Multi-bagger Report 2019 - investeek.com€¦ · Multi-bagger Report 2019 . Summary . 2018 was a...

Multi-bagger Report 2019

Summary 2018 was a pretty dismal year for smallcaps & midcaps. The small cap index has fallen close to 30% and midcap has followed path. Nevertheless there are few Investeek picks for 2018 that outshined the index. Infact one such pick is Birla Cable that has given 200%+ returns in 2018. IOL Chemicals gave 100%+ returns and is infact still a pick in 2019 as you will see in this report.

Please be aware that while 2018 was a bad year for small caps, it was an exceptionally terrible year for few “good” companies like Vakrangee, PC Jewellers, Gitanjali Jewellers, Dewan Housing, Yes bank etc. When you are investing in small caps and midcaps, you should be ready to lose 80-90% of your value. Never invest a big chunk of your investments in a single stock.

While Investeek is recommending these stocks for multifold returns, it is highly likely that the stock wont quadruple within the next 1 year. Multibaggers take time and patience. Stocks like Indiabulls Ventures and HEG (10x in a year) are rare and highly risky. The stocks suggested by Investeek are showing improvements in topline and bottomline consistently. The companies are doing all that growing companies do and when companies grow, the share price follows suit eventually if not in advance.

Copyright Investeek 2018. Investments are subject to market risks, please do your own research before investing. Investeek is not responsible for any profit or loss Copyright Investeek 2018. Investments are subject to market risks, please do your own research before investing. Investeek is not responsible for any profit or loss

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0

50

100

3M 3Y 5Y

STOCK VS NIFTY RETURN (%)

IOL Chemicals NIFTY Smallcap 100

-20

-10

0

10

Basic EPS(Rs.)

Debt/Equity(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS

March'15 March'16 March'17 March'18

0200400600800

1000

Revenue OperatingProfit

Net Profit EPS

GROWTH FACTORS SEP QTR 2018 (%)

QoQ (2017/18) YoY (2017/2018)

Copyright Investeek 2018. Investments are subject to market risks, please do your own research before investing. Investeek is not responsible for any profit or loss

IOL Chemicals and Pharmaceuticals has two business segments i.e. chemicals and pharmaceuticals. The chemical segment manufactures Ethyl Acetate, Iso Butyl Benzene (IBB), Acetyl Chloride and Mono Chloro acetic Acid (MCA), while under pharmaceuticals the company manufactures active pharmaceutical ingredient (APIs) i.e. Ibuprofen. Due to the recent shortage in the Ibuprofen market, IOLCP is bound to benefit and perform good in the next 2-3 years

IOL CHEMICALS & PHARMACEUTICALS Recommended Price: INR 166

Hikal is a unique business model with strong presence across pharmaceutical (pharma) and agrochemicals (agchem) sectors, further diversified across Custom Synthesis (CS) and generic API. While CS has been a primary driver in the agchem segment, pharma has been largely driven by generic APIs.

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0

50

3M 3Y 5Y


Hikal NIFTY Smallcap 100

020406080


Net Profit EPS

GROWTH FACTORS SEP QTR 2018

(Q2/Q1 FY19) Q2FY19/Q2FY18)

0

5

10

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS



HIKAL Recommended Price: INR 149

Intellect Design Arena Ltd. (Intellect) is the Chennai based

IT services providing company. Intellect a global leader in

Financial Technology for Banking, Insurance and other

Financial Services. A uniquely focused Products business,

Intellect addresses the needs of financial institutions in

varying stages of technology adoption.

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0

50

100

3-Month 1-Year 3-Year


Intellect Design Arena NIFTY Smallcap 100

-100

0

100

200

300


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

-10-505

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS



INTELLECT DESIGN ARENA Recommended Price: INR 230

Jamna’s market share increased to 70% in 2QFY19 vs 69% in 1QFY19. Contribution from Parabolic Springs and aftermarket business remain muted in overall revenue. The company plans to invest Rs ~5bn (in next 3 to 4 years) in its Greenfield project at Adityapur and Indore to expand its existing parabolic spring and lift axles capacities along with addition of two new products – stabilizer bars and U-bolts


-100

0

100

3M 3Y 5Y


Jamna Auto Inds. NIFTY Smallcap 100

-200

0

200

400

600


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

0

5

10

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS



JAMNA AUTO Recommended Price: INR 70

Izmo ltd. is the world leader in interactive marketing solutions. The company offers hi-tech automotive e-retailing solutions inUSA, Mexico, Europe, and Asia. With online car retail growing around the world, they are bound to grow. They recently entered the defense manufacturing sector and are one of the few private players in this area


-100

0

100

3M 3Y 5Y


IZMO NIFTY Smallcap 100

-40

-20

0

20

40


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

0246

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS

15-Mar March'15 March'16 March'17


IZMO Recommended Price: INR 67

MCL is the flagship company of the Ashok Minda Group. The company is structured into 3 key business segments: 1) Safety, security and restraint systems; 2) driver information & telematics; and 3) interior systems accounting for around 40%, 45% and 15% of their The company has a well diversified client portfolio, with the largest client contributing only ~10% to revenue.


-100

0

100

3M 1Y 3Y


Minda Corporation NIFTY Smallcap 100

0

500

1000


Net Profit EPS


(Q2/Q1 FY 19) Q2FY19/Q2FY18)

02468

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS



MINDA CORPORATION Recommended Price: INR 131

International Paper established presence in India by acquiring 75% shareholding in International Paper APPM Limited (IP APPM), formerly known as The Andhra Pradesh Paper Mills Limited, in the year 2011. The company has two manufacturing units in Andhra Pradesh - Rajahmundry and Kadiyam, having a total paper production capacity of 240,000 metric tons per year.


-50

0

50

3M 3Y 5Y


International Paper APPM NIFTY Smallcap 100

-200

0

200

400

600


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

0102030

Basic EPS(Rs.)

TotalDebt/Equity

(X)

CurrentRatio (X)

Price/BV (X)

GROWTH RATIOS



INTERNATIONAL APPM Recommended Price: INR 496

A respected name in building materials in India, founded in 1946 and a pioneer of “green” building materials, HIL (formerly Hyderabad Industries Ltd.) offers roofing solutions, panels, wall blocks, plywood substitutes, high-quality pipes & fittings and industrial insulation. It manufactures a comprehensive range of products and is the flagship company of the C K Birla Group, a growing $1.8bn conglomerate with diversified interests.


-50

0

50

100

3M 3Y 5Y


HIL NIFTY Smallcap 100

-100

0

100

200


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

0

1

2

3

TotalDebt/Equity (X)

Current Ratio (X) Price/BV (X)

GROWTH RATIOS



HIL LTD. Recommended Price: INR 2064

MAS is a Financial Service company offering loans to 2 wheeler Loans, business Loans, MEL, Personal Loans, Commercial Vehicle Loan, Working Capital Loans – Auto Loans, Agri Loans, Tractor Loans, Consumer Durable, SME (Machinery & Industrial Shed) Loans, Loan against Property, Home Loans etc. to satisfy the varied needs of our clients. They have created the expertise in the distribution of credit and a base of more than 15,00,000 customers.


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100

1M 3M 1Y


Mas Financial Services NIFTY Smallcap 100

0

500

1000


Net Profit EPS


(Q2/Q1 FY 19) Q2FY19/Q2FY18)

0

10

20

30

Basic EPS (Rs.) TotalDebt/Equity (X)

Current Ratio(X)

GROWTH RATIOS



MAS FINANCIAL SERVICES Recommended Price: INR 426

Newgen Software is a vendor/provider of Business Process Management (BPM), Enterprise Content Management (ECM), Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation software. The company has a global footprint in over 60 countries with large, mission-critical solutions that have been deployed in Banks, Insurance firms, BPO’s, Healthcare Organizations, Government and Telecom Companies.


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0

50

1M 3M


Newgen Software Technologies

NIFTY Smallcap 100

0100200300400


Net Profit EPS


(Q2/Q1 FY19) Q2FY19/Q2FY18)

0

5

10

15

Basic EPS (Rs.) TotalDebt/Equity (X)

Current Ratio (X)

GROWTH RATIOS



NEWGEN SOFTWARE Recommended Price: INR 317

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Multi-bagger Report 2019 - investeek.com€¦ · Multi-bagger Report 2019 . Summary . 2018 was a...

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