This Stock has made 80% in 9 months

Dear Reader,

We recommended "Alkem Labs" around 1020 Rs and now it is currently trading at 1820 Rs which translates into gains of more than 80% in 9 months.

Alkem is India's fifth largest pharma company in terms of domestic sales, having 5 brands in top 50 in the Indian pharma market such as Clavam, Taxim, Taxim O, Pan, Pan D, Alkem Laboratories makes branded generics, generics, APIs and nutraceuticals for domestic and 55 international markets, with latter accounting for one-fourth of revenues. Internationally, US is a key market, accounting for 19% of total revenues.

Company is focused on the acute therapeutic segments of anti-infectives, gastro intestinals, pain and analgesics, vitamins, minerals, nutrients, with a portfolio of over 700 brands. It has a strong market share of over 11% in anti-infectives, being consistently ranked number one in that segment, which also happens to be the largest therapeutic area in Indian pharma market. In other large segments of gastro intestinals and pain/analgesics, company ranks number three. 

Having 16 manufacturing facilities (14 at 5 locations in India and 2 in US), its domestic distribution reach is very strong comprising field force of 5,745 medical representatives (as of 31-10-15), with 7 in 10 domestic prescribers prescribing company's drugs. Having spent 4.5% of FY15 revenue on R&D, company has 2 R&D centers each in India and US and employs 480 scientists.

During FY15, consolidated EBITDA (excluding other income) grew 19% YoY to Rs. 487 crore, as revenue from operations jumped 21% YoY to Rs. 3,789 crore, clocking EBITDA margin of 12.9%. Net profit, at Rs. 463 crore, was higher by 6% YoY in FY15, leading to an EPS of Rs. 38.7. Since the company enjoys many tax breaks/holidays for its manufacturing facilities and R&D investments, effective tax rates is low at 10.5% for FY15, and will continue to be in low teens for the next couple of years.

Financial performance during first half of FY16 was very strong, with revenue from operations rising 36% YoY to Rs. 2,570 crore and EBITDA margin strengthening to 17.8%, on EBITDA of Rs. 460 crore. Net profit for H1FY16 stood at Rs. 431 crore, translating into an EPS of Rs. 36.1, on equity of Rs. 23.91 crore, of face value Rs. 2 each. Thus, H1FY16 has nearly achieved results of the whole of FY15.

As of 30-9-15, net worth of this closely-held company stands at Rs. 3,400 crore, while gross debt is at Rs. 1,115 crore. Excluding cash and equivalents of Rs. 749 crore, net debt is only Rs. 366 crore, which is very low. Current promoter stake of 70.87% will shrink to 66.23% post IPO, whereas 17 individual investors owning 29.13% stake currently, will part sell, reducing their combined holding to 23.02%, post listing.

At the upper end of the price band of Rs. 1,050 per share, company's market cap will be Rs. 12,550 crore and enterprise value Rs. 12,900 crore. Based on annualized H1FY16 EBITDA of approximately Rs. 925 crore, EV/EBITDA multiple stands at 14 times, for the current year. On revenue run-rate of over Rs. 5,000 crore, EV/Sales multiple is 2.5, whereas the PE multiple is 15 times, on expected EPS of about Rs. 68 for FY16. This appears attractive, given the company's presence in high growth markets of India and US, portfolio of strong brands coupled with distribution strengths.

A small company that is bound to become big!!

This company is a must buy due to following reasons:

• Market cap of just 3400 crores while total opportunity is more than 2 lakh crores!!
• Focus on increasing margins.
• High revenue growth : 35%
• Low forward PE.
• Beneficiary of High GDP growth

All these data values can be found in a multibagger.
We are recommending this company to our members.To get such ideas please mail me at : ankurjainraj@gmail.com

Yes Bank give returns of 16% in just 10 days

Dear Reader,

Yes bank was recommended after budget around 685 Rs .It is currently trading at 791 Rs giving handsome gains of 16%.

To get such ideas please mail at : ankurjainraj@gmail.com

Small company with great prospects

This company is a must buy due to following reasons:

• Market cap of just 1700 crores
• EBITDA margins of 11.5% and ROCE of 33%
• Dividend yield : 5.5%
• High revenue growth : 31%
• Low PE : 15
• Beneficiary of reduced tax on patent income.

All these data values can be found in a multibagger.
We are recommending this company to our members.To get such ideas please mail me at : ankurjainraj@gmail.com

Alkem Labs IPO - Huge gains on listing

Dear Reader,

We recommended "subscribe" to Alkem labs IPO to our members due to robust business and positive financials.Detailed report was sent to all eligible members. It has already given 30% + returns on listing day. Please drop a mail in case you want to know future prospects of the company and holding it for long term or not.

Mail me at    Ankurjainraj@gmail.com

New 52 week high for several stocks

Dear Reader,

In spite of markets at year lows several stocks suggested by us have hit new 52 week highs. These high quality stocks will continue to deliver excellent returns to their investors.Markets have reached bottom and are poised to rise from these levels.Investing at these levels seems to be smart step and will be highly rewarding in future.

To get such ideas please mail me at:

ankurjainraj@gmail.com

Qualities in a successful investor

You must be wondering why give any importance to personal characteristics when you ultimately just need to pick a good stock and profits will shower upon you soon.Well, there are some important traits that you must have in order to be successful investor:

1) Patience

The most important quality one should have is to have lot of patience. Yes 1000 litres of patience or more(just kidding) .Sometimes high potential stock will do nothing for months and sometimes nothing for a year or so.Yes!! Absolutely nothing for a year!! 0% returns in an year :) .Many people sell their holdings if a stock does not give them any return in a month then who would wait for an year to keep the stock that has given them 0% returns?. I am sure 95% of investors will sell within an year since they are frustrated with no returns.

What needs to be done - Sometimes stock is not researched by many people and hence remains undervalued for many months. If the company has greater value than what is being reflected in its current stock price then believe me , someday stock will rise to its true price. So the most important thing is to identify fair value of a stock and very soon the stock will reach to your desired level.

2) Bear the pain

Whenever the stock goes down from their buy price people start to panic and they make emotional decision regarding their holdings. They will sell all or buy at lower levels to average their holdings. But this is not the right thing to do. One should again analyse and determine fair value of the company and then arrive at a conclusion and based on that they should take their decisions.

3) Be focused

"The men who have succeeded are men who have chosen one line and stuck to it." -- Andrew Carnegie
Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time. If you are a long term investor stay like that and don’t trade much.

4) Successful investors use trend to their advantage

"Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend." -- Ajaero Tony Martins

Successful investors use trends such as market sentiments, political instability and company's crisis to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because they can use these fluctuations to their advantage.

5) Successful investors are passionate about investing

If you take a look at average investors, they are always after how much they are going to make now but successful investors use delayed gratification and compounding to gain an edge.
"Wealth is only a benefit of the game of money. If you win, the money will be there." -- J. Paul Getty

6) Be persistent and don’t keep looking for next hot tip

"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." -- Henry Ford
Sticking to your investing strategy whether you are winning or losing requires a great deal of persistence. Average investors lack persistence and that's why they will forever remain average. They jump from one strategy to another and are always looking for the next hot tip.

"Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down." -- Henry Ross Perot