Saturday, August 4, 2018

TPL Plastech Ltd



CMP = 288





TPL Plastech Ltd (TPL) was incorporated in 1992 and its manufacturing operations commenced in 1995 at Silvassa plant. TPL offers a wide range of industrial rigid polymer packaging products like  drums and containers for various packaging requirements for almost every industrial sectors. Later on it started manufacturing infrastructure related products like HDPE pipes and  DWC pipes. TPL has six manufacturing plants, whose production capacities are 18,000 tons of drums and  10,000 tons of HDPE pipes.






TPL Plastech is the second largest manufacturer of bulk packaging drums in India with capacity to produce 1.8 million barrels per annum. Its promoter Time Technoplast is the largest producer of bulk industrial packaging in the world and it commands 75% market share in Indian market along with TPL Plastech.


TPL is the first manufacturers in bulk packaging to get an ISO certification for its unit at Silvassa as early as 1998.  Company products are complying with U/N Certified Quality Standards IS 6312.





These  barrels and  containers are used for packaging of various products like chemicals, paints, pigments, inks, pharmaceutical intermediates,  industrial coatings, agricultural, intermediates, construction chemicals, additives, lube oils, food and beverage etc.






In 2017, the company began the production of DWC pipes at Gadarpur unit. 87% of the turnover comes from the sales of drums and  13% sales  contributioms come from pipes division. The Company's PE pipes are used in applications, such as portable water services or distribution lines, sewerage and drainage, cable ducting, natural gas distribution, irrigation, waste disposal, industrial application and offshore pipeline installation. High Density Polyethylene (HDPE). Pipes processing ranging from 100 - 600 mm diameter at Pantnagar (Uttarakhand) to serve the northern region.







TPL plastech PE Pipes are capable of handling semi-solid & gaseous effluents and has unmatched resistance to corrosive chemicals. They are lighter, easy to handle & install compared to heavier metallic or concrete pipes. PE Pipes are 100% leak proof therefore they are preferred over galvanized, ductile iron, cement pipes for applications such as portable water services or distribution lines, sewerage & drainage, cable ducting, natural gas distribution, irrigation, waste disposal, industrial application & offshore pipeline installation.






TPL Plastech PE Pipes are made with quality assurance system and strict adherence to IS: 4984, IS: 14333, IS: 14151, ISO: 4427, DIN 8074 design and testing code to match the quality of our products and services.






Having established first unit in Silvassa way back in the year 1995 later commissioned units at Jammu (J & K), Gadarpur (Uttaranchal), Kutch (Gujarat) , Ratlam (Madhya Pradesh) and last but not least Vizag (A.P.)  to cater to major clients in Western, Northern, Central & South India. 





Growing steadily, TPL has became the 2nd largest manufacturer of drums in India, especially Bulk Packaging. TPL has a huge client base catering to more than 225 customers from different sector of industry.




Investment Rationale



Time Technoplast Ltd. (TTL) acquired 75% equity stake in its next competitor TPL Plastech in 2006. Post acquisition TPL became a Time Group company, enabling access to latest technology platform for polymer processing and product development. It has enabled this small company to grow exponentially after acquisition in 2006 with following progress details.


  • Addition of jerry cans with 20 - 120 ltr capacity (2008)
  • Started production facility in Jammu (2010)
  • Started production facility in Pantnagar (Uttarakhand) (2010)
  • Started production facility in Bhuj (Gujarat) (2012)
  • Got listed on NSE (2015)
  • Started production facility in Ratlam (M.P.) (2015)
  • Started Production of DWC Pipes in Gadarpur (2017)
  • Started production facility at Vizag (A.P.) 2018

* Total Income growth 10 Year (Post Acquisition by TTL ) CAGR 15.58%

* EBITDA growth 10 Year (Post Acquisition by TTL ) CAGR 17.44%

* PAT  growth 10 Year (Post Acquisition by TTL ) CAGR 20.07%



The Company has started manufacturing of high pressure HDPE pipes and DWC pipes for meeting growing requirements in the infrastructure business segment comprising of water supply management, irrigation, sewerage & drainage systems, effluent / sewerage treatment plants, destination, offshore & industrial piping, telecom & power cable ducting etc, confirming to National & International standards at Gadarpur, (Uttarakhand).



The demand for polymer drums, HDPE and DWC pipes are increasing steadily and the company has increased capacities to sufficient levels. Last year company has expanded its manufacturing capacity at existing locations in industrial packaging and DWC Pipes by 30%, sales revenue and profit will gradually increase in future without addition of major capex in next 2 years.



Over the years polymer drums are substituting metal drums in industrial applications such as packaging of chemicals. They have several advantages over conventional mild steel drums because of their better resistance to chemicals, lesser weight and are more cost effective.The industrial packaging market in India is growing at a rate of 15-20% per annum. Shift in industrial packaging from steel drums to polymer drums augers well for growth of TPL Plastech because it dominate along with its parent Time Technoplast in the Indian industrial packaging segment with more than 75% market share.



HDPE and DWC pipes  are fast replacing conventional pipes like ductile iron, mild steel and cast iron pipes in water supply, irrigation, sewage & effluent treatment, desalination plants etc. This is mainly due to their properties like anti-corrosive, leak proof, light weight, cost effective, low service cost and longer life. Even HDPE material is sturdier, more abrasive-friendly and has higher resistance to wear & tear and heat compared to PVC.



Demand for HDPE and DWC pipes will remain strong in irrigation, infra and construction sectors due to launch of several government  project like Swachh Bharat Mission, 100 Smart Cities and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) aim to further expand the sewerage network and treatment capacity. The government is taking a number of steps to improve the country’s sewage treatment infrastructure.



Plastics plays a major role in water management and scores over alternate competitive materials. The Indian plastics pipes market is forecasted to grow at 10.4% CAGR up to 2021. The domestic per capita consumption of polymers at 9 kg is one of the lowest compared to the global average of 25 kg, it gives enough head room for rapid growth.



TPL enjoys strong operational and product support from its parent. It gives easy access to latest technology, raw material sourcing, integrating and upgrading its operations for cost reduction and alternate supplier to customers.


Conclusion




TPL Plastech is well established name in the bulk packaging and new business segment  of HDPE and DWC pipes is also expected to grow at rate of 15-20% per annum for next 4 -5 years. After acquisition by TTL in 2006 company has expanded its foot print across the major industrial hubs of country with addition of 5 new manufacturing plants at different locations. All above factors are very positive for this small cap company. 



Recent market correction was very severe on several small cap stocks even with very strong fundamental, TPL corrected more than 70% without any change in fundamental of the company. Today Sensex and Nifty closing at record  high and TPL Plastech closed 8% up at Rs 288,  it  is very good investment opportunity at cmp for both short  term and long term ( 1 year to 4 years ). It can be bought + / - 10% from cmp with 10-20 % of portfolio allocation.





504 comments:

  1. Thank you so much ... GBU...
    How much return we can expect in short term (1 yr)?

    Liquidity is low.. will that not be concern if we buy on Monday? Will it give chance?

    Many thanks for everything you doing for small investors

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

      You will able to buy within buying range of + / - 10%

      Delete
    2. Your longterm view on Sri kalahasthi pipes holding onto it more than a year now

      Delete
    3. This comment has been removed by the author.

      Delete
  2. Good morning Ma’m. Thanks for the new recommendation. Hope we can add it at a decent price on Monday

    ReplyDelete
  3. Thanks for ur recommendation mam, what is d difference between sintex plastics and TPL, both r in d same sector?

    ReplyDelete
  4. Mam
    Your view on Deepak Nitrite result

    ReplyDelete
  5. Thank you madam for one more gem

    ReplyDelete
  6. Thanks for the new pick mam, need your comments on waterbase results. Holding from reco date.
    Thanks & Regards
    Venkateswara reddy

    ReplyDelete
    Replies
    1. Result is very good. You can continue to hold till Q2 results. Always need to book the profit on time it was good if you have booked profit above 350

      Delete
    2. Madam view on Sri kalahasthi pipes pkease

      Delete
  7. Dear madam,
    Both time technoplast and tpl in the same segment?

    ReplyDelete
    Replies
    1. Both are having different customers base at different locations.

      Delete
  8. Good morning Madam ji ! Thanks for the new stock pick of 2018 . Definitely will earn decent gain in coming days.
    Have great weekend.

    ReplyDelete
  9. thank you mam. looks good bet. Also deepak nitrite plan will be commissioned this month acc to MD of co

    ReplyDelete
  10. Thanks for your recommendation Ma'am. What is the return we can expect on this stock?

    ReplyDelete
    Replies

    1. Expected return around 50 % in one year and around 300% in 4 years.

      Delete
  11. thank you madam, generally new suggestion starts with cmp(like cmp=62, cmp 124) but this time we came to know cmp at the end.

    ReplyDelete
    Replies
    1. Good observation, now I have added it in top

      Delete
    2. Usually one tag line is appended with stock name on the top. This time it is missing. Last time it was - Towards New Horizons.

      Delete
  12. Thanks ma'am for your recommendation.What is the expected target in the time horizon 2-4 years?

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

      Delete
  13. Thanks mam for your recommendation

    ReplyDelete
  14. Thank you so much mam for the new recommendation. God Bless...

    ReplyDelete
  15. Hi Madam,
    Don't you think debt to equity of 1.7 is very high ?

    Thanks,
    Vinay

    ReplyDelete
  16. Thanks for the new recommendation Ma'am. Would rising crude prices have any effect on this company ? Do let us know. Thanks.

    ReplyDelete
    Replies
    1. Now crude oil price will not go up, it is expected to trade below recent peak of $80 per barrel

      Delete
  17. Thank u very much mam for new the new stock announcement.

    ReplyDelete
  18. Thanks madam for giving us wonderful stock at very low price. I will buy it on Monday.

    I found that Bridge India Fund is holding 450,000 shares. They have bought at Rs. 650 on 20 Dec 2017.

    https://www.bseindia.com/stock-share-price/stockreach_bulkblock.aspx?scripcode=526582&expandable=7

    ReplyDelete
  19. Thanks madam!

    Mam Surana is moving up . Missed it around 8 but @ 13 can it be bought I have it at avg price of 24:.

    ReplyDelete
    Replies
    1. If you have already hold Surana solar then continue to hold it for further gain but it is not advisable to buy at CMP

      Delete
  20. Thank you mam, it really very good stock and huge growth potential. I have bought at 600 from recommendation of Dalal Street now I will add more on Monday.

    DALAL STREET INVESTMENT JOURNAL had recommended TPL Plastech at Rs. 691 in volume 33, issue no. 4, dated January 22- February 4, 2018, under the ‘Cover Story’

    ReplyDelete
  21. Madam time technoplast,rajoo,prima plast,wim plast and many others are in plastic business.do you consider this recommendation will be better?

    ReplyDelete
  22. mam whats your view on stl global,jetking infotrain

    ReplyDelete
    Replies
    1. Sorry not tracking any of the above mentioned stocks

      Delete
  23. Very grateful to you, Madame. Are the 2017 recommendations like KCP and Pennar Industries, presently available at the same price as CMP was at the time of recommendation, still worth buying with the same expectation? Thanks.

    ReplyDelete
    Replies
    1. Yes you can buy both stocks at At CMP for long-term investment

      Delete
  24. Dear Madam, the announcement of commissioning of the new project is a big news for deepak? Do we expect it to start moving now?



    ReplyDelete
    Replies
    1. Yes you are absolutely right we can expect good price movement in next 2-3 quarters ,Once the sales revenue from new plant will start appearing in the result

      Delete
  25. Many thanks madam for recommendation. Is there any chance in the future to combine similar businesses of Time Technoplast and TPL Plastech for better synergies.
    As per management (in the below link) they want to keep the entities separate to give options for customers.
    https://www.moneycontrol.com/news/business/companies/see-revenues-shootingby-15fy17-tpl-plastech-988437.html

    ReplyDelete
    Replies
    1. No there is no chance of merger because management is very clear on it. TPL is having separate customer base and it is expanding all over the India it has very small equity base and sales is expected to grow significantly in coming years, it will be also good for TPL shareholders if this company will remain separate until it grown fully with turnover near to 1000 crore.

      Delete
  26. Hello mam what abt the allocation of TPL Plastech Ltd???10% or 20%

    ReplyDelete
    Replies
    1. As communicated earlier that last three stock of this year will have alocation up to 10% only.

      Delete
  27. Hello maam
    If you can update on TCI and TCI express results

    ReplyDelete
    Replies
    1. Result for both companies are very good, now little bit benefit of GST start appearing in results. You can continue to hold both stocks for much better return in coming years

      Delete

  28. Hello mam
    Your views for surana solar after implementation of anti dumping duty.
    Is it a buy or hold or sell on rise

    ReplyDelete
    Replies
    1. It is good for Surana solar and domestic solar panel manufacturers. You can continue to hold as it is but it is not advisable to buy at CMP.

      Delete
  29. Hello ma'am
    Could I sell Orient electric and buy tpl plastech for better and quick returns
    Pls advise

    ReplyDelete
    Replies
    1. Yes you have to take the decision according to our investment strategy as given below. It means that if you are already in 100% profit then you can make your holding free of cost and reinvestment your principal amount again in another stock to expand your portfolio.

      https://dolly-bestpicks.blogspot.com/2018/05/review-of-investment-strategy.html?m=1

      Delete
  30. Mam
    Pls share the link on the news of Deepak Nitrite new project commissioning

    ReplyDelete
    Replies
    1. Yesterday , company has given an update on Q1 result and commissioning of new phenol plant. On the page #3 of this presentation, progress update for this plant is given. it is expected that commissioning of this plant will get completed within the month of August 2018.

      https://www.bseindia.com/xml-data/corpfiling/AttachLive/754f794a-9dc1-42df-9f58-cbfd6f21aefe.pdf

      Delete
  31. Mam,

    As per your recommendation I am holding 627 shares of Orient paper @ 94.67(pre demerger value), after demerger I have received 627 shares of orient electric.Now the total investment value is near 100% gain, Please suggest how to exit as per your taking pricipal money out strategy.Should I sell 50% shares of orient electric & orient paper or in some other ratio.

    ReplyDelete
    Replies
    1. Our aim is to pull out principal amount for reinvestment. It will help to expand the portfolio and reduce the risk because we are giving higher allocation 10 - 20% in each stock. You can decide according to your choice which stock you want to hold or sell

      Delete
  32. Thank you for the wonderful pick ma’m. What is the rational behind 10% allocation for this stock? Is it because of the volatility of stock/ liquidity/micro cap? Curious to understand and learn from ma’m. Greatful to you.

    ReplyDelete
    Replies
    1. In 2018 portfolio we have gone for 20% allocation first 3 stocks and rest 3 stocks with 10% allocation. 10% cash for top up in case market correction or correction in specific stock. You can allocate even 20% if suggested stock price is above Rs 25.

      Delete
  33. Hi Madam,

    Can we buy Butterfly Gandhimathi Appliances Ltd at CMP? Please guide.

    Regards,
    SG

    ReplyDelete
    Replies
    1. It is not advisable to buy at CMP. In case of further correction it can be bought near 200

      Delete
  34. Mam Is pennar will be benifited from new solar import duty as it is also in the solar business?

    ReplyDelete
    Replies
    1. No it will not benefit to Pennar industry because it is not making solar panel but company is making steel structure to install the solar panels.

      Delete
  35. Hello Mam,
    I hold some Technocraft shares. I had purchased this stock when you had suggested it a few years back. I have taken out my initial investment a year back and reinvested. I am now holding free shares. As usual your advices are priceless. Thank you very much!

    I am dilemma whether sell these free shares and reinvest that money in TPL Plastech? Your advice please?

    ReplyDelete
    Replies
    1. You have already reinvested your principal amount so you can continue to keep free of cost share for long-term.

      Delete
  36. Mam, Your views on Selan exploration technology?

    ReplyDelete
    Replies
    1. It is good stock you can continue to hold it but it is not advisable to buy at CMP.

      Delete
  37. Dear Madam, Thank you for ur reco.
    Pls do suggest ur opinion about Equitas Holdings.
    Thanks & Regards,
    Gajendrakumar

    ReplyDelete
  38. Hello Dollyji. What's your view on future potential of Prakash industries

    ReplyDelete
    Replies
    1. It is good stock for long term investment with expected return around 10 -15% per year.

      Delete
  39. Namaste madam,r u tracking SQSINDIABFSI,if s please comment

    ReplyDelete
  40. Hi Mam,
    Thanks for the wonderful pick. Need a help, bought JK Agri @387. Can I book the profit or wait till result. Can you please advise?

    -Viswa

    ReplyDelete
    Replies
    1. You can book some profit above 2000 and keep rest of the shares for further gain. Still there is huge growth potential in next 4- 5 years.

      Delete
  41. Hello madam, your view on GTPL Hathway? Please.

    ReplyDelete
  42. Madam, What do you think about the sluggish performance in sales for the last 3yrs CAGR -1.71% and 5yrs CAGR 7.02%? As you mentioned industry is growing at 10-15%. Thank you ma’m

    ReplyDelete
    Replies
    1. We have invested based on future growth potential. Last year ( 2017) production capacity increased and the company began the production of DWC pipes at Gadarpur unit. 87% of the turnover comes from the sales of drums and only 13% sales contributions comes from pipes division. We can expect significant increase in revenue from pipes division in coming years.

      Delete
  43. dear board members/ Dolly mam, greetings!
    I wasn't able to buy TPL Plasteh on Sharekhan for the reason 'In group scrip buy not allowed' :( Should i think about opening a 2nd Demat elsewhere?

    ReplyDelete
    Replies
    1. U ask sharekhan manager or emplpyee - Declaration for unsolicited sms- Form
      U will be asked ur id and details of co as what u know in approx 1000 characters. Buy quantity & price with your sign. In that form you can download and sign and again u can mail to your branch also if u can reach branch right now. Remember you also have to give same form while selling this stock.
      Contact no toll free - 1800227500, +912233054600. Best of luck..

      Delete
    2. But it will take a lot of time and in the meantime opportunity is half lost

      Delete
  44. I hv an account with sharekhan.but they say I can not put my order for TPPLASTECH as they hv restrict with some stocks which r having problems within..one such is TPPLAST. Not getting it..Pls help

    ReplyDelete
    Replies
    1. Above reply from Vineet Jain may help you solve the issue with sharekhan trading account

      Delete
    2. I too could not purchase because of same reasons , sharekSha has forwarded me the format , by then stock of TPPLAST jumped 60+ so yes can't be helped rather was very helpless and that's what !
      Some SMS scam under SEBI guidelines they are not alloiall to trade few stocks . My online trading is with Sharekhan since beginning I could do nothing today. So let it be ...

      Delete
  45. Thanks mam,

    I bought 1200 shares at Rs. 306 in the morning

    ReplyDelete
    Replies
    1. Yes you have bought it at very good price. most of the our blog members were able to buy within buying range because most of the day it was trading around 305 to 313

      Delete
    2. with which broker u have a demat acc?

      Delete
    3. Madam, Greetings!. I was not able to buy today as it rejected my order, not sure why. The stock closed @341 today, is it still good price to buy tomorrow?

      Also I am new to this group, can you tell me all 2018 stocks you have suggested till now and their buying price, it will be great help. Thanks

      Delete
    4. Need to buy the stock within 10% from suggested price. If you are unable to buy it then need to wait for correction or go for other stock

      Delete
    5. I have trading account with ICICI Direct

      Delete
    6. This reply is to Mr. Ravi or any investor in this blog. You have to follow the same procedure - in my previous comment / reply to buy this stock.
      May be all large brokering firms have blocked stocks in which we received as buy ***** ltd - from unknown no. with such suspect , as they went falling to 1/3rd or 1/5 th.
      Their idea behind is to safeguard un-aware investors about those frauds ..But we are very lucky that Mr./Mrs khanna are helping us by giving a past history about this co and For benefiting in future returns in this co.
      May be this stock has come down only due to this reason and i guess this rally is not going to stop till 480 /- but try to buy with in 10 % or below as mam said..and we all know why mam says so..many stocks are still available below suggested price. Besides chasing tpl plastech ltd we can buy those as very soon those may ran like bullet trains. !!

      Delete
    7. Same thoughts and I never believe in chasing anything in life . So it is okay something better will happen when it has to ! Orient Electric+Orient papers crossed 100% gains today so I have reasons to cheer about ,self counseling . ABFRL , Deepak Nitret too did well.
      Good luck to all blog members.

      Delete
  46. Should I buy at 339 or wait mam.? Missed the bus today

    ReplyDelete
    Replies
    1. Need to buy the stock within 10% from suggested price. If you are unable to buy then need to wait for correction or go for other stock

      Delete
    2. Exactly ! Will do so.
      Many thanks.

      Delete
  47. Mam according to merger ratio can u recommend pennar industries or pebs ?

    ReplyDelete
  48. Mam, can we add more of orient paper industries at cmp, what is your view on prakash industries and dilip builcon.

    ReplyDelete
    Replies
    1. It is not advisable to buy orient paper at CMP
      Prakash industries. You can continue to hold it. Not tracking Dilip buildcon

      Delete
  49. Thanks Mr & Mrs Khanna.

    For stocks that have shot up beyond the +10% recommended price, keep tracking that stock...as there could be a window of opportunity in future when it comes down for a short period...and you can enter at that time. This has worked well for me on those stocks recommended but I missed. Thanks

    ReplyDelete
    Replies
    1. Yes 50% of the stocks have given the chance to buy below suggested price

      Delete
  50. Can you please post update for each stock every quarter after results, so that we can avoid repeated questions whether to buy, hold or sell?

    Thank you

    ReplyDelete
    Replies
    1. There will not be open sell call for any stock. Need to follow investment strategy which clearly explain when to book the profit or exit for reinvestment. Giving sell call for any stock will trigger stamped selling and stock will go for several continuous lower circuit.

      Delete
    2. Madam your answer is much mature. I believe u r always following the SEBI guidelines.your suggested stocks most of the times not in your portfolio to avoid confusion among the investors.

      Delete
    3. Yes we are bound to follow the SEBI norms and adopt fair business practice.

      Delete
  51. Dear Maam,
    Can you please provide your inputs on Nitin Spinners?

    Result looks very good but market has not reacted positively to it?

    Am I missing something in reading the result?

    Please give your valuable inputs.

    ReplyDelete
    Replies
    1. Yes result is very good but stock did not react to it because at that time market turned negative

      Delete
  52. Hi Mam: Can you pls. share your views on Nitin Spinners quarterly results?

    ReplyDelete
  53. Hello mam, what about DTIL result? Thanks.

    ReplyDelete
  54. Dear Ma'am..your view regards to Nitin Spinner result?

    Why there is no.movement in ADF food? After good result n buy back news ..

    Please update us ..thanks

    ReplyDelete
    Replies
    1. There is no movement in ADF due to buy back, it will move up after competition of buy back offer

      Delete
  55. Mam yours views on shree pushkar results??

    ReplyDelete
  56. DTIL result is good, generally tea companies post better result in Q2 and Q3.

    Nitin spinner and Pushkar have posted very good result. There is significant improvement in top and bottom line. We can expect much better result in coming quarters for both companies, need to hold both stock as it is for long term.

    ReplyDelete
  57. Dolly Mam,

    Can you post the results of all stocks and your views like how you always do. Thanks.

    ReplyDelete
    Replies
    1. Result is very good, you can continue to hold it for long-term

      Delete
  58. Greetings & thanks for one more gem!
    unable to buy though due to no fresh fund available...TPL looks interesting due to less free float :( and missed. Congrats to those who bought!

    What was the reason for stock to correct almost 73% even though everything was fine?
    was there any other reason apart from recent market correction?

    As per your experience when do you see mid/small cap to recover similar to nse/bse?
    Will that be almost a year? post election? unfortunately portfolio will just keep floating at current valuation for a year?

    ReplyDelete
    Replies
    1. As mentioned in previous post that more than 500 stocks corrected more 70% during recent market correction of small and mid-caps without change in any fundamental of the stock. If you see that most of the stocks already recover 20-30% from there low. We have invested for 4 -5 years so for 4 -5 quarters of uncertainty is not any problem for long-term investors

      Delete
  59. Hi Ma’m, can you please shed some light on Sintex Plastics pledged shares today? I am a bit confused with the wordings. Is it a good or bad thing at this stage? Just asking for clarification so I can accumulate on further corrections to get it up to 20%. Thanks in advance.

    ReplyDelete
    Replies
    1. It is release of 3750000 pledged shares by promoters

      Delete
    2. Mam it is good or bad for the company??please give your valuable advice

      Delete
    3. There is no effect on the performance of this company. Promoters had pledged the share and now they have released . In general it is positive sentiment for investors

      Delete
  60. Madam, Please give me your valuable input on this query I have.

    Suppose a particular stock has a market capitalization of 50 Crores and its current price is Rs.50 per share.

    In the future, for this particular stock to become Rs.5000/- per share what should be the corresponding market capitalization?

    In short what is the relationship between a Stock's price and its market capitalization in the context of arriving at a future target.

    ReplyDelete
    Replies
    1. Market capital = stock price x total number of shares

      In above case market capital will be 5000 crores

      Delete
  61. MAM,Please share ur views on NBCC on future perspective.

    ReplyDelete
    Replies
    1. Sorry not tracking it very closely but company is getting good orders from the government

      Delete
  62. dolly khanna ur view on modison metal?

    ReplyDelete
  63. Ma’m, Sensex is at all time high with few stocks are leading the pack. On the contrary mid & small cap are at lows (slightly better last few weeks). This is the typical case of a bull market. What are your views about this scenario?

    ReplyDelete
    Replies
    1. It is just beginning of the bull market we expect that Sensex will cross hundred thousand mark in next 10 year

      Delete
  64. Hello ma'am
    Your reccomended buy price for surana solar was RS 22.
    Also you had advised to swap surana for Orient paper due to unfavorable policies but the government
    Ma'am my question is by implementation of anti dumping duty and at the price of RS 14.00 which is well below ur recommended price why it is not a buy

    Would really appreciate if you can throw some light as I am holding surana solar
    Thanks maam

    ReplyDelete
    Replies
    1. As mentioned in our investment strategy that we will wait for three years for our our investment to perform if any stock is not performing within three years then we will go for re-investment so time of Surana solar is going to end on 1 January 2019. If you already hold the stock then you can continue but fresh entry is not advisable.

      https://dolly-bestpicks.blogspot.com/2018/05/review-of-investment-strategy.html?m=1

      Delete
  65. Madam-
    If we compare Nitin Spinner Result q1-17 Vs q1-18, we see, Total Income Up by 4.62%, Net Profit is up by 21.23% and EPS is Down by 0.36%

    Do you feel, result are not too great?

    Thanks

    ReplyDelete
    Replies
    1. 5% in topline and 20% in bottom line is definitely very good growth

      Delete
  66. 1.Mam what is reason behind fall in sales revenue and profit in srikalahasti pipes ? Will it be able to make up in coming quarters ?

    2. Gp petro result seems to be better compared to pears like apar ! Ur views on result. On xpro india, va tech wabag,
    Manappuram finance and gnfc.?

    ReplyDelete
    Replies
    1. Siri pipe is unable to get the orders as expected. This year early and heavy rain in southern part of the country is one of the reason for poor performance in Q1.

      GP petroleum has given very good result specially top line is increasing with addition of new products and company is able to capture the market share as per their plan. We expect the bottom line will also improve in coming quarters once the sale will stabilise for next 1-2 years

      Delete
  67. Dear Maam, I have 2 queries:
    1. Is it worth considering investment in a company like Bhushan Steel, which was part of RBIs bankruptcy Code and Tata Steel Bought. Price is very low and debt has been erased. Could one consider subject to other parameters meeting?

    2. In the next 3 to 4 years once the Phenol and Acetone plant is at full capacity what would be the indicative revenues for Deepak Nitrite?

    ReplyDelete
    Replies
    1. In current situation we have a lot of stocks which are trading 50 to 70% below their normal price so no need to go for companies like Bhushan steel.

      Deepak nitrate management has given guidelines 8000 crore to 10,000 crore turnover in next 4-5 years. It will bring among the top three chemicals companies in India

      Delete
  68. Dear mam , I had given 20% allocation in sintex plastics, nitin spinners and gati if i have to invest shall i increase my holding in any of d above or wait for the next reco. By the by when is our next recommendation?

    ReplyDelete
    Replies
    1. If allocation is already 20% then you can hold all stocks as it is. Next talk will be posted in October- November month

      Delete
  69. Mam
    Nitin spinners result is good. But there is no movement in stock price. Any reason?

    ReplyDelete
    Replies

    1. Generally several traders hold short-term positions in several stocks for short-term gain during quarterly results, if they don’t find the result as expected they start selling the stock even the result is good some stocks will start correcting so never buy any stock for very short-term gain and most probably the stock price movement will go against expectation

      Delete
    2. Mam
      Can we increase the holding to 20% slowly? Currently 12% holding.

      Delete
    3. Yes you can increase up to 20% for long-term investment

      Delete
  70. Madam, is it advisable to buy Pennar Industries and SPTL at CMP?

    ReplyDelete
  71. https://www.gadgetdiary.com/orient-fans-a-class-apart.html

    ReplyDelete
  72. Dear mam,

    Kcp results :
    If we compare june 2017 to june 2018...pat came down from 23 odd crore to just 10 crores.
    Mainly cement business was the reason for low profits...any particular reason for that?
    Why was there such a sharp reduction in profits?

    ReplyDelete
    Replies
    1. Cement and sugar are the main profit generating business of KCP. If you will see sugar and cement sectors performance for last six month then you will easily realise that higher input cost and lower demand has taken the toll for both.

      Delete
  73. Hello mam how do you read gp petro result

    ReplyDelete
    Replies
    1. Result is very good , you can continue to hold it for long time

      Delete
  74. Madam, with regard to GP Petro, Board has taken the following decisions:

    1. The Company has entered in to an agreement with MAG LUBE LLC for manufacturing and marketing of IPOL band lubricant on royalty.

    2. The Board decided to continue Daman Plant and defer setting up of new plant at Saronda till further notice.

    Can you please comment on the impact of these on future share price and also comment on the Q1 results. Thanks a lot madam.

    ReplyDelete
    Replies
    1. We have seen good topline growth in last 3-4 quarters with existing production capacity and to expand market share initial expenses will be high due to this reason company has put hold on new manufacturing capacities , it is good decision.

      Delete
  75. Dear Madam, Am holding Dhampur @ 200 and Dwarikesh @43. Can I accumulate and average my pricing in both stocks at CMP.
    Wr

    ReplyDelete
    Replies
    1. It is not advisable to buy sugar sector stocks even at CMP

      Delete
  76. Can I buy srikalahasti pipes at camp?



    ReplyDelete
    Replies
    1. You can buy it on further connection for long term investment only with expected return around 10 to 15% per year

      Delete
  77. Dolly mam, your views on Jamna Auto

    Also there is a stock INDIABULLS VENTURES. It was 35 3 yrs back now its 711. What is the reason some stocks just shoot up?

    Any such stock in future from your side? Please advice. Thanks.

    ReplyDelete
    Replies
    1. Sorry not tracking any of the above-mentioned stocks

      Delete
  78. Hello Mam,
    Can you please advice on your view on Insecticides India results and future potential.

    Best Regards,

    ReplyDelete
    Replies
    1. Result is good and you can continue to hold it for further gain, future growth potential is very high for this stock

      Delete
  79. Greetings as always...
    Just for understanding purpose.

    I see there is increase in long term borrowing on March quarter of 8cr... Is that reason for correction from all time high? Also result were not that good last quarter. What price one can fresh buy? Considering positive 2 and 3 quarter?

    Also, why it is taking such long to give multifold return? Is it just inconsistent performance and no major plan visible from management?

    Just unable to understand when this cyclic trend ends? Based on your experience?

    ReplyDelete
    Replies
    1. Company has expanded its manufacturing capacity by 30% at different locations and started new plant at Vizag (A.P).

      Company is having very stable market in bulk industrial packaging since last two decades now company is expanding in the field of DWC and PE pipes, which is having very huge growth potential and it is going to replace the mild steel, cast-iron and ductile iron pipes which are used for irrigation, sewerage and infra

      Delete
    2. Thanks mam, extremely sorry for confusion but this question was for dhunseri tea

      Greetings as always...
      Just for understanding purpose.

      I see there is increase in long term borrowing on March quarter of 8cr... Is that reason for correction from all time high? Also result were not that good last quarter. What price one can fresh buy? Considering positive 2 and 3 quarter?

      Also, why it is taking such long to give multifold return? Is it just inconsistent performance and no major plan visible from management?

      Just unable to understand when this cyclic trend ends? Based on your experience?

      Delete
  80. Dear Madam, please share your views on GP petro result.

    ReplyDelete
    Replies
    1. Result is good and you can continue to hold it for further gain in long term, future growth potential is very high for this stock

      Delete
  81. Hi we understand that already ur giving this blog lots of time. Can you give reviews on all blog recommend stocks on quarterly results & in little depth on fundamentals as well.

    ReplyDelete
    Replies
    1. Do you really think what you are asking is reasonable?

      Instead, why can't you prepare a report on your understanding of the fundamentals of all suggested stocks and share with mam and as her opinion on your report. Won't this be a reasonable thing to do?

      Delete
    2. I completely agree with Magesh. I think it is not fair on our part to expect anything more from madam. It is her generosity that we are getting free services and her precious time to respond on each and every ones queries. We are so much indebted to madam for this.

      Delete
  82. Mam try to give some update on omkar and lasa on monday after the results are out. U have said to exit but still i am holding and may be few more members ..
    I had a doubt other than 180 cr bank loan +45 cr interest free loan by promoter is there any other problem in the co. They are trying to re-structure loan so that interest burden is reduced and working capital requirements is also met. Where as in lasa i am not aware of any major problem. Can u share ur views i can hold for 5 years also if we can still trust the management.

    ReplyDelete
    Replies
    1. There is no any major problem in business of these companies except behaviour of the management towards retail investors. In our business once trust is gone, it is gone forever.

      Now most of the damage is already done, you can continue to hold it for further gain with intention to exit on first available opportunity and reinvest your principal amount again

      Delete
  83. Mam your view on PEBS results.
    Thank you

    ReplyDelete
  84. Mam good morning you may not tracking this one but pls tell about the results of AB CAPITAL as I am holding 1500 shares @ 180/-

    ReplyDelete
    Replies
    1. Q1 result is good and you can continue to hold it for long-term with expected return around 15% per year

      Delete
  85. mam its already more than 3 yrs i am holding dhunseri tea,should i sell now?

    ReplyDelete
    Replies
    1. You can continue to hold free of cost share for further gain in long time

      Delete
  86. MadaM
    Sorry for asking you this question I have 20% of my hinge in Kesoram. I am willing to wait for 3 years. Hope I have taken the right decision

    ReplyDelete
    Replies
    1. Yes you can continue to hold it.

      Delete
    2. Good morning Madam ji! Kesoram , 3000 share at 130 is my holding price ; thanks for assuring time of 3years closed at 80.40 on Friday the 10th August. Again Thank You very much Ma'am !

      Delete
  87. Dear dolly mam,

    Your view on Alok industrirs ? Is reliance industry taking over it positive news ? Can I buy few stocks of Alok industrirs at current level ? Thanks in advance for your time on this query

    ReplyDelete
  88. can i buy Trident at Rs62 and LT Foods at Rs62

    ReplyDelete
    Replies
    1. In case of further correction both stocks can be bought below 50 for long-term investment with expected return around 15% per year

      Delete
  89. Can I buy Jubilant industries at current price of Rs 142 as against recommended price of around Rs 162 in 2016

    ReplyDelete
  90. Hello Mam, What is your view on Sintex now as the stock has corrected so much. I have bought SPTL @64. Can I add it at CMP? What is your suggestion.

    ReplyDelete
  91. Mam, I am holding 13% of my principal amount in Surana Solar at 25 and by selling and reinvesting principal of Orient profit amount it comes to 9%. I am ready to keep this till 2022. Do you feel that the recent step taken by Govt for Indian solar companies will help in doubling the revenue of Surana

    ReplyDelete
  92. Madam, I have been a long time follower of your blog. Thanks for your selfless services. In my humble opinion, we will see a bear market before we go on 100k in sensex. I follow financial astrology and there has been major bear markets whenever Rahul/ketu + Jupiter connection happened. 1929-1932, 2001, 2008 are some major examples. 2019 end to 2020 first quarter, the connection comes again.

    ReplyDelete
  93. Dear Maam,

    What is the fair value for TPL? Is it the previous high of 740 odd?

    ReplyDelete
  94. Mam,please put up a demerger stock this year too. Thanks.

    ReplyDelete
  95. Hi Mam,

    What will be the approximate market capitalisation/price of Deepak Nitrite in next 4 to 5 years?

    Regards

    ReplyDelete
  96. Dear Madam,
    TVS Logistics is in talks to buy Gati, if this happens then what is in for us? can i buy more of Gati now?

    ReplyDelete