The outstanding Inter Corporate Deposit of Rs 1470 lakhs provided to Teamec Chlorates Limited (TCL) as at 31 March 2015 is considered as good for recovery based on discussion with TCL and considering certain other developments. This has been qualified in the Statutory Auditor's report for the year ended 31 March 2015
Hi Dolly ji, Thanks for the clarification and the help. Really appreciate.
DeleteFew more questions which popped up while building the confidence:
1) With Yuan devaluation, the Chinese imports (china capacity ~20MMT) might become cheaper and start to hurt the realization. I think that would remain a key business risk to bear. On the other hand with rupee depreciation against dollar, threat from US imports is not much.
2) Fundamentally, caustic soda production costs would remain higher in India compared to developed markets primarily due to lower power costs outside.
3) To counter the above, anti dumping duties would remain a key variable for the caustic soda realizations to stay stable and not drop too much.
On a related note while i was studying Chlo-alkali industry, GHCL & GACL also looks to be a good value buy, would love to hear your comments on those as well..
Really appreciate all the good work you are doing!
Thanks
AJ
Chinese instability will not effect Indian growth. Modi government will do every thing to protect Indian interest. Fall of Chinese economy is good for Indian economy.
DeleteOur decision to invest in Chemfab because of backward integration, new technology to save the power. Hopefully it will lead the sector
Net Profit Margin(%) --- Operating Profit Margin(%)
Chemfab - 9.26 ------------------19.71
GHCL - 7.71-------------------- 22.0
GACL - 11.69 -------------------14.6
Madam your advice on innovative technology plast?
ReplyDeleteIt is good stock but move once business will start showing some improvement.
DeleteHi, ur view on Jasch industries and Genus paper board?
ReplyDeleteSorry not tracking above stocks
DeleteDear dolly mam, first of all thank you so much fir the new recco. Mam after reading your article i am little bit confuse. What is the main business of this company? How this company can be futuristic? I am little bit confuse. Will u plz kindly explain?
ReplyDelete
DeleteIt is good company with simple products Caustic soda, liquid chlorine, Sodium Hypochlorite, Hydrogen gas, HCl are finding vast application in different industries. Company is doing business from last 30 years and it will definitely do in next 30 years.
Nameste Dolly Ji,
ReplyDeleteAs you mentioned "Low equity base - 91,71,697 share of Rs 5 FV ".
I understand the Low Equity Base but how do you interpret the FV of rs 5? What if its Rs 50, Will it change interpretation at all?
It will not make any difference until number of shares remain same. After stock split FV can go down max.to 1. It will increase the number of shares in multiple and reduce the EPS and dividend in same proportion.
DeleteFV 5 will translate 10% dividend = Rs 0.5
FV 50 will translate 10% dividend = Rs 5
hi Mam,
ReplyDeleteThanks for sharing new recommendation.
for those whose need info about SAlt field, It is in AR 14 15 Page 57.point 4.
For info : http://www.thehindu.com/news/cities/puducherry/green-tribunal-forms-experts-panel-to-inspect-chemfab-unit/article6965673.ece
.
DeleteHi mam,
ReplyDeleteI have been holding this company for over a year n half....Do you really think that global caustic soda prices have bottomed out & secondly how much currency depreciation will effect this industry from global competitors whose cost of production are anyway lower due to low cost of power..???
Thank you
Currency depreciation will be beneficial for caustic industry. Chemfab is exporting some products but no import. Caustic price has already bottomed out now it is moving up.
Deletehello mam, What is your view on KItex garments at 680 Rs?
ReplyDeleteYou can add in small quantities during market correction like today.
DeleteHello Mam,
ReplyDeleteWhich level is good to further add Nandan Waterbase & RSWM ?
Yes, you can add in small quantities during market correction like today
DeleteDollyji, hope you fine and good.
ReplyDeleteOf all your recommendations I buyied less in waterbase, but after seeing its result and movement, even today's movement when market is at carnage, I do not see any single reason that will affect this company and its product, ya if any cyclone is there and that will affect it, so I request to you all to buy more and more this company as I see more value in this jem from one or two yrs from now.
Crude oil fall is good for india.
Waterbase products are food and it can't be ignored by anyone as all wants to eat
Cyclone is not there in their area else it will be negative for this.
Rainfall in not a reason even if it is less as in aquaculture fields you need less water
Farmer of this industry will buy anyway to increase the production.
Dollyji correct me if I am wrong.
Nilkamal has benefit of crude oil fall than why down I do not understand, again more of its business is domestic so no problem for india that much, hold and add this jewel at this price even.
DTIL, its a commodity play, offcourse there will be effect to this company but how I see is that it has Retail Business and Macademia nuts Business which is widely used in skin care (due to this emami is now one of big investor with more than 5% stake) hope will recover soon and will definitely fly high.
Investors in market will buy during this fall, even I added some of those mentioned above again do not sell any pharma companies shares it will reflected in balance sheet of pharma companies a huge profit due to currency movement after one or two quarters.
India is at the finest position of all other countries, even USA is not good position compared to india, people says that FII will take out money, I want to ask them can anyone say by taking out money were they will invest in usa rates are down, china story is stable and downward, UK, story is same as USA, Australia is commodity based market which is low (all commodities at low level), GULF countries is at carnage of oil slide, Japan is looking more and more at india, Russia's has not good growth as economy depends on oil and gas again Russia ruble is equivalent to india rupees at present, only INDIA is at sweet spot be trust in india's growth story and remain invested especially during downfall like today.
All big investors make money during buying at downfall and selling after one or five years during the peaks, I am still learning this and by sharing this to dollyji's platform to you all is to share knowledge to fellow investors.
Be a Investor in our market do not be a Trader, as Investor will always wins the race.
Dollyji, thanks for creating this platform so that all can share their views and knowledge and get good guidance from good peoples.
I am engineer by profession and currently working in GULF.
Have a good day to you all,
Haresh
Haresh,
DeleteThanks lot..... for sharing your wonderful thoughts with our friends on this board.
Dollyji already told that read the Graph of waterbase and Avanti if someone will read than will really know what it is, again dollyji already told that she invest in PRODUCT of the company, Just see the Product of Waterbase and think do it has any kind of relation to this fall in market your mind will answer to you and it will be NO I think, than if share of this company falls to nearby 10% than why not to add it again, I invested in this from the levels of 70 and still adding more.
ReplyDelete"Those new to the stock market, associate stock market with gambling. That is the reason they lose money.
One needs to understand what exactly stock investing entails. If you dont have the time to do a study, it is better to invest through Mutual Funds.
One of my colleagues asked about stocks. then he insisted that he some spare money and just wants to gamble for excellent returns! No matter how many times I stressed on investing he kept on saying gambling. No point - his mind was blocked and can never understand investing.
If you are new to market and really thinking of investing on your own then the foundation will have to be built. If you have a reading habit then there are som excellent books to guide the way. One can start with Peter Lynch`s One Up on Wallstreet and Beating the Street. Once you get the basics reading the `Interlligent Investor` is very very useful. Intelligent Investor is a heavy book and many may get bored. So I would suggest to read it in parts. Reminisces Of A Stock Operator shoul dbe the next book on your list. For those who are voracious readers, i would also reco `Security Analysis`. Again it is a very heavy book - many may scared looking at it`s size, but a very very good book.
To be good at investing it is also important to know the basics of bonds. There is a book with the same name `Basics of Bonds`. Must read.
Based on my experience in market, fundamental investors should know basics of Technical Analysis and vice versa, Technical Analysts should know at least basics of Fundamental Analysis."
.
DeleteHi Dolly Mam,
ReplyDeleteI am investing into stock market from quite some time. At initial stages I wasn't aware much about the fundamentals of the company. I am stuck in some companies from last 3-4 years and the loss sinks to 60-80%. I dont know if you have time but if you can have a look and suggest which one to hols and which all to exit from, it would be a great help from you. Please help me out if possible.
Thanks,
Pravin
You can send the stock details of your portfolio on mail. I will reply on week end.
Deletedolly1970.khanna@gmail.com
Thank you so much Mam!!! I have share it on your mail id.
DeleteDolly Mam,
ReplyDeleteIs it still a good buy in this falling market. Please let me know. Thanks.
Nothing has changed in last 4 hours. This is the stock which can give some stability to portfolio in falling market.
ReplyDeletethanks for replying to your followers even in market hrs.,its impact of your recom. that we are seeing price stable in such crash,what you thing about tommorow nifty movement
DeleteThank You madam..You always first to help us before we ask you
DeleteSensex tanked by 1200 pts today. How do you see the market heading in near future? Is China's problem dragging us into a recession? What should we small investors do in such situations?
ReplyDeleteIt is temporary situation and all stocks will rise quickly once market open in green.
DeleteThere are several very good stocks fell more than 15%. Small investor can add or swap with other good stocks, lot of options available to build the portfolio.
Good to learning - Those who bought early at low price will get lot of option and those who chased the stock and enter at higher price are left with no option in sharp falling market.
Thank you Dolly for boosting our confidence. I have incurred 40% loss in Kaveri Seeds, 42% in TISCO and 18% in Dhanuka Agritech. Can I add more at the current levels? And how about PC Jwellers?
DeleteDefinitely, Kaveri you can add.
DeleteNot tracking PC J
Good to learning - Those who bought early at low price will get lot of option and those who chased the stock and enter at higher price are left with no option in sharp falling market......Fantastic Dolly ji. It was absolutely true in my case...
Deletehello mam,
ReplyDeleteDid u face the blood bath or u were able to escape by selling it on friday or today morning. ?
Thanks.
Nothing to worry, it is time to add more.
DeleteHello ama,
ReplyDeleteWhat levels do u foresee ?
Is 7200 around levels possible ?
At waht levels 1 should start buying ?
Do u see any decent stock after today's down fall ?
Thanks.
It will not correct that much,
DeleteSeveral blue chip stocks are corrected heavily, can be added in small quantity.
All stocks from this blog can be added specially Waterbase
Dear mam,
ReplyDeleteHave bought Chemfab Alkalis today. I'm also holding DTIL @ 247 in good quantity.
My Queries are:
1. Is it fine to have only these 2 stocks in the portfolio.
2. Secondly, From individual stock perspective, are these levels good for adding more shares in both counters assuming the stock markets stabilise in the next 2-3 days.
It depend upon investment amount. Up to 100K 2 - 3 stocks are good. Yes during severe correction good stocks can be added in small quantity.
DeleteThank You mam..Always you boost our confidence..thank you so much for the work you are doing..i bought CHEMFAB ALKALIS today...
ReplyDelete.
DeleteDollyji, i am already holding 3000 shares of Dtil@249, what should i do now. Add more or hold. Please advice.
ReplyDeleteYes, you can add. It will bounce back quickly.
DeleteWhat about ghcl metalyst nahar spinning bgr energy electro steel casting hpcl
ReplyDeleteAmtek group falling without any resistance,
DeletePower and steel will take more time to come out from uncertainty.
GHCL is better option than others.
Dear mam, as you know there is a panic situation in this market, so is it a good time to enter. The stock like denim is now at attractive level so can i buy or wait?
ReplyDeleteThanking you.
This situation is temporary, good stocks can be added in small quantity.
Deletemam
ReplyDeleteasian granito is a buy?
Q2 is not the best quarter for construction and housing or related companies. You can wait for little more correction.
ReplyDeleteHello mam,
ReplyDeleteI wanted to know ur view on DTIL. After reading ur old posts i understand that You seems to be more bullish on DTIL than any other stocks.
My unskilled eyes are unable to understand that trigger.
I can understand in Waterbase , Nandan but not in DTIL.
What could be the major triggers in DTIL ?
As there is no sales growth in last 2 3 yr. Profit has not increased much if we compare of last 2 yr.
I can only see good point as dividend.
IT is trading at 8.5P/E similar to Nandan.
Could you pls explain a bit for novice like me ?
DTIL and Nandan are in different business but both are having huge potential in future ( 2 -3 years)
DeleteMam,
ReplyDeleteHow is Rswm ltd ? It is below 200 levels.
Thanks.
It is good to add in small quantity, It is below 300 not 200.
DeleteMam Your view on AnantRaj at 33.40 and PTCIndia Fin at 39 odd?
ReplyDeleteCan they be added
Both are good to add in small quantities on ever fall.
DeleteChemfab alkalis giving chance today to gain smart profits..
ReplyDeleteIt will give definitely decent profit in long run. In current situation it will remain stable.
DeleteDear Mam,
ReplyDeleteWhat is your view on Premier Explosives?
It is good stock to buy for 2 -3 years
DeleteDollyJi, I have incurred 40% loss in Kaveri Seeds, 42% in TISCO and 18% in Dhanuka Agritech. Can I add more at the current levels? And how about PC Jwellers?
ReplyDeleteKaveri Seed is good stock, you can add more on every fall.
DeleteThank You mam.
DeleteHi Dolly ... What are the stocks .. apart from the 4 - 5 recommendations in this blog will you go for ... in the current market.
ReplyDeleteCan you suggest some 4 - 5 Stocks which evaded us recently as they were priced higher than a value buy .... now are at a good price to buy !
Thanks,
KD
PS : huge fan ... regularly check this blog ... amazing! Thanks so much for all the suggestions till now
It is always better to stick with your portfolio in current situation. For example today it was good opportunity to add Waterbase at 82 and POCL 72 with gain of 15 per share. Because we know the behavior and strength of the stocks in our portfolio.
DeleteMeghmani , Nandan, RSWM are also giving good opportunity to add in small quantities. These all stocks will give good return in 2 -3 years.
Thanks !!
DeleteRegards,
KD
Dear Mam,
ReplyDeleteI bought Chemfab @ 88.50 and DTIL @ 210 today. Is it a good pick? And for how long should I hold it?
2-3 years, Dollyji has been saying this on every comment.
DeleteDefinitely you will get chance with in 2-3 years to make good profit. If you can able to compound 30 -40% gain per year from stock market than it will be decent wealth creation with in 10 years. Always look for such opportunities to buy good stocks at lower level and sell it at higher level.
DeleteMam, all your other stocks rebound with the market recovering but it seems there is no kind of interest of anyone in Dtil. By when do you think it will start moving. Thanks.
ReplyDeleteAfter Q2, Dollyji responded to somebody on top.
DeleteIt is more stable than others. Other fall more than 25%. Some patience required, it will prove its worth in coming quarters.
DeleteMam, Could you please give your view on Sahyadri Industries.
ReplyDeleteThank you
It is good stock, you can add during market correction.
DeleteDear Mam,In current global economic condition 2 things looks sure 1) Crude Range will be 40-60 dollor for next 2-3 yrs 2) Usd/Inr will be above 63-65 ......So can we target companies will be benefited for above ....no doubt big story oil mktg n paint already happened ...but can you help finding few micro or small cap companies in tyre,paint, chemical, plastic companies ...I already miss bus in nilkamal n wimplast .....Balkrishna Ind looks good as having both benefits 1. Export oriented company 2. Benefit from crude price reduction ......looking for your kind feedback. n few micro cap companies ..
ReplyDeleteYes, Crude price in this range will be very helpful for growth of Indian economy. Balkrishna has already given more than 20 fold return in last 6 years and market capital now more than 6k Cr. Now it can give 25-30% per year.
DeleteYou will get some stocks suggestion on it in near future.
Hello dolly Ji
ReplyDeletePlease share ur views about arshiya international. I have entered in this stock at 39.
Thanks
Sorry, not tracking Arshiya.
DeleteHi Mam,
ReplyDeleteI found Triveni turbines CMP 108 to be attractive compared to its markets and part of JV with GE.
could you please let me know your views is it good one to hold for long term.iam planning to buy around 500 shares
It is good stock and depend upon growth of power sector . It will move along with sector
DeleteAs I asked before dollyji, when we message you the answer and our query shows one day previous date why so ?
ReplyDeleteAre you not in India ?
I mean to say if I post query on 26th of august 2015, my this query shows the date of 25th of august 2015 and your answer also shows the past one day date, why so?
How far I know you are indian and living in india, than it should not show the past date ?
Can you explain for this please to all of our broaders .......
I posted the same query before three days but received not any answer from you and also I am not seeing my query also on these board
Haresh
There is some format issue in my PC some time and date setting always get disturbed.
Deletemam
ReplyDeletewhy dtil have no volumes even at lower level?
many big investors dont like commodity stocks?
my average price in dtil is 246
Yes, but these stocks will give stability to portfolio during market crash. It will give option to swap with desired stock in the falling market. It will start moving from Q2 results.
Deletethanks for reply mam
Deletei bought huge quantity @246 & thats why 25% portfolio allocated to dtil,will i able to get 20-30% per yr. if i hold for 3-5 yr.?
i have only this stock from your recom.
Dolly Mam,
ReplyDeleteWhat is your view on MIC Electronics? How is this company and management? I hold 2500 shares @11.76. Is this a good scrip for long term? Please advice. Thanks.
Sorry not tracking MIC
DeleteHi mam, please share your views on GATI.
ReplyDeleteGati is good, can be add during market correction.
DeleteHello ma'am ,first of all thanks for this new stock CHEMFAB .Secondly I feel myself lucky that I found this blog in last week of July and felt so bad as all ur recommended stocks were valued high mkt price....now I have added all the stocks recommend by u during this mkt fluctuation..... As an investor I think we should actually feel happy about such mkt changes where we can show our talent by adding good stocks in the portfolio.... And wait for mkt to do well......I just wanted to say nothing is permanent..... We will c a correction in upside soon....and many thanks to this blog and mkt fall:) and offcourse Dolly ji.
ReplyDelete.
DeleteMam, your views on Moldtech Pack, venus remedies, Liberty shoes and RS Software?
ReplyDeleteAll are good and trading at attractive valuation.
Deletemam check my portfolio
ReplyDeleteskm egg 25% -rs.130
pantaloon retail 25% -rs.200
dhunseri tea 25%-rs.246
cash 25%- kept for some good oppourtunity
anything i need to change or add should i add more dhunseri tea & sell some pantaloon as its near my buying price
You can add some more stocks during market correction. You can hold Pantaloons Fashion & Retail, it is good stock.
DeleteHi Dolly,
ReplyDeleteCould you please share your views on Force Motors @ CMP 2261 (around 38% down from its recent highs).
Thanks
It is decent stock to keep in portfolio for long term
DeleteMadam, All the other stocks have corrected except chemfab, would you recommend this or will you recommend buying stocks which have corrected like xpro waterbase etc at cmp
ReplyDeleteIt is always good to keep some low beta stocks like Chemfab in portfolio. Which are less prone to move with market fluctuation. It will give the chance (cash) to buy high beta stocks during deep market fluctuation. On Tuesday POCL and Waterbase was trading near to 70 and 80 at very attractive valuation . Most of the new investors have low margin limit to buy stock in such situation. They can utilize it to buy good stocks during correction.
DeleteHi Mam,
ReplyDeleteGood Morning,
What are the important points to be checked in Annual Report such as director statement cash flow etc.. Could you please let me know the list of important points to be looked in Annual report of a company.
Regards
Raja
There is nothing specific but need have quick look on complete look AR.
DeleteHi Mam,
ReplyDeleteToday there is block deal happening in Pondy Oxides. Is it right time to buy Pondy oxides ? How much we can expect in the longer run?
It will give decent return in future, lot information available on POCL page for your reference. it has given golden chance to enter around 70 only few days ago.
DeleteThank you for sharing the new idea...
ReplyDeleteAlso what are views on Power Grid & Kernex?
Sorry, not tracking above stocks
DeleteDear Mam, I am having 1000 shares of Asian granito bought at 101 one year back. I do not have money to accumulate more. Shall I remove now in loss and take waterbase and chemfab for 3 yrs term.Do these two stocks give more returns than Asian Granito in another 3 yrs term.
ReplyDeleteYes, I hope Waterbase can give better return than others.
ReplyDeleteCan I buy Jayant Agro Organics at this point
ReplyDeleteIt is good stock, you can add
DeleteDear mam,
ReplyDeleteWhat's your view on pondy oxide @96??can it be added at cmp for short term gain??i already hold sufficient quantity @70 level for longer term.
It depend upon market that it will give you the chance to get short term gain or not at 96. If you have added few days before below 80 than it was sure.
DeleteDear Mam, wish you a very happy Onam !
ReplyDeleteThanks
DeleteFestive greeting to you.
Mam,
ReplyDeleteWhat is your view on Career Point Ltd?
It is good stock, If company able to some business growth than it will start moving up.
DeleteHi mam, what is your view on GMDC, it is near to its 52week low. Can I enter now ? please advise.
ReplyDeleteMost of the mining stocks are trading at year low. It need lot patience to hold because no visibility of improvement in near future.
DeleteToday waterbase has announced the swap ratio of merger(4:17) with Pinnae, for this If you remember i asked you earlier also. But It is not clear about the capital of pinnae so not able to understand the capital increasement of waterbase. Though the capacity will get 3 fold increase but capital of waterbase will also get increased. Please let us know if you have any knowledge for this
ReplyDeletePaid capital of PFL is Rs 10 Crores. It means 1 Crore shares of PLF with swap ratio 4:17 will get 23.53 lakhs share of Waterbase. It will increase promoter holding to 55.2% and around 50 crore debt will come into books of Waterbase. It is good swap ratio by considering size of capacity addition. With full capacity utilization, company can retire the debt within one year.
DeleteDear Dolly ji,
ReplyDeleteWhat do you think of the waterbase amalgamation with PFL. Is it a fair merger?
Waterbase may suffer because of the debt levels in PFL, maybe upto 5-10% of dilution. What is your sense of the recent announcement? We still need to wait for the final numbers and hopefully next quarter results will shed some more light.
On a separate note, have you also looked into Samtex fashion available at cheap valuations?
Yes it is fair merger by considering size of capacity addition and only 6% (23.5Lshare addition) equity dilution of Waterbase. Company can able to retire the debt very comfortably with full capacity utilization.
DeleteNot tracking Samtex
Dear mam wish you a very happy onam
ReplyDeleteOnam greeting to you too
DeleteThanks
Dolly ji, please let us know of all the six stocks mentioned in this blog which is more undervalued or trading at attractive valuation??
ReplyDeleteAll are growing companies. We can conclude only after evaluating one or two yearly results.
DeleteMam, Happy Raksha Bandhan. You have strongly recommended Pondy Oxide; but whether it is worthy to buy its demerged entity POCL enterprises at CMP.
ReplyDeleteYes
DeleteHi Dollyji,
ReplyDeleteVenus remedies, they had took the step to issue the shares to promoter, now all old shares are pledged, than can you tell what is the purpose of this new shares, again can you tell me what is the Debt at present they have including the new recasted debt also.
With too much debt will they able to make turnaround, again why they not sell or bring some strategic investor in order to avoid some of the debt.
Can you provide some valuable information and research in regard to these company.
Definitely, promoters wants to increase their share holding by keeping the stock price at lower level.
DeleteLot of R&D on drug discovery and patent held by it EU subsidiary. All can be capitalize with final successful product launch in the market only. Until any positive outcome, there is major risk involved with investment. It is not advisable for new investors with small investment.
Mam,whether time is ripe to enter into Paper Stocks and which paper stock?
ReplyDeleteStill there are chances of further correction.
DeleteHello Mam,
ReplyDeleteI am planning to buy pondy oxides below 90 and water base in mid 90's. iam planning to hold it for long term though I already hold it, I want add some more and average it as my avg price for pony is 106 and WB 99.
Please suggest or shall I wait for more time. I know I missed the buying opp at low price.
You can add small quantities by placing buy orders at lower level during market correction.
DeleteMam can market will correct further ? Plz will u suggest some shares to buy in this correction....
ReplyDeleteMarket correction is necessary and part of the business. Always buy low and sell high. Waterbase, DTIL and POCL are good stocks to enter during market correction.
DeleteMam, can you pls guide us how to learn balance sheet/AR reading.
ReplyDeletewhat are the imp points to look at..and how to analyse.
Any book,material etc..
And i am planning to add Sterlite tech..available at good price,for long term..should i go ahead?
pls give your view on both.
Regards,
Raj patel
Nothing is specific but entire report is important. Once you will read 100 -200 balance sheets and AR than you will get idea to to analyze it. You can also refer learning literature available on BSE and NSE webs
DeleteMadam will you suggest adding Xpro or Chemfab at cmp. I am asking as xpro has fallen a bit
ReplyDeleteYou can add Xpro for long term It has good potential to give decent return.
DeleteDear Mam,
ReplyDeleteWhat is your view on IL&FS infrastructure. Will it be a multibagger?
Mam, there is gossip in social media, that you have taken stake in Sharp India, Whether it is correct?
ReplyDeleteHi Mam, what is ur view on Mcx and granules india for long term.
ReplyDeleteDear Madam,
ReplyDeletewill IL& FS engineering & Construction be a multibagger?
Mam when r u coming up with next stock suggestion
ReplyDeleteAnd which blue chip stocks will you advise in the current market??
ReplyDeleteI want to purchase PG Electroplast , whether its worthy to buy at CMP?
ReplyDeleteWhich quarter is better for company
ReplyDeleteMam
ReplyDeleteCan i convert some pondy into chemfeb or do fresh investment