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Stocksbaazigar Mr. Deepak Doddamani is a Founder of Ratneya Group and Ashwamedh Foundation. He is an entrepreneur since age of 21 and have worked in various sectors like Education, Media, Personal Finance and Social work. More about Mr. Deepak Doddamani MBA (Marketing), B.Tech (Oils), NET qualified in Management, NSE's Certified Investment Analysis Professional, NSE's Certified Marketing Professional Level -4. 15+ years of experience Founder of Ratneya Group Founder of Ashwamedh Foundation Founder of Stocksbaazigar Entrepreneur and Educator Shortfilms Maker Social Entrepreneur Blogger

Is Sintex Plastics really a Multibagger stock?

3rd February 20194th April 2018 by stocksbaazigar

In 2017 Diwali, Sintex Plastics Technology Ltd (SPTL) stock was recommended by many experts in their ‘Muhurat Picks’. It was trading above 90 that time. One year target in SPTL was given in the range of 120-180 by different analysts. Retail Investors invested in it hoping it will become a ‘Multibagger Stock’ in a year. Nifty started correcting from 10200 and consensus selling triggered great fall in Midcap companies. Sintex Plastics Technology Ltd. share price too corrected in this fall. SPTL was recently demerged from the Sintex Industries Ltd that year and therefore no Technical Data was available to predict the extent of fall in Share Price of SPTL. This made people think that 70-75 is the right level to accumulate more stocks of SPTL, which resulted in ‘good money following the bad money‘. SPTL formed temporary bottom near 56 and now trading near 61. The question remains the same – Is Sintex Plastics Technology Ltd. really a Multibagger Or is it just a ‘black hole’ sucking money of Investors? In this post we will try to find it out. Company Info: Sintex Industries was incorporated as Bharat Vijay Mills Ltd. in 1931. It started its composite textile business in Kalol, Gujarat same year. In 1995, it was renamed as Sintex Industries Ltd. It was listed on BSE in 2000. In September 2016, Board of Sintex Industries approved demerger of its ‘custom moulding business’ and ‘prefab business’ from Sintex Industries to Sintex-BAPL and Sintex-Infra Projects, respectively as wholly owned subsidiaries of Sintex Plastics Technology Ltd. In May 2017, Sintex Industries Ltd. started trading ex-scheme as purely Textile business while all its non-textile businesses were listed under Sintex Plastics Technology Ltd. SPTL is India’s largest water tanks manufacturer. Apart from providing water management solutions, SPTL provides Structural, Electrical, Environmental, Energy, Interior, Material handling, Telecom and Industrial solutions. Sintex Plastics has strong presence in Asia, Africa, Europe and America. Fundamentals of SPTL: Let’s discuss these numbers one by one. Market Capital of Sintex Plastics Technology Ltd. (SPTL) decreased significantly after this fall in Share Price. Current Market Capital is 3736.33 Cr. Management is expecting that once the newly listed business gets settled properly and starts making positive cash-flows, it will improve their debt structure too. As company is operating in India and abroad, it has to deal with different loan interest rates and therefore company will take two more quarters to streamline it’s Cash Flow Structure. Management is targeting for Market Capitalization of 10 Cr within 4 yrs. Sales Turnover last quarter was 0.42 Cr. Sintex Plastics Technologies Ltd. reported muted results as there was de-growth of 7% QoQ in revenues. 33% decline in Pre-Fab and Monolithic business affected company performance. If you will see the Second table properly, you will come to know that total income from operations and net sales is increasing quarter to quarter. Then why there is decline in net Profit? Yes, you guessed it right. Taxes, Interests and Depreciation has been adjusted on quarterly basis to streamline the newly listed company which is hardly 1 yr old now (demerged entity). Taxes of 13.3 Cr paid after this quarter. If you remember, one-time legal expenses of demerger process were paid last quarter. Total de-merger cost of 45 Cr reduced net profit last quarter. This quarter GST amount will affect the final calculations again. Company already faced 15 non-working days thanks to GST. Total Assets of the company is 414.20 Cr while net debt is 3330 Cr. Company has reduced debt of Rs. 82 Cr this quarter. Please note, the FCCBs which they converted in equities to reduce the debt has added additional equities of 1.5 Cr in Market. This lead to heavy supply in Market which resulted in profit booking by FIIs who hedged their positions. This was the prime reason behind the share price fall from October. We can say company has managing it’s debt very well which is good news for Investors. No doubt promoters have confidence in company and so they are aiming to increase their stake by more 10% gradually to reach 40% Book Value of the company is 50.80. Current Market Price is 60.80. Share is fairly valued and available at cheap valuations. Downside is limited and upside is 100% considering 1 yr conservative target of 120 given by expert analysts. So clearly, it is attractive opportunity for short to long-term investors. Industry P/E is 36.96. Peers of SPTL are trading at very higher P/Es. This is one more reason why it is the right time to start accumulating the stock. Face value is 1. Company is not giving any dividends to investors as it is recently de-merged entity. F.V is low, so those who invest only for Dividend income should look for better opportunities in Market. Company is not only reducing the debt but also reducing the cost of borrowing, which is good thing. SPTL is not getting any new order from Government but it has 6 months of Govt. projects in their pipeline. SPTL is expecting that before elections of 2019, Govt. will definitely try to do something for Rural population. Govt. Expenditure on affordable housing, Swachcha Bharat (hygiene/plastic toilets), irrigation, water storage and rain water harvesting etc projects will increase, which means more business to SPTL. Company is not relying completely on Govt. projects. It is focusing more on retail segment. Instead of reaching customers directly, it will focus on creating strong network of agents and distributors. SPTL will focus on CSR related activities to support Govt. in it’s missions. Good for its Prefab business. Foreign business of SPTL is doing good. European business is on strong footing. SPTL is gaining good market in Africa. In Asia it is among the leaders of the Plastic Industry. So clearly future looks bright too. SPTL has great reputation of providing accurately calibrated water tanks. The quality of Water tanks is so good that one tank can last longer than life of the buyer. … Read more

What to do in ICICI Bank now?

29th January 20193rd April 2018 by stocksbaazigar

ICICI Bank corrected by 15% from the Peak, Is it right time to invest in ICICI Bank now? After the whopping $ 129 Bn PNB Scam in India, all the Public Sector banks shares collapsed by 20-25% in last two months. Recently, when Investors started accumulating shares of some undervalued Public Sector banks, a news of involvement of ICICI Bank and Axis Bank in PNB Fraud case broke out. ICICI tumbled by 8-10% after that. Axis bank declared that it already got rid off all the credits by Nirav Modi – Choksy and has no exposure to the giant PNB Fraud. In the preliminary inquiry, ICICI Bank too cleared it’s stand and got away safely. At that point shares of ICICI banks started to show some recovery and reached near 280 level. But then a Tweet by MP Subramanian Swamy on 2nd April demanding CBI Probe against Avista Advisory Firm in Videocon-Loan Scam, shook the market again, which resulted in biggest one day fall in ICICI Bank on 2nd April 2018 after 2015. Shares of second-largest lender of India ICICI Bank slumped by 5.9% that day. Let us understand what is this (alleged) Loan-Scam in detail. ICICI Bank has faced many controversies in past. It was accused of using goons as ‘recovery agents’ for recovery of loans from defaulters and other inhuman practices to recover money from ‘credit card’ holders in past. In the sting operation by ‘Cobrapost’, they showed how ICICI Bank is involved in ‘Money Laundering cases’ 2013? I still remember how share price tumbled from 324 level then and never crossed 300 for several years after that. But in all those cases, employees held responsible and appropriate actions were taken against them. This time MD & CEO of ICICI Bank, the most celebrated successful Woman of India Mrs. Chanda Kochhar is involved in the case. That is why we saw share falling by almost 15% from the peak in very few days. Here people may feel that Subramaniam Swamy is the Whistle-blower in this case, which is not true. Arvind Gupta, Founder, and Trustee of Indian Investors Protection Council were the first to highlight this issue in his blog post “Banking Sector NPAs from Mighty corporate cons.” In this post, he cited the connection between Venugopal Dhoot, promoter of Videocon with Deepak Kochhar, husband of Chanda Kochchar and owner of NuPower Renewables. Arvind Gupta pointed out ‘Conflict of Interest’ involved in loans sanctioned to Videocon Industries by ICICI Bank and 12 more such cases. Unfortunately, Government ignored them all till cases like Vijay Mallya, Nirav Modi started coming out in India. This loot of taxpayer’s money has the potential to replace the Government in 2019, because of which Govt. started probing into these cases one by one as a last-minute-fixing measure. ‘Quid Pro Quo’ means – a favor or advantages granted in return of something. CBI is inquiring Mrs. Chanda Kochhar in accusations that Venugopal Dhoot (Videocon Industries) provided Crores of Rupees to a firm promoted by Deepak Kochchar (NuPower Renewables) six months after Videocon got Rs. 3250 Crores loans from ICICI Bank in 2012. Deepak Kochhar, husband of Chanda Kochhar always kept a low profile. He has entrepreneurial experience of more than 20 yrs in Financial Services and Renewable Energy. He founded NuPower Renewables in 2008. In just 10 yrs, this company has renewable energy assets worth 770 MW (and in the pipeline) located in Maharashtra, Karnataka, Andhra Pradesh, TamilNadu, Rajasthan, and Madhya Pradesh. With the help of Venugopal Dhoot, Deepak Kochchar acquired around 92% stake in NuPower Renewables so far. As per Swamy’s allegations Avista Advisory firm of Rajiv Kochchar; brother of Deepak Kochhar has helped Videocon get this loans from ICICI Bank. Denying the accusations Rajiv Kochhar said that Avista Advisory has more foreign Clients than Indian. He also said his firm advised NuPower Renewables over Foreign Currency Convertible Bonds (FCCBS) and it has nothing to do with ICICI Bank. There is no relation between Avista Advisory Firm and ICICI Bank. In this case, Board of ICICI Bank is backing their CEO Chanda Kochhar. Rajiv and Deepak Kochhar and Venugopal Dhoot – all denying the allegations. Chanda Kochhar was part of the board which released loans to Videocon Industries in 2012; which has now become one of the biggest parts of NPAs of ICICI bank. After SBI started bankruptcy proceeding against Videocon in January 2018 in National Company Law Tribunal (NCLT), this case of Quid Pro Quo basis Loans surfaced again. From the preliminary observations, we can see that Venugopal Dhoot and Deepak Kochchar have scratched each other’s backs and Chanda Kochhar is aware of it. But as you all know that in India such high-profile cases never reach to their logical conclusions. After the completion of the inquiry, Chanda Kochhar will get clean-chit from CBI. ICICI Bank will get clean-chit from RBI and Investor community will forget the case completely. In my opinion, ICICI Bank is one of the largest private sector banks in India which comes under ‘too big to fall‘ category. Every dip in the share price should be utilized for accumulating stock for long term investment. The pain in the share price is temporary and won’t affect the fundamentals of the company much. Investors always see at Price to book ratio and NPAs of Banks when they take their investment decisions in Banks. Clients of Avista Advisory and Stakeholders of NuPower Renewables are not at all worried about the recent development in this case. Why should Investors in ICICI Bank worry much about it then? Negative sentiments have dragged ICICI Bank stock down by more than 15% now. The downside from this level is limited. One can wait for the formation of a temporary bottom on a technical chart and then start buying small quantities of ICICI Bank shares. Remember, in long term, Private Sector Banks gives more returns than … Read more

Fortis – Manipal Deal explained

31st March 201831st March 2018 by stocksbaazigar

Fortis Healthcare Ltd (FHL) share price tumbled by 13.29% on the final trading day of Financial year 2017-18. Stock closed on 123.35 on NSE. This fall was due to disappointment of Investors who exited Fortis healthcare after Fortis-Manipal deal terms and structure came out. In the press conference, Bhavdeep Singh, CEO of Fortis gave details about the merger and called it as the deal which can decide the future path of Indian Healthcare sector. His emphasis was on convincing Investors that deal is good for both the parties and combined entity will become the largest Hospital chain of India. But this could not stop the downfall of share prices of Fortis healthcare and Fortis Malar in market, as Investors realized that it was good deal but at poor valuations. There is nothing for Fortis Investors in it. Firstly, there is no open offer to Fortis Healthcare shareholders to tender their shares if they want and secondly SWAP ratio for deal is 100:10.38 which means each share holder of Fortis Healthcare Ltd will get 10.38 shares of Manipal Hospitals against their 100 shares of Fortis Healthcare. Luckily Fortis Malar shareholders got some relief when Manipal Health Enterprises launched an open offer for 26% of Fortis Malar hospital’s shares at a price of Rs. 64.45 per share. Fortis Malar Hospitals share closed on 58.10 on 28th March. Let’s us try to break-down the deal details for further understanding. 1. What is the Fortis-Manipal deal? As per the press release of Fortis Healthcare, Fortis healthcare announced demerger of it’s hospitals into Manipal Hospitals. Board approved sale of its 20% stake in SRL Ltd to Manipal Hospitals, which comes around Rs.720 Cr. The deal infuses Rs. 3900 Cr of fresh capital from Manipal Hospital’s Dr. Ranjan Pai and TPG Capital Asia to complete RHT transactions and to fund growth initiatives. The remaining FHL company will be an investment holding company with 36.6% stake in SRL. In future Manipal Hospitals will increase it’s stake in SRL to 50.9% stake buying stakes from this holding company gradually. 2. What to do in Fortis healthcare now? This deal will reduce FHL into only an Investment holding company. It will take 8 to 12 months to complete the merger. Manipal Hospitals will list on Market after this merger gets completed. Investors of Fortis Healthcare will get shares of Manipal Healthcare Enterprises Ltd. (Manipal Hospitals) as per the swap ratio mentioned above. So clearly Fortis Healthcare Ltd Investors are losers here. Major Investors might give approval to this deal sighting the good future of combined entity and complete closure of unpredictable entity with lots of corporate governance issues. Assets of FHL will go into the hands of good Management. But Minority shareholders will have to book losses in the shares or wait for 1 complete year to see how Manipal Hospitals performs after listing on Market after this reverse- merger deal? 3) How will be the combined entity? Manipal Hospitals is part of ‘Manipal Education and Medical Group’ owned by Dr. Ranjan Pai and backed by TPG, an asset firm who has good experience in Healthcare sector investment. The combination of Manipal Hospitals and Fortis Healthcare will create largest healthcare provider company in India. With more than 11000 installed beds capacity, 4200+ doctors, 9300+ nurses and 11400+ staff, it will serve India and overseas patients in their hospitals in Dubai, Singapore, Mauritius and Sri Lanka. The combined entity will be valued near Rs. 15000 Cr after the deal gets completed. Clearly, Dr. Ranjai Pai and his Manipal Hospitals are clear Winners in this deal. As per my opinion, instead of buying Fortis Healthcare and waiting for 1 long year Investors should buy Manipal Hospitals Ltd. only after its listing. We will see more pain in Fortis Healthcare Ltd share in first week of new Financial year 2018-19. After which funds will definitely accumulate it at lower valuations. Fortis earned higher brand name than Manipal, but Manipal Hospitals is definitely larger player than Fortis when it comes to Market Valuations. Fortis Healthcare Ltd. has seen really bad controversies in last few years – thanks to it’s promoters Singh Brothers who tried to chew more than they should have. From 1996 to 2011, Fortis Healthcare expanded aggressively. But then the Corporate governance issues, legal suits against promoters, stakes selling and exit by them etc. – all made it controversial company to invest. Big Investors like Rakesh Jhunjhunwala, Radhakishan Damani anticipated this deal and invested in Fortis Healthcare at lower valuations. They too are waiting for things to get sorted. Let’s hope that under the leadership of Dr.Pai, this upcoming combined entity will flourish and gives the much needed leadership to Indian healthcare sector where serving India will take priority over looting the patients with unreasonably high bills. (Disclaimer: Please note, this is educational post and Stocksbaazigar is not responsible for any losses/risks you may suffer due to blindly following the post. I have not advised anything or recommended anything in this post)

HEG and Graphite India

31st March 201831st March 2018 by stocksbaazigar

HEG, Goa Carbon and Graphite India – Top 3 Gainers of FY 2017-18 FY 2017-18 has been the year of complete roller-coaster ride for Market Participants. We saw Nifty rising from 9200 level to 11200 and then falling sharply to 9950 again in the same financial year. In this volatile market whoever entered at right time and booked profits at peak, earned good returns. While those who didn’t took their profits home are sitting on huge losses. Some of the stocks have reached the level of year 2013 – mostly public sector companies like Public Sector Banks. Investors will have to wait for two years now to get profitable exit from these stocks. Market will definitely become nervous before Loksabha Elections in India. We might see Nifty levels of 9500 to 9300 before these elections. F & O data suggests that Upside is capped for Nifty at 10500. Therefore, it becomes very important to be highly selective about your bets in this choppy market. Before starting new financial year, I decided to have a good look at the Top Gainers and Top Losers of the Financial Year 2017-2018. The top three Gainers are related to Electric Arc Furnaces wiz Graphite Electrodes exporters HEG and Graphite India and Catalyst Coke Manufacturer Goa Carbon. So let’s discuss about Graphite related 2 stocks in this post. First let us see how they performed in FY 2017-18? Performance of HEG, Goa Carbon and Graphite India in 1 yr. 2. What is the reason of these extra-ordinary returns? Graphite stocks have become Multibagger stocks this year – thanks to transformation happening in Iron & Steel industry. The metal industry is becoming environment-friendly in last few months thanks to global pressure. Traditional Induction Furnaces used in steel and ferro-alloys manufacturing industries are now getting replaced by environment friendly Electric Arc Furnaces. Graphite Electrodes are used in these electric arc furnaces. This has increased demand of Graphite Electrodes in Markets like India and China. China, alone has shut down Induction capacity worth 175 metric tonnes in this year. Secondly, Graphite Manufacturers who weren’t practicing Environment-friendly manufacturing methods/practices were also cracked down by China. This is one more reason why China has become net importer of Graphite electrodes. China has recovered from slowdown of commodity markets of 2015 and started increasing the production of Steel and other Ferro-alloys again. This has increased the exports revenue of Indian Graphite Manufacturers which are using their 75 % of total capacity to reach the demands. 3. Let’s see fundamentals of HEG, Goa Carbon and Graphite India in the financial year 2017-18 to understand the picture better. From the table above, you can clearly see how the Income from Operations of the Electrodes manufacturing has increased in these companies and how it is affecting their quarterly results positively. It is expected that in the coming year company like HEG will utilize it’s 85% of capacity which will also increase it’s Profits further. So clearly, every dip in the Share Price is being utilized by Investors to accumulate these stocks. 4. Can the demand in Graphite sustain? This is the most important question one must ask before investing in these companies. The production of Graphite Electrodes will depend on their demand in Steel and Ferro-alloys industry. The slowdown in commodity market followed by cycle change in the metal sector has brought great consolidation in this market. It is expected that due to shortage of steel scrap and steel, demand for blast furnaces and electric arc furnaces will keep increasing in the FY 2018-19 too. Graphite Electrodes demand in China is around 666kT while potential demand outside china could be around 770 kT. Global Supply of Graphite was merely 789 kT in the FY 2017-18. From this demand-supply imbalance you can clearly say that Graphite companies will perform really well in the new Financial year 2018-19 too. Investors should definitely keep ‘Graphite Electrodes’ related companies on their radar. Fundamentally these companies look really good. [Disclaimer: Kindly note that Goa Carbon’s performance depends on Coke Trends. Hence, I have preferred to analyse only HEG and Graphite India in this post. Please consult your Financial Advisor before taking any investment decisions. Stocksbaazigar is not responsible for any of your losses/risks. This is an educational post and not a recommendation or advise. I have discussed only fundamental aspects here. Investments should be done only after doing both Fundamental and Technical analysis of stocks.]

The Online Marketing Fundamentals Certification from Google

29th January 201929th March 2018 by stocksbaazigar

Hey Friends, I am extremely happy to share this Certificate on Digital Marketing with you today. It took me only 2 days to complete the 26 lessons of this Free Online Course by Google Digital Unlocked. Google Digital Unlocked is a part of Google’s Digital Garage, an initiative taken by Google to help Small and Medium Size businesses to learn basics of Online Marketing and grow their online presence on Internet or take their business online. Google has partnered with Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian School of Business, Hyderabad for training and certification. This course is very well-made, contains lucid English language, great animations wherever necessary, superb case-studies, accurate and exact information and very well structured outline. 4-6 Min. short videos, followed by Assessment on Individual video and then on entire Lesson – the format is very intriguing and every badge you earn keeps you motivated. There is an objective test of 40 Questions in the end based on all the 26 lessons you complete. Once you pass it, you get a downloadable PdF certificate like this. I strongly recommend this course to all the students, entrepreneurs and businessmen who wants to learn basics of online marketing. This course is one of the best online course I have came across in last few years. Go earn your Certificate now. You will love it.

Stocksbaazigar – The ultimate wealth creator

27th January 201921st March 2018 by stocksbaazigar

Welcome to Stocksbaazigar

27th January 201910th February 2018 by stocksbaazigar

Stocksbaazigar -The ultimate wealth creator Hey Friends, ‘Stocksbaazigar – The ultimate wealth creator’ is the first venture of Doddamani Group founded on 19th February 2018. It is Founded by Mr. Deepak Doddamani, an Entrepreneur from Virar, Maharashtra. Since 1991, the Indian share market has grown leaps and bounds. Sensex has started at 100 in 1979 and has given huge returns from then. Since inception in 1995 Nifty has given annualized returns of 11.2 percent. Rupees 10,000 invested in Nifty in 1995 is worth Rs. 93000 today. This return has clearly beaten the inflation rate and can be considered as very good returns of investment. No doubt, Equity is the best asset class available in India for Investors. Indian Share Market has successfully created tremendous wealth for Investors who showed great faith in equities and kept good patience in their Investment. The Indian share market has witnessed many ups and downs in its journey wiz. , Harshad Mehta Scam, Bombay Blasts, Y2K Boom and the bubble burst, Recession of 2008, Metals Slowdown of 2015 and so on. Still it has given tremendous returns to long term investors thanks to the – magic of compounding. India opened its economy in 1991 and since then started its journey from developing nation to developed nation. The economic growth of India has made it one of the most preferred ‘Investment market’ in Asia for Foreign Institutional Investors. Earlier only Rich and Ultra-Rich people used to invest in Share Market but success stories of Reliance, Infosys etc.has attracted large number of retail Investors towards Equity and Mutual Funds investments. Funds in India are receiving huge cash flow from retail segment and it will keep increasing more in the future. Interest income on other Investment avenues has decreased significantly over the last few decades and Inflation is eating up all the savings of general public. Therefore, it has become mandatory to Invest in Equities and equities related products/instruments. Those who don’t have enough knowledge of Share Market invest in Mutual Funds, where Professional Fund Managers manage their money. Others, who have good risk-appetite and some knowledge of Share Market invest directly in Stocks. Portfolio Managers are advising retail Investors to allocate more than 50% of their Investments in Equities and Mutual Funds.This is why learning basics of Financial markets has become necessary to each and every individual. As the name suggests, this blog will completely focus on Stocks i.e. Equities. In this blog, we will share fundamental analysis and technical analysis basics, equity research, stocks ideas, best portfolio creation and management techniques, best stock-picking methods and so on. There are many educational blogs available on the internet about Stocks Investment. So, instead of creating posts on Theories, we will prefer to make this blog more practical and applied one. Whenever and wherever it is necessary, we will explain the relevant concepts. This blog will help you create a winning portfolio and achieve your financial goals successfully. Keep Reading!