Rocking boat, Plan your Strategy to get you Ashore

The NAMO rally has really lifted the investment moods. The market is at all time high, with many stocks now on their 52 week highs. The IPO market is beginning to boom and investors have piling amount of cash being invested in India, thanks to the expansionary policies followed in EU and USA.

These are speculative times, be cautious and always remember the law of averages would bring speculated stocks to their right prices

Their are 3 situations arising

1) Who have decided to rock the boat with NAMO budget 2014:and bullishly positive on the economic outlook: NAMO as we have all seen, is a master in marketing and very likely would continue to keep upbeat with the market sentiments as uptil now. Exit stocks that have no good fundamentals and have risen only on speculations,book profits. Markets will consolidate and will give plentiful opportunities to get in.

Keep value stocks and go long (PSU's esp).

2) Who want to join the boat : Invest in defensive stocks like FMCG and some exposure to perennial stocks of pharma and IT(Upcoming Infosys results will lead IT fluctuation)  . Intraday day is a good bet as we can expect highly volatile markets.Let market sentiments consolidate and picks stocks that show structural growth in quarterly results.

3) Who have accepted peace : Exited before budget anticipating a below average 2014 budget: Great choice! now get set to see the market dancing. Observe budget carefully. Also short stocks that have risen on purely anticipation but did not deserve NAMO interests in this budget. Consolidation is inevitable.

Smart Investor is always  abreast with Business news. So keep yourself updated and adapt accordingly. Happy investing.

"Someone is sitting in the shade today because someone planted a tree a long time ago." 

Warren Buffet

CMP-252

The 'MAHARATNA' company earning profits since 1971-72 and paying great dividends since 1976-77. Though the order book is sound at 1.1 lakh crore and growing, the slowdown in power sector and troubled coal fields had put pressures on this company.A record turnover of 50,000cr in 2012-13 saw a dip to end with just over 40,000cr 2012-14. 

It operates majorly in power, transmission and defence. it is a manufacturer of a range products and systems for thermal,gas,hydro and nuclear-based utility and captive power plants. It is also a manufacturer of range of industrial systems and products. The company is currently in execution on four turbines of 700MW for Nuclear Power Corporation, a 500MW solar plant and an 185million manufacturing unit for commuter rail system

Many opportunities exist in naval guns, field gun, aero engine technology and multi-million dollar projects that the Ministry of Defence has. The BHEL-HAL (Hindustan Aeronautics Ltd) joint venture is in initial stages for developing aero engine technology.It aims for development and manufacture of the indigenous field gun for the Ministry of Defence.

The company is expected to ride big on MODI govt focus on Power and FDI in Defence, both which would provide this company much higher valuations. though the stock has already seen a run up of 40% it is still far below 2010 levels of 2560.

Trading at just 17x PE multiple right now, this is a gem to buy right now with limited downside and mutli high upside in 2-3 years.

BHEL has a fine management looking to revive the fortunes of the company

For more news http://www.thehindubusinessline.com/companies/competition-from-china-is-no-longer-a-threat-for-bhel/article6160121.ece

Recommend to buy at current levels

Titan Biotech Limited - Multibagger

A small cap company that has all the fine management and technical know how to come a true multibagger.  the company has been showing consistent results over several years with increase in revenues at 44.5 % yoy(2014-2013) . PAT too increased 14% to reach 148cr.

the company is currently trading at a PE ratio of 10x while the market leaders trade at 200x . the company is also almost debt free, making its sheets clean and bound to grow.
Titan Biotech Limited is one of the leading manufacturers and exportors of the products used in Pharmaceutical, F&B, Biotechnology, cosmetic,animal feed

 For more info http://www.titanbiotechltd.com/product-used.php

The company has showed strong resilience in tough times and as Modi led govt is expected to vouch for farmers and introduce farmer related policies, the company is set to make mark in this space.The industry is looking to expand 3% is fiscal , giving ample room for this small cap to grow

The company is trading with 35 countries around the world. The achievements of this company within a short span of incorporation is phenomenal .

Since the company is small, it might take some time for the market to see its full potential. thus recommending to people with a long term view

CMP= 24Rs

Expected price = 30Rs (2 -3 month time frame)

                            60Rs ( 2-3 Yr time Frame)