Saturday, December 16, 2017

Deepak Nitrite Limited



CMP = 213


Deepak Nitrite is a leading manufacturer of organic, inorganic, fine and speciality chemicals with more than hundred products across three broad categories. It caters to Colorants, Petrochemicals, Agrochemicals, Rubber, Pharmaceuticals, Paper, Textile, Detergents, Fine & Specialty Chemicals etc. Company  have five manufacturing facilities at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra, and at Hyderabad in Andhra Pradesh. Fully integrated infrastructure equipped to manage a product right from design to despatch lends Deepak Nitrite a strong competitive advantage, company produces complete value chains, right from feedstock to finished product within the organisation.






Deepak Nitrite is adopting the principles of responsible chemistry and stands among 18 Indian companies to be accredited with Responsible Care certification - towards global environment, safety and health management.



Deepak Nitrite currently operates its businesses with three main SBUs namely Basic Chemicals,  Performance Product segment and Fine & speciality chemicals





Investment Rationale



Deepak Nitrite is setting up country’s largest phenol-acetone project at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Dahej, Gujarat. This greenfield mega expansion project is under construction since last 3 years and costing ₹1,400-crore  through its wholly owned subsidiary Deepak Phenolics. The project is very near to completion of final stage and expected to start the commercial production within next 2 -3 months.


Below video link is helpful to understand the huge potential of this mega project.


https://www.youtube.com/watch?v=4q5PmUSVMFs






The phenol-acetone project will achieve 70% capacity utilization by next year (FY18-19) and 85-90% by FY19-20 to generate around 4500 crores annual revenue from new plant.


Below guidelines are given by company’s Promoter and Chairman & Managing Director Deepak Mehta stated that the company will explore more downstream products from phenol.


“We are setting up the country’s largest phenol-acetone plant at Dahej PCPIR with capacity of about 200,000 tonnes per annum. Once this project is commissioned, it will trigger a lot of new opportunities for Deepak.


“We are also looking to explore more downstream products from phenol. We have set an ambitious target of $1 billion turnover in the next three to four years," Mehta told BusinessLine.


http://www.thehindubusinessline.com/companies/deepak-nitrite-eyes-1-b-revenues-in-3-years/article9869314.ece


Company is sourcing best  phenol plant technology from Kellog Brown & Root International and technology for curmene is has been sourced from UOP Honeywell. EPC work for the plant has been done by Thyssenkrupp. It will be one of the best cost effective and efficient plant in the world. Company has added the cumene capacity which is feedstock for manufacturing phenol and acetone. It will further help to improve the profit margins.



India is importing 80% of Phenols and Acetone from other countries to meet the overall demand and Deepak Nitrite is building the plant to meet at least 60% of overall demand. Phenol demand  is expected to remain strong for longer period and entire capacity of Deepak Nitrate will get absorbed in domestic market.  








http://vibrantgujarat.com/writereaddata/images/pdf/project-profiles/Manufacturing-of-Phenol-Acetone.pdf



Phenol is used in the manufacture of a large range of commercial products. It is consumed in laminates, automobile, foundry, paints, rubber, surfactants, pharma, agro-chemicals, infrastructure products, epoxy resins, polycarbonates, phenolic resins industry etc. Acetone is predominantly used in the production of pharmaceuticals, paints, adhesives and thinners, etc. Thus both phenol and acetone have very wide range of application in almost every industry and it is giving clear visibility for very long term revenue generation for the company.








Deepak Nitrite has market leadership position in most of its products like Xylidines, Cumidines, Oximes, Colour Intermediates, Sodium Nitrite, Nitrate & Nitro Toluenes in the India and among top 3 global supplier for Cumidines and Oximes


Deepak Nitrite has  increased its focus on adding high value products catering to pharma, rubber, colourants and imaging products, paper products and other industries. Moving higher in the value chain to improve its profitability in long term.


Diversified product portfolio  gives stability and strength because it covers several industries  like Colorants, Petrochemicals, Agrochemicals, Rubber, Pharmaceuticals, Paper, Textile, Detergents, Fine & Specialty Chemicals.


Over the years company has built enduring relationships with leading global companies with strong distribution network across the globe with footprints in over 30 countries. 






Its strong R&D focus has led to in-house development of new product applications and understanding customer preferences resulting in having strong customer base consisting of some of the largest chemical companies in the world, including BASF, Syngenta Global, Bayer Cropscience, HMEL, Monsanto, Clariant, SF chem, Lonza, IOC, Reliance,  Essar, EASTMAN, saltigo etc.


Conclusion 



Deepak Nitrate is growing at decent pace with existing product portfolio and generating  revenue around 1500 crore and profit more than 100 crores. But upcoming phenol and acetone mega plant is going to bring huge turnaround  in topline and  bottom line in coming quarters. 


Company is continuously maintaining its market leadership position in several products and now further addition of phenol and acetone. It is because of exceptional foreseeing ability of management to capture the opportunities for those chemicals where stable demand and supply gaps exist for longer period and scope of  adding high value products.


Deepak Nitrate stock at cmp Rs 213 is very good  investment opportunity for short term and long term ( 1 year - 4 years). It can be bought + / - 10% from cmp with 10 -20% of portfolio allocation.



516 comments:

  1. Thank you mam...
    Take care and have a good day.

    ReplyDelete
  2. Thank you very much for the new pick.

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  3. Good home work madam.thanks alot

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  4. Good morning mam what is expected return for short term and long term for this stock?

    ReplyDelete
    Replies
    1. Expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  5. Very good advice for retail investors for long term.thanks for your valuable recommendation.

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  6. Greetings of the Day Madam !
    Many Thanks for new stock pick !!
    Best Wishes always !!
    Good day !

    ReplyDelete
  7. Thanks Mam for the new recommendation. Sincere Appreciation for the time and effort you are devoting for us.

    ReplyDelete
  8. Thank you so much mam for identifying another gem. God bless you. Regards

    ReplyDelete
  9. Thanks Mam for the new recommendation. Sincere appreciation for the time and effort you are spending for us.

    ReplyDelete
  10. Thank you Madamji for your new pick, I have been a regular reader of your blog on daily basis. I have always seen you advocating against buying any stock that had run up in recent past but i understand this stock is different as the recommendation is based on the upcoming expected major boost in topline and bottomline post commissioning of its new facility and hence recent rise in price dosent matter much. Thank you very much for what you have been doing for so long with so much dedication and passion,

    ReplyDelete
  11. Hello,
    Good Morning Mam. Thank you for another tip. Any thoughts on Bodal Chemicals?

    --Swapna

    ReplyDelete
  12. Thank you mam...for such a nice stock.. and wat a timing really salute you..

    ReplyDelete
  13. Thanks mam for latest stock. How much return expected as a majority of small and midcap funds holding this stock ?

    ReplyDelete
    Replies
    1. Expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  14. Thanks a lot mam for the new stock pick. What can be the return expectation from the stock in 1 and 4 years.

    ReplyDelete
    Replies
    1. Expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  15. Mrs Dolly,
    Thanks a ton for this wonderful pick. I love chemical sector. I have seven out of total nine stocks in my portfolio from the chemical sector.

    M'am is it ok if I add this to my portfolio as my portfolio is heavily skewed towards chemicals primarily because they are used in everything and a great bet in a growing economy. Please let me know your views regarding this.

    M'am what are the likely returns from Deepak Nitrate both from the short and long term perspective ? I somehow already like this stock a lot.

    Thanks a ton and warm regards,

    Navraj Grewal


    ReplyDelete
  16. Mam thanks for new pick can we expect good returns even now after giving multi fold returns in short time

    ReplyDelete
    Replies
    1. Yes, expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  17. Thanks Madam. May Almighty keep you always happy.c

    ReplyDelete
  18. Good Morning Ma'am.
    Thank you for the wonderful pick. Hope it flies like other picks of yours like ADF, Waterbase, Shree Pushkar and many more
    Ma'am, if I had 20 lakhs of cash in hand, which is the 1 stock that I can put all this money in and wait for 1-2 years for 100%+ returns?

    ReplyDelete
    Replies
    1. You can give 20% allocation to Deepak Nitrate. Expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  19. Thanks a lot Mam. Stock has runup a lot both in short term and long term. What is the return expected on this stock in next 1 yr and also next 2-3 yrs.

    ReplyDelete
    Replies
    1. Expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  20. Thank you mam. May Almighty bless you with good health.

    ReplyDelete
  21. Idle return can be expected from this stock in one year of time?

    ReplyDelete
  22. Thanks Mam for gifting another gem.
    1. So to buy it on Monday is it better to wait till Gujarat result outcome instead of rushing early morning as the BJP win margin might show some effect for few days? I noticed that recent recommendations were coming to ur recommend price after 3-4 days, instead buying 5-10% high on the next day of recommendation.

    2.Also can you please let me know about Dai ichi which is in same area as Deepak Nitrite which is also going on expansion which is also starting in early 2018, which is also trading much cheaper than Deepak nitrate. U can give much details as u hold dai ichi. Y u preferred Deepak to Dai ichi?

    Your valuable views please.

    Thank you Mam.

    ReplyDelete
    Replies
    1. Mam can you please give ur views regarding Dai Ichi which I asked above. R u still holding it. What returns we can expect from it in 3-5 years as it is also in expansion to double its capacity

      Delete
  23. Just a query as a novice.
    Doesnt price rise from 80 to 213 in last one year reduces safety margin or doesn't p/e of 27 on higher side.
    Though your suggested cmp have been awesome, how do u conclude that this cmp is a base and share price won't fall much from here?

    Thanks a lot for this gem reco

    ReplyDelete
  24. Thank you madam.. Kindly elaborate on CMP being costly @ 3 times book value and 2 times the industry average P/E.

    ReplyDelete
    Replies
    1. Our investment decision is not based on past data but on future growth.

      Delete
  25. Thanku so much mam....god bless u mam....regards..Sandeep Sharma

    ReplyDelete
  26. Hi mam,

    Any relation to deepak fertilizers for this company

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  27. Hello Mam - once the upcoming capacity stabilises (1-2 years down the line)... what is the revenue and profit you expecting?

    ReplyDelete
    Replies
    1. The phenol-acetone project will achieve 70% capacity utilization by next year (FY18-19) and 85-90% by FY 20 to generate around 4500 crores annual revenue and profit around 350 crores from new plant

      Delete
    2. is this profit estimate after tax?

      Delete
  28. Thank You Mam
    For another super pick. The blog members have benefited immensly from your vision and humble charity of ideas. With gtatitude and respect. MB

    ReplyDelete
  29. Mam whats your views on rain ind my buying is at 337 can I hold it for 1 to 2 year view for 50 to 100 cent gain or exit from it?

    ReplyDelete
  30. dear madam thanks , stocks book value near to 60,stocks pe 41.33, price to sales 2.15, peg ratio 2.20 around
    madam is it stock is overpriced ? or expansion plans in next 3 months will increased tremendously sales and profit will cover all this> how much returns we expect in next 4 yrs .can you please guide .

    ReplyDelete
  31. Very interest to see a chemical blue-chip, industry leader being profiled.
    Major MFs already own ~20% of the company - Reliance, Franklin, Birla, IDFC, L&T, Fidelity;
    FPIs own another ~13% of the equity. 46% owned by promoters.
    Play on increasing Chemical security of India; currently India imports its needs in these areas from China etc.
    Being suggested right before completion of massive Capex project —> value creation likely from next year.
    UOP, one of the project partners has built >80% of all Phenol plants in the world.
    Dahej situated next to Sea-routes, inland train & road routes —> low transportation overheads.
    Lowest thermal footprint of any other comparable plant in the world, IOT-enabled - ‘best in class’ unit.
    Board includes founder of JM Fin, MD of GRUH + other industry experts (i.e not ‘rubber stamps’).
    Always valuable to have a strong board.
    If 2020 revenues ~6,500 Cr ($1B), currently avail @ 2800/6500 ~ 0.4 mktcap/’20 Sales.
    Even it only achieves 70% of that target (4500C), it would nearly triple its profits in 3 years.
    Stocks follow earnings, so 3x in profits would at least translate to a 3x on the stock, all things being equal.
    The story doesn’t end after 3 years of course, as the competitive strength gained from the new Dahej plant
    will persist for much longer; DNL would likely become the ‘supplier of choice’ within India at the least.
    Low-risk, high-reward situation. Thank you as always for the suggestion!

    ReplyDelete
    Replies
    1. @Yooday: Fantastic information about Deepak Nitrite, thank you!

      Delete
  32. Dear Blog Owner. Thank you as always. What profits can be expected after 1-2 years when the new capacities are fully operational? Best regards.

    ReplyDelete
  33. Thanks mam for recommending one more gem

    ReplyDelete
  34. Thank you very much mam for another excellent pick. What would be the target 300-500%in 3-5 years.

    ReplyDelete
    Replies
    1. Yes, expected return around 50 -100% in one year and 300% in 4 years.

      Delete
  35. Hi,
    What are your thoughts on the valuation? It is trading at 28 PE if I'm not mistaken. What about the promoter? Are they good and ethical?

    ReplyDelete
  36. Thanks mam for your recommendation.

    ReplyDelete
  37. Greetings Madam,

    Thank you for the pick. This stock will give us fantastic returns with God's grace.

    Thanks and Regards,
    D. Viswambharan

    ReplyDelete
  38. Thank you madam for this pick. Kindly advise how 20% of portfolio should be allocated in this stock. In one go or in multiple installments ? Thanks and best regards.

    ReplyDelete
    Replies
    1. You can buy within 10% from suggested price in one time or multiple time. Stock price or market movement will not wait for us but we have to buy it on time.

      Delete
  39. Respected madem,pl comment on ed attachment of assets of sintex

    ReplyDelete
    Replies
    1. Is your question for Sintex Industry? than I am not tracking it.

      If you are thinking about Sintex Plastic then it is now separate company and nothing to do with any liability of Sintex Industry.

      Delete
    2. Thanq madem,my doubt about sintex plastic recently bought 1000 shares at Rs 75

      Delete
  40. Thanks madam for suggesting a wonderful stock .I bought xpro india two years back. Can I expect three digit for xpro this year??

    ReplyDelete
    Replies
    1. We can expect better results in coming quarters. Our target of 300% return will be achieved with few quarter positive results.

      Delete
  41. Dear Ma'am,As you always say buy +- 10% from suggested price..so 213 + 21 =234 will be good price if we buy ? For short term n long term
    Also,please can you help us in understanding rationale behind deciding the date to disclose (suggest) new recommendation to blog followers..
    Many thanks for everything ..

    ReplyDelete
    Replies
    1. + / - 10% buying range from cmp is 191 - 234.

      Regarding suggestion date - We have seen good market correction in last week but market rally yesterday (15.12.2017) after results of exit polls in Gujarat and HP.

      Deepak Nitrite was trading in range bound from last 3 months from 234 to 196. Even though market corrected continuously but Deepak Nitrite did not close below 200 so we went with our plan to post the stock in the mid of December.

      Delete
  42. Thank u madem for the new pick,from when we can expect movement in kesoram.

    ReplyDelete
  43. Thanx a ton madam for new pick, may lord bless u with abundance

    ReplyDelete
  44. Hello Mam,

    Thanks a lot of your new recommendation. I have 2 questions.

    1. At the current CMP Deepak Nitrite looks on the higher side. As per your research you are recommending topline for long and short term, just need to understand the history of movement of this gem wont impact on further up-movement?

    2. Is it good time to invest on Alkali Metal, AB Capital, Jamna Auto Ancilliary, Munjal Auto at current CMP? Your suggestions please.

    Regards
    Indrajit

    ReplyDelete
  45. Dear madam ,
    Thanks for the new pick.I started my investment journey with you 2 years back and really enjoying it.If you don't mind:

    How it managed to decrease the debt/equity ratio even with increasing capex.
    Madam the overall capital outlay for dahej project is only 1400 cr and it is going to generate revenue to the tune of 4500 cr?Kindly share the basis of your forecasts of 4500 cr revenue.

    ReplyDelete
  46. Thank ma'am for the new pick .
    One year view of lasa supergenics will it give 100% return??

    ReplyDelete
  47. Madam , I am having orient paper at 125/-. Is demerger of orient paper over or it will be in future.

    ReplyDelete
    Replies
    1. Yes demerger will be completed in few months and record dated will be announced very soon

      Delete
  48. Best wishes and God bless u always Mam...

    ReplyDelete
  49. Good evening mam I am holding rain ind from 337 ..mam can I exit from it or hold it for 2 to 3 year for 50 to 100 cent gain thanku mam..

    ReplyDelete
  50. Dear Mam,
    Thanks for the new stock.. I had 50 stocks thirumalai chemical @2259.. Shall I hold or sell and buy this stock..

    ReplyDelete
    Replies
    1. I surprised to see that you have bought Thirumalai chemical @ 2259 but need to stick with investment decision for at least 2 -3 years.

      Delete
    2. Thanks for your prompt reply mam..

      Delete
  51. Heart felt thanks for the new recommendations mam. My first stock market profits are from your recommendation of shree pushkar and ADF foods.Mam can I send you my portfolio for you to look at it when you find time and suggest me any changes if required. Thank you in advance. May God support you in all your endeavors.

    ReplyDelete
    Replies
    1. Sure you can send it, I will try to reply the emails from next months.

      Delete
  52. Mam,THANKS FOR THE NEW SUPER PICK.
    AS PER YOUR SUGGESTED PRICE I HAD WATERBASE (AT 62),& RAIN INDUSTRIES(AT 110).BOTH STOCKS ARE MULTIPLIED BY 300 TO 400%.BOTH ARE 5 % OF MY PORTFOLIO.WILL IT BE OK TO KEEP BOTH STOCKS FOR 1 TO 2 YEARS MORE.MAM ONCE AGAIN THANKS FOR YOUR HARD EFFORTS FOR INVESTORS.

    ReplyDelete
    Replies
    1. You can book some partial profit and reinvest principal amount in new stock and keep remaining shares for further gain

      Delete
  53. Hi Mam
    Is not most of the good prospects and future profits from the plant to be operative in dahej already priced in

    ReplyDelete
  54. Good evening mam my buying at rain ind at 337 can I hold it for 2 years for 50 to 100 % gain

    ReplyDelete
  55. Mam your views on Aries agro. Is it a good buy at CMP?
    Also, mam by when do you expect textile industry companies will start giving good results? 3rd quarter or 4th quarter?

    ReplyDelete
  56. Mam ,what's the source of fund for this expansion?

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  57. God Bless you Mam..Thanks for your new stock recommendation..

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  58. Thanks mam for your another gem.getting profits through your recommendations . Should I hold rain industries for further gain?

    ReplyDelete
  59. Madam,
    I have 1000 quantities of EONOUR SOFTWARE LTD. The company has been liquidated in 2010. How can I sell the shares?

    ReplyDelete
  60. Mrs Dolly,

    Thanks for this wonderful stock.

    M'am If you are tracking Himadri speciality chemicals then what are the likely expected returns from it?

    Thanks and regards!

    Navraj

    ReplyDelete
  61. Greetings Madam,

    In 2014, Deepak Nitrite issued 1:1 bonus. Any chance of bonus shares issued during next 4 years?

    Thanks and Regards,
    D. Viswambharan

    ReplyDelete
    Replies
    1. Deepak Nitrite is aiming for $1 billion ( 6500 crores) turnover in the next three to four years.

      Below guideline will give you fair idea about your question

      1) At present how many chemical companies are with 6000+ crores turnover?
      2) What is the present market capital of these companies?
      3) If you will compare present market cap ( 2780 crores) of Deepak Nitrite then it will give you fair idea about huge possibilities in future

      Delete
    2. Thank you for your response madam, will analyse.

      Delete
  62. Mam, can I send you my holding for your suggestion when you find time and suggest me any changes if required. Thank you for ur support. If yes, ur email id please ?

    ReplyDelete
    Replies
    1. Sure you can send it, I will try to reply the emails from next months.

      dolly1970.khanna@gmail.com

      Delete
  63. Thanks for the new recommendation Mam
    In lieu of shortage of cash can I sell Omkar specialty chem (keeping Lasa Supergenric) & buy Deepak nitrite since both are in same field of specialty?

    ReplyDelete
  64. Should I remain invested in TCI for another10 to 15 years, bought at 190.If yes what return in terms of CAGR I can expect in the long run.

    ReplyDelete
    Replies
    1. Yes you can continue to hold with expected return around 15 - 20% per year

      Delete
  65. Dolly Mam, please care to clarify a doubt I have about the new plants' utilization. In 2017 Annual Report, the management mentions that current domestic capacity for Phenol ad Acetone are under-utilized due to two reasons: one is sub-optimal plants and the other is imported Phenol and Acetone being cheaper than domestic produce.
    I couldn't find any satisfactory explanation that shows that Deepak Nitrite will be able to produce cheaper product and all of its capacity will indeed replace a significant portion of imported Phenol and Acetone. Is this deduction attributed to the leadership position of DNL or some other factor?
    Thank you for your help for the small investors.

    ReplyDelete
  66. Hello Mam,
    Thanks for this new investment pick. Do you have investment in this company?

    ReplyDelete
  67. Mam,once again thanks for new recommend can you tracking kirloskar ferro? Buy at cmp?

    ReplyDelete
  68. Thanks a lot for your posting a gem which has very good the future prospectus.
    Madam, Like China is there a pollution threat of closing down the chemical factories in India as well?
    How much of Deepak Nitrate factories are environment frendly compared to others in India in Chemical sector?

    ReplyDelete
    Replies
    1. Deepak Nitrite is adopting the principles of responsible chemistry and stands among 18 Indian companies to be accredited with Responsible Care certification - towards global environment, safety and health management.

      Delete
  69. Thanks Ma'm. Following up on my previous Question.

    You mentioned following stocks at these price range. What return to expect for long term..3-4 yrs?
    AKSHARCHEM: 620-640
    SHREYAN IND: 125-135
    NITIN SPINNER: 60-70

    Also, LIBERTY SHOE...what price and what return to expect?

    Thank you very much

    ReplyDelete
  70. Madam

    best housing finance stock to buy??

    ReplyDelete
    Replies
    1. Sure, I will suggest if any good stock from housing finance sector will come into buying range

      Delete
  71. Mam,thanks for the recommendation.Is Sintex Plastics a buy at current levels?
    Thanks

    ReplyDelete
  72. Mam whats the date for next stock recomendation.

    ReplyDelete
  73. Hi Mam,
    Not sure y still my queries r not posted which I asked on Saturday morning. Can you please give ur valuable views regarding those.

    ReplyDelete
  74. Madam your call on Rallis india ..bought at Rs 204 ..it's really testing my patience ..

    ReplyDelete
  75. http://www.livemint.com/Companies/60rk4yw7GRbn1pXGhwGeuL/BK-Birla-groups-Kesoram-Industries-to-get-Rs350-crore-from.html?facet=amp&utm_source=googleamp&utm_medium=referral&utm_campaign=googleamp
    Madam kindly give your opinion about the above decision of kesoram board.

    ReplyDelete
  76. Madam will the Deepak nitrate grow and scale the business like thirumalai chemicals.

    ReplyDelete
    Replies
    1. Deepak nitrate is already much bigger company then Thirumalai chemical

      Delete
  77. Hi Mam, Is Triveni Engineering a good investment now. Also what is your advise on Dhampur, Dhwarikesh. Can we hold on as they have corrected.

    ReplyDelete
    Replies
    1. Sorry not tracking Triveni engineering , You can continue to hold Dhampur and Dwarkesh sugar as it is for further gain in coming quarters

      Delete
  78. Hi mam,
    No words to describe your patience and care about your followers, today(Sunday) you replied twice to blog member questions.Small request to blog members instead asking queries about other stocks just ask about related stocks mam suggested stocks, best eg: waterbase.all we are lucky became members in this blog as getting free advice and experts are charging on daily basis, friends instead of asking something just grab it.

    ReplyDelete
    Replies
    1. right...Mam is hope of thousand of small investor who lost their money and with the good advise of mam they have some profit..Mam we always pray to Mata rani,May give u success,blessingg and happiness always...regards mam Sandeep Sharma

      Delete
    2. I agree, instead of asking unrelevant questions to waste madam time. Better stick into topic

      Delete
    3. Absolutely right...I will try to ask blog suggested stocks only...gud suggestion.

      Delete
  79. Dear mam

    Thanks for the new pick hopefully we will be able to buy tomorrow around 215.
    Did you checked the news on sintex..sintex holding netherland is now a part of sintex plastics..will it have negative impact on stock price? Is the long term view on sintex plastic is still positive?
    Thanks

    ReplyDelete
  80. Hi mam

    What about the competition from GAIL as they are also coming with acetone n phenol plant

    ReplyDelete
    Replies
    1. You have not read the blog properly,India is importing 80% and demand is increasing 10% every year

      Delete
  81. Madam 2 queries.

    1. Can I go for one shot but for Deepak Nitrite or in SIP mode.
    2. Your views on Avantel and Godrej Agrovet please.
    3. From all ur record, which one you suggest to enter at CMP for multifold gains.
    Thanks

    ReplyDelete
    Replies
    1. You can buy it within 10% from suggested price in one time or hundred time

      Not tracking other stocks

      Delete
  82. Madam, thanks for the new pick but kindly throw some light on below points:
    1. What is the average price of phenol and acetone? And is there any possibility of price coming down in future??
    2. What are raw materials used for these products and their pricing..in case if raw material price increases whether company will be able to pass on the high cost to customers??
    3. Whether company has already obtained environment/regulatory approval, as they may be critical..
    4. Which are countries India importing these products from?? If China then, low whether low cost advantage is still there??
    5. If demand/supply gap was this much and visible also, what restricted other companies to enter this business till date?
    6. Cost of plant is approx 1400 crore, what if tomorrow some other big player enter and competition intensify..means what restricts competitors to enter in this business??
    Kindly throw some light on the above, if possible, as this will help in understanding the things from all angles...thanks in advance...

    ReplyDelete
    Replies
    1. Just google it for price and general information on phenol
      You will get the answer within next four years for every question if you are confident then only buy it

      Delete
  83. Respected Madam,
    Will rising raw material cost impact the topline ?
    http://www.financialexpress.com/industry/increasing-raw-material-prices-hit-gujarats-chemical-dyestuff-industry/951806/

    ReplyDelete
    Replies
    1. You are talking about today and we are talking about 2020

      Delete
  84. Madam, Can we buy GIC housing at CMP(405) for long term and expected return.?

    ReplyDelete
    Replies
    1. It can be added near 350 with expected return around 20% per year

      Delete
  85. Madam PE is 59 clear my regarding this Madam, thank you

    ReplyDelete
    Replies
    1. Stocks are not suggested on past data but for future growth potential

      Delete
  86. Mam I m holding 2000 shares of kesoram industries since your recommendation. Right now I have limited fund to invest in Deepak nitrite. Is it advisable to invest in Deepak nitrite by partly selling kesoram holding (1000 qty)? Please guide mam

    ReplyDelete
    Replies
    1. No change in previous view for Kesoram industry and not advisable to swap from one stock to another stock frequently.

      It is not necessary to buy every stock but need to stick with investment decision for existing stocks for at least 2- 3 years

      Delete
  87. Madam when can we expect chemfab alkalis to be listed,has been 8 months since it has traded.

    ReplyDelete
    Replies
    1. Hopefully it will get listed before end of this financial year

      Delete
  88. Madam,
    I am holding WATERBASE and RAIN INDUSTRIES.
    Please guide me whether to book partial profit or hold fully for further gains.

    ReplyDelete
    Replies
    1. Yes profit can be booked any time from hundred percent to 500% . You can take out principal investment amount reinvestment and keep the remaining stock for the gain

      Delete
  89. What about dairy sector
    I am very bullish
    Please suggest stock from sector

    ReplyDelete
    Replies
    1. Sure I will suggest it if any good stock will come in buying range

      Delete
  90. namaskaram mam,
    Have been investing in all your suggestions since Shree Pushkar. Have invested in DNL as well.
    Reading your responses to any question gives us confidence in stock investment and also it
    helps learn to be patient and stick to our investment decision. God bless You, mam!

    ReplyDelete
  91. Hi mam..thank you once again. Today was a lucky day for all members that we were able to buy deepak nitrite at good levels . Initial fall in first hour of markets today were very helpful to buy at best rates or it would have opened at near to 10% up.

    ReplyDelete
    Replies
    1. I hope you have already bought it at near suggested price below 220

      Delete
    2. Yes! Was lucky to get at 215 and at 219 ! Waiting as how it moves now , since Elections results are done with !! Thanks much Madam !!

      Delete
  92. Dear Ma'am your view regards to Kesoram
    .after the recent board meeting..

    ReplyDelete
    Replies
    1. Yes, company is looking to revive the tire business by infusing some more capital and looking to form some joint venture

      Delete
    2. There was also a talk about possible demerger of cement and tyre business which should be positive if it goes through.

      Delete
  93. Dear Maam, Kesoram is raising 350 Cr. Through promoters. Why had the market reacted negatively.

    Inspite of overall market rising and news being good of fund raising stock is down %.

    Is the announcement not good for company.

    ReplyDelete
    Replies
    1. Market is looking the price of preferential issue once everything get cleared then it will start moving up

      Delete
  94. Thanks a lot mam once again. I hope every blog member was able to buy well near to suggested price 213-220.

    I understand you have been considering this aspect and so most of recent stocks are buyable just near suggested price.

    I think this is good lesson to all those who keep guessing what mam will post, like karnataka or sintex and so on blog...i include myself.

    If we are getting opportunity to buy at good price then we should not worry and should not irritate mam for the same.

    It is not necessary that every stock posted on blog should lock in uc next day. It will happen but as many of us are long term investors we really should not bother.

    It gives relief if we get opportunity to buy in 5% as compared to buying range of 10% mam suggests but at the end price movement is in nobody's hand.

    Best luck and wish last stock in 2017 calendar with lot of efforts by mam bless all of us with 50% gain by next december.

    ReplyDelete
  95. Dear Madam, Thank you for ur reco...as well pls do suggest..is it the right time to enter GNFC & Rain Ind.
    With Regards

    ReplyDelete
    Replies
    1. In case of further correction GNFC can be bought near to 250 and Rain industry near 110 - 115

      Delete
  96. Madam,
    In this blog every body got benefited at free if cost.lots of thanks to u.
    Thank u for ur wonderful pick. By reading one of the above comment, there is doubt for me. Since mkt capitalization is 2780 crores for deepak nitrate. is the mkt capitalization is associated with sales or revenue figures.say for example if sales is 2000 crores, then mkt capitalizations is multiplied by 2 times . say 4crores. Most of the company mkt capitalization is two times of it's annual sales.so pls clear my doubt the relationship between annual s and mkt capitalization.
    Thanks

    ReplyDelete
    Replies
    1. Yes for similar industry the sales revenue, market capital , profit, PE ratio Can be considered for comparison

      Delete
  97. Mam can we buy Manappuram Finance and Dwarikesh at CMP?

    ReplyDelete
    Replies
    1. Both stock can be bought near 50 with expected return around 20% per year

      Delete
  98. My suggestion to every blog members is to add more quantity of Mam's suggested stocks instead of buying other stocks.

    Thank you so much Ma'm for your selfless service.

    ReplyDelete
  99. madam,
    The govt have taken certain steps to ensure the quality of solar products,. Will it protect companies like surana solar. Kindly provide your views on the same though you have given a sell call on surna.


    ReplyDelete
    Replies
    1. Yes It will be helpful but still long way to go to get the things happen on ground level

      There is no sell call given for Sarana solar It was option given for those who are unable to hold it or bought at high price for short-term gain. There is no change in previous view for Surana solar

      Delete
  100. dear dolly maam... can i buy omkar speciality chemicals at cmp of 72rs. lookng at it, it seems like grossly undervalued at cmp

    ReplyDelete
    Replies
    1. Yes it can be added below 70 With expected return around 20% per year

      Delete
  101. Dear Maam,
    Thanks you for the wonderful yet another GEM.
    Kindly advice if one can enter Dwarikesh Sugars at 50 for 2 years holding period

    SEASONS GREETINGS & thanking you in advance

    ReplyDelete
    Replies
    1. It can be bought below 50 with expected return around 15 to 20% per year

      Delete
  102. Thank you madam for your new gem..when does chem fab alkalise open for trade?????plz let us know

    ReplyDelete
    Replies
    1. Company will give update on listing of Chemfab alkali, Hopefully it will get listed before end of this financial year

      Delete
  103. Hi mam.bought huge quantity of sptl at 80/- every body are saying it's a good compan, but y it is falling like anything....shall I average if yes please tell me at what price shall I bu

    ReplyDelete
    Replies
    1. If you have bought it for one month then it is really serious problem but if you have bought it for five year then nothing to worry

      Delete
  104. Ma'am, over the long term, incase the crude prices were to correct again and remain low priced, what impact would it have on Deepak Nitrite's margin's considering Benzene is used a raw material for phenol and acetone?

    ReplyDelete
    Replies
    1. No impact because their passing the increase in price to end user

      Delete
  105. Thanks mam
    Any change in views on Kesoram Industries and Surana Solar
    Can i make fresh enrty mam

    ReplyDelete
    Replies
    1. No change in previous view for both stocks, you can buy the Kesoram at recent low near 120.
      Sarana solar near 15 in case you able to hold till 2022 then only buy it

      Delete
  106. Invested in kothari petro . Whats price target in 2018... I was expecting it to grow to 50 ,but its stuck at 30 gone. Pls suggest

    ReplyDelete
  107. Good morning mam ..I have kesoram abfrl rain ind deepak nitrateoI have spare fund any stock in buying range pls suggest mam or utilize in these stocks...

    ReplyDelete
  108. Mam,

    I have already started investing in Shree Pushkar Chemicals.

    1. Is it wise to also invest in Deepak Nitrite. If so, what is the
    suggested PF allocation for these two.

    2. If not can i exit Shree Pushkar and fully invest in Deepak Nitrite.

    ReplyDelete