S.

No Stock CMP Target Buying Price Target Selling Price

1 ABC Bearing 129 129 Comfortable two-bagger

2 Riddhi Siddhi Gluco 390 390 740
3 HOV Services 103 103 200
4 Shilpa Medicare 278 278 Multi-bagger
5 Lakshmi Energy and Foods 68 68 Double
6 Mayur Uniquoters 275 275 400
7 Vinati Organics 72 70 100
8 Balkrishna Industries 692 692 Atleast double
9 Ashiana Housing 156 Buy on dips 220
10 Balaji Amines 38 38 Not sure
11 Manjushree Technopack 80 60-65 120
12 Opto Circuits 272 ? ?
13 Patels Airtemp 86 ? ?
14 Sunflag Iron and Steel 27 27 Rerating
15 Gujarat Reclaim rubber 1028
16 VST Tillers 471 471
17 Facor Alloys
Reasoning Blogs

For FY 2011, the company is expected to post a

turnover of 205 Cr+. i.e.. a growth of more than 25%
For FY 2011, the co may be able to post a NP of
more than 25 Cr+, hence an EPS of more than 22.
Stock is trading at about 7 times expected FY 2011
earning.
The co has consistent record of high dividend pay-
out of 25-30%. Last year the company paid a
dividend of 45%.
Co has enjoyed high ROCE of 30%+ consistently.
Its almost a debt free company. Co repaid a loan of
about 50 Cr in FY 2010.
If one looks at the valuations of bigger players in the
industry like SKF, NRB, FAG Bearing etc, they trade
at 15-20 PE.
Refer ValuePickr discussion on Riddhi Siddhi
Refer ValuePickr discussion on HOV HIGH DEBT LEVELS
Oncology, Growth - Read Dalaal-street http://www.valuepickr.com/company/shilpa-medicare/stock-story
RISKY, Compare with KRBL http://www.valuepickr.com/forum/not-so-hidden-gems/778928774
http://www.valuepickr.com/forum/not-so-hidden-gems/62331048

Excellent prospects http://www.valuepickr.com/forum/not-so-hidden-gems/3811531

Excellent company, risk of rise in interest rates http://www.valuepickr.com/forum/not-so-hidden-gems/62331051
Excellent company, good growth prospects (fair value:http://www.valuepickr.com/forum/not-so-hidden-gems/778928775
220, after 1:5 split)
Excellent company, PET bottles, currently pricey http://www.valuepickr.com/forum/not-so-hidden-gems/3811533/conve
Excellent fundamentals
Excellent fundamentals, slow and steady growth http://www.valuepickr.com/forum/not-so-hidden-gems/936594761
Excellent fundamentals, great growth prospects http://www.valuepickr.com/forum/not-so-hidden-gems/47063855
Market leader, with 50% market share
Market leader, with 50% market share http://www.valuepickr.com/forum/stocks-for-the-long-run/896909798
a-medicare/stock-story
idden-gems/778928774
idden-gems/62331048

idden-gems/3811531
idden-gems/62331051
idden-gems/778928775
idden-gems/3811533/conversation_view?b_start:int=30&-C=

idden-gems/936594761
idden-gems/47063855

or-the-long-run/896909798
S.No Stock CMP

1 Liberty Phosphate

2 Phillips Carbon Black

3 Supreme Industries 152

4 Poly Medicure
5 Span Diagnosis
6 Andhra Petro
7 Goodricke Group
8 Jkumar Infraprojects
9 Smartlink Networks ?

10 Swaraj Engines

11 Repro India

12 Modison Metals
13 Pennar

14 Suprajit Engineering
15 Aditya Birla Chemicals 141
16 Astral Poly
17 International Travel House
18 Navbharat Ferro Alloys
19 Lloyd Electric Engg
20 Photoquip 47

21 Relaxo 317
22 Cravatex 493
23 Dhanuka Agritech ?
24 Wimplast
25 TIL
26 Everonn 597
27 KDDL
28 Simran Farms 53
29 Container Corp 1262

30 Mangalore Chemicals 36

31 Uflex 181
32 Akzo Noble ?
33 Asian Paints 2687
34 Berger Paints 97
35 Kansai Nerolac 907
36 Shalimar Paints 315
37 Nitin Spinners
38 CNI Research
39 Mangalore Refinery and Petrochemicals 68
40 Mazda Ltd 110
41 eClerx
42 Engineers India
43 CESC
44 Castrol India
45 Diamines and Chemicals
46 Allied Digital

Thermax

Bluestar

Zydus Wellness

Page

Hawwkins

TTK Prestige

Titan
Rallis India
Sah Petro
Shanti Gears

Vijay Shanti builder

Amrit Banaspati
Agro tech
Reasoning
Proper valuation (P/E, P/B, RoA, RoCE and all). However a big jump in FY10. Evaluate
reason before jumping into the stock
Low P/E, However all other ratios are poorer compared to Industry median. FCF is
negative.

Terrific fundamentals, great ratios, check, check and check P/E, P/B etc
Declining RoE, ROCE over the years. High P/E = 27
Very good ratios, very good valuation except for a dip in FY09.
Volatile ratios and returns from FY05 to FY10. Ratios comparable to industry
Excellent company, very good ratios, slightly higher P/B
Infra company, decent ratios, somewhat volatile from Fy05 to Fy07
?
High P/E, High P/B, Very good business, M&M accounts for 90% of revenues, decent
prices is around Rs. 390
Increase in debt, decreasing RoE, RoCE, On demand print solutions - RoCE
consistently dropping…now below 10%
Reducing OPM, Reducing ratios, (electrical contacts dependent on silver…high price of
silver might eat into profits
Consistent increase in RoE, RoCE etc. Slightly high P/E
All ratios look good…however FY07 hasn’t been that good. Historical trackrecord is
sketchy
?
Choppy ratios historically, current P/E and P/B slightly on the higher side
High PE, High PB, Decent ratios
?
Very low PB, Low PE, Negative FCF, Reducing ratios all around
Good ratios, P/E = 3.67, P/B = 1.2
Good fundamentals, Terrific RoA, RoE and RoCE, Decent interest coverage, P/E = 26,
P/B = 5
Terrific ratios all around, P/E = 18, P/B = 3.5
?
All ratios look terrific, A steep jump for FY10.
High PE, High PB, Ratios not comparable to industry
Terrific ratios all around, P/E = 21, P/B = 3.53
Ridiculous PE, bad ratios
Terrific ratios all around, P/E = 9.19, P/B = 1.97
Fantastic ratios, fantastic growth, P/E = 20, P/B = 4
Nothing great about ratios, P/E = 15, P/B = 1.13, Interest coverage reduced year on
year
P/E = 12, P/B = 1.6, Good ratios all around, D/E = 1.55, Declined during the recent mid
cap crash
?
Terrific ratios all around, P/E = 34, P/B = 17
P/E = 28, P/B = 5, All other ratios according to industry standard
P/E =13, P/B = 3, High ROCE, High ROE, High NPM, Terrific Interest coverage
P/E =12, P/B = 3, High ROCE, High ROE, Low NPM
Negative PAT, High D/E, Negative RoE
High P/B, Negative EPS, Penny Stock, Negative P/E, High P/E
Terrific ratios, P/E = 11, P/B = 3
Terrific ratios
Excellent company, very good ratios, Higher PE, Higher PB
Check P/E on ValuePickr
?
Check P/E on ValuePickr
Volatile ratios, declining ratios, sudden prop up in FY10
Decent ratios, nothing fantastic

Extremely high P/B, Extremely high P/E, No debt,Reducing RoE and RoCE over the
past 5 years
High P/B, P/E ~ 20, Fantastic RoCE and RoE, Negligible long term debt, Good
prospects, in the Consumer durable industry
Fantastic ratios all round, High promoter holding, Good prospects but extremely high
P/E (P/E ~ 50), will be subjected to reversion to mean
Fantastic ratios all round, High promoter holding, Good prospects but extremely high
P/E (P/E ~ 43), will be subjected to reversion to mean
Fantastic ratios all round, High promoter holding, Good prospects, decent P/E but
extremely high P/B (P/E ~ 14), will be subjected to reversion to mean
Fantastic ratios all round, High promoter holding, Good prospects, High P/E (P/E ~ 33)
and extremely high P/B (P/E ~ 13), will be subjected to reversion to mean
Fantastic ratios all round, High promoter holding, Good prospects but extremely high
P/E (P/E ~ 60) and P/B (P/B ~ 21), will be subjected to reversion to mean
High P/B, High P/E, Choppy ratios over the years
Poor ratios, poor everything
High P/E, Not too great a ratios
Less than book value, slightly higher P/E, maybe a turnaround story, decent ratios till
the steep drop in FY09
Shaky ratios, available cheap
Good ratios all around, High P/B, High P/E
 Important Stocks

Decision

Evaluate

Reject
Buy below Rs. 150
(P/E below 11 or
10) - SIP the stock,
Track and Dig may be?
Reject Track if you have time
Dig deeper *****
Reject
Dig deeper *****
Evaluate
? ?

Track Watch for Declines

Reject

Reject
Dig deeper *****

Evaluate
? Good fundamentals
Evaluate
Track Watch for Declines
? ?
Reject
Dig deeper *****

Track and Dig Watch for Declines

Track Watch for Declines
? ?
Dig deeper *****
Reject
Track Watch for Declines
Reject
Dig deeper *****
Track Watch for Declines

Explore and Reject

Dig deeper
? ?
Track Watch for Declines
Track Watch for Declines
Track Watch for Declines
Track Watch for Declines
Reject
Reject
Track and Dig Watch for Declines
Dig deeper
Track Watch for Declines
?
? ?
?
Explore and Reject
Evaluate

Reject

Watch for Declines

Watch for Declines

Watch for Declines

Strong Buy on Declines

Strong Buy on Declines

Watch for Declines

Reject
Reject
Reject

Evaluate
Watch for Declines
Watch for Declines
S.No Stock CMP
9 Smartlink Networks ?
15 Aditya Birla Chemicals 141
18 Navbharat Ferro Alloys
23 Dhanuka Agritech ?
32 Akzo Noble ?
42 Engineers India
43 CESC
44 Castrol India
Reasoning Decision
? ? ?
? ? Good fundamentals
? ? ?
? ? ?
? ? ?
Check P/E on ValuePickr ?
? ? ?
Check P/E on ValuePickr ?
S.No Stock CMP

10 Swaraj Engines
17 International Travel House
22 Cravatex 493
26 Everonn 597
29 Container Corp 1262
33 Asian Paints 2687

34 Berger Paints 97

35 Kansai Nerolac 907

36 Shalimar Paints 315
41 eClerx

3 Supreme Industries 152

21 Relaxo 317
39 Mangalore Refinery and Petrochemicals
68

Supreme Industries vs Wimplast

Reasoning Decision
High P/E, High P/B, Very good business, M&M accounts for 90% of
revenues, decent prices is around Rs. 390 Track Watch for Declines
High PE, High PB, Decent ratios Track Watch for Declines
Terrific ratios all around, P/E = 18, P/B = 3.5 Track Watch for Declines
Terrific ratios all around, P/E = 21, P/B = 3.53 Track Watch for Declines
Fantastic ratios, fantastic growth, P/E = 20, P/B = 4 Track Watch for Declines
Terrific ratios all around, P/E = 34, P/B = 17 Track Watch for Declines
P/E = 28, P/B = 5, All other ratios according to industry standard
Track Watch for Declines
P/E =13, P/B = 3, High ROCE, High ROE, High NPM, Terrific Interest
coverage Track Watch for Declines
P/E =12, P/B = 3, High ROCE, High ROE, Low NPM Track Watch for Declines
Excellent company, very good ratios, Higher PE, Higher PB Track Watch for Declines
Buy below Rs. 150
(P/E below 11 or
10) - SIP the stock,
Track and Dig may be?
Terrific fundamentals, great ratios, check, check and check P/E, P/B etc
Good fundamentals, Terrific RoA, RoE and RoCE, Decent interest
coverage, P/E = 26, P/B = 5 Track and Dig Watch for Declines
Terrific ratios, P/E = 11, P/B = 3 Track and Dig Watch for Declines
S.No Stock CMP

5 Span Diagnostics

7 Goodricke Group

13 Pennar
20 Photoquip 47

24 Wimplast

28 Simran Farms 53

31 Uflex 181

40 Mazda Ltd 110

Reasoning Decision
Very good ratios, very good valuation except for a dip in
FY09.

Dig deeper *****

Excellent company, very good ratios, slightly higher P/B
Dig deeper *****
Consistent increase in RoE, RoCE etc. Slightly high P/E
Dig deeper *****
Good ratios, P/E = 3.67, P/B = 1.2 Dig deeper *****
All ratios look terrific, A steep jump for FY10.
Dig deeper *****
Terrific ratios all around, P/E = 9.19, P/B = 1.97

Dig deeper *****

P/E = 12, P/B = 1.6, Good ratios all around, D/E = 1.55,
Declined during the recent mid cap crash Dig deeper
Terrific ratios

Dig deeper
Buy on Declines, market leader in diagnostic
products, very good ratios, extremely good
business, similar to Shilpa Medicare,
expansion plans in place

Dig more…Andrew Yule, Diana seem to

have better valuations
Strong strong buy. Steel+Rail wagons+Pre-
engineering
Market potential not too clear.
Covered by Rohit, Evaluate Supreme
Industries vs Wimplast
High volatility, look out for big declines. No
dividend, seemingly a multi-bagger…watch
out
Strong buy on declines

Industrial machinery and Foods…two Main engineer (one of the

unrelated markets…dig a little deeper before promoter very old - 75 yrs)
investing …Not sure what would
happen if he passes away
S.No Stock CMP
30 Mangalore Chemicals
45 Diamines and Chemicals
1 Liberty Phosphate
8 Jkumar Infraprojects
14 Suprajit Engineering
16 Astral Poly
46 Allied Digital
Reasoning
Nothing great about ratios, P/E = 15, P/B = 1.13,
36 Interest coverage reduced year on year
Volatile ratios, declining ratios, sudden prop up in
FY10
Proper valuation (P/E, P/B, RoA, RoCE and all).
However a big jump in FY10. Evaluate reason
before jumping into the stock
Infra company, decent ratios, somewhat volatile
from Fy05 to Fy07
All ratios look good…however FY07 hasn’t been
that good. Historical trackrecord is sketchy
Choppy ratios historically, current P/E and P/B
slightly on the higher side
Decent ratios, nothing fantastic
Decision

Explore and Reject

Explore and Reject

Evaluate

Evaluate

Evaluate

Evaluate
Evaluate
S.No Stock CMP Reasoning
Low P/E, However all other ratios are poorer
2 Phillips Carbon Black compared to Industry median. FCF is negative.
Declining RoE, ROCE over the years. High P/E = 27
4 Poly Medicure
Volatile ratios and returns from FY05 to FY10. Ratios
6 Andhra Petro comparable to industry
Increase in debt, decreasing RoE, RoCE, On demand
print solutions - RoCE consistently dropping…now
11 Repro India below 10%
Reducing OPM, Reducing ratios, (electrical contacts
dependent on silver…high price of silver might eat into
12 Modison Metals profits
Very low PB, Low PE, Negative FCF, Reducing ratios
19 Lloyd Electric Engg all around
High PE, High PB, Ratios not comparable to industry
25 TIL
27 KDDL Ridiculous PE, bad ratios
37 Nitin Spinners Negative PAT, High D/E, Negative RoE
High P/B, Negative EPS, Penny Stock, Negative P/E,
38 CNI Research High P/E
Decision

Reject

Reject Track if you have time

Reject

Reject

Reject

Reject

Reject
Reject
Reject

Reject
HIT2710 portfolio

ajantha pharma(208), hov(108), omnitech intl(207), aries agro(135), vst tillers(480), patels airtemp(90), shanthi gear

Zydus, Dabur, Supreme Industries, Relaxo

http://www.theequitydesk.com/forum/forum_posts.asp?TID=2290&PN=185

SMARTCAT portfolio

http://www.theequitydesk.com/forum/forum_posts.asp?TID=870&PN=90

http://www.topstockresearch.com/StockLowsReport/FNOStocksOneYearLowReport.html?sms_ss=blogger&at_xt=4cefcb1

http://blog.investraction.com/2010/12/stocks-that-fell-50-in-month.html

http://www.rmdhar.com/

S.No Stock

1 Mazda Ltd
2 HOV
3 Shanti Gears
4 Repro India
5 Modison Metals
6 Lloyd Electric Engg
7 Wimplast
8
), omnitech intl(207), aries agro(135), vst tillers(480), patels airtemp(90), shanthi gears(45), cera(155), bannari aman spinning(1

orum/forum_posts.asp?TID=2290&PN=185

orum/forum_posts.asp?TID=870&PN=90

m/StockLowsReport/FNOStocksOneYearLowReport.html?sms_ss=blogger&at_xt=4cefcb10d4ab3418,0

10/12/stocks-that-fell-50-in-month.html

Reasoning
- Mazda Ltd operates in two different industries - Engineering (primarily
Industrial machinery) and Foods
- P/E ~ 6, P/B = 1.4
- The company has been posting impressive numbers over the past 5
years
- ROCE CAGR of ~ 20% and NPM CAGR of ~30% of over the past 5 years
- Negligible debt, High interest coverage
- Hived off the Valve division (low margin, high inv) for Rs 22 cr which is
supposedly a catalyst. AR states that the sale proceeds would be used in
the vacuum pump division which would grow faster.
- All in all, looks an extremely good stock. So far so good.
- However, operating in two different industries (diworsefication), and the
Food division started and managed by the MD's daughter (Ms. Shananya
Mody, daughter of Mr. Sorab Mody)
- Insider selling by the only other Wholetime Director (Percy X Avari). Mr.
Percy Avari is supposed to be the brains behind the industrial machinery
design.
 - HOVS is one of the largest end-to-end BPO companies, providing
healthcare, finance and accounting, e-content management and other
services across key verticals such as BFSI, Healthcare, Government, Telco,
Publishing, Retail, Commercial and Industrial Manufacturing industries.
- The major motivation to get in depth of this stock was the
recommendation by Hitesh Patel (of hitstocks fame - his stock picking ability
is awesome!)
- Although they have been paying down debt year on year, they still have a
tremendous amount of debt, especially considering its a BPO company
- Their earnings (recent and past 5 years) have been nothing to write home
about
- The lesser said about RoCE, RoE CAGR, the better. It's actually
decreasing
- I am not even sure of the Interest coverage
- Even after a steep fall, the stock looks expensive on a adjusted PE.
However Adj PE TTM is close to 12.
- With so many BPO players, I am not even sure whether HOV would have
any competitive advantage (inspite of many clients across sectors).
- They are opening a center in China.
, shanthi gears(45), cera(155), bannari aman spinning(138), are the ones that come to mind based on cmp.

at_xt=4cefcb10d4ab3418,0

Decision
Reject for now. The AR isn't clear if they are
investing further in the food division at all inspite of
the razor thin margins and low volume. If they hive
off the food division, this looks like a good buy. On
the other hand, if Ms. Shanany Mody gets the
ownership of the entire company, I would be
skeptical in investing in this company (Food division
is her pet project - I am not too sure how cashflows
would be utilised).
Reject for now. Their debt levels scare me. I'd
probably look at this stock say 6 months from now
and see if the debt levels have been reduced
significantly.
sed on cmp.