November 2018 - Stocksbaazigar

Venkys Ltd : The best stock to buy for Winter

29th January 201929th November 2018 by stocksbaazigar

In India, after the October heat ends, we enter in Winter. Till December, the temperature falls further and we normally face very chilling days during Christmas vacation. Room Heaters, Liquors, Woolen Clothes etc. industries earn good profits during Winter in India. Smart Investors take an early position in the shares of companies like Bajaj Electricals, Havells, United Spirits, Radico Khaitan, Monte Carlo etc. As per my experience, Venky’s Ltd is one of the best stock to buy for the Winter season. SKM Egg Products Export (India) Ltd. is one more company which also performs well in Winter but we will discuss the Market Leader in its Sector today i.e. Venky’s Ltd. Venkateshwara Hatcheries group (V H Group) was started in 1971 by ‘Father of Indian Poultry Industry’ Dr. Banda Vasudev Rao who revolutionalized the Poultry Industry of India. For his contribution to the Indian Poultry Industry in India, he received one of the highest honor conferred by the President of India ‘Padma Shri’. Banda Vasudeo Rao was born in 1935 in Chanchalguda in Hyderabad. His involvement in Poultry business started in the 60s. Before it, he did various jobs like trained for Railways Police, Telephone Operator, Secretary to State Minister etc. One day he responded to the Advertisement of ‘Poultry and Dairy Farm training Program’ by RajendraNagar Agriculture University and ended up taking Admission in the same. He became the best pupil of Prof. Moore under whom he did his first Project of tending 500 birds satisfactorily. Impressed by this, Moore transferred all the knowledge he had to B.V. Rao. Uttara Devi, wife of B.V.Rao sold her Jewelry to buy 7 Acre land in Pune where he started Venkateshwara Hatcheries. Since then there was no looking back. In his lifetime, B.V. Rao started various companies related to his core business and created one of the largest Conglomerate which pioneered the Modern Poultry Business in India. He also founded The National Egg Coordination Committee (NECC) on 14th May 1982 to decide the prices of eggs across the country and help marketing of eggs on the line of Kuril’s Co-operative Movement of distribution of Milk. Rao served as the President of World’s Poultry Science Association (WPSA) India Branch from 1993-1996. After the death of Dr. B.V. Rao, his daughter Anuradha Desai served as Chairman and his sons Balaji and Venkatesh Rao are sitting on the Board of V H Group (now known as Venky’s – a name of one of the flagship company of V.H. Group). Currently, the group has various companies under it ranging from the Poultry industry, Animal Vaccines, Humans Vaccines, and Healthcare products, and sports. etc. The Group includes: Venkateshwara Hatcheries Pvt. Ltd Venky’s Ltd Venco VRB B.V. Bio-Corp Ltd Uttara Foods and Feeds Pvt Ltd Uttara Implex Pvt Ltd. Eastern Hatcheries Ltd Venky’s Brazil Ltd Venky’s London Ltd Venky’s Vietnam Ltd Venky’s Singapore Pvt. Ltd V.H. Group Bangladesh Bala Industries and Entertainment Pvt Ltd. Venky’s is headquartered in Pune and has offices in more than 13 different countries. It has production facilities in India, Bangladesh, Switzerland, and Vietnam and it exports to more than 42 countries. India is the third largest producer of Eggs after China and the USA. In India, the per capita consumption of Eggs is 68 eggs per annum and that of Chicken is 2.5 Kg per annum. As per Nutrition Standards, the per capita consumption of Eggs should be 180 eggs per annum and that of Chicken is 10 Kgs per annum minimum. It means Indian Poultry Industry has great opportunities ahead. Venky’s SPF Eggs is at par with the Internationally accepted quality of Eggs. That’s the reason, it is India’s leading exporter in foreign countries. Venky’s Stock was one of the Multibagger of FY 2017-18 and gave excellent returns to investors. It gave a dividend of as high as Rs. 6 per share in last quarter. Unfortunately, it posted bad results in the quarter ended in September 2018 where Standalone Sales were down by 14.55%. But if you will compare the results of the Last Three Years, you will realize that normally their September quarter results are always subdued. But the best part is the company has given good profit growth of 52.57% in last 5 years and it has been reducing its debt significantly. The fair value of the Stock is 2810. Currently, it seems to be undervalued. One can definitely buy it with SL at 2100 for the short-term target of 2800. (CMP 2351.60). In winter demand for Eggs and Chicken increases, the prices will surely go up. It will help boost the profit margin of Venky’s Ltd and December quarter results will be very good. Considering all these factors, I feel Venky’s Ltd can be a good bet as a Winter stock. In the comment, do let me know what do you think about this? (Disclaimer: Stocksbaazigar Mr. Deepak Doddamani is not a SEBI registered Advisor. He is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional Level -4. Please consult your Financial Advisor before taking any investment related decisions. Thank you.) Video explanation for Venky’s Ltd

Jet Airways Financial Crisis Explained

3rd February 201927th November 2018 by stocksbaazigar

Is Jet Airways the next KingFisher Airlines? Can Tata Group really acquire control of JetAirways? Will Naresh Goyal cede his control? Will Etihad buy more stake of JetAirways? What role will Government Play? What should an Investor of Jet Airways do? Is it safe to trade in such a volatile stock? Let’s discuss the current Financial Crisis in Jet Airways in detail in this post. Current Updates: On 26th Nov. 2018 Jet Airways handed over pink slips to 16 more employees. Last month it laid off 20 employees. Jet Airways is rationalizing the human resource for the cost-cutting purpose. They have been delaying Salaries of employees from last few months. September Salary dues will be paid to employees on 5th December 2018. Jet Airways has around 16000 employees and more lay-off is possible in near future. What is the Crisis all about? Recently, one of the leading Newspaper claimed that Jet Airways has left with only 60 days of funds for carrying out its Operations. On the same day, Management of JetAirways denied this News and ensured the Investors that Jet Airways posted losses for 3 consecutive quarters and it is definitely facing a Financial crisis due to increasing Aviation Fuel prices and depreciating Rupee but Management of JetAirways is taking all the right steps to overcome the Financial Crisis. Effect on Share Price of Jet Airways: 52-week high of Jet Airways was 883.65 and a 52-week low was 163. Clearly, when Brent Crude Oil price rallied from 45 to 87 Jet Airways stock price fell from 883.65 to 163. From 3rd Oct 2018, Brent Oil started correcting again which resulted in some delivery based buying in JetAirways. When the stock was trading near 220, the Speculation that Delta Airways will buy 24% stake from Etihad in Jet Airways and Tata Group too will buy Majority stake from Naresh Goyal created a buzz in the Market. The stock reached 280 within no time. On the previous day of Tata Group’s Management Meeting stock rose by 25% in a single day and more 8% rise took Jet Airways to 346 on next day (16th Nov 2018). After the Market hours. Jet Airways released a press note in which it clarified that any such news of Tata Group buying Jet Airways is only a Speculation and only preliminary discussion is going on. Profit booking dragged Jet Airways down after that. But for few days it managed to hold SL of 300 intact. On 26th November 2017 stock broke the resistance of 300 as Market came to know that Naresh Goyal is not ready to cede its control in JetAirways and looking for more cash from its old Stakeholder Etihad Airways for its Operations. Why Tata Group deal isn’t materializing? Founder Naresh Goyal and his wife have 51% stake in Jet Airways. Etihad Airways own 24% stake in Jet Airways. Rest 25% of shares are held by minority shareholders and retail investors. Tata Group owns AirAsia and Vistara Airlines which is a joint venture with Singapore Airlines. Tata wanted to buy out entire 51% of Naresh Goyal to acquire the Jet Airways which can make them second largest Airline in India after Indigo. But Naresh Goyal was ready to dilute his equity to as low as 15%. This meant that Tata Group should give profitable exit to Etihad by buying their 24% to reach the magic figure of 51%. The government wanted Tata to help Jet Airways in this Crisis as they themselves can’t bailout Private Airlines and crash of Jet Airways is not good for Customers as well as 16000 employees of Jet Airways. What steps did Goyal take after Tata Group – Jet Airways deal didn’t Materialize? Naresh Goyal and his team met Tony Douglas, Group CEO of Etihad Airlines last Sunday. Goyal offered to dilute his equity from 51% to as low as 15% and requested Etihad to double its stake in Jet Airways in exchange of Cash Infusion. Naresh Goyal prefers dealing with Etihad than accepting the deal offered by Tata Group. This way Etihad Airlines may hold as high as 49% in Jet Airways in the coming future depending on how much Cash they will infuse in the beleaguered Jet Airways. This is not the first time Aviation sector facing Financial Crisis. In India, we saw consolidation in this sector since 2010. Kingfisher Airlines closed its operation in 2012. Since then Jet Airways is handling 17.8% passenger market share with its fleet size of 124 which serves 67 destinations across the world. What to do in Jet Airways shares now? The rally in stock was due to Speculation that Tata Group will acquire Jet Airways. But now as we all know that Naresh Goyal is taking help of Etihad to revive debt-ridden Jet Airways, the stock has started to cool off. We may see stock falling up to levels of 240-260 again this week. The fundamentals of Jet Airways company are really bad and this stock is no more an Investment bet. High-risk traders can trade in stock but Stop Loss of the Stock can be as deep as 240 which doesn’t make any sense to trade in stock. I would suggest you, stay away from this stock for now. Indigo is always a better option if you want to invest in the Aviation sector. Disclaimer: This post is for Educational Purpose. Stocksbaazigar Mr. Deepak Doddamani is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional level – 4. He is not SEBI registered Financial Advisor. Please consult your Advisor before taking any Investment related decisions. Thank you. Video explanation on Jet Airways crisis.

Muhurat Trading Stocks for Vikram Samvat 2075

29th January 20196th November 2018 by stocksbaazigar

Stocks to buy on Muhurat Trading of Samvat 2075 Samvat 2074 went really bad thanks to increasing crude prices and depreciating Rupee. We have seen how Stocks corrected by 50-60% in a year. Portfolios of Investors who invested in last Muhurat trading day is now in deep red. Loksabha Elections and States Elections are all aligned in Samvat 2075. The market will remain volatile and rangebound till results of Loksabha elections. After which we can get a good rally of more than 1000 points in Nifty in one year. 12000 on Nifty can be achieved within the next 18 to 24 months. So clearly, this correction in Market should be utilized to build your Portfolio rather than short-term trading in it. In Samvat 2074, many of the Investment Ideas given by Stocksbaazigar Mr. Deepak Doddamani gave very good returns. This year we believe that one should focus on investing in Bluechip Stocks which are now available at lower valuations than last year’s Diwali. The volatility in Midcaps and Smallcaps will increase in recent future. Every dip will be used for buying in these stocks but at every rise, same stocks will be sold. Effectively, from this Diwali to next Diwali these indices will not perform the way it performed in calendar years 2016-2017. The trend of 2018 will continue for some more time till the global scenario gets normalized. This is the reason, we are betting on Bluechip companies like Maruti Suzuki, Bajaj Finance, Britannia, HDFC Bank, ICICI Bank, HUL, Infosys, Asian Paints, Titan and Reliance Industries etc. We have shared a list of 50 stocks which can give good results in Samvat 2075. These stocks are recommended by leading Financial Services of India and compiled for benefits of Investors. You can select your Muhurat trading picks from this list itself. Disclaimer: Please consult your financial advisor before taking any investment decision. This blog is only for educational purpose. Do not consider it as recommendations. Stocksbaazigar is not responsible for your gains/losses. You can Instamojo @Stocksbaazigar to support this Blog. Thank You