Sunday, February 28, 2016

DCM Ltd @ 66.70

1. DCM Ltd is a 10 rupee face value Textiles company.

2. Year high of DCM Ltd is 128.50 year low was 65.65 and stock traded at 66.70, Year high/ low ratio is  below  2.
Only few of stocks maintain this ratio in this bear run so I think downside is limited from here.,  If you are new reader of my blog and not familiar with my research terms then please see my research terms at this link
3. Promoters of DCM Ltd hold 44.70Foreign Portfolio Investors hold 0.03 % and Financial institute /Banks hold 0.07% Insurance companies(LIC) hold 8.61% central /State govt hold 0.02%%. Promoters holding is good with nil pledged stocks.
4.DCM Ltd Pay 3.00 rupee per share dividend since last 3 year ( 1.50 rupees dividend paid twice in a year ) and in 2010, 2011 this stock pay 2.50 rupee per share dividend so DCM is good dividend paying stock
5. Base price of DCM Ltd is 83.34 , CMP is 20% below from base price so I think this is the right time to buy this stock. ( It does not mean that stock may not fall from here, generally I buy a stock 15 % below base price and hold for more then 1 year so in my holding time if stock fall more 20-30% then I do not worried and do not average out, only enjoy profit and wait for 15%+ tax free profit after 1 year) 
For last 3 year closing price and closing price graph download this excel sheet:-
DCM Last 3 Year Closing Price and Graph
6. No any bonus issue right issue and bulk deals is recorded  in last 2 year.
7. DCM Ltd net sale per share of FY 14-15 is 331.67.
8. Net salre per share is good so I think this stock have potential to become a multibagger  stock  in 2017. ( It means buy today and sell in 2017 and sometime holding time may be 1 to 3 year long because investment time and retrun in stock market is uncertain so enjoy dividends in your holding time sell when you get decent return is good policy.)
9. Book value of DCM Ltd is 125.79 So in book value term DCM Ltd is a value buy.
8. Overall I think DCM ltd is best dividend paying multibagger stock which available below book value, below base price and below net sale per share .
9. 200 DMA of DCM Ltd is 90.78 So at CMP 66.70 So this stock  traded below his 200 DMA and not usefull for trading purpose.
10. My recent updates :- Best SIP for 2016.
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please  read full disclaimer at the bottom of my blog.
12.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of DCM Ltd so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( DCM Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not  received any type of compensation from the subject company(DCM Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( DCM Ltd). 6. I have been not engaged in market making activity for the subject company (DCM Ltd).


23 comments:

  1. Dear Sir,

    I am a new reader / browser of your website. Just had a doubt. The net profit of DCM is declining. is it still a good stock to buy.

    Thanks
    Mohan R

    ReplyDelete
    Replies
    1. Yes it is right that profit is declining so when a good selling company suffer from loss that was a good time to buy this stock so this is the reason that why I say that may be 20-30% more downside is remain but price range 36 to 66 is best buying price for next 3 year target.

      Delete
  2. Hi Mahesh Sir,

    I have a doubt. If the volume of stocks traded is very less, how do we sell our stocks after a year or two when there are less buyers. I am just a beginner. Pls pardon me if i have asked anything wrong.
    For example, DCM Ltd the stock traded for the day is 7259. and for 30 days is 30332.40 only.
    Please help me by clarifying this doubt.

    Many thanks,
    Satheesh

    ReplyDelete
    Replies
    1. DBA ji
      Namaskar
      Stock volume are not a constant thing it all depend on stock demand and supply so your doubt is right but if our stock is perform then many buyers available in market and if not perform then it is difficult to sell if your script is illiquid but DCM is not a low volume stock and current volumes are sufficient.

      Delete
    2. Thanks much for clarifying Sir

      Delete
  3. Sirji whats ur view on guj nre...quoting for 2nd time...pls do reply

    ReplyDelete
    Replies
    1. Guj NRE coke is a trading stock but my view is negative due to reducing promoters holding 100% pledged stocks,year high/low is above 2

      Delete
  4. Mahesh Ji

    Two questions, there are many stocks which also fulfill all your requirements/conditions so why did you pick only this stock ?

    Second your rule 52 weeks high / 52 weeks low should be less than 2, don't you think that it should be applicable only for those stocks where stocks price is increasing as we all understand in a single year any stock can not give you more return than that, buy for those stocks where price is decreasing i think higher ratio value is good to buy the stock ?

    Dinesh

    ReplyDelete
    Replies
    1. Dinesh ji
      I scan 300-400 stocks then found DCM which full fill all of my criteria I wonder if you quote some of stocks which full fill my criteria s ( except PSU bank, Steel, Construction stocks because I already publish 2-2 stocks from these sector so if I publish more from these sector then our portfolio not diversified in many sectors).
      for 52 week high/low ratio please read my book.
      DCM is now traded 15% above on my recommended price, Regards

      Delete
  5. Hello Mahesh ji,

    I would like to ask question for selling strategy:
    example: I bought omax auto 108 share @ 46.81 on 02/07/2015.
    this share traded it's 52 week high = 94.20 on 04/01/2016 which is almost more than 90% from my buying price.
    Later market fall down rapidly and currently share is trading @ 59.
    Now my question is what selling strategy to follow, to make sure we are not selling early and as well we are not selling too late that we loose all the profit we got.

    Also do you sell your share once you got 15% profit even before one year(let say in case of DCM it is now trading 15% up from suggested price) or in any case you hold the share for one year.

    Thanks,
    Manish

    ReplyDelete
    Replies
    1. Manish ji please wait I publish a fresh video or article about your issue.

      Delete
  6. Hi sir, plz lighten if we buy any stock, and after some days block deal or bulk deal happens in that stock then what to do, u say after bulk deal, stock price falls, plz clarify...
    Regards

    ReplyDelete
    Replies
    1. if bulk deal is happen after your buying and you are in good profits then book your profit otherwise just hold your stock.

      Delete
  7. Sir, can we now invest at @ Rs 80. I saw your post late and in the mean time today it traded at high price than your recommended price

    ReplyDelete
    Replies
    1. If you already hold all of my recommendation then my answer is yes otherwise some of my recommendations like pratibha industries, PTC india ltd etc still traded near my recommended price

      Delete
  8. Hello Sir,

    Please what are your views in TV18 Broadcast.
    I am thinking to add this share to my portfolio.

    Regards,
    Jagdish

    ReplyDelete
    Replies
    1. 2 rupee face value broadcast stock year high/low was 48.95/28.75 that is below 2 (Normal), but TV18 net sale per share is 3.53 only so due to low net sale per share my advice is avoid

      Delete
  9. Sir. Which is better, Nalco or Hindalco. Both are trading near its base price.

    ReplyDelete
  10. Hi mahesh sir, plz tell that if we buy any stock, and after sometimes it doesn't trade daily or it stops trading, then what to do, plz lighten...

    ReplyDelete
  11. Sir,
    What about your view for JP Associates for long terms. pl advoice

    ReplyDelete
  12. Hello Mahesh ji,
    what is book value of a share..?
    how to find it?

    ReplyDelete
  13. Hi mahesh sir, plz tell what is ur opnion on ' Barak valley cement' stock

    ReplyDelete

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disclaimer:-Trading in stock market is very risky. This website is not perfect. This is not an advisory service to buy or sell. The contents of “maheshkaushik.com” are only for educational purposes. No liability is accepted for any content in “www.maheshkaushik.com”. Subject to pindwara(india) jurisdiction only. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice.. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, author of this website is not a trend technical analyst.