How to take benefit from current fall?: By Focusing on long term wealth creators: OCT*2018

Other Financial:
ABMoney: cmp: 51: From stock broking industry. Company not good for long term investment as not able to show good growth since last whole decade. Revenue & profit during 2008 were 120 cr and 22 cr which even today after a decade are 156 & 10 cr resepectively. hence investment of 1 lakh done a decade back is still today 1 lakh. Current H1 revenue and profits are good as have grown by 14% & 63% resepctively. Considering Current resutlts traders can buy it near 40 and should be able to sell it near 125 in next 2-3 years, still should prefer IcIci securities, Motilal, IIFL, Edelweis or JMFin in place of ABirlaMoney.

Integrated Oil & Gas : 
Reliance Ind : cmp: 1101: A company enjoying 2nd highest revenue and highest Profit making in India. The only company to cross 35000 cr Net profit per annum and may be in top 5 to reach Elite club of 1 Lakh cr Profit making companies of India till 2025-2030. A great journey. H1 Revenue has grown by 48% ( Due to high Price of Crude)  and Net Profit has grown by 11% which is little less than what we expected. Major concern is increased Debt which has rise by around 100%. Debt of around 1 lakh cr. Still not too bad, but yes it hurts margin. Major contributors to the growth are Refining & petrochemicals with around 80% revenue & profit share. Even Jio is great success as have reached 25 cr Subscriber with 4 cr added just in Q2, not only India’s no#1 but world largest VoLTE operator. Last quarter we have said It may cross 10000 cr Quarterly revenue soon & this time in Q2 Jio crossed revenue of 10,000 cr. 11GB/User/month used with 72 % share of 4G databas & has reported 678 cr net Profit. Amazingly Bharti Airtel Profit combining all countries is 500 cr in Q1. They combined Sawan media with Jio music to form India’s largest platform for Music. Announced strategic investment of 67% stake ( around 2200 cr Investment) in DEN Network & 51% stake in hathway (around 2900 cr Investment). Should not forget one of the most less talked yet good performance from Retails stores of around 32000 crore revenue with the number of stores around 9146 in 5800 cities with 40 Lakh customers served/week. 673 Stores were added during just Q2.  Even Reliance Trends crossed 500 store mark. Making more than 1000 cr profit quarterly from this stores which is 3X jump yearly. Here Dmart is everybody’s favorite in department store segment but we should not forget that Dmart make the profit of 800 cr yearly and Reliance made the profit of 1000 cr quarterly from same segment stores. So we can see RIL is improving from broadly with different segments. Our target next 3-4 years should be 2750. New buying again can be done in the whole range of 900-800 & We may see the multi-year rally here.

Disclosures: Do not buy or sell before consulting your advisor as the writer may have the position in the above-given stocks.

How to take benefit from current fall?: By Focusing on long term wealth creators: OCT*2018

Cement:
Ultracemco : cmp: 3609: Ultratech a must for wealth creation from Cement. India’s largest cement company. Once started with 1Mtpa in 1983 to today reaching  111 plus Mtpa both by organic and inorganic expansion. With increase in revenue by 10X and Profit by 15X showing extraordinary growth. Already investment of 1 Lakh should be more than 5X during last 10 Years. During Current results of H1  Revenue has grown by 16% which is good but profit has fallen by 24% due to high freight as well as Power cost which we were already expecting. We may see high growth in coming future. Many people in the group are holding since 1200. New buying or SIP again can be done in the whole range of 3500 to 2800 and can be kept for next 10 years to see multi year rally in this stock. Process of Century textile aquitation will be completed around Q4 and shareholder of Centurytex will be given 1 Ultracemco in ratio of 8:1.

Finance (NBFC)
Muthoot Capital : Cmp: 785 : Muthoot Capital Services Ltd. promoted by the Muthoot Pappachan Group. Its portfolio includes commercial and consumer finance products like vehicle loans, gold loans, loans against property, bonds, deposits, investment products and advisory services among others. Could be a probable wealth creator as good margins and high R-O-E combined with high growth. Company able to grow their revenue from 20 cr to 400 cr during last 8 years. Profit growth was 9X. Hence during last 8 years Share price has also improve 10X. Many people hold this company since last 2 Years from 200 & still no need to worry, can hold it as our target as per 310% potential sheets were 1455. Current H1 revenue and profits has increased by 47% and 147% respectively which were more than expected. New buying again can be done at 495 and can hold it for long term wealth creation and short term target of 1455 in next 3-4 years.

Wish you and your Family Happy DUSSEHRA

On the Auspicious day Dussera I suggest you some points for victory of forces of good over evil to become wealthy is
1⃣ Avoid Tips
2⃣ Avoid penny stocks
3⃣ Avoid leverage
4⃣ Don't be greedy
5⃣ Don't get panic
6⃣ Avoid undiscipline in trading style
7⃣ Avoid FnO unless you are an expert
8⃣ Avoid Over diversification
9⃣ Avoid too much cash-in-hand
🔟 Avoid Noise