Small Cap Stock To Buy - Jyothi Laboratories

Small-cap FMCG stock Jyothy Laboratories has continued its streak of outperforming the broader market indices since August 2009. The stock has nearly tripled in value in the past one year against a 15% rise in the Sensex and a 34% appreciation in ET FMCG Index.

The company’s robust financial performance and its foray into new businesses are the major reasons for its superior performance in stock markets. Investors interested in small cap stocks to buy can consider this as a safe stock.

BUSINESS
The Kerala-based company, which has evolved from a single product proprietary firm to a multi-brand company, involved in the manufacturing and marketing of products in fabric care, mosquito repellant, surface cleaning, personal care and incense sticks. The company’s flagship brand Ujala (fabric whitener) is enjoying a market leadership in its category.

Over the years, the company has extended this brand to other product categories such as washing powder and stiffener. Its mosquito repellent brand Maxo has an all-India market share of 22%. Exo, its dishwashing product, has a 24% market share in Southern India and has been raising its market share across the country following its national roll-out in October 2009. The company has also forayed into laundry business by launching a laundry service through its 75% subsidiary Jyothy Fabricare Services (JFSL).

The company expects net revenue of Rs 50 crore from this subsidiary this financial year. The company’s most recent venture is the purchase of DEPA technology from DRDO (Defense Research & Development Organisation). This technology offers a repellant formulation that acts as a protection against all blood sucking insects and mosquitoes when applied. This product is slated for a launch in the second quarter of this fiscal and it will be marketed across India and other countries.

GROWTH DRIVERS
With an aim to increase pan-India presence of its products, the company has increased its spend on advertisements by almost 50% in the year ended March 2010. JFSL is planning to enter Hyderabad, Chennai and Pune and explore franchise route from FY12. The purchase of DEPA technology gives its access to Rs 90-crore outdoor mosquito repellant market, which it expects to touch Rs 200 crore in another two years. With the launch of its product, the company would be able to capture most of this market. It expects this business to contribute 4% to its top line.

STOCK FINANCIALS
It is a cash-rich company with sound financials. The net sales have grown at a compounded annual growth rate (CAGR) of 12.5% since FY06 to touch Rs 574 crore in the year ended FY10. The net profit jumped by over 11.6% to Rs 80 crore in the same period. To maintain its dividend pay out ratio of 42%, the company increased its dividend per share to Rs 4 from Rs 2 last year.

But considering the increase in stock price, dividend yield has fallen from 2.9% to 1.8%. The contribution from fabricare, mosquito repellent, dishwashing products and other is 46%, 31%, 16% and 7% of the revenues, respectively. Brandwise, Ujala has shown a growth of 22.7%, Maxo has shown 28.6%, Exo has shown 50.8% in revenues in FY10. According to the management, JFSL will be able to break even by the end of FY10.

Market Cap 1833.09
EPS (TTM) 11.03
* P/E 22.90
P/C 20.26
* Book Value 59.58
* Price/Book 4.24
Div(%) 200.00%
* Div Yield(%) 0.79
Market Lot 1.00
Face Value 1.00
Industry P/E 29.89

STOCK VALUATIONS
The company is at present valued at slightly less than three times its revenues. This stock trades at a price-to-earning (P/E) multiple of around 21.5. The stock seems to be fairly valued at the current levels. It is definitely a mid cap stock to buy and is right investment for long-term investors looking for a company with steady earnings growth and strong free cash flows.
Source & Ref: Economic Times & MoneyControl

Time is of highest essence in investing & the earlier you start the more you earn on investment

Time is of highest essence in investing & the earlier you start the more you earn on investment

BATMAN does not need life insurance. He certainly needs a wealth manager though. Bruce Wayne (Batman during the day) has no family dependants and therefore does not require life insurance. However, he has an industrial empire generating a large amount of wealth which needs to be preserved, grown and managed efficiently. Homer Simpson, on the other hand, absolutely needs life insurance. He is a family man with dependants and therefore needs to protect his family from any unforeseen events.

   We are all unique—just like everybody else! Who we are and what our life situation is or what we expect it to be has a large bearing on how we manage our money. It is therefore very important that we have the right approach to managing our wealth and choosing the right wealth manager in advising us on an appropriate portfolio because there is after all a world of difference between Batman and Homer Simpson.

   An investor has to understand a few aspects that are common to everybody no matter how different one is. Following are some of the basics that you should dwell upon:

Saving v/s investment:
Saving and investment are often used interchangeably. However, your savings are not necessarily your investments. Funds set aside for future use can be termed as savings. Therefore, cash set aside or left lying in a savings account giving a nominal return is savings. Investments, on the other hand, refer to funds that are put to use with a purpose of earning a return on them and are often made with a specific purpose.

Risk v/s return:
The most common characteristics that a novice investor wants in an investment product is that it should have no risk and very high return. Seasoned investors, however, are aware that returns on an investment product is commensurate with the risk taken by the investor. Higher the risk taken, higher is the probability of return.

Know thyself:
It is very important to know yourself before venturing out to invest. Assessing your risk appetite, time horizon and return expectation is very important before you start investing. A risk profiler is a document available with most wealth managers and answering the questions contained therein will help you identify the kind of investor you are and consequently the amount of risk you can take.

Start early:
The power of compounding is stupendous. Time is of the highest essence in investing and the earlier you start the more you earn on an investment. It is a good idea to start investing early in life for goals that seem distant. A good example is retirement planning. For instance, an amount of 10 lakh invested at the age of 40 in a product giving a 10% return per annum would grow to just above Rs 57 lakh at the age of 60. However, the same amount invested at the age of 28 would grow to more than Rs 2 crore by the age of 60.

Your portfolio:
Once you have identified your goals, it is important to have an investment portfolio that corresponds to your risk appetite, return expectation and time horizon. Asset allocation is a key aspect of diversification which ensures that you get the best optimized return for the amount of risk taken. This is possible by combining asset classes in such a way that the combined portfolio carries a reduced amount of risk while enhancing returns.

The market:
Financial markets differ in nature, depending upon the asset classes and geographies involved. The Indian equity market, for instance, is not without its share of volatility and uncertainty. Though equities as an asset class has given higher return over the long term, investments in equities are subject to large gyrations in the short term. It is wise therefore to expose yourself to equity only with a resolute understanding of this short term volatility and with a faith in the ability of this asset class to deliver superior returns over a long period of time.

Mutual funds:
They are investment pools managed by professionals based on pre-determined objectives. They are excellent vehicles for investment and accord many benefits to the investor. The benefits include professional management, diversification, convenience and tax savings. There are many types of mutual funds spread among the various asset classes varying in risk and return. An investor is best advised to be informed and educated about Mfs or better still, seek professional help while investing in MFs. Investors also have to understand that point-to-point returns should not be the basis of selecting a fund. There has to be a qualitative aspect to selection to augment quantitative methods to give the investor a holistic picture.

Save tax:
An effective way of saving tax is by investing in securities that are eligible for a tax deduction U/S 80C of the I-T Act 1961. Equity Linked Savings Schemes (ELSS) are among the many options available for saving tax. ELSS schemes have a lock-in that is generally for three years and are quite effective in generating returns as the lock-in period ensures a long-term investment period.

buy cosmo filims

buy Cosmo films

my multi bagger scrip


I HAD GIVEN THIS TO PEREMIER MEMBERS @124


NOW @ 135.90


buy with a target of 140.


sl: 126

Shiva Texyarn Ltd.

Shiva Texyarn Ltd.

cmp:  Rs. 53.55

(BSE Code : 511108)

target : 75- 3 monts

target : 110 in less than 1 year

Spicejet a good pick

One stock that we like in the aviation pack is Spicejet. It’s a good move from the management as far as acquisition of newer aircrafts is concerned. Much more clarity in terms of overseas operation is expected to come in - possibly by this year-end and early part of 2011.

Momentum upside will definitely be there but in Kingfisher we would advise lightening of position at higher levels. One can ride Jet Airways from short-term point of view with appropriate trailing stop losses. But fundamental stock pick will be SpiceJet in the aviation pack. 

CMP :  70.90

target : 85-94


sl:  63

OnMobile

OnMobile Global Limited

OnMobile has picked up the momentum in the last five or six weeks but I would treat it purely as a short-term trading candidate and a very good short-term trade as well because it does make rather rapid moves when it does so.

I would not read too much into today’s decline. It has the potential to make one or two more such moves before it fizzles. The reason for not picking OnMobile very much for the long term is it was at Rs 700 in the middle of 2009. So year on year it is giving you negative returns, it is not really in a long-term uptrend. Strictly if you stick to the short term, this is quite good.

Analyst predicts another US market crash next month

What is Hindenburg Omen?

The Hindenburg Omen is a technical analysis pattern that is said to portend a stock market crash. It is named after the Hindenburg disaster of May 6, 1937, during which the German zeppelin Hindenburg was destroyed.

http://economictimes.indiatimes.com/Analysis/articleshow/6391538.cms

Analyst predicts another US market crash next month

Press Trust of India / New Delhi August 22, 2010, 15:37 IST

Storm clouds are gathering over the US market with a renowned American analyst betting on a huge crash next month.
The crash prediction was made after 'Hindenburg Omen' -- named after an ill-fated German plane that crashed in 1937-- was sighted on the technical charts by Jin Miekka, who is credited with making several accurate market-linked forecasts before.

The 'plane of bad omen' is now a euphemism for a crash much bigger than just a bearish trend.

Based on a study of technical trends, Miekka predicts the meltdown could be in September.

Wall Street has been abuzz over whether the Omen, for which names like 'Titanic'--after the luxury liner that sank on its maiden trip--was also in contention but discarded because it has already been used, would come true.

Amid an increasingly volatile US market, investors have been searching for any clues about stock's direction, especially in the past week where major indices fell more than three per cent.

There were 92 companies that hit new 52-week highs on Thursday (August, 14), or 2.9 per cent on the New York Stock Exchange. There were also 81 new lows, or 2.6 per cent of the total. Each number must exceed 2.5 per cent for the Omen to occur.

Marketmen in India, meanwhile, say Hindenburg threat is far from its shores.

Bourses here are aflush with FII investment and, according to analysts, there has not been a single day since July when Foreign Institutional Investors (FIIs) have turned net sellers.

"When bears cannot control the markets, they have to come out with some theories -- be it is charts, patterns, astrological fall or even theoretical envisaged corrections," CNI Research Kishore P Ostwal said.

Other criteria for the Omen to occur include a rising 10-week moving average for New York Stock Exchange (NYSE) and negative Mc-Clellan Oscillator, a technical indicator measuring market volatility.

Many FIIs feel that even the Indian markets are expensive at the moment.

Analysts are not ruling out correction of eight to 10 per cent before the start of the next wave in the market.

"We believe that there is no case of reversal of market, though chances of correction always looms large. Every dip should be used as an opportunity to invest till the end of December 2014," analysts feel.

There are no signs of Indian markets being in overbought zone, they said.

Investors may continue in their exercise of value picking. With the government on a sell-off spree till March 2011, its policies are likely to remain market friendly.

Buy Reliance

Actually Reliance is one of the major reasons why we are quite bullish on the market. We would say that Reliance and Larsen and Toubro , these are two stocks which lead the index upwards, so we would hold on to long positions in Reliance.

entry- 980

target :  1030-1050 for shot term

target :  1090-1120 for mid term
 

 

sl:  950

Prism Cement

BUY Prism Cement

above Rs 56.5

with SL of Rs 54.5 

for target of Rs 64.

" What you get by achieving your goals is not as important as what you become by achieving your goals."

IRB infra

BUY IRB Infra 

cmp 303

target: 325   -  330

sl:  291

"Imagination is more important than knowledge."

CIPLA

Short Term Positional Call
Buy CIPLA

Above 304

Best Buy Range = 302 - 307

SL 299

Target 319 - 327*

BUY TULIP

BUY TULIP:

for a short term 

Target of 192-200 

Support at 174-168

cmp 180.70

MADRAS CEM

BUY MADRAS CEM: 

for a 1 MONTH 

Target of 112-118 

cmp 103.5

Exit if fall below 94

Gayatri Projects Limited

Long Term Buy:   GAYAPROJ(532767):

Gayatri Projects Limited or “GPL' is present in the Engineering and.............................................

Bharath Forg LONG term or Short term cal

Bharat Forge

Short Term Jackpot call

Buy UBHOLDINGS

above 267
Strick SL = 255

Target 285 - 295

How to Invest in Stock Market With Less Capital

1.
Without a lot of capital the best way to start is to use an online trading company as their overhead is much lower than that of traditional stock brokers and to work to be able to manage your own portfolio.

2.
You can help yourself to benefit with this by working to do the overall best that you can with researching and studying up on the issues prior to simply going through the motions of starting your online portfolio.

3.
There are many other things that you can do to reduce the amount of capital that you have invested including contacting a stock broker for free advice and asking what you could do with a low amount of capital.

4.
You might be able to find a stockbroker to work in the price range of what you are wanting to spend so always keep your options open.

5. Overall, finding the stock portfolio that best fits you for the capital that you are willing to spend will truly help you out in the long run

How to Invest in the Indian Stock Market

I want to do this! What's This?

The Indian stock market is host to the oldest exchange on the Asian continent. The Bombay Stock Exchange is the largest and most powerful trading center in India, featuring dozens of smaller exchanges that recognize regional parity. Your knowledge of the Bombay exchange and the Indian economy can help you invest your money effectively.
Difficulty: Moderate
Instructions

1. Register with a stockbroker or investment firm with ties to the Indian stock market. The defining factor when hiring financial assistance is experience with the market in which you invest your money. Stockbrokers can be costly, but they tend to respond quickly to queries about individual stocks.

2. Examine the BSE 200 index to determine the strength of your investments in India. This index covers the 200 best-performing businesses in India on a daily basis. Look at individual businesses in your favored industrial sector to assess the wisdom of potential investments.

3. Go out on a limb with a technology stock through the BSE TECk index. The Indian economy features a rapidly expanding biotechnology and computer-development sector that has been a boon to investors. Past success should be taken with a grain of salt, however, because similar growth in the United States in the 1990s resulted in lost profits for investors.

4. Locate growing companies with small amounts of capital through the BSE Small-Cap Index. This index features hundreds of young companies with low funding that are looking for investors to take them to the next level. You can invest in a company at a cheap share price without a great deal of risk.

5. Track the progress of your stocks online with the Bombay Stock Exchange's commitment to quick updates. The BSE index transmits information to local brokers, international websites and business-television networks every 15 seconds.

6. Spend your investment dollars wisely as you invest in the Bankex index. This index tracks the progress of India's top 12 banks and allows you to make an investment in their growth