Suven Life sciences: An Indian multibagger stock, a Value Pick

Stock: Suven Life Sciences
Price when posted: Rs 209 ( 30th Dec 2014 )
Target: 3 bagger by 2017

Suven is a leading Indian Pharma company involved in drug formulation related to the human brain related diseases. They have many patents against their name in this field. They are also a leading player in the CRAMS area. Their plant is also US FDA certified. Their growth rates has been stupendous in the last few years. Have a look at their fundamentals in the below table.

Return on Equity ( 2013 – 14 ) :   68.83 %	Return on Capital employed ( 2013 – 14 ) : 68 %
Sales ( CAGR last 3 years ): 50.37 %	Net Profit Growth ( CAGR last 3 years ): 143 %
Net Working Capital Cycle (13 – 14 ) : 32 days	Operating cash flow ( last 3 years ): 185 Cr
EPS CAGR Growth ( last 4 years ): 131 %	Current P/E ( TTM ): 20.73
MCap to Sales ( TTM ): 4.2 Times	MCap to Operating Profit ( TTM ): 13.60 Times

Suven stock price is not very cheap now, but great stocks are always not cheap. If you wait it to become cheap, you will only regret later. All of you who have a three year view can buy the stock right away. Suven is listed in the 100 bagger stocks by Motilal Oswal in Dec 2014. Suven is also listed in the Forbes best under a Billion company in Asia.
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Disclaimer: It is safe to assume that i have a vested interest in the stock

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Nagarjuna Agrichem Ltd: Stock recommendation by Angel broking

Nagarjuna Agrichem Ltd (NACL) is one of the largest pesticide agrichemical companies in the country with a market share of ~4% and belongs to the Nagarjuna Group of Hyderabad. NACL manufactures a comprehensive range of pesticide technicals, formulations and custom manufactured fine chemicals through its three plants situated at Srikakulam, Ethakota and Shadnagar in Andhra Pradesh. Pesticides account for more than 95% of the company’s total revenues. Historically, the domestic business has been contributing by around 70% to the company’s overall revenues, while exports have been accounting for the balance. However, in the recent past, the contribution of exports has come down, ie to ~20% in FY2014.

Outlook & Valuation: With the Srikakulam plant’s Block 5 back into operation, the company is expected to witness improved profitability, going forward. Thus, we expect the company to post a sales CAGR of 16.1% over FY2014-16E and a net profit of Rs.39cr in FY2016E V/s a loss of Rs. 12.6cr in FY2013. At the CMP, the stock trades at a P/E of 5.0x FY2016E EPS, which we believe is attractive in comparison to its peers. Thus we recommend a Buy on the stock with a target price of Rs. 18.

Click on the below link to view full report
http://rakesh-jhunjhunwala.in/stock_research/wp-content/uploads/Nagarjuna_Agrichem_Research_Report.pdf
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Disclaimer: I may have a vested interest in the stock

R S Software : A value pick and get rich Indian stock

R  S Software - an Indian multi bagger stock
Price: Rs 551.60 ( 29th Dec 2014 )      Target: 3 bagger by 2017

Area of operation: Building Software for the e-Payment industry. Vast potential to scale up
Look at the impeccable track record in the past.

Return on Equity ( 2013 – 14 ) :   36.40 %	Return on Capital employed ( 2013 – 14 ) : 53.4%
Sales ( CAGR last 3 years ): 23.2 %	Net Profit Growth ( CAGR last 3 years ): 36.40 %
Net Working Capital Cycle (13 – 14 ) : 30 days	Operating cash flow ( last 4 years ): 101 Cr
EPS CAGR Growth ( last 4 years ): 36.40 %	EPS ( TTM ): 48      Current P/E: 11.47
MCap to Sales ( TTM ): 2 Times	MCap to Operating Profit ( TTM ): 7.7 Times

A steady growth company in the sunrise sector with its market cap at only 7.7 times its operating profit. With healthy RoE and RoCE and good cash flows. A take over target by any of the IT major is a possibility. Grab it

Disclaimer: I will have a vested interest in the stock

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Buy into to Nasdaq stocks by investing in an Indian Mutual Fund - Play the "Internet Of Things" theme

It is ironic the first post in this blog is about an Indian Mutual Fund investing in Nasdaq listed stocks. The tip is to buy

Motilal Oswal MOSt shares Nasdaq 100 ETF Fund. 

This Indian Mutual Fund invests in the Nasdaq 100 Index of the US. But you can buy them in the Indian stock market in both the NSE and the BSE as an ETF.

The beauty of this fund is that when you buy it - you actually buy into Apple, Google, Microsoft, Facebook, LinkedIn, Twitter, Oracle, Starbucks, eBay and all those stocks. Click on the below link to see the portfolio of this fund.

http://www.mostshares.com/PortfolioReportEOM.aspx

Why should you buy:
- The only way one can buy into the Technology leaders of the world
- The world is waiting with suspense on the big disruption of "Internet Of Things" and this fund is going to fly when that happens
- The US$ to Indian Re getting weak is going to help this fund and it is an additional ticker
- The US GDP is growing 5% + from this quarter and these Technology leaders are going to benefit
- A good diversification to have say at 5 - 10% of your portfolio

The ETF is traded always at a discount to its NAV. Dec 29, 2014 NAV is Rs 271 but you can buy it at around Rs 262 - Rs 263.

Buy before others and add as SIPs every month.

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Disclaimer: I have a vested interest in this and i may hold the units/stocks


Feel Free to comment your views on this idea

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