Best large cap stock to buy now- Free recommendation for all readers

Sun Pharma Merger with Ranbaxy is a Game Changer

Global Pharma Industry

The market size of the global pharmaceutical industry is estimated to reach US$ 1.2 trillion by 2017 growing at a Compound Annual Growth Rate (CAGR) of 3-6% and the emerging markets are likely to be the key growth drivers. Several factors like economic growth, demographic changes, transition in community health and policy responses and focus on healthcare funding are expected to lead to double-digit growth in the pharmerging markets.On the other hand, economic and healthcare austerity measures and the savings realized from the growing availability of generic drugs, following their patent expiry, may see developed markets record low single-digit growth.

About Sun Pharma

Sun Pharma is amongst India's largest and fastest growing pharma companies. India and the US account for almost 80% of their business. In India, they are market leaders in six therapies, such as cardiology and psychiatry, with trusted brands and effective marketing teams. In the US, they are a fast growing generic company, with 250 products approved, and presence across dermatological and controlled substances. Their global manufacturing base spans 23 sites across continents. They are one of the largest spenders on generic R&D.

Earnings metrics of last 4 years

Recommendation

We recommend buying sun pharma at current CMP of 835 due to following reasons:

1) Merger with ranbaxy will atleast double the sales.Margins will not remain same as before but will show gradual improvement.

2) Synergy benefits will be huge.

3) Great management.

4) Sustainable price increases by Taro.

5) New products lined up from SPARC.

6)  Pipeline of 184 ANDAs including high-value FTFs

 Note: It should be able to give 40-50% returns in next 1 year 

Why should you invest in stocks – part 2

In previous part of this article we talked about why losses occur in a portfolio of an investor:

http://ankurjainraj.blogspot.in/2014/10/why-should-you-invest-in-stocks.html

Now we shall tell you some well known names that have given superb returns over a period of time. (Some of these have also been recommended to our members). All of these companies have created their own brand over a period of time. We have collected data of last 10 years in below table:

Company	Price as on 25 Oct, 2004	Price as on 25 Oct, 2014              (Current Price)	Percentage Gain	Current Value of 1 lakh which was invested in 2004 (Tax Free)	Value of 1 lakh if invested in Bank FD (Taxable as per your tax bracket)
HDFC Bank	81	896	1006 %	11.6 lakhs	1.93 lakhs
Hero Moto Corp	425	3110	631 %	7.31 lakhs
Asian Paints	29	652	2148 %	22.48 lakhs
Pidilite	15	416	2673 %	27.73 lakhs
Tata Consultancy services	281	2465	777 %	08.77 lakhs
Hindustan Unilever	123	758	516 %	06.16 lakhs
Nestle India	541	6009	1010 %	11.1 lakhs
Sun Pharma	44	810	1740 %	18.4 lakhs

1 lakh invested in a fixed deposit at 9% interest would have returned you 1.93 lakhs after 10 years (excluding taxes) while investing in blue chip stocks could have fetch you returns ranging from 7.31 Lakhs to 27.73 Lakhs as shown in above table. These are companies that are well known and not hidden gems. However such returns from these stocks might or might not be possible in future but there are other set of companies that are on their way to give similar returns in future as well.

“It is important to do savings but it is very important to save your savings”

As we all know that inflation rate as per government is around 9-10% but in reality it is much more than this which we can easily see when we go to market to buy vegetables, fruits, milk, pulses and other essential things whose prices are higher after every few months!!.

So if we have 100 Rs and invested in Fixed Deposit which will give me 109 Rs (9% interest rate)  at the end of year but due to inflation the real value at the end of year comes out to be 94 Rs considering inflation rate at 15%.So, effectively the real value of your savings is de growing every year!!.

Hence it is highly recommended that one should invest a certain part of portfolio from their savings in equities to generate real wealth over a period of time.

http://ankurjainraj.blogspot.in/2014/06/stock-multibagger-ideas.html

October recommendation released

Hi Everyone,

October recommendation is released to all members.
Stock caters to growing sector and had shown tremendous growth over last three years.
All other details regarding current PE, profit growth , earnings growth, opportunity size etc are sent in a separate mail.
CMP: 1675
No Targets.Hold till growth peaks out.

For details on services provided, Please visit:

http://ankurjainraj.blogspot.in/2014/06/stock-multibagger-ideas.html

Why should you invest in stocks?

“Ramesh beta, stock market is for gamblers. Nobody makes money by buying stocks. It is better to put money in savings account or in bank Fixed deposit. I had lost money and I don’t want you to lose money as well.”

Well above advice given by father to his son is pretty obvious as even his father must have lost money and hence same advice percolates to all future generations as well and worst thing is that they all follow the advice blindly. It would have happened that father didn't did his homework properly and that’s why he lost money but how come his son will also lose money if he don’t do what his father has done!!

So why we loose money?

Suresh bhai how is this stock? It is moving like a rocket...”  Sumit who calls himself an investor asks his friend.

Now his friend replies,” Ya Sumit there are rumours that company has bagged one big order through one of the government tender. I think it is good buy”.

Now Sumit goes ahead and buys the stock just on the basis of a rumour. We will spend hours to buy one cell phone analysing technical specifications like camera quality , screen size, RAM, operating system etc. but when it comes to stock we buy just on the basis of rumour.So that’s how most of us buy stocks. We usually buy when it is at a high price and then later sell at a lower price!! whereas smart investor does exactly opposite. Of course it is not possible to time markets correctly every time but we can surely maximise our returns by following appropriate strategy.

The most important thing is to identify stocks based on the fundamentals .An investor needs to spend lot of time and effort to dive deep into various parameters that are critical in discovering wonderful and rewarding stocks.Forget about losses,such stocks can give you multi fold returns and fulfil your aspirations.Some people argue that they don't have time and sometimes not enough knowledge to identify such stocks.For these people,I would strongly recommend to take help from an expert rather than investing based on rumour or half baked information.So if you have lost money in markets please identify real reasons for the same and start investing again.

Rakesh Jhunjhunwala bought stocks of company named Titan in 2001 around 2 Rs and now it is quoting at around 400  which resulted in gain of whopping  200 times. During this phenomenal run, market cap of Titan Company has increased from 300 crore to 35000 crore.

So if you have invested 1 Lakh in titan in 2001 it would have been 2 crores now in just 12 years.!!

Similar Return in a fixed deposit worth 1 lakh would have taken 62 years!!

So such stories are always present in markets and once these gems are discovered they turn out to be life changing events.

Rakesh Jhunjhunwala also let out one of his profound thoughts “In equities, the key lies in predicting what tomorrow is going to be. The tomorrows are going to determine the equity prices. We can’t see tomorrow; but we can anticipate tomorrow“.

For any queries/stock ideas please mail me at: ankurjainraj@gmail.com

Our portfolio past performance- please have a look

Hi Friends,

Below is the performance of our portfolio for period of more than 3 years.This is as a result of extreme hard work and painstaking effort put in by our team which has benefited our members immensely and they are able to grow their hard earned money over a period of time which can be seen from the returns of 8 times of their investment in some of the stocks.It gives us immense pleasure when our members share their joy with us.We will continue to help people and keep their trust on us as always.

For details regarding services offered and payments ,Please go to this page :

http://ankurjainraj.blogspot.in/2014/06/stock-multibagger-ideas.html

For any queries , Please contact me : ankurjainraj@gmail.com

Update:Eicher Motors

Eicher Motors maker of iconic ROYAL ENFIELD bikes and commercial vehicles was recommended on 11 Feb 2014 to our members at a price of 4421.Now the share is ruling at 11801 Rs !!! with a gain of 170 % within 8 months.
Stock is poised to scale 20000 - 25000 with next 6-8 months powered by the  launch of their first product in passenger vehicle space culminating from JV with Polar industries supported by the tremendous growth in the sales of RE bikes.

All members have already been informed to hold the stock and now informing the same to our blog readers as well.