Feedback Result Update

Dear Readers,

We have received overwhelming response on feedback. Most surprising fact was that 66% readers have given feedback who never posted any comment before on the blog or on G+. Some most valuable suggestion and ideas received from the readers who has opted 'c - your suggestion' and explained their views in details. Now it is very easy to conclude and go with points which are helpful to the most of the readers as given below

1.   Is it required to modulate the comments on the blog? 

88% readers have given opinion that it is required to modulate the comments and spamming , promotional, abusive and personal attacking comments need to be removed to maintain healthy outlook of the blog board. 

Action - We will continue as before to modulate the comments in addition to restrict the spamming comments.

Suggestions - Need to search in the blog search box to find answers for similar questions to reduce the repeated questions again and again.

2.   Is it required to post every month new stock suggestion?        

71% readers have given opinion in favor to post new stock suggestion every month. Common reasons are monthly systematic investment plan (SIP), unable to enter in last stock, salaried person or limited investment options etc. 

 Action - We will continue with 9 -10 stocks per year and add 1-2 more if some good opportunity available in the market any time. 

3.   Is it required to give clue for new stock suggestion? 

91% readers have given opinion against posting the clues for new stock suggestions because very few blog readers are getting benefit from clues. Common feedback - no time to search and difficult to find the stock for new investors, traders and punters are cracking the clues early and buying in big quantities, some people selling the tip after finding the stock from given clues, unable to buy the stock on first day,  etc. 

Action - We will not post any  clues for next stock suggestions and comments asking for clues will not be entertained. 

Suggestion - Stock exchanges are processing the orders on first come first serve for the top price bidder. In this case if buy order placed after seeing the stock on blog by using after market order option (AMO) than there is maximum probability to get the stock once market will resume trading on Monday. For example if someone wants to buy 1000 shares than he can place 500 stock order at cmp or little bit higher and remaining 500 at market price. It will ensure the stock purchase on time. Those who have not yet used AMO option they can practice it today buy placing few stock order for Monday trade.

4.   Is it better to post long or repeated comments with anonymous ID  or critical inquiries on mail ? 

55% readers given view to continue as before and keep control on repeated question. Comments posted on blog are helpful for all and they can know the others view easily. It is not possible on mail.   

Suggestions - Better to send long multiple question on mail. Need to search in the blog search box to find answers for similar questions to reduce the repeated questions. It will give some extra space to accommodate more comments on blog page. 

5.   Is it required to change the outlook of the blog, like design, name, recent picture, font style ?

79% readers are fine with light black color page and no major change required. Some good suggestions received to create small window on blog page for live stock price, stock performance summary on each post, try white page color with black font, changing blog name 'DK' and without picture to avoid misuse on FB or on any other public webs etc.

Action - We will continue with same setup and implement some suggested changes gradually.

6.   Are you getting  really any benefit from this blog?

Unanimously all are getting some help by knowing the views of each others.

Conclusion

No major change required except stopping the clue for new stock suggestion. Others minor changes will be implemented gradually in future. 

Year 2015 was good for investment and hopefully 2016 will be much better than 2015 because growth initiative taken by GOI will start translating into results from this year. Some sectors which are struggling from long time will make turnaround  in FY 2016 -17.

Our investment in 2015 has given better return from expected 35 - 40% per year.

Answer for some common questions generally we come across on daily basis.

Q - When I can sell my stock?

A - If you have limited investment option and you are in good profit than try to make your stock free of cost by booking some partial profit and keep the remaining stocks for long term. Reinvest again and continue the process. If you find some good correction in existing stock than you can buy more to increase the quantity.

Q - Can I buy the stock after more than 200% appreciation.

A - It is very common issue in common investors to chase down the stock at higher price for quick return. Some correction and consolidation in any stock is very common after big run up then these investors will feel stuck and  sell the stock in loss or going to average it. After selling, next day it started moving up again. It will add further anxiety and regret. 

If someone have enough patience than only buy good stock at very high price. 

Best thing is to enter early at lower price than wait for longer time to multiply your investment. If you will see on above investment summary table and focus on 'Inv price' than you will get some good feeling and peace of mind. It is because we tried to enter at lower and very safe level.

Q - Can I sell xyz. stock to buy stock of new suggestion?

A - It should be decided by you because I may not tracking that stock, your investment price, your profit or loss. I can assure only about any stock suggested on this blog will be good strong fundamental, high growth potential and able to give multiple gain in long run.

 Q - How much return it can give?

A - If you can compound your investment 30% per year than it will be 10 fold in 9 years and at 40% it will be 10 fold in 7 years. We have to go for these returns without taking unnecessary risks.

Next stock Suggestion

It will be posted after market hours on 01 January 2016. It is one of the best stock with very high growth potential in 2016 -17. I hope two and half day is sufficient time to study the stock and sector thoroughly. 

Feedback for Improvement

Dear Readers, 

We are very near to complete the first anniversary of this blog. All of you have given your commendable contribution by posting valuable comments to create positive outlook for investment specially among the new investors. After analyzing the feedback from last one years on different issues, I need your suggestion to for better improvement on below points. 

1.   Is it required to modulate the comments on the blog? Without modulation all comments will be get posted either it is positive or negative or personal remark on someone. Some time I have  filtered  few comments with personal or negative remark.

a)  Yes

b)  No

c)  Your suggestion if any

2.   Is it required to post every month new stock suggestion? In 2015, total 9 stock suggestions were posted but now every month 10 -15 % new readers are joining us and they are looking for new stock suggestion instead of investing in old suggested stocks which are already appreciated more than 35 - 50%.

a)  Yes

b)  No

c)  Your suggestion if any

3.   Is it required to give clue for new stock suggestion? In the past we have seen that some messages were posted on public web sites before publishing in the blog. But in the previous stock more than 40 readers are able buy it before publishing based on given clues and maintained the confidentiality.

a)  Yes

b)  No

c)  Your suggestion if any   4.   Is it better to post long or repeated comments with anonymous ID  or critical inquiries on my mail dolly1970.khanna@gmail.com ? Up to 250 comments per post can open normally after that it start hanging & it is taking time to load the comments.                                                                                                                                                                                                                         a)  Yes       b)  No            c)  Your suggestion if any

5.   Is it required to change the outlook of the blog - like design, name, recent picture, font style ? Some of the readers have given suggestion for change.

a)  Yes

b)  No

c)  Your suggestion if any

6.   Are you getting  really any benefit from this blog? It may be giving confidence, knowledge, guidance or financial benefit etc.

a)  Yes

b)  No

c)  Your suggestion if any

Please give your true feedback on mail dolly1970.khanna@gmail.com 
You can also post it on this blog ( feedback related comment will not be published on blog) so that we can improve it accordingly.

You can reply  just by putting # 1 Yes, #2 No etc.

I will publish the feedback results in % by next week end (Saturday 26.12.2015).

Update on Waterbase, JK Agri and Chemfab

Recent Developments

Our blog readers have posted several comments to know the impact of recent rainfall on their investment. This post is in relation to our future action plan to safeguard our investment.

Recent heavy rainfall and cloud burst triggered massive flooding in southern states of India. Even though flooding is localized but heavy rain has adverse effect on the crops, aquaculture, construction and other businesses. 

Earlier in Q2 seed and pesticide industry has posted very poor results due to drought in some part and overall 10-15% rain shortfall in the country. Price capping on high margin hybrid seeds has added further pressure on margins. Next best performance quarter for these stocks will be Q1 2016-17.

Shrimp farms and salts fields are effected due to heavy rain and floods. There will be some financial impact on the companies operating their business in heavy rain affected areas. There is possibility of some muted results  in Q3 from these companies.

Our Strategy 

• Investors with large portfolio and allocation less than 10% each in Waterbase or JK Agri or Chemfab Alkali and sufficient fresh fund flow to meet future investment plan can hold these stocks and add more on further fall.

• Investors with small portfolio and allocation more than 10% each in Waterbase or JK Agri or Chemfab Alkali with limited option for fresh investment can switch some part of their investment into Technocraft  or DTIL. 

• It will be very good investment opportunity if Waterbase slide below 100 and JK Agri slide below 400. Need to re-enter before Q4 results in case of swap.  

Conclusion

This is temporary situation and there is no change in fundamental of any company. Any deep correction in these stocks due to above situation or poor results should be taken as opportunity to add  at lower level.

Donear Industries - India Ka Style

Donear Industries Limited                CMP  Rs.- 16.6 

                                                       

                                                                         

Company Background 

Donear Industries was promoted by Vishwanath Agarwal in the year of 1977. The Company is manufacturer of fabrics having its own brand name “Donear” and also trading in garments under the brand name of "D' Cot” value retail chain. The Company has manufacturing facilities located at Silvassa and Surat. Company has invested Rs.500 crores for backward integration to set up of world class production capacity and design studio in Surat and floating D'Cot retail chain  in 2007-09. It has one of the best process house in textile industries in India. With its three decades of expertise in the textile industry it has flourished into one of the largest textile–business enterprise in India and became a household name along with other top Indian textile brands. One of the top ten well–known brands in India in its product category. Donear primarily caters to the middle and the premium segments with high quality apparel fabrics that are woven with natural fiber, synthetic fiber and its various blends. Products from their own manufacturing house, produced from LA (liquid ammonia) machines. It produces zero wrinkle product of high end cotton for the bottom and top wear. The company is engaged in the manufacture of fabrics like Suiting, Trouser & Shirting created by Donear in a wide variety and range meant for Menswear & Womenswear. As a brand, Donear has succeeded by maintaining pace with the changing demands of the local and global fashion trends, and primarily due to the innovative approach in continuously developing newer products, using latest technology along with highly–skilled workforce, and strong logistics.

High quality fabrics created by Donear have steadily captured the domestic textile markets as a result of its well–planned and expanding sales network consisting of 300 D'Cot retail outlets, 44 Agents, 290 Wholesalers and 12000 Retailers, that are spread in all the 29 States & 7 Union Territories of India. Donear is also supplying fabric to the top 40 garment brands nationally and internationally also exporting to 18 countries across the globe

Turning Points

Company was debt free before setup of Surat plant. Before the completion of 220 crore Surat project in 2008 -09 Indian textile sector went into deep recession. High growth plan of the company hampered due to extreme slow down in textile sector until 2014. Expansion plan to increase the outlets of apparels value retail chain D’Cot was also put on hold. With improving business conditions for textile industry the Donear Industries has turnaround back to growth path and started posting very good results form last year and Indian government is giving full support for revival of textile sector. 

• Recently government has allowed 100% FDI  in textile retail and manufacturing to attract investment to revive the textile sector 
• Government is setting up world class integrated textile parks and clusters of power-looms.
• Govt. has invested in textile worker skill development and R&d in product design and fashion at NIFT and SVPIITM.
• Trading agreements with several countries in the world
• Domestic demand conditions are improving with world largest youth population becoming brand and quality conscious. In last 2-3 years purchasing power has grown up with increase in disposable income of middle class families.   
• India has abundance resources like raw materials, skilled man power and installed spindle capacity in India counts 24% of the world. 

Product Range

• Polyester Viscose Blended Fabrics
• Polyester Cotton Blended Fabrics
• 100% Polyester Fabrics
• 100% Cotton High Value Plain and Yarn Dyed Shirting Fabrics
• 100% Cotton Plain and Yarn Dyed Bottom wear
• Polyester Wool, Wool Rich & All Wool Fabrics
• Apparels & accessories

Brand and Sub Brands

Company owns "DONEAR" as a mother brand and several sub brands. Roughly estimated market value of these brands is more than Rs 150 crores. 

DONEAR SUITINGS & SHIRTINGS

Donear is a flagship brand which represents a diversified range of fabrics for Trouser, Suits, Shirts, Casual Safari etc.

DONEAR ROYAL CLASSICO


It  Is a luxury premium suiting fabrics blended with superfine wool. It is specially tropicalized fabric having breathing properties to suit all kinds of climatic changes.

           
 DONEAR SOFT & SMOOTH


Donear Soft & Smooth is fine fabric which gives feeling and comfort of Cotton, soft touch of silk, and easy to maintain along with wash & wear qualities of polyester.

   
DONEAR INTERNATIONAL WITH FIT



Fabric Integrated Technology (F.I.T.) is light weight fabric, made from micro fibers spun into a two ply yarn which is finest of the suiting yarn available. It is treated with a special weight reduction finish for added softness and comfort, dimensional stability and crease recovery, excellent smoothness, luster, uniformity and durability.




DONEAR GIFTS 4 U 


This concept is to gift various kinds of suiting, shirting, trouser fabric, finely crafted suit lengths as well as safari lengths in elegant gift packs on special occasion like Events, Festivals, Weddings and Special Occasions.

DONEAR NXG



Donear NXG offers a premium and internationally styled collection for youths and professionals.  It has wide exciting range of shirt, trousers, denims and accessories designed with the finest quality of fabrics, contemporary cuts with superb fits and soft and bold colors that brings in freshness & the transparent meaning of fashion with quality. Company is in process to launch XNG exclusive brand outlets pan India. Currently these products are available in D'Cot store.  



D'Cot - Value Fashion Retail Outlets



D'Cot is company owned and franchise model retail outlets offers the most trendiest & quality style apparels & accessories at competitive price. it has complete range of formals, casuals, denims, shirts, T-shirts, jackets , suits and accessories like wallets, belts, caps, neckties, watches, eyewear, footwear for men, women & children.

Conclusion

• Company is well prepared to catch the opportunities of fast growing demand of fabric / apparels in India and other developing countries in the world.

• Company has wide range good quality product, well established  infrastructure (plants and retail outlets).

• Company is expanding the network of D'Cot and NXG outlets in  Metros , Tier I & Tier II cities by focusing the middle class and upper middle class population with enough purchasing power and willing to spend on branded apparels,  which counts 60% of total population of the country. Link for further details  -http://www.franchiseindia.com/interviews/established/Donear-to-have-1000-EBOs-by-2020-679/

• Due to 100% FDI in textile retail, several multinational brands are in process to tie up for fabric and manufacturing services.

• 'Donear' is well -known brand name and itself valued more than  current market capital of the company.

• Company has shown good growth in revenue even during recession and tough period of textile industries, proves the ability of promoters.

• Promoters have paid the dividend regularly even after posting poor results (2009 - 2013) during slowdown period of textile industries. It shows their confidence in them and in the business.

Overall company is poised to regain its old glory and the stock is highly under valued by seeing the deep hidden value of the company. Investors can buy and hold it for decent multiple gain in 2-3 years.

Q2 RESULTS UPDATE

Pondy Oxides & Chemicals

Company has maintained the OPM  over 6% from last 3 quarters which is very good sign. Depreciation cost is higher due to new plant asset with full book value. There is significant improvement in ROE in the first half of the year. Overall results are good and performance is improving. Hold the stock for better gain in 1-2 years.

Waterbase

Company has posted very good results with revenue growth 21% and PAT growth 50% YoY for Q2. Management has given detailed presentation on future guidance on business and merger of PFL. It is available on company web and BSE announcement on 26 Nov 2015. Hold and further add the stock during market correction for 2-3 year investment plan.

Xpro India

Company has posted negative results and poor performance in all business segment due unfavorable conditions. Even considering all negative factors still this company is fully capable to show excellent performance in future. Hold and add further if it slide near 40.

Dhunseri Tea & Industries

DTIL has posted very good results and OPM is above 40% for Q2. Its P/E ratio and dividend yield is best in Tea / Coffee  sector. Company is going to enter in FMCG with 'LAL GHORA' brand and its products will be marketed initially in Rajasthan where its tea brands have very good reputation. It is still value buy at CMP and hold for multiple gain in 2-3 years.  

Kothari Petrochem

Company has posted good results for Q2. Even though significant reduction in top line but very good improvement in OPM and it able to post better results YoY for Q2. Need to hold it for long term for multiple gain.

Technocraft Industries (India)

Top line growth remain flat for Q2 but significant growth in OPM and PAT. Proposal for buy back of 52L shares is good for retail investors. Company is generating good consistent profit and completed the expansion and acquisition. Utilization of free cash reserve for buy back of share is good option to increase EPS and dividend. It is still value buy at CMP and hold for decent gain in 1-2 years.     

JK Agri Genetics

Company has posted poor numbers similar other seed and pesticide companies due to unfavorable condition. It can give good results with improvement in agri sector. Hold for long term.

Chemfab Alkalies

Company has posted flat results in top and bottom line. Being low beta defensive stock very less movement in either side but it will give stability and option to buy good stock in adverse falling market. It was suggested just before deep market correction on 24 Aug to keep the portfolio stable. Hold for better gain in 2-3 years.

Next Stock Suggestion 

It will be posted on 04.12.2015 (Friday) after market hours.

Several readers are asking the stock clues and some readers are not in favor of posting the stock clues in blog comments. We have to maintain trust and fairness among all blog members. To avoid any foul play by punters, we should refrain posting comments for further clues on blog or social media.

You can test your stock finding ability with given points only. 

1. Company is paying dividend regularly from last 10 years.

2. Consistent growth in top line from last 10 years.

3. Company represent  in the list of top 10 in its segment.

4. Company has posted more than 100% growth (YoY) in bottom line.

5. Stock is trading in two digit.

Please note that any comments  related  further stock clue will not be entertained before posting above stock in this blog. If you able to find above stock than you can buy it without disclosing to anyone.