POTENTIAL TO MULTI BAGGER
Today I will discuss one of my fresh investment with you and I will try to make you understand what are the factors from which I invested in it. Whenever we invest in any stock, we should have a complete idea of its pros and cons. Be it an analyst or an investor, no one can make 100% prediction or 100% investment. Investment can always be negative, it is possible that the investment we make can completely backfire and can completely lead to loss. It is very important to understand the logic of investment. Secondly, I have always said that we should always invest in multi-bagger stocks so that the profit loss ratio is always in our favor. If our investment does not perform as per our expectations, our loss will be equal to the amount of money we have invested in our stock. but whenever our stock becomes multi-bagger it will increase our portfolio at least 15 to 20 times. One side is loss equal to the amount of money we have invested, or the other side is profit 15-20 times more than our investment. This is how profit loss ratio always remains in favor of a multi-bagger investor. That's why I try to promote investing philosophy in micro cap, small cap, growth stock and try to make you understand why research base long term investing is important for any investor. For this, it is very important to do your research properly and if you cannot do your research properly, or you have any idea then you can take advice from your SEBI registered advisor. If you make any investment without consulting a SEBI registered advisor, it can be quite harmful for your portfolio.
Today in this blog I am discussing with you my fresh multi-bagger investment, whenever I say multi-bagger investment it means potentially multi-bagger. This stock has a lot of chances, the company has a lot of hopes that this stock can become a multi-bagger in the future. But you should make any investment after doing your research and taking the advice of your SEBI registered investment advisor. In today's blog I will try to make you understand what are the factors that should be considered when investing in stocks and what are the negative points that can be totally against this investment.
CURRENT PRICE- 310 MARKET CAP - 337Cr.
HIGH/LOW- 355/118
STOCK PE -11.6 INDUSTRY PE-37.6
BOOK VALUE-173.51
ROCE- 19.5% ROE 14.9%
DIVIDEND YIELD-1.23%
FACE VALUE-10.00 EPS -24.4
NPM LAST YEAR -16.5%
PROMOTER HOLDING-69.2% PUBLIC HOLDING-30.7%
SALES-160Cr
DEBT-0.00Cr RESERVE 189Cr
CURRENT RATIO-8.88 QUICK RATIO-7.54
So when we look at the financials, the financials are quite good and all the other things are positive and looking good but the red flag that I told you is that first of all it is a micro cap company, it has only market cap of 309CR. This company has to face a lot of challenges which now we can see in its fundamentals, what kind of business the company does, how many challenges are there in front of it so that it can threaten it or put its business in trouble. . This stock has corrected almost 10% from 52 week high so it is fine in that way, book value is also good, decent and the biggest positive point I found is that there is zero debt on the company i.e. there is no debt on the company. Bade investor Vijay Kediya says that a company which does not have debt cannot go bankrupt.
- "INDIAN TONERS & DEVELOPER LIMITED"
MANUFACTURING FACILITIES: The Company owns and operates 2 manufacturing facilities in Rampur (UP) & Sitarganj (Uttarakhand) both having the manufacturing capacity of 2400mtric tone each.
"INDIAN TONERS & DEVELOPER LIMITED"
If we look at the company's performance in the last 10-11 years, we see that the company's revenues i.e. sales have increased significantly since 2012 and we look at the TTM figures and there the operating margins have also increased and have been unsteady for many years. Due to which their net profit margin has increased exponentially and earning per share has also increased by almost 7-8 times. This company is on a good financial rise for the last 7-8 years or about 10 years. Because the company is still a micro cap company so definitely there are chances of growth in this company.
