Investment guide to new investors. Disclaimer : Investment in equities is subjected to significant risk. Need to read and follow the SEBI guidelines under 'Combined Risk Disclosure Document' before taking any decision to invest in equities. This blog contains only my personal view about market and equities. Any investment decision should be taken with your own analysis and risk.
Sunday, September 26, 2021
Update on Next Stock
Dear Blog Members,
We are going for last stock of this year in the coming weekend.
It will be posted on the blog on 1 October 2021 (Friday after market hours).
Some stocks are shortlisted and it will be finalised within few days. You can make fund arrangement for stock below Rs 200 or you can give 10 -20% allocation.
Few years back i bought waterbase shares on your recomendation.Thisstock gave me heavy loss.Still i am holding.what is the future of this stock.Ibought1000 shares at 260.
Hi Mam, It is an amazing thing you are doing.Not an easy job.And you are doing it with such ease and clarity.You are bringing trust to the stock market.This is the right way.You create millioners. words not enough.I follow you from the begening.Bowing down Guru Balan
Rather i think best time to recommend new stock is when at least one has given 100% return post previous recommendation... No matter one month or a quarter.
Many investors can't produce fresh capital for every recommendation and for them only option is to pull from those who has given 100% recently... Some times it happens that they sell earlier recommended to buy new one even in loss because it has not performed for long time...i used to do it in 2016-17 but not now because of learning from your thoughts in last several years. I missed several multibaggers due to this reason and cought in with low performers unfortunately. Now for this new recommendation i don't have fresh capital and will need to skip until i get 100% from at least one from my portfolio...
your situation may not applicable for every one. For example, many of us sitting with 300- 1000% profit from DN, DF, NITIN , GH etc., we are selling small % on each of these stocks and keeping cash for next recommendation. we will continue do this for several stocks.
Mam, why our investment rules are not applicable to Surana Solar ? It has not given any return in past many years so why hold is still recommended in stead of selling and writing off like sintex plastics & few other stocks...
Our investment strategy is very simple and easy to follow. It is equally applicable on every stock and every investors but several investor are getting too much emotionally attached to stocks so they unable to take the decision to sell it on. time.
If still someone is asking about such stocks then it means that he hold that stock.
Madam, thanks for your help, I actually did not buy surana. but i have bought many of the stocks and sold only very few because i usually think a bit long term, I still find it very difficult to follow about which stocks I should hold and which one i should sell, In the excel sheet can we please add a column for that, what is the current view, should we hold or sell?
Mamji please dont recommend monthly stocks, 5-6 stocks for a year are good as we dont want to build a portfolio of 20-30 stocks over 2-3 years. Just make sure when you recommend it has enough liquidity.
Thank you very much madam. Actually i was eagerly waiting for your stock recommendation. I lost 25000/- in Raymond stock. I purchased 500 stocks at 450/- and sold at 396/-. IT was purely my mistake madam. I sold as the price was getting down. Hope I will get recovered in next recommendation madam
Composite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
Now company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond. * Consolidation of engineering business (tools / Hardware/ auto Components into JK Files) * Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
Composite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
Now company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond. * Consolidation of engineering business (tools / Hardware/ auto Components into JK Files) * Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
🙏 madam thanks for youre valuable time spending with small investers. Many big bull investers interview I saw but no one can say to buy the specific stock. You are giving confidence and faith on market as well as our investments. Madam my request is can you suggest undervalued small cap tech company can hold for ten years.
Good evening madam, board of directors of Raymond ltd with draw their lifestyle business demerger then what will be the impact on share price, shall we expect still good return in long run of 3 to 4 years as i have invested good sum of amount i.e 3100 shares at rs.431.thank you mam
Respected Ma'am, In the light of approval of consolidation plan by Raymond Board and cancellation of demerger scheme for realty and lifestyle business announced in 2019, kindly enlighten us with regard to the new outlook of Raymond from these changed perspectives. Thank you Ma'am.
Earlier demerger scheme is cancelled. Now the engineering devision (Tools and auto ancillary) will be listed as a seperate entity. Reality will be subsidiery of Raymond Limited.
Composite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
Now company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond. * Consolidation of engineering business (tools / Hardware/ auto Components into JK Files) * Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
1. Tools/Hardware/Auto components will be separated from existing business and listed separately
2. Real estate is already subsidiary of Raymond. So again why they are declaring Raymond estate will be subsidiary of Raymond. This is not clear to us.
1. Consolidation of Engineering business and assets under one wholly-owned subsidiary company.
2. Real estate business was launched under the name of Raymond Realty but all assets (land & Ten X project) were belongs to Raymond. Now these asset will be transferred to Raymond Realty by making it wholly-owned subsidiary
Mam, Can we expect further updates on the demerger of Engineering and Reality business into separate entities as there is no update on the current announcement. Would this be a time taking process as it should start from zero again now. Also pls help in understanding how this would be value unlocking to investors when compared with lifestyle demerger. Would request your detailed note on this mam if it is ok for you
Following are the key updates given by management in today's investor concall.
1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Following are the key updates given by management in todays investor concall.
1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Mam ...as always thank you so much and totally in debt for your service. I have always learned from each and every recommendation from you.
Mam if someone has 10 lakhs in hand? Would you recommend putting 100% on one share like Raymond or splitting between your best 2 shots like Raymond and your next recommendation or would you recommend investing 1-2 lakhs in each of your stock recommendation.
Just trying to understand with the same total investment ,would it be better to invest in 2-3 stocks or 5-8 stocks ?
It is not advisable to put all eggs in one basket. It will be very difficult to recover from the adverse market impact in such portfolio.
Upto 20% allocation in single stock is good enough to take calculated risk.
Even best stocks with huge market capitalization are subjected to significant risk. We have seen in the past that there was negligible price movement or gradual fall for more than 5 years in stocks like Reliance Industry, ITC, ICICI, Bharti Airtel, SBI etc.
Stocks / sectors are directly or indirectly linked with government policies, government stability, world economy, trade war, public interest / sentiment, management decisions, natural disasters etc
With new perspective of Raymond management what and how our investment decision impacts? Will allocation and our target or the price expectation in 2-3 years intact?
Following are the key updates given by management in todays investor concall.
1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
It is just matter of finding suitable buyer for 40 acre Raymond land and getting shareholders approval, it will not take more then one month time. Same in the case of PE investor.
Forming / consolidating the businesses in subsidiary companies and transferring its asset will take 6 - 12 months time. This process will go through NCLT approval.
Hi Mam, i have one query, for the point " Real estate business was launched under the name of Raymond Realty but all assets (land & Ten X project) were belongs to Raymond. Now these asset will be transferred to Raymond Realty by making it wholly-owned subsidiary" As it is wholly-owned subsidiary, will Raymond Realty is listing separately & we are getting new shares of the same ?
Following are the key updates given by management in todays investor concall.
1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Respected Sir First, thank you very much for your continuous help to small investor like us. Sir, please will you elaborate Raymond matter in more detail, particularly after their con-call and detail investor meet? Thank you sir in advance. Raxit Shah
Following are the key updates given by management in todays investor concall.
1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Consolidation main intention seems to become debt-free by monetizing partial land and deleverage engineering business.
By understanding long term, this consolidation seems much better for retail investor and company too than demerger process. Because in case demerger done, new company (Raymond Lifestyle) business, it may take time to come out of debt since 75% will be moved here. Please correct me if I am wrong here
I think this concall info not shared with exchanges.
Any idea where can we get this entire concall details?
Yes, you are absolutely right. Debt- Free plan of the company is very clear with 3 years timeline, the assets to be monetized are also ready with Raymond Ltd. Few year back Raymond group company have sold 20 acre land for 700 crores in the same locality.
Just need hold it with patience for 3 years. We expect 100% return even much before 3 years.
Biggest advantage of earlier proposed demerger was FMCG business which is not part of today's balance sheet but after demerger existing Raymond shareholders will get that business in shares.
Don't you think after that new proposed demerger is not so attractive ?
Now there is no demerger but consolidation of engineering business (tools / Hardware/ auto Components into JK Files) and subsidiarization of Real Estate Business into a wholly-owned subsidiary.
FMCG business will remain same and Raymond Ltd will continue to hold 47.66% in it.
Mam - Raymond management came out with new plan. Do you think company has to go for NCLT approval with new plan and there will be new timeline for entire process.
Completion of entire process can be extended beyond initial timeline of year end as suggested by management or not.
It is just matter of finding suitable buyer for 40 acre Raymond land and getting shareholders approval, it will not take more then one month time. Same in the case of PE investor.
Forming / consolidating the businesses in subsidiary companies and transferring its asset will take 6 - 12 months time. This process will go through NCLT approval.
Good morning ma’am.my question is that ET now is giving info that Raymond is going for IPO of engg business for 700 cr. So how does we as retail investors benefit from it coz all of us might not get that allotment..Your advise & guidance will help in clearing out the doubts thanks
It depend upon buyer or PE investors whether they want to list it or just invest in engineering business subsidiary. Ultimate aim of Raymond Management is to deleverage its balance sheet and make the company debt free within 3 years.
Retail investors would be benefited either from the stock allotment of the new IPO and/or from the share price increase as a result of the profit increase which in turn would happen from the debt free status.
Mam i was checking promotor of Magna Electro is buying shares but mode of acquisition says "off market-by way of purchase". what is meaning of buying from "off market"?
Mam we may not be able to reap benefits of Raymond Realty in medium term(1-2Years), any other company comes to mind for 2-3% allocation. Any view on Ajmera reality?
Thanks for the prompt reply…but when Raymond gives its realty & engg business to some other investor,how we retail investors gain from it? Is it that just after all this consolidation investors like us will just have Raymond as textile company w/o debt..so in other words we r looking for price appreciation when debt goes off..secondly Raymond with its subsidiaries & their subsequent demergers would have created more wealth..ur advise please…I think like me many of us r still not clear about the end result of this consolidation…debt reduction is understandable but demerger would have given investors a good chance of wealth creation..its very hazy about what all investors big/ small will get? Thanks
Debt- Free plan of the company is very clear with 3 years timeline, the asset to be monetized is also ready with holding company. Just need hold it with patience for 3 years. We expect 100% return even much before 3 years.
Hello mam I have already invested and willing to hold Raymond and magna for long term But want to ask one thing that if we invest for long term and if it goes down, than it is advisable to buy more at lower levels to take our average buying rate as low as possible, or just need to hold with the same price?
Mam pl guide i have got kesoram RE in my demat a/c in proportion to Kesoram stocks held . What should i do . Will i get Rights also or i buy these RE . Pl guide. Rgds
Dear Mam, Daichi and Magna's plant were shut during second covid wave. Where do you get this information from ? I could see any update for these on exchanges.
I was lucky to allocate highest money to deepak nitrite from your suggested stocks and holding all shares after an almost 10X from 250 to 2500. Just wanted to know if this share can be held onto for a 15% kind of compounding over next few years. Mangaement is still very growth oriented and valuations are reasonable compared to other peer chemical companies of same size. Thank you.
Generally we don't track the companies only for dividend gain.But high growth stock with good dividend are the best option. We have already Deepak Fertiliser in this category.
I have couple of questions with regards to our recommended stocks.
1)I’m holding Orient Electric since demerger time. Should I book profit and reinvest into next stock?
2)Asian Energy is about to give 100% return at around 180. Company is entering into EV play with an investment in VAAN. My allocation to Asian energy is low (6% only). Can I continue holding my position without booking 50% profit even after 100% up move? Is it advisable to take fresh entry at cmp considering the future of EV space for the next 3-5 years?
Madam, thank you very much for the next stock recommendation.
ReplyDelete1. What is the price of the next stock and from which sector. This is for fund arrangements purpise only. Thank you.
Some stocks are shortlisted and it will be finalised within few days. You can make fund arrangement for stock below Rs 200 or you can give 10 -20% allocation.
DeleteFew years back i bought waterbase shares on your recomendation.Thisstock gave me heavy loss.Still i am holding.what is the future of this stock.Ibought1000 shares at 260.
DeleteIt was suggested at Rs 60 but you have bought at 260. Always buy the stocks within 15% from suggested price within 3 years.
DeleteMadam, is it right time to buy magna Electro cating, after recommendation also in the area of suggested price only.
ReplyDeleteYes, it can be bought within 15% from suggested price 157 with 10 % allocation.
DeleteHello madam, do we have enough liquidity for this stock?? So that we cai buy without any substantial jump in price.
ReplyDeleteThere will be enough liquidity
DeleteThank you mam,
ReplyDeleteHi Mam,
ReplyDeleteIt is an amazing thing you are doing.Not an easy job.And you are doing it with such ease and clarity.You are bringing trust to the stock market.This is the right way.You create millioners.
words not enough.I follow you from the begening.Bowing down Guru
Balan
Thank you for announcement..please recommend one stock for every one month my kindly request madam..thank you..
ReplyDeleteOk we will review your suggestion.
DeleteThank you madam🙏
DeleteI am new to this blog.It appears to be very trustworthy blog
ReplyDeleteMadam Thanks for your generosity and hard work
ReplyDeleteThank you
ReplyDeleteRather i think best time to recommend new stock is when at least one has given 100% return post previous recommendation... No matter one month or a quarter.
ReplyDeleteMany investors can't produce fresh capital for every recommendation and for them only option is to pull from those who has given 100% recently... Some times it happens that they sell earlier recommended to buy new one even in loss because it has not performed for long time...i used to do it in 2016-17 but not now because of learning from your thoughts in last several years. I missed several multibaggers due to this reason and cought in with low performers unfortunately. Now for this new recommendation i don't have fresh capital and will need to skip until i get 100% from at least one from my portfolio...
May be you can suggest best strategy?
Ok we will review your suggestion.
Deleteyour situation may not applicable for every one. For example, many of us sitting with 300- 1000% profit from DN, DF, NITIN , GH etc., we are selling small % on each of these stocks and keeping cash for next recommendation. we will continue do this for several stocks.
DeleteYour view on rallis India please, learning propose
ReplyDeleteSorry not tracking it
DeleteMadam any update on Surana Solar to boom ?
ReplyDeleteFresh buying is not advisable. If you already hold it then you may continue
DeleteMam, why our investment rules are not applicable to Surana Solar ? It has not given any return in past many years so why hold is still recommended in stead of selling and writing off like sintex plastics & few other stocks...
Deletehttps://dolly-bestpicks.blogspot.com/2021/01/investment-summary-past-performance-and.html
DeleteOur investment strategy is very simple and easy to follow. It is equally applicable on every stock and every investors but several investor are getting too much emotionally attached to stocks so they unable to take the decision to sell it on. time.
If still someone is asking about such stocks then it means that he hold that stock.
Madam, thanks for your help, I actually did not buy surana. but i have bought many of the stocks and sold only very few because i usually think a bit long term, I still find it very difficult to follow about which stocks I should hold and which one i should sell, In the excel sheet can we please add a column for that, what is the current view, should we hold or sell?
DeleteYour view on ramco industries please, for learning propose only
ReplyDeleteSorry not tracking it
DeleteHello Mam,
ReplyDeleteWhich one have more future potential growth Panama or Rain? Kindly suggest?
Rain
DeleteMamji please dont recommend monthly stocks, 5-6 stocks for a year are good as we dont want to build a portfolio of 20-30 stocks over 2-3 years.
ReplyDeleteJust make sure when you recommend it has enough liquidity.
Ok we will review your suggestion.
DeleteMam, including this upcoming stock will it be max 5 stocks only for this year?
ReplyDeleteYes, we will see the performance of these stocks for 2-3 months then we will decide accordingly.
DeleteSir I had bought DN at 1542 now iam in 60% profit, should I sell DN and buy Raymond's or next stock or should I hold DN
ReplyDeleteYou profit is still below 100%, you may continue to hold it.
DeleteThank you very much madam. Actually i was eagerly waiting for your stock recommendation. I lost 25000/- in Raymond stock. I purchased 500 stocks at 450/- and sold at 396/-. IT was purely my mistake madam. I sold as the price was getting down. Hope I will get recovered in next recommendation madam
ReplyDeleteYes
DeleteMaam request your views on Glenmark Lifesciences
ReplyDeleteSorry not tracking it
DeleteDear Ma’am,
ReplyDeletePls can you help us understand the outcome of board meeting for Raymond.
Composite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
DeleteNow company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond.
* Consolidation of engineering business (tools / Hardware/ auto Components into JK Files)
* Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
Madam, can i add magna Electro cating @170 to average of earlier purchases @188.
ReplyDeleteYes, it can be bought within 15% from suggested price 157 with 10 % allocation.
DeleteDear Maam, Raymond has cancelled the Demerger of its Lifestyle Business and some other important decisions are taken...
ReplyDeleteCan you please help us understand the impact for shareholders
Composite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
DeleteNow company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond.
* Consolidation of engineering business (tools / Hardware/ auto Components into JK Files)
* Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
Thanks Madam for evaluation & guidance
Delete🙏 madam thanks for youre valuable time spending with small investers. Many big bull investers interview I saw but no one can say to buy the specific stock. You are giving confidence and faith on market as well as our investments. Madam my request is can you suggest undervalued small cap tech company can hold for ten years.
ReplyDeleteOk, you will find all these qualities in next stock.
Deletehttps://www.google.com/amp/s/wap.business-standard.com/article-amp/companies/raymond-consolidates-tools-hardware-auto-parts-biz-into-engineering-biz-121092701102_1.html
ReplyDeleteGood evening madam, board of directors of Raymond ltd with draw their lifestyle business demerger then what will be the impact on share price, shall we expect still good return in long run of 3 to 4 years as i have invested good sum of amount i.e 3100 shares at rs.431.thank you mam
ReplyDeleteRespected Ma'am, In the light of approval of consolidation plan by Raymond Board and cancellation of demerger scheme for realty and lifestyle business announced in 2019, kindly enlighten us with regard to the new outlook of Raymond from these changed perspectives. Thank you Ma'am.
ReplyDeleteEarlier demerger scheme is cancelled. Now the engineering devision (Tools and auto ancillary) will be listed as a seperate entity. Reality will be subsidiery of Raymond Limited.
ReplyDeleteUpdate On Raymond Demerger
ReplyDeleteComposite Scheme of Arrangement / Demerger was getting delayed due to Raymond JV companies. The company has decided to withdraw the demerger scheme of Lifestyle business announced in November, 2019.
Now company board has opted faster and easy option to monetize / demerge the Engineering and Real Estate businesses.
* Now complete apparel and textile business will remain with Raymond.
* Consolidation of engineering business (tools / Hardware/ auto Components into JK Files)
* Subsidiarization of Real Estate Business into a wholly-owned subsidiary.
This option is also best for retail investors and will able to bring faster and better results.
Hi Madam,
DeleteIs my understanding correct?
1. Tools/Hardware/Auto components will be separated from existing business and listed separately
2. Real estate is already subsidiary of Raymond. So again why they are declaring Raymond estate will be subsidiary of Raymond. This is not clear to us.
Can you please help us to understand?
1. Consolidation of Engineering business and assets under one wholly-owned subsidiary
Deletecompany.
2. Real estate business was launched under the name of Raymond Realty but all assets
(land & Ten X project) were belongs to Raymond. Now these asset will be
transferred to Raymond Realty by making it wholly-owned subsidiary
Subsidiaries and Joint Ventures Page # 260
https://www.bseindia.com/bseplus/AnnualReport/500330/68856500330.pdf
Mam, Can we expect further updates on the demerger of Engineering and Reality business into separate entities as there is no update on the current announcement. Would this be a time taking process as it should start from zero again now. Also pls help in understanding how this would be value unlocking to investors when compared with lifestyle demerger. Would request your detailed note on this mam if it is ok for you
ReplyDeleteFollowing are the key updates given by management in today's investor concall.
Delete1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Just need to hold it with patience for few years.
Thanks Madam, can we buy raymond at cmp?
DeleteDear Maam, Thank You for Your reply on Raymond. So it means we continue holding
ReplyDeleteIt for 3 years with the same expectation as before?
Yes
DeleteNeed understanding whether Raymond shareholders will have any benefit of real estate n ( tools n auto) engineering business after this announcement?
ReplyDeleteIf yes , how ?
Please enlighten us
Following are the key updates given by management in todays investor concall.
Delete1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Just need to hold it with patience for few years.
Mam ...as always thank you so much and totally in debt for your service.
ReplyDeleteI have always learned from each and every recommendation from you.
Mam if someone has 10 lakhs in hand? Would you recommend putting 100% on one share like Raymond or splitting between your best 2 shots like Raymond and your next recommendation or would you recommend investing 1-2 lakhs in each of your stock recommendation.
Just trying to understand with the same total investment ,would it be better to invest in 2-3 stocks or 5-8 stocks ?
Again Thank you for your service
It is not advisable to put all eggs in one basket. It will be very difficult to recover from the adverse market impact in such portfolio.
DeleteUpto 20% allocation in single stock is good enough to take calculated risk.
Even best stocks with huge market capitalization are subjected to significant risk.
We have seen in the past that there was negligible price movement or gradual fall for more than 5 years in stocks like Reliance Industry, ITC, ICICI, Bharti Airtel, SBI etc.
Stocks / sectors are directly or indirectly linked with government policies, government stability, world economy, trade war, public interest / sentiment, management decisions, natural disasters etc
With new perspective of Raymond management what and how our investment decision impacts? Will allocation and our target or the price expectation in 2-3 years intact?
ReplyDeleteFollowing are the key updates given by management in todays investor concall.
Delete1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Just need to hold it with patience for few years.
Hello madam,
ReplyDeleteI think new scheme of rearranging is easy to understand for any common person as unrelated Buisness comes. Under one subsideries..
1. How long this process might take..
2. Is there a possibility of listing them separately
It is just matter of finding suitable buyer for 40 acre Raymond land and getting shareholders approval, it will not take more then one month time. Same in the case of PE investor.
DeleteForming / consolidating the businesses in subsidiary companies and transferring its asset will take 6 - 12 months time. This process will go through NCLT approval.
Thanks for your valuable guidance on Raymonds ltd
ReplyDeleteMama, holding IRCTC from 750 levels. Any suggestions from your end.
ReplyDeleteSorry not tracking it
DeleteHi Mam,
ReplyDeletei have one query, for the point
" Real estate business was launched under the name of Raymond Realty but all assets
(land & Ten X project) were belongs to Raymond. Now these asset will be
transferred to Raymond Realty by making it wholly-owned subsidiary"
As it is wholly-owned subsidiary, will Raymond Realty is listing separately & we are getting new shares of the same ?
Following are the key updates given by management in todays investor concall.
Delete1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Just need to hold it with patience for few years.
Respected Sir
ReplyDeleteFirst, thank you very much for your continuous help to small investor like us.
Sir, please will you elaborate Raymond matter in more detail, particularly after their con-call and detail investor meet?
Thank you sir in advance.
Raxit Shah
Following are the key updates given by management in todays investor concall.
Delete1. Raymond Ltd will transfer 40 acres of Thane land to its wholly owned subsidiary Raymond Realty for future project development and remaining 40 acre land will be kept by Raymond Ltd for monetization.
2. Company will look for some PE investor for engineering business with option to monetize it partially or sell it completely.
3. Raymond Limited will use the fund from monetization of 40 acre land and Engineering business to deleverage its balance sheet with the aim to become debt free company within 3 years.
4. Raymond realty will look for further option to expand its operation in other part of the country and management will consider for listing of reality business once The Raymond Limited will become completely debt free company within next three years.
It is extremely positive development for investors. A fashion retail debt-free company with turnover more than 8000 crore will command premium valuation to its peers.
Raymond Limited will be able to create a massive wealth for investor even without demerger.
Just need to hold it with patience for few years.
Hi Madam,
DeleteThanks for sharing this concall info.
Consolidation main intention seems to become debt-free by monetizing partial land and deleverage engineering business.
By understanding long term, this consolidation seems much better for retail investor and company too than demerger process. Because in case demerger done, new company (Raymond Lifestyle) business, it may take time to come out of debt since 75% will be moved here.
Please correct me if I am wrong here
I think this concall info not shared with exchanges.
Any idea where can we get this entire concall details?
Thanks
Yes, you are absolutely right. Debt- Free plan of the company is very clear with 3 years timeline, the assets to be monetized are also ready with Raymond Ltd. Few year back Raymond group company have sold 20 acre land for 700 crores in the same locality.
DeleteJust need hold it with patience for 3 years. We expect 100% return even much before 3 years.
Mam please consider the next recommendation from best management
ReplyDeleteSure, quality of management will be the best.
DeleteDear Sir, Can you please recommend new generation hidden gems preferably small caps in areas like 5G / Green Energy / one plus china strategy
ReplyDeleteYes, it will be best new generation hidden gem.
DeleteDear Madam,
ReplyDeleteBiggest advantage of earlier proposed demerger was FMCG business which is not part of today's balance sheet but after demerger existing Raymond shareholders will get that business in shares.
Don't you think after that new proposed demerger is not so attractive ?
Awaiting your kind opinion
Now there is no demerger but consolidation of engineering business (tools / Hardware/ auto Components into JK Files) and subsidiarization of Real Estate Business into a wholly-owned subsidiary.
DeleteFMCG business will remain same and Raymond Ltd will continue to hold 47.66% in it.
Mam - Raymond management came out with new plan. Do you think company has to go for NCLT approval with new plan and there will be new timeline for entire process.
ReplyDeleteCompletion of entire process can be extended beyond initial timeline of year end as suggested by management or not.
It is just matter of finding suitable buyer for 40 acre Raymond land and getting shareholders approval, it will not take more then one month time. Same in the case of PE investor.
DeleteForming / consolidating the businesses in subsidiary companies and transferring its asset will take 6 - 12 months time. This process will go through NCLT approval.
Mam, How May time DN May take to recover profits if Phenol Prices decreased and Anti dumping duty cancelled by government?
ReplyDeleteNeed to see the profitability of the company on yearly basis, Phenol prices will keep fluctuating and it is part of this business.
DeleteGood morning ma’am.my question is that ET now is giving info that Raymond is going for IPO of engg business for 700 cr. So how does we as retail investors benefit from it coz all of us might not get that allotment..Your advise & guidance will help in clearing out the doubts thanks
ReplyDeleteIt depend upon buyer or PE investors whether they want to list it or just invest in engineering business subsidiary. Ultimate aim of Raymond Management is to deleverage its balance sheet and make the company debt free within 3 years.
DeleteRetail investors would be benefited either from the stock allotment of the new IPO and/or from the share price increase as a result of the profit increase which in turn would happen from the debt free status.
DeleteDear Madam, Kindly Share ur view on Bhandali Eng / Anjani Cement at CMP.
ReplyDeleteWith Regards,
Gajendrakumar
Sorry not tracking these stocks
DeleteMaam what would be the price range of the new stock?
ReplyDeleteIt will be below 200
DeleteMam i was checking promotor of Magna Electro is buying shares but mode of acquisition says "off market-by way of purchase". what is meaning of buying from "off market"?
ReplyDeleteShares held in physical form can be traded off-market.
DeleteMam we may not be able to reap benefits of Raymond Realty in medium term(1-2Years), any other company comes to mind for 2-3% allocation. Any view on Ajmera reality?
ReplyDeleteSorry not tracking it
DeleteThanks for the prompt reply…but when Raymond gives its realty & engg business to some other investor,how we retail investors gain from it? Is it that just after all this consolidation investors like us will just have Raymond as textile company w/o debt..so in other words we r looking for price appreciation when debt goes off..secondly Raymond with its subsidiaries & their subsequent demergers would have created more wealth..ur advise please…I think like me many of us r still not clear about the end result of this consolidation…debt reduction is understandable but demerger would have given investors a good chance of wealth creation..its very hazy about what all investors big/ small will get? Thanks
ReplyDeleteDebt- Free plan of the company is very clear with 3 years timeline, the asset to be monetized is also ready with holding company. Just need hold it with patience for 3 years. We expect 100% return even much before 3 years.
DeleteDear mam
ReplyDeletekindly help me to take a decision on Kamdhenu
I am holding 3000 FOC share of Kamdhenu. I have three questions in my mind.
1. shall I book full profit in Kamdhenu and buy your next recommendation
2.Shall I continue to hold these shares until the last day of record date and then sell it ( probably at a higher cmp than today)
3. Or shall i continue to hold kamdhenu and demerged share of Kamdhenu paint for very long term
kindly guide me. thank you very much for your support
Always need to keep FOC share for long-term to maximize the return.
DeleteDear Ma’am,
ReplyDeleteFrom which industry (sector) next stock will be?
Consumer non-durable
DeleteHi Mam,
ReplyDeleteHow Adity birla AMC IPO will impact on existing Adity birla capital shareholders. The IPO price is to high compare to ABC cmp.
Most of the profit will go to its holding company.
DeleteAditya Birla Capital (ABCL) shareholders have a reservation of up to 1,944,000 equity shares in Aditya Birla Sun Life AMC IPO.
https://www.moneycontrol.com/news/business/earnings/aditya-birla-sun-life-amc-to-distribute-40-50-of-net-profit-as-dividend-in-future-7524371.html
Hello mam
ReplyDeleteI have already invested and willing to hold Raymond and magna for long term
But want to ask one thing that if we invest for long term and if it goes down, than it is advisable to buy more at lower levels to take our average buying rate as low as possible, or just need to hold with the same price?
These stocks will not go that much down. Need to follow the allocation % as given below
DeleteRaymond Ltd 10-20%
Magna Electro Casting upto 10%
Thanks for all the guidance ma'am
ReplyDeleteIs deepak fertilizers profitability being hit by higher gas prices ?
Same with Shree pushkar ?
I am holding both into my portfolio.
Please provide your views on this.
Always need to keep free of cost shares for long-term to maximize the return.
DeleteMam pl guide i have got kesoram RE in my demat a/c in proportion to Kesoram stocks held . What should i do . Will i get Rights also or i buy these RE . Pl guide. Rgds
ReplyDeleteNow you have two option either apply for right issue or sell the RE otherwise its value will become zero
DeleteDear Mam,
ReplyDeleteDaichi and Magna's plant were shut during second covid wave. Where do you get this information from ? I could see any update for these on exchanges.
Regards.
https://www.bseindia.com/xml-data/corpfiling/AttachHis/80011436-7403-4681-bd50-3073179f2868.pdf
DeleteI was lucky to allocate highest money to deepak nitrite from your suggested stocks and holding all shares after an almost 10X from 250 to 2500. Just wanted to know if this share can be held onto for a 15% kind of compounding over next few years. Mangaement is still very growth oriented and valuations are reasonable compared to other peer chemical companies of same size.
ReplyDeleteThank you.
Yes 15% growth is possible
DeleteMam there are beautiful stocks giving high dividend when we put on screener, can you list a couple which you think can be bought for dividends?
ReplyDeleteGenerally we don't track the companies only for dividend gain.But high growth stock with good dividend are the best option. We have already Deepak Fertiliser in this category.
DeleteHello M’am,
ReplyDeleteI have couple of questions with regards to our recommended stocks.
1)I’m holding Orient Electric since demerger time. Should I book profit and reinvest into next stock?
2)Asian Energy is about to give 100% return at around 180. Company is entering into EV play with an investment in VAAN. My allocation to Asian energy is low (6% only). Can I continue holding my position without booking 50% profit even after 100% up move? Is it advisable to take fresh entry at cmp considering the future of EV space for the next 3-5 years?
Thanks
Always book the partial profit around 100% and keep free of cost share for long-term to maximize the return.
Deletehttps://dolly-bestpicks.blogspot.com/2021/01/investment-summary-past-performance-and.html
Our investment strategy is very simple and easy to follow.
I have 10 irctc shares at 2900, can I bought more shares at present price levels can you please suggest.
ReplyDeleteThank you