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Sunday, October 28, 2012

An Attractive & Safe Bet: Value Pick - Oct'12 is Released

Dear Readers,

Saral Gyan - Value Pick (Research Report of Mid Cap Stock with Plenty of Upside Potential) for the month of October 2012 is released by our equity analysts. Stock details has been mailed to all Value Pick subscribers.

Value Pick of this month is a company with market cap of approx 1000 crores. Company is the leader in the business in which it operates and exports its products in more than 25 countries. Company operates in 3 divisions and has delivered excellent growth in first half of the year.

Our team believe that company has limited downside risk and can reward investors by giving 35-40% returns in time frame of 12-18 months.

Below are some facts and figures which make this company our Value Pick stock for the month of Oct'12.

1. Leadership in Business: Company enjoys its leadership position in the business it operates, recently commissioned new capacity has widened the product basket towards value added products opening new windows of opportunity for the company.

2. Increase in Promoters Share Holding: Promoters of the company are hiking their stake aggressively through open market purchases. In last 1 year, promoters have increased their stake by 1.5% which shows confidence of management to achieve decent revenue and profitability in coming quarters.

3. Better Earning visibility: Company has delivered excellent numbers in top line and bottom line during first half of FY 2012-13, with increase in capacity utilization by almost 15% during recent quarter and steadily firming up order book, we expect company to deliver strong growth in coming quarters.

4. Increase in Dividend Payout: At stock CMP, dividend yield is above 2%, dividend payout for FY 2011-12 was reduced to half compared to previous 2 financial years. Less dividend payout was on account of capacity expansion and increase in raw material prices. We are sure that company dividend payout for current financial year will get doubled bringing dividend yield above 4% in next 12 months. This adds further scope of price appreciation in stock at CMP.

5. Attractive Valuations: At current market price, price to book value is 1.1. Currently, the scrip is trading at 5.3x FY 2012-13 and 3.7x FY 2013-14 estimated earnings which make it an attractive and safe bet. Moreover, increase in operating and profit margins of the company makes it an excellent investment opportunity.

Our equity analysts believe that the company is all set to deliver strong numbers in terms of growth and profitability in FY 2012-13. Stock is trading at attractive valuations and can give decent gains on investments over a period of 12 to 18 months.

You can subscribe to Value Picks to receive complete research report of mid cap companies with plenty of upside potential.

Check out Special Dussehra Diwali offer of the Year and avail attractive discounts upto 40%, Special Diwali gift and Freebies on annual subscription services. Click here for details. For payment facilities & options, click here.

Note: Hidden Gem - Oct 2012 will be out in next 48 hours. Be ready to grab it! 

In case of any queries, do not hesitate to contact us.


Team - Saral Gyan.