tag:blogger.com,1999:blog-7498038812786460685.post4731728676946474278..comments2023-03-23T16:04:58.811+05:30Comments on Stock-mkts: Small-cap Stocks: Analysis of Risk-Reward RatioViral Rajnikant Dholakiahttp://www.blogger.com/profile/14517054276981728056noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-7498038812786460685.post-31380565421270739212009-04-11T12:04:00.000+05:302009-04-11T12:04:00.000+05:30Dear Jamesvaikom,SREI Infrastructure Finance is on...Dear Jamesvaikom,<BR/><BR/>SREI Infrastructure Finance is one of the leading Non Banking Finance Institution in the private sector. Government is taking concerted efforts to strengthen the Indian infrastructure and this company is involved in financing companies in the infrastructure related businesses. The company is engaged in financing infrastructure equipments, infrastructure projects & advisory services in the infrastructure arena.<BR/><BR/>With reference to your query on cash flows, the cash flows are positive. This year during the December 2008 quarter, the company has witnessed a significant drop in Sales and profits on the back of severe slowdown in infrastructure spending on the back of recessionary environment across the globe. Lower EPS remains a problem for the company.<BR/><BR/>Over-all, it’s a good small-cap stock to own from long-term perspective. But, if u can resist, I would rather recommend you to go for another Infrastructure stock from NBFC space – IDFC. It is a much bigger and well-managed company but from mid-cap space. Buy IDFC in the range of Rs.45-55.Viral Rajnikant Dholakiahttps://www.blogger.com/profile/14517054276981728056noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-21433001560889361792009-04-11T10:47:00.000+05:302009-04-11T10:47:00.000+05:30Sir,Please share the dis advantages of srei infra....Sir,<BR/>Please share the dis advantages of srei infra. My broker is bullish on this stock. Srei imports infrastructure equipments and provide financing for buyers of these equipments. When I checked the cash flow I found that they are getting money through financing activities. I thought that they are getting money through debt. But actually they are getting money through re-payment of loans they give. Their loans and advances are much greater than total debt. Please share your view on this stock.jamesvaikomhttps://www.blogger.com/profile/17668503671795760827noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-10350661605352965702009-04-09T23:34:00.000+05:302009-04-09T23:34:00.000+05:30Dear Viral,You have been posting wonderful article...Dear Viral,<BR/><BR/>You have been posting wonderful articles, and they are a great help to me and hope the same for all others who are here as well. I think now the bottoms of the majority of large caps like Larsen and Tubro, RIL, Tata Steel, Sterlite Industries and Sesa Goa will change. How about predicting them. I tried to do that but could not.<BR/><BR/>Moreover the stocks where FII holding is quite high viz. Jain Irrigation, Educomp, Financial Technologies they might revisit to the same (earlier) bottoms. I would like to have some insight onto this.<BR/><BR/>What is your say Viral.<BR/><BR/>Regards.Antriksh Patelhttps://www.blogger.com/profile/11773029986245044730noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-81899121313388473062009-04-09T20:41:00.000+05:302009-04-09T20:41:00.000+05:30There are 2 more companies I can think of in packa...There are 2 more companies I can think of in packaging space. Parekh Aluminex and Radha Madhav corporation ltd. Both with tremendous potential and excellent past track record. Best thing is that these are available at very low price (P/E 2.9 and 1.9 respectively) and candidate to have a look for long term investment.<BR/><BR/>-AshishTeckTalkhttps://www.blogger.com/profile/13294094443466801816noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-17453362616744847462009-04-09T18:16:00.000+05:302009-04-09T18:16:00.000+05:30Dear Santy,Time Technoplast is involved in sale of...Dear Santy,<BR/><BR/>Time Technoplast is involved in sale of Packaging products & solutions with Polymer base. The company's products cater to various industries like consumer packaging solutions, Life style products, auto components among various other industries.<BR/><BR/>Whereas, Ess-Dee Alluminium is involved in manufacture of Aluminium Foils and Poly Vinyl Films based packaging products. The company's packaging products cater to various different industries like Pharmaceuticals, FMCG, etc.<BR/><BR/><B>Going by above, there is little to choose from between the 2 companies. Though, i prefer Time Technoplast over Ess Dee. Stock of Ess Dee Alluminium may be more volatile & dependent on the fortunes of ALLUMINIUM prices as a Commodity which is the basic raw-material for the company's products. <BR/><BR/>On the other hand, Time Technoplast provides products & solutions to various diversified industries like like consumer packaging solutions, Life style products, auto components whereas Ess Dee main focus of area is Pharmaceutical industry.</B>Viral Rajnikant Dholakiahttps://www.blogger.com/profile/14517054276981728056noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-28671998211963481472009-04-09T14:24:00.000+05:302009-04-09T14:24:00.000+05:30Hi Viral,In your small cap stocks, there are coupl...Hi Viral,<BR/><BR/>In your small cap stocks, there are couple whihc belong to the packaging industry , namely , Time technoplast and Ess dee aluminium. Time technoplast is more diversifed play while Ess dee ia mainly into packaging. What would your pick be among these two?<BR/><BR/>Thanks,<BR/>Santysantyhttps://www.blogger.com/profile/11943247551044113665noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-14373665002626439502009-04-09T12:41:00.000+05:302009-04-09T12:41:00.000+05:30Dear Ashish,Temptation Foods:Temptation Foods is t...Dear Ashish,<BR/><BR/><B>Temptation Foods:</B><BR/><BR/>Temptation Foods is the largest Indian company in the space of frozen foods & Vegetable business. The company also has substantial sales in overseas countries like US, Europe & Middle East. The company is a major gainer from the booming domestic retail sector business.<BR/><BR/>The company has recently made some useful acquisitions which would help it in enhancing its market share and reach. The company has more recently also ventured into Marine food business.<BR/><BR/><B>Mr Ashish...</B><BR/>Coming to your point of contention:<BR/><BR/>Recently Kohinoor Foods Ltd. had placed complaint with SEBI for alleging that Temptation Foods had mis-declared to the bourses the stake it holds in Kohinoor Food.<BR/><BR/>With regard to the above, the company has given clarification that it holds 11.98% stake in Kohinoor Foods & 1.71% being held by Venture Business Advisors Pvt. Ltd., the Promoter of the company.<BR/><BR/><B>NOTE:</B> The promoters have pledged 90.33% of the total number of shares held by them in the company (Temptation Foods).Viral Rajnikant Dholakiahttps://www.blogger.com/profile/14517054276981728056noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-88421987171430577412009-04-08T19:51:00.000+05:302009-04-08T19:51:00.000+05:30Hi Viral,Can you give the rationale behind Temptat...Hi Viral,<BR/>Can you give the rationale behind Temptations foods. In my opinion this company should be strictly avoided because of it's suspicious activities especially in case of Kohinoor foods. In fact SEBI had given warning and some investigation is still going on. Though this company had given astounding returns during the last bull run(from some 10 rs to 200 something) but after Kohinoor incident this stock has been heavilly battered down. This clearly raises some doubts over managements intentions.<BR/><BR/>let me know your thought on this.<BR/><BR/>-AshishTeckTalkhttps://www.blogger.com/profile/13294094443466801816noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-37016485921608188852009-04-08T12:28:00.000+05:302009-04-08T12:28:00.000+05:30Dear Mohit,Suven Life Sciences is the Hyderabad-ba...Dear Mohit,<BR/><BR/>Suven Life Sciences is the Hyderabad-based drug company involved in manufacture of bulk drugs and drug intermediates. The company derives a major part of its revenues from exports to the extent of 2/3rd of total revenues.<BR/><BR/>Suven Life Sciences is leading company involved in Contract Research and Manufacturing Services (CRAMS). The company is involved in alliances with many big pharma companies and partnering various research initiatives in the Life Sciences space.<BR/><BR/>The company main area of specialization remains R&D on Central Nervous System disorders like Alhzeimers, Depression, etc.<BR/><BR/>Currently Suven Life Sciences is quoting at an approximate Market Cap of Rs.155 crore. The stock had touched the high of Rs.70 odd during the peak of the bull phase a little more than a year ago. Currently the stock is quoting at Rs.13 after forming a trough of Rs.9. <BR/><BR/><B>A major problem with this small-cap company being lower EPS since past many years. Though, the sales of the company have witnessed a nice year-on-year growth during the past 5 years. However, the Net Profits of the company have remained almost stagnant in spite of growing sales, which seems to be an area of concern pointing towards depressing Margins for the company's operations.</B><BR/><BR/>This company operates in a Niche space of Life sciences which is moving well ahead to be the next emerging sector on the horizon. <I>High Risk Investors interested in Small-Cap investments with a long-term view of 3-5 years can buy stakes in this company with a staggered approach.</I><BR/><BR/>NOTE: Investment in this small-cap stock should not cross more that 3% of the over-all portfolio. This implies even for investors with high risk appetite.Viral Rajnikant Dholakiahttps://www.blogger.com/profile/14517054276981728056noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-67080284647581503782009-04-08T05:47:00.000+05:302009-04-08T05:47:00.000+05:30Dear Viral, thanks again for your post. Although I...Dear Viral, thanks again for your post. Although I'm now confused, which small cap to go for? I think I should stick to large cap, mid cap.....Shaluhttps://www.blogger.com/profile/02700859510468516198noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-34840396535781171532009-04-08T01:33:00.000+05:302009-04-08T01:33:00.000+05:30Thanks for great article bulls,Can you put some mo...Thanks for great article bulls,<BR/><BR/>Can you put some more light on prospects of Suven Life Sciences<BR/><BR/>Thanks <BR/><BR/>MOhitMohithttps://www.blogger.com/profile/12011952085542169227noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-27268961867676049812009-04-06T12:29:00.000+05:302009-04-06T12:29:00.000+05:30Mr Shabu... Thank you for the comments & your ...<B>Mr Shabu...</B> Thank you for the comments & your nice little list of small caps. As such, Alok Industries is a mid-cap stock. But since the stock is out of favour it seems a small-cap stock right now. <BR/><BR/>Thats what i meant to say in the introduction of this posting on small-caps, that sometimes situations are not favourable & stocks tend to provide wrong signal as to which category of Market Cap do they belong to.<BR/><BR/><B>Mr Faisal...</B> Thank you for the analytical comment & i almost agree with your views on small-caps.<BR/><BR/><B>Mr Dark Knight Abhay...</B> There is a small line of differentiation between 'Penny Stocks' and 'Small-cap Stock'.<BR/><BR/>Penny stocks are usually those which trade at very small stock values like stocks trading below Rs.10 or Rs.5 or sometime even below Re.1.<BR/><BR/>Whereas small-caps are the ones with Lower Market Capitalization. They need not necessarily quote at lower stock values.<BR/><BR/><B>All penny stocks are small-cap stocks, but all small-cap stocks need not necessarily be Penny stocks.</B>Viral Rajnikant Dholakiahttps://www.blogger.com/profile/14517054276981728056noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-90546747292587378732009-04-05T18:00:00.000+05:302009-04-05T18:00:00.000+05:30great post viral ji..so can one consider penny sto...great post viral ji..<BR/><BR/>so can one consider penny stocks and small caps as the same..<BR/>because penny stocks are usually small caps.<BR/><BR/><BR/>abhayIndian Warriorhttps://www.blogger.com/profile/01256421998775468288noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-89140653843954242772009-04-05T11:21:00.000+05:302009-04-05T11:21:00.000+05:30One note on the small caps in the current economic...One note on the small caps in the current economic scenario...<BR/><BR/>The small caps usually have little of negative cash flow...Some large caps on the other hand have huge cash inflows...So what happens is that if we have a 2-3 year slowdown then the cash position of small caps even goes from bad to worst...for large caps the cash position somewhat weakens but its still good...<BR/><BR/>now when the economic recovery comes the large caps still have enough cash to fund their day to day business and also expansions while the small caps struggle...in this scenario the large caps will be the ones who will be outperformers in my opinion in the current markets and also during the economic recovery stage...<BR/><BR/>It will be somewhat later the small caps will also join the good phase...So in my opinion while small caps create the biggest multibaggers for individual portfolios its better to be in large caps with good cash for now...Macro Analysthttps://www.blogger.com/profile/02985227371514321434noreply@blogger.comtag:blogger.com,1999:blog-7498038812786460685.post-9118180541702758442009-04-05T06:21:00.000+05:302009-04-05T06:21:00.000+05:30Dear Bulls,Marvelous... I am in more love with Sma...Dear Bulls,<BR/><BR/>Marvelous... I am in more love with Small-Mid Cap stocks and I feel more confident after reading your post. As you said, the selection process of such stocks are very much thorny, but the returns are also very high.<BR/><BR/>Followign are few of my considerations under study.<BR/><BR/>Assam Company<BR/>Nectar Life<BR/>Taneja Aerospace<BR/>Avon Weighing<BR/>Alok Industries<BR/>Western India Shipyard<BR/>Guj State Fert Corp<BR/>Global Vectra<BR/>TVS Motors<BR/>Kolte Patil<BR/><BR/>Please comment..Shabu'shttps://www.blogger.com/profile/12626763738053404782noreply@blogger.com