Wednesday, March 9, 2011

A.K.Capital.....Rs.390......excellent LT pick.

Looks like market is consolidating.Range 5200-550.
But scores of excellent fundamentals stocks has come down.
I wrote on EPC Ind few days back at Rs 78 which was also my earlier call in 30's or 20's a year or so back.
It looks from the day I again recomended it here at Rs 66 and then at Rs 78, it is in upward journey and is making 52 week high.Today it was Rs 105.15 and was buyer for whole day.That is up from last 78 to 105 in few days.
I also talked about Kemrock Ind which was Rs 526 and is still at Rs 489.Means looks stronger then market.
Well, I have kept on writing to buy fundamentally sound stocks for couple of months and I donno how many must have bought it.
I keep getting queries of different stocks but I was nit much interest in them due to the price factor or sector in which they were.
The stocks I was trying readers to look at were like:
1) SNL Bearing ( NRB , MNC Co and excellent earnings)
2) Windsor Machine( VIP gr and excellent earnings)
3)EPC Ind which I have been discussing it here constantly.
4) Kemrock Ind
5) Siemens
7) IFCI ( whenever I have to recomend Fin stock I have recomended this)
Special mention for A.K.Capital here is because it has excellent fundamentals with eps as high as Rs 80 last year and has come down from 944 to 390 which to me looks an excellent pick.
It's eq is very low at 6.6 cr means 66 lacs shares.I remember someone asked me about it but at that time I was not tracking it and hence gave no view on it , but now when it has come down so much I feel it looks a good SIP buy.
One more thing I would like to write here is that one veteran investor cum operator has taken stake in this Co recently whose name I am not going to write it here as I wants my readers to find it out.
10) Pondi Oxide
11) HBL Power

There are many more but can't recall all and hence end it up here.


  1. A.k. Capital is the company damani shab ne ivest kiya huva hai but unho ne to khfi low mai invested hai as per my knowledge....

  2. umang,
    You are correct here.
    Maybe he must have invested at lower level.But saw his name recently only and when I tried to open back qr SHP , I found in last qr his name was there.
    Marwadi stock broker ke nam pe tha kuch shares , jo almost sabhi RKD( not the one which comes on TV)ka nam pe a gaya hai....aur Marwadi Stock broker ka nam bhi bahut past ka nahi hai....shayad..6 ya 9 mahine ke pehle ka hai....muje malum nahi hai kuan se price pe invest kiya hai....

  3. may be around 270 because he invested year ago after RKD involved it rech to 910 then it fall down to 390.

    what u say it good time to enter???????

  4. I would say Rathi Still should come under this list too..

  5. umang,
    Yes, I think at 390 AK Capital is a buy.
    I don't see much downside from here as market has stopped going down.
    When people like RKD buys ,we can't alays buy at the price they bought but even if we buy at 50% up from them still it is better then buying at 940....

  6. Financial technology at pe of 14 has great record of giving dividends slightly downtrend dew to stock exchange approval problem
    i think its bottom out or yet to find bottom what ur call?????

  7. umang,
    Financial techno at p/e 14 ofcourse looks good...

  8. Hi Rajeev,

    Some info on Sical:

    Just want to know your expert views on holding Sical or switching to PSL for long term.


  9. sir many thanx for posting a k capital they r in good business i had bought at 470 then sold it at 530. in 2 months it reached 910. many such examples so now i beleive what u said buy for long term and do not look at it at daily basis. thanx again

  10. Om,
    One needs to able to discard laggards from the portfolio.
    I am not saying Sical and PSL are fundamentally not good.Both have good fundamentals.
    But I would switch over to some thing like SNL or Windsor or Sree Rayalsema Histrength Hyo(SRHH) or HBL etc.
    See the earnings of SNL or Windsor.They have previous year accumalated loss but they are not big but the management is excellent.
    IFCI is also an excellent pick for LT.
    All the above stocks are priced less then Sical or PSL.
    The key is how one is able to switch over to upcoming stocks and not ends up with laggards.
    I know that I recomend to hold LT but one should be able to see that in PSL the eq is going up as with Nuteck for exampple.Sical is burdened with huge debt.

  11. sunil,
    There was nothing wrong u sold AK Capital and booked profit.But as I always write, don't sell entire holding.That is the key.

  12. Rajeev,
    Please look at Wabco-TVS.
    Its the leading company in brake systems.
    With the auto demand surging and still under penetrated in india and with rising incomes, auto is set to be booming over next 5 years.

    Wabco-TVS is the market leader for ABS systems. With more and more hi-tech cars/bikes coming into india, ABS will become a necessity. Lots of hi-tech cars are already ABS fitted nowadays.

    A debt free company. Good management.
    Although the price is not as cheap but I think a good investment over 5 year term.

    Let me know your inputs.


  13. Hi Somu,
    SWabco-TVS looks excellent with a tiny eq of 9 cr.But it is 5 paidup and hence if we take a normal 10 paidup FV then the price is 1850.
    Try to figure out if you can get anything at Rs 1850 , 10 fv , and more exciting, and if you don't find that then go ahead with Wabco-TVS.

  14. I think JMT auto is is there with the similar growth and also thin eq...what do you say rajeev..suggest something in hybrid government is this budget is good for hybrid auto makers in india... M&M is one pick since they took over Reva..

  15. Hi Rajeev,

    I would appreciate if u can consider a post on Orchid Chem. From past few qtrs its eps is growing at rapid pace, while RJ sold his 6lks shares. ??
    I cant understand that.
    Im a noob at Fundamental Analysis.
    Plz comment on this one.

    also if I want to analyse a stock fundamentally what should i do as a starter?

  16. sir i am orthopaedic surgeon by profession i love ur blog nowadays one more stock coming to my mind is WPIL LTD. but as always looking forward for ur expert advice

  17. Hi Rajeev,Thanks for identifying another darkhorse.AK Capital is another wonderful stock for long-term investors.I have a question for you,I know you have asked us to read capital markets magazine,apart from this any other magazine or newsletters do you advise for identifying good stocks?

  18. Jazz,
    Write "How to pick multibagggers" in serach tab of my blog and read that post of mine.
    There are many blogs who had copied and pasted it on their blog.
    Many readers has taken out the print of that post to keep handy to look at whenever they wants to.

  19. Sunil,
    WPIL looks excellent pick....

  20. Sambhath,
    Capital Market is the only magazine I would recomend to read and especially the score board.
    Because in score board you will find everything from eq , BV, FV, Promo stake, EPS, P/E, Cash EPS,ROE,sales etc etc.....and that too sectorwise.
    I usually read bse site daily wherein I open all annoucements, results and bulk deals and insider trading report.
    This I do regularly ewvery day.
    Read ET and BS daily which I also do almost daily.
    Offlate I am not able to read ET and BS regularly.