Hindalco industries Ltd @ 101.75

Respected Readers,

Namaskar.

On 11.08.2013 I recommended Hindalco Industries Ltd on this blog @91.35 and after that Hindalco touch, 198.70 on 25.07.2014 and my followers make more than 100 percent profits in this recommendation. For new readers here is the link to this past recommendation.

Hindalco Industries Ltd Multibagger Recommendation

Now Hindalco is again in buying range, so we re-evaluate some of fundamental criteria's of Hindalco Industries Ltd

1. Hindalco Industries Ltd is a 1 rupee face value Group A stock which traded at 101.75. 

2. Promoters holding is 36.99% ( If you read my earlier article about Hindalco then you noted that in June 2013 promoters holding is 32.06 %), So increasing in promoters holding is a good sign. FII holding is 27.82 % they also increase their holding from 26.53%, DII holding 13.62 %. This promoter holding pattern is an adamant holding pattern due to increasing promoters and FII holdings. 

3. Hindalco Industries Ltd Recommended 1.00 Rupee per share dividend and ex-dividend date 07.09.2015 is still due, so our readers avail a dividend in their holding periods. 

4. Hindalco Industries Ltd has no any recent bulk deals.

5. Hindalco Industries Ltd net sale per share is 167.19, and if we compare from my August 2013 article on Hindalco, then net sale per share is the increase from 136, so increasing sales is also a good sign. 

6. Base Price for Hindalco Industries Ltd is 127.48 so stock reasonably below his base price.

7. Year high of Hindalco is 198.70 and year low 99.20 now this ratio of year high/low ratio is exactly 2.So some of my followers may ask that as per my book I do not buy any stock which year high/low ratio is below 2 ( I think in next 2-3 trading sessions Hindalco year high/low ratio cross below 2) then why I recommended to buy it?

8. Before I explain point 7, please read HOW TO READ MY RESEARCH REPORTS ( TERMS USED IN MAHESH KAUSHIK RESEARCH ANALYST REPORTS)

Now we come to the main point: - when a stock year high/low ratio cross below two then we think more downside will remain.
 So if Hindalco is making a fresh year low on 9 July 2015 or 10 July 2015 trading session, then this is a sign of fresh weakness and in this situation, this is wise to buy Hindalco below 90 ( I also buy it below 90 or near 91, 92)

9. If you understand Hindi, then you may subscribe my channel on youtube and watch my latest Hindi video on this link

https://www.youtube.com/watch?list=PL-X8WTMcEbY-hJpQCnZ-gbZ5bknw07T26&v=2wD0e9EsmX8

10. Link to last 3 years  closing price data and graph:-
Click here to download last 3 years closing price with graph 

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 applied for a grant of registration under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 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 no any stocks of Hindalco Industries Ltd company so my personal interest is not included in this stock. 2. Me and my associates or relatives have/have not any actual/beneficial ownership of one percent or more securities of the subject company(Hindalco Industries Ltd). 3. Me and my associates or relatives have /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/have not not received any type of compensation from the subject company(Hindalco Industries Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company(Hindalco Industries Ltd). 6. I have been not engaged in market making activity for the subject company(Hindalco Industries Ltd).

Torrent Power Ltd @ 140.65 ( Below 119 Strong buy)

1.Torrent Power is a 10 Rupee face value Electric Utilities Stock which currently traded at 140.65. 

2. Year High ( 52 week High) of Torrent Power is 186.5 and Year low (52 Week low) is 121, So as per my 52 week high/low ratio formula this ratio is 1.54, If you read my book then you may knew that If any stock year high/low ratio is below 2 then stock price is stable for buying read more details of this term here. 

Details of Terms Used in My Research Reports

3. Torrent Power have total 454668881 shares, Promoters hold 53.44 % FII hold 3.62% and DII hold 21.28% shares.Good promoters holding with no any pledged stock so this is a good point. 

4. Torrent Power Net sales on FY 2014-15 is 10273.9 Cr., So when we divided total shares 454668881 in FY 2014-15 sales then we get a ratio “Net sale per share per year” which is 225.96. 

5. So If we compare this 225.96 from current market price 140.65 then we find that CMP is belowe Net sale per share per year, So as per my formula of valuation CMP is a fair value of stock. 

6. Base Price (3 Year Average Price) of Torrent Power is 140.41 So Stock traded near his base price, as I publish JSW Steel article when it traded at 973.10 but I advice to buy JSW steel below 884 and now market prove my theory because  JSW steel is available below 884 for long term buyers. 

Read this article about JSW Steel here

JSW STEEL LTD @ 973.10 ( below 884 is a Strong buy)

This time we wait Torrent power for 15 % below of base price ( Near 119 for fresh buying). 

7.Book value of Torrent Power is 146.44 , So CMP is discounted to book value, price/book value ratio is 0.9574. 

8. Overall I think  Torrent Power Ltd is a good value buy at CMP 140.65 but if available near or below 119 then this is a strong buying call.

9. 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 applied for a grant of registration under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives already hold 6 stocks of JSW Steel ltd company so my personal interest is included in this stock. and Me and my associates or relatives have no any stocks of Torrent Power Ltd company so my personal interest is not included in this stock. 2. Me and my associates or relatives have/have not any actual/beneficial ownership of one percent or more securities of the subject company(Torrent Power Ltd). 3. Me and my associates or relatives have /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/have not not received any type of compensation from the subject company(Torrent Power Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company(Torrent Power Ltd). 6. I have been not engaged in market making activity for the subject company(Torrent Power Ltd).

HOW TO READ MY RESEARCH REPORTS ( TERMS USED IN MAHESH KAUSHIK RESEARCH ANALYST REPORTS)

Respected readers, 

If you not read my book then this short article is helpful for understanding terms using in my research reports. 

please also note that:-

Minimum holding time in all of my research reports are one year.So use my research reports only for fundamental delivery base buying for holding period of 1-2 years, My reports are not useful for day trading and F&O trading. 

1. Face Value:-Face value means your original invested money in company, As I described in chapter 8 of my book "Face value is your basic amount which invests in the company , in other words face value is your real share in the company equity capital for example if a company have 10,00,000 share of 10 rupee face value than share capital of the company is 10,00,000 X 10= 1,00,00,000 , and if you buy 50 share of this company at market price of 100 then you invest 50 X 100=50000 but your partnership in company share capital is 50 X 10=500 only , remain 4500 is given as a premium to the seller who sell his stocks to you. If you buy a stock at 3500 which face value is 1 rupee then your investment in the company is only 1 rupee remain 3499 is a premium to the seller. 

 2. Year high / low ratio :-I always by stocks which year high/low ratio is below 2 .If any stock is down more than 50 % from his year high then I avoid this stock. For example year high of stock A is 256.55 year low is 96 and the stock traded at 108.55 then I avoid this stock because good companies never down more than 50 % within a year until something is wrong. In opposite, a stock is trading more than 100 % from year low than I avoid it for example company B is traded at 56 and year high of this company is 65.25 year low is 19.55 then I not buy it because I think this stock is already running very fast and it is better to wait market fall. 
when a stock is recover more then 40% from year low and if company declare a positive result after the date of year low then year high/low ratio is acceptable till 2.5

3. Promoters Holding:-If promoter holding reducing in last one to four quarters then I think something is wrong and avoid this type of stock because promoters are selling their stocks to retail investors but if promoters increase their holding than I think this is good because promoters knew his company fundamentals very well. 

4.BASE PRICE: - Base price of a stock is an average price of his last 3 years closing price . Base price shows the real fair value price of stock which market gives him. In other words, we say the base price means 3 years DMA of stock. In the calculation of the base price do not forget to adjust bonus and stock split ( Read my Book for more detail of this term). 

5.Net sale per share per year:- When yearly net sales data (net income or net revenue) of any company is divided with total number of shares then this ratio is called NET SALE PER SHARE PER YEAR.This is the Fundamental target price of a stock so if your stock price is lower from this then your stock valuation is good and if CMP is higher from it then the stock is traded at a higher valuation”. Buy when the market price of a stock is below from his one year net revenue per share. And sell when stock current market price cross one year net revenue per share. 

( Copyright ©2013 " The Winning Theory in Stock Market" Book)

See more details of my book here

The winning theory in stock market

JSW STEEL LTD @ 973.10 ( below 884 is a Strong buy)

1. Today I give you a large cap or blue chip recommendation which is " Jsw Steel Ltd".

2. Before we continue I want to tell you one thing about steel sector, Market is always cyclic and these day you may see that all tea and coffee stock, all iron and steel stock and all sugar stocks under performs Indian stock market.

3. This is the reason that why some of my 2016 multi-bagger recommendations are from these under-performing sectors, See these past articles of this blog for details:-

Shree Renuka Sugars Ltd

Tata Steel Ltd

Jay Shree Tea & Industries Ltd

If any of my follower miss above 3 stocks then do not worry they are still in buying range and we wait(Hold) 1-2 year in these stocks for decent returns .

4.  Jsw Steel Ltd is a 10 rupee face value iron and steel stock which belong to BSE group A stocks and part of S&P BSE 100.

5. CMP of  Jsw Steel Ltd is 973.10, Year high of  Jsw Steel Ltd is 1365.35 and year low 888.20 so this ratio is below 2 ( Read my book for more understanding about this concept that why I buy a stock which year high/low is below 2).

6. Promoters holding in  Jsw Steel Ltd is 40.03% which raise from 39.59% so rising in promoters holding is a good sign. FII holding 18.99% and DII holding 4.20%

7. No any bulk deal, block deal, face value split and bonus issue in last 2 years. ( Which is a good sign because these sign indicate price stability in my theory of investing).

8. Jsw Steel Ltd is a dividend paying stock here is past dividend history of this company

07/07/2014	Dividend 11.00
15/07/2013	Dividend 10.00
12/07/2012	Dividend 7.50
11/07/2011	Dividend 12.25
14/06/2010	Dividend 9.50

9. Net sale per share in FY 13-14 is 1873.95 and sale are seems to stable in FY 14-15, So if you read my book thenyou may knew that if a stock traded below this net sale per share then It may be undervalued and may be a value buy.

10. Base Price of this stock is 884 so it is a strong buy near or below 884.

11. Discloser:--I am an exiting research analyst and applied for a grant of registration under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 and my wife hold Shree Renuka Sugars Ltd,Tata Steel Ltd,Jay Shree Tea & Industries Ltd stocks so my personal interest is included in all of these stocks

GILLANDERS ARBUTHNOT & CO.LTD @ 55.70

1. Gillanders Arbuthnot & Company Ltd is a 10 Rupee face value diversified company This is a Kothari Group  Company  which primarily deals in tea, textiles, engineering, chemical and trading business activities. GACL has a diversified business portfolio.

2. Year high of Gillanders Arbuthnot & Company Ltd is 85.85 and year low 48.15 Base price ( Last 3 year Average price ) is 65.54, So 55.70 is a best buying price for Gillanders Arbuthnot & Company Ltd , currently this stock is traded at 59.20.

3. Past Dividend history of this stock:-

EX Date	Purpose
05/08/2014	Dividend 0.75
30/07/2013	Dividend 2.00
01/08/2012	Dividend 0.50
01/08/2011	Dividend 4.50

4.  No any bulk or block deal in last 2 year so in my thoery  this is a sign of price stability.

5. Gillanders Arbuthnot & Company Ltd FY 2013-14 Net sell is 946.80 cr. So when we divided this net sell per year by total number of shares we get net selling per share per year which is 443.62 So CMP is very attractive when we see net sell per year ( Read my book for more detail of this concept).

6. Promoters hold 68.74 % stake in Gillanders Arbuthnot & Company Ltd and no any share is pledged. DII hold 5.91 % shares.

7. This company have 2 major divisions 

a.Textile Division engaged in the production of Cotton and Man made fibre/yarn and blends thereof. 

b.Engineering Division engaged in the business of structural engineering, steel fabrication,. 

8. No any bonus issue in last 2 year. 

Discloser:- I am an exiting research analyst and applied for a grant of registration under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 and I have/my wife have no any stocks of this company so my personal interest is not included in this stock.