Multibaggers and scale of opportunity.

Contacts
Site Map
Friday, May 2, 2025

Sub Menu 1 |
Sub Menu 2

	Active Topics Memberlist Calendar Search Help
	Register Login

Identifying Multibaggers
The Equity Desk Forum :Market Strategies :Identifying Multibaggers

Topic: Multibaggers and scale of opportunity.

	<< Prev Page of 15 Next >>

Author	Message
PKB2000 Senior Member Joined: 11/Aug/2006 Location: India Online Status: Offline Posts: 1453	Posted: 02/Sep/2006 at 11:38pm
	Mr.Ajith I first read about Mirza tanneries dated as back as End 2004 from a survey of ET. And as a novish I took a good amount of that stock at a high price @ 215. Since then waiting. After watching the stock in consideration at The equity desk by you, I can say GOD BLESS YOU or GOD BLESS US!
	I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
	IP Logged




Ajith Senior Member Joined: 06/Aug/2006 Location: India Online Status: Offline Posts: 1284	Posted: 02/Sep/2006 at 11:47pm
	As far as I am concerned yesterday is history ,opportunity may or may not exist today and that alone I seek to know and have time for little else even though I too have agonized over a stagnating or falling share price-often though not always just when we decide to bail out the share will move up. Your comments would be just as applicable to Wipro in late 1980 s when the equity was around 4 crores the price was stagnating around 180 and they did have a division which the stockmarket did not much care about-software. Edited by Ajith - 02/Sep/2006 at 11:32am
	Ajith
	IP Logged


sajanvm Groupie Joined: 18/Jul/2006 Location: India Online Status: Offline Posts: 91	Posted: 02/Sep/2006 at 8:55am
	In food processing, take a look at Heritage Foods. Very cheap on MCap/Sales basis (< 0.5). Debt free. Quoting at cheap 10-11 times earnings. Insiders bought heavily during the recent market correction. It take a lot of time to build the milk procurement business and Heritage has built a very strong franchise in AP . Since milk producers (small farmers) are highly fragmented, having built this over many years constitutes a strong moat in my view. I don't think current valuations reflect those strenghts. I am pretty sure that a Nestle would pay much higher than current market price to acquire Heritage, if they really want to focus on the dairy segment.
	Sajan
	IP Logged


manishdave Senior Member Joined: 05/Aug/2006 Location: India Online Status: Offline Posts: 1371	Posted: 04/Sep/2006 at 4:35am
	PKB2000 , I you want to invest in auto component you need to decide if you want to play export mkt or domestic mkt. For domestic mkt I like Amararaja. For export Bharat Forge/Sundram Faster/Sundram Clayton are good one. Bharat Forge is really good one even though it has gone up many times. Auto component companies in US are really in trouble bcoz of cost. Largest company Delphi went bankrupt. Dana(parent of Perfect Circle- listed on bse) went B. Federal Mogul went B. VISTEON second larget autp Comp is on verge of B. Parent of exide is truggling. US auto companies will have to step-up sourcing from because of cost in US. But big players will get big benifit. And it is long cycle(2-3 years) before you see results. In small players REVL and Rane Brakes are interesting. Only problem is management is not impressive.
	IP Logged


omshivaya Senior Member Joined: 06/Sep/2006 Location: India Online Status: Offline Posts: 5966	Posted: 06/Sep/2006 at 4:50am
	See, simple query here. Retail is a 300 billion US$ market, inside India. That means the doestic market. Of this, even after Pantaloon reaches 30,000 crore rupees would mean a minute portion of this market. The leaders currently clearly are Pantaloon as well as Trent and soon to be Reliance. It doesn't seem so difficult for Pantaloon to reach the target. The main point is, after 2010, what kind of rate of growth annually can we expect to see from Pantaloon(if it does reach their target by 2010), for the next 10 years from 2010-2020? I see 2 leaders, one reliance and one pantaloon so where is the risk in investing in pantaloon right now? In media, TV18 is a leader so what kind of rate of growth can expect to see in the next 10-15 years from TV18. Next 5 years can be gauged, but let's say 2010-2020 what can be expected rate of growth. Till how much time can the retail and media sector growth go on? Any other growth sectors we see coming on(as India is currently on a good GDP growth) except retail? Infrastructure stocks like L&T seem to have moved up a lot. Can anyone throw some serious light on all the above points? Thanks in advance
	IP Logged


basant Admin Group Joined: 01/Jan/2006 Location: India Online Status: Offline Posts: 18403	Posted: 06/Sep/2006 at 7:33am
	Yes, I would agree that the scale of opportunity in Retail is very high. so there should be place for every one. After 2010 - 11 or thereabouts the growth rates would have to fall to a more resonable level of 30% - 35% for the major retailers. That is because after a point size becomes your enemy and it is muych easier for a smaller company to grow then it would be for a large retailer like Pantaloon Retail having annual sales of Rs 30,000 crorres to. India is growing at 7% - 8% add 5% of inflation and we have agrowth figure of 13%. So the secular long term growth rate is still 13% - 15%. Once companies see that increasing sales is not that easy they would focus on operationsl efficienceius that is what HLL did and that should keep the growth bug for another 3 - 5 years. Finally all comapneis reach the secular growth pahse and so it would be with retail also. Raghav Bahl expects TV 18 to do a 70% growth in Net porfits (EPS growth will be a bit lower due to dilution) over the next 3 -4 years.Haresh Chawla (CEO) is of the view that by 2011 internet revenues should sonstitute 50% of the group's revenues. And the internet industry is presently growing at more then 100%. By 2010 the industry growth should come down to 30% - 40% but the leaders should keep growing at 50% for the next 3 - 5 years from there as well. The cable Tv houslehold is growing at 15% - 20%. As tiome passes by addressability through CAS/DTH will get implemented, IPTV will come in. SO while sales growth could slow down a bit these new areas should boast up profit growth and between 2010 -15 if all goes well we could see a 30% + growth for the company. Corporate growth rates do not drop from 70% to 15%. Normally they come down from 70% to some where near 30% - 40% and then continue for a while before falling further. Personally I would like to encash my holdings in all Pantaloon Retail Trent and TV 18 by 2010 and look for other areas of growth. the eralier part of this section deals with a lot of new areas of growth where the scale of opportunity is very high like Private Insurance plays etc. Let me add this as a caveat. It is much easier predict industry growth then it is to talk about company growth. Edited by basant - 06/Sep/2006 at 7:36am
	'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
	IP Logged


investor Senior Member Joined: 06/Sep/2006 Online Status: Offline Posts: 1745	Posted: 07/Sep/2006 at 1:06pm
	[QUOTE=basant] Yes food processing is another big area but then here the problem is about finding the big listed player. Some how MNC'S never go up 20 - 30 Take a look at AGRO TECH FOODS (or is it called AGRO TECH INDUSTRIES) good potential...one of RAMESH Damani's picks.
	IP Logged


investor Senior Member Joined: 06/Sep/2006 Online Status: Offline Posts: 1745	Posted: 07/Sep/2006 at 1:07pm
	I am just curious, if you dont mind can you tell when you had entered Pantaloon, Trent, and TV18? How early were u able to spot these goldmines?
	IP Logged

<< Prev Page of 15 Next >>

Post Reply

Post New Topic

Printable version

Printable version

Forum Jump

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

This page was generated in 0.094 seconds.

Bookmark this Page

Most Participated Topic