Monday 27 October 2014

Vardhman Acrylics http://www.vardhmanacrylics.com/"" Free Lunch"" or a "Value Trap"

http://www.vardhmanacrylics.com/
Vardhman Acrylics:
This stock is at an interesting Juncture right now.Believe it or NoT, this company which has made  net profit of about 43.66 cr in recent financial year and 24.40 crore the year before ,it seems is available for free.
Now,how is that possible??
Lets take a look at the Balance Sheet data as on 31st March'2014 as available in the Annual Report.
Current Investments:11736.48 Lakhs
Non-Current Investments:7675.78 Lakhs
Cash & Cash Equivalents:582 Lakhs
Total: 19,994.26 Lakhs= Approximately 199 Crore. Now How much is Market Capitalization of this Company ? It's about 193 Cr.(approx.).
Now,The Company has negligible amount of Debt and has made profit in each of last five years.
So, right now  the market is not giving any value to its Operating Business which produced profit of about 43.66 cr. latest financial year.
Lets look at where the company has invested, are they kind of investments which are illiquid in nature?
They current investments of about 11,736.48 Lakhs are in Bonds and Mutual funds.
The Non-current investments of about 7675.78 Lakhs are in Equity Shares,Bonds and Mutual Funds.
How do we justify market cap-of 193(approx) cr for a company which has about 199 (approx)cr of  liquid investments and produces 43.66 cr(approx.) net profit and has negligible debt;did not make loss any of last five financial years? I am confused..

Disclosure:I happen to own the stock in my portfolio so it should be considered that I am positively biased.we do not vouch for the accuracy of facts and figures they are as per publicly available information and approximate data.THIS IS NOT A STOCK RECOMMENDATION ,ANY ACTION BASED ON THIS ANALYSIS MAY PROVE HAZARDOUS FOR YOUR PORTFOLIO.


Tuesday 21 October 2014

Magic Stocks India List as on 21.10.2014

Magic Stocks India List As On 21.04.2014.Three Stocks appeared on the list today..:-

1.AVT Natural Products http://www.avtnatural.com/

2.Hindustan Zinc Ltd.  http://www.hzlindia.com/

3.Capri Global Capital Limited http://www.cgcl.co.in/

Tuesday 14 October 2014

Sunday 12 October 2014

Magic Stocks India (WILL BE UPDATED AT REGULAR INTERVALS )

***NOT RELATED TO  LEGENDARY INVESTOR JOEL GREENBLATT 'MAGIC FORMULA' OR 'LITTLE BOOK THAT BEATS THE MARKET***
To Exclude Risky Stocks from our MagicStocksIndia list we have tweaked our parameters a little and have come up with this modified list.

1.NMDC Ltd. https://www.nmdc.co.in/

2.MOIL Ltd.  http://moil.nic.in/

3.Sutlej Textiles & Industries Ltd. http://sutlejtextiles.com/

4.Cairn India Ltd. https://www.cairnindia.com/

5.Accelya Kale Solutions. http://www.accelyakale.com/

6.Capri Global capital Ltd.  http://www.cgcl.co.in/

7.IL&FS Investment Managers Ltd.http://www.iimlindia.com/

8.Geojit BNP Paribas Financial Services Ltd. http://www.geojitbnpparibas.com/

9.Coal India Ltd. https://www.coalindia.in/

10.Manaksia Ltd.  http://www.manaksia.com/

**its worth noticing that Kwality Ltd. got excluded from the new list.

Magic Stocks (not Related to Joel Greenblatt Formula) as on 12.10.2014

These Stocks are a list of stocks based on our own parameters .We wish to delve into this stocks to discover whether these stocks really has ability to provide good return,we will also monitor their performance over time.We Do Not vouch for accuracy of facts or data these are for the purpose of discussion only.These are NOT stock recommendations or anything that sort of.
These Stocks picks has nothing to with legendary Investor Joel Greenblatt or his famous book "Little Book that Beats the Market.".
N.B. Investing in the stocks mentioned here may prove hazardous for our portfolio.
We welcome your comments and insights abouts these stocks.
List 1.
1.Kwality Ltd.

2.NMDC Ltd.

3.MOIL Ltd.

4.Sutlej Textiles & Industries Ltd.

5.Cairn India Ltd.

6.Accelya Kale Solutions.

7.Capri Global Capital Ltd.

8.ILFS Investment Managers Ltd.

9.Geojit BNP Paribas Financial Services Ltd.

10.Coal India Ltd.

11.Manaksia Ltd.

***We prefer not excluding the Banking & Financial Stocks however in this list they have been included as they appeared on our Magic Screener(Not related to Joel Greenblatt or Little Book That Beats the Market)
*** We also prefer to leave out the Highly Leveraged Stocks.