INSUBCONTINENT EXCLUSIVE:
Investing is all about study, research, conviction and patience
These traits can help you navigate even the high tides on Dalal Street.
Despite the recent selloff in midcap and smallcap stocks, those who
held on such high-conviction ideas are sitting on healthy profits.
Take this: Indiabulls Ventures, Graphite India and HEG have created
enormous wealth for investors over the past three years
The stocks are currently hovering around their all-time high levels.
An investment of Rs 1 lakh in HEG or Indiabulls Ventures on August 17,
2015 would have become nearly Rs 24 lakh on August 17, 2018
Graphite India would have converted the same investment into Rs 15 lakh in the same period.
Graphite electrode maker HEG recently reported a
net profit of Rs 770 crore for June quarter after reporting Rs 8.43 crore loss for the same quarter a year ago
Graphite electrodes are used to melt scrap in electric arc furnaces (EAFs) to produce new steel
Brokerage firm SKP Securities is still bullish on HEG with a target price of Rs 6,122.
Industry consolidation/capacity closures globally,
environmental clampdown in China and rapid reversal of demand-supply equilibrium due to a rise in EAFs have created an unprecedented
windfall, taking the graphite electrodes industry structurally into a sustainable higher orbit of profitability, the brokerage said.
Global
Macquarie estimates an EPS growth of 270 per cent in FY19 from the company
Indiabulls Ventures posted 95 per cent year-on-year rise in consolidated net profit at Rs 87.72 crore for June quarter compared with Rs
The growth opportunity could be close to 90 per cent earnings growth CAGR over next two years, Abhimanyu Sofat, VP- Research, IIFL, said in
times over past three years
The scrip jumped from Rs 12.20 on August 17, 2015 to Rs 559.70 on August 17, 2018
It means an investment of Rs 1 lakh in the stock three years back would have become over Rs 45 lakh today
There are other stocks too, which have turned an investment of Rs 1 lakh into over Rs 10 lakh in three years
Among them are Olectra Greentech, NR Agarwal Industries, Maha Rashtra Apex Corporation, Yuken India, Agri-Tech (India), Soril Infra
Phillips Carbon Black with a target price of Rs 328
The company is expected to be a major beneficiary of tyre investments in India and ASEAN region, which coupled with tightness in global
demand-supply situation, is likely to keep contribution margins high for rubber carbon black, Edelweiss said in a report.
Brokerages are
also bullish on Minda Industries post Q1 earnings
The auto component maker posted a 77.46 per cent rise in June quarter consolidated net profit at Rs 80.50 crore compared with Rs 45.36 crore
reported for the same period of last financial year
expect Ebidta margins to inch upwards to 12.8 per cent in FY20E from 11.9 per cent in FY18, supporting 28 per cent earnings growth CAGR over
Market's dynamic nature only makes sure they remain on their toes.
James Valentine, the founder of AnalystSolutions, has a code
He suggests 11 thumb rules when it comes to equity valuations and setting price targets.
His underlying theme is as straight as it can be:
2018Accurate forecasts are an outcome of subtle application of skills and tools, according to Valentine
What factors steered the stock in the past What is going to drive the stock in future Skills are a must to answer those questions
Spotting fishy behaviour and getting a grip on market sentiment are vital for successful equity analysis.Focus on 1-4 critical factors per
stock21 Aug, 2018 This rule boils down to answering two questions, according to Valentine
"Company management does not qualify as unique."
When he covered stocks, Valentine reached out to industry consultants and managers of
privately held companies for their perspectives
