Hi guys I am a 21 year investor who has currently invested in these stocks.I am still new to all this and its only been a few months since i have started investing in the stock market.Here is my portfolio
1.Rain Industry(entering price 187.21)
2. Sintex Plastics Technology Ltd(entering price 93.48)
3.Brigade Enterprises Limited (entering price 270.04)
Here are some of the reasons as to why i specifically choose these stocks
Rain Industry:
i read an article on money-control stating that one the biggest investor has increased its stake in the the company
article reference-http://www.moneycontrol.com/news/business/stocks-business/dolly-khanna-trims-portfolio-in-september-quarter-7-stocks-which-rose-100-300-2417243.html
Also its major business seems to involved with carbon black which seem at the time to be trending and is annual report seemed to be good.
Sintex Plastic:
Again i had read an article on its demerger form sinntex industry and according to the article its major profit seemed to come from its plastic division. Also read a article which stated that the use of plastic should increase in india, and the company seems to a maker of Prefab structures which should benefit due to the swatch bharat abhiyan. Not to mention the infra division has helped the government build affordable housing in rajasthan. It also seem to have good client base in the automobile sector and makes different parts for such companies.
Brigade Enterprises Limited:
This company seems to be increasing its Operation profits seem to be increasing and then expenses seem to be decreasing. The company project seem to be ready in Bengaluru, though the net cash flow seems to be in the negative.
Also the company has invested in a startup snaptrude (link to the article below ), which i feel can helo them in the long run.http://www.moneycontrol.com/news/business/stocks-business/brigade-enterprises-q2-pat-seen-up-55-5-yoy-to-rs-44-5-cr-edelweiss-2411295.html
Anyways these are the three stocks which i have invested in. I would love to get your professional opinion on these stock and whether you feel these stock are long term or i should revise my formula for buying stocks.
Sintex plastic, i think markets are expecting EPS of 9 this years , I believe It will be around 7-8 . If they pull out 9 then still considering state of their balance sheet its fairly priced around 11- 12 PE , but if EPS comes around 7-8 then you have down side of 10-15% .
So i don’t think there is a huge downside to this stock and Debt going to off its balance sheet going forward is the theme to watch out.
Its fairly priced, stock its not cheap , I would love to buy it at 80. There is lot of upside potential if the guys running it do the right things. (in my view its not the very well run company)
Also , Promoter’s stake is low.
Hello
I have been following rain industry and have done some research. My views are as follows:
Rain industries - It has 2 main lines of business i.e. carbon chemicals and cement. Revenue contribution from carbon business is majority in the mix.
Pros - 1)Company is involved in manufacturing electrodes used in aluminium production and as metals are enjoying a good run currently combined with the fact that its peers like Goa carbon have multiplied almost 7-8 times during the last 1 year gives a lot of hope and confidence at its current price.
2) Cement industry as a whole is expected to do well in coming years given the govt’s focus on infrastructure and housing for all.
3)Co is retiring its debt and has also committed to bring it down using its revenue from foreign operations. This will help improve valuations going forward.
While the co. is in a sweet spot and looks to be priced attractively if you have a time horizon of 3-4 years, there is a major thing which you need to look out for.
Cons - Co is highly dependent upon the metal sector for both its raw material requirement (by product of steel industry) and finished product i.e. aluminium industry. As metal commodities areinherently volatile in nature and both up cycles and down cycles are fairly long you need to keep a close eye on it.
I hope my views may find some use at your end. Cheers!
Disclosure - Not invested.