WPIL - Making High

 The most uderperfomred stock of the pickB4peak now turned bullish. WPIL was given @ 430 on 26/08/2014, Making all time high today !!! WATCH IT !!!!!

Orient Paper Industy - Making High

The stock recommended @ 98  on 18/09/17, Making high today and trading with huge volumes @ 112++  WATCH IT OUT !!!!

Share Holder Wealth Creation By Infosys

Indian Nippo - Making High

THE STOCK WAS RECOMMENDED @ 470 ON 22-12-2014, TODAY  made new high of  1430     !!!!! WATCH IT out  !!!!

SAM KRG Piston - Making New high

This stock was recommended @ 102 See Recommend., today  closed @   325 Making new high  WATCH IT OUT!!!!h!

HIL - Making New High

The stock was recommended @ 630 on 13/02/17, Today trading @ 1350++ mark and making new high !!!! WATCH IT OUT ####### 

WPIL - Making High

WPIL was given @ 430 on 26/08/2014, Made closing high of  575++ today, Watch it !!!!!

Deepak Fertilizer - Making New High

This stock was recommended @ 148 on 19-08-14, Old Recomend. today trading @ 467++,  Making new high !! WATCH IT OUT !!!!!!

Rico Auto- Making High

This stock was recommend @ 60 on 25-08-2016,  Today trading @ 109+++   With huge volume , Making High   WATCH IT OUT !!!!!!

Deepak Fertilizer - Making New High

This stock was recommended @ 148 on 19-08-14, Old Recomend. today trading @ 460++,  Making new high !! WATCH IT OUT !!!!!!

Study Case of Shareholder's Wealth Creation

How an investment of Rs.10000 grew to Rs.535 Crores in 34 years

April 8, 2014 by Srini

If I had the technology to send a message back in time, I would tell my father in 1980 to “Use Rs.10,000 to buy 100 shares of Wipro as an one-time investment and never sell it for the next 30-35 years.” If he had done that his investment would now be worth about Rs.535 crores. Yes, you read that right. Crores, not thousands or lakhs.

This is one of the common examples given when people come into investing in shares in India. Almost every indian blog about investing in stock markets give this example and I also post this here as requested by a reader.  Lot of people think that it is a lie and don’t believe it, but it is possible and there are numbers to prove it.

Rs.10,000 to Rs.535 Crores

Lets just assume that you bought 100 shares of Wipro each at a face value of Rs.100 in the year 1980. Total investment: Rs.10,000. You don’t touch it at all, no profit booking or buying more shares. Occasionally companies provide benefits to its shareholders by way of corporate actions. They could provide bonus shares for shares that you hold, they could do a stock split where a high face value share would be broken down into smaller face value shares but number of shares increases proportionately, etc.

Wipro has done various such bonuses and stock splits in its history of 1980-2014. Lets now see the different corporate actions and how the number of stocks would’ve grown.

Wipro Investment growth
Year	Action	Number of Shares
1980	Initial Investment	100
1981	1:1 Bonus	200
1985	1:1 Bonus	400
1986	Stock split to FV Rs.10	4,000
1987	1:1 Bonus	8,000
1989	1:1 Bonus	16,000
1992	1:1 Bonus	32,000
1995	1:1 Bonus	64,000
1997	2:1 Bonus	1,92,000
1999	Stock split to FV Rs.2	9,60,000
2004	2:1 Bonus	28,80,000
2005	1:1 Bonus	57,60,000
2010	2:3 Bonus	96,00,000

After the year 2010, there were no more bonuses or stock splits. But with just that initial investment of Rs.10,000 (100 shares) you now would end up with 96,00,000 shares of the company because of all the stock splits and bonus shares. Current stock price of Wipro is about Rs.557 per share, as of 7 April, 2014.

Rs.557 × 96,00,000 = Rs.534,72,00,000 or about Rs.535 crores. That is a CAGR (Compound Annual Growth Rate) of 47.39%. Does any of your bank FD give you 47% annual interest rate? It was all possible because of the free shares that the company gave to its shareholders as an incentive for investing in their company. If you immediately needed to liquidate this entire holding today (urgent need for >Rs.500 crores?), you can do it and you would have to pay a grand total of 0% tax on your profits, because long-term capital gains in equity is tax-free.

How about additional yearly payout of Rs.6 crores?

If you thought that tax-free Rs.535 crores out of a meagre investment of Rs.10,000 was unbelievable, here comes another shocker. Every year the company announces dividends from its operating profits for its shareholders. As a shareholder, you would also get this benefit for how many ever stocks you hold.

For example, last year 2013 (calendar year), the company announced total of Rs.7 per share. Multiply this with the number of shares you hold and this will be automatically credited to your bank account.
Rs.7 × 96,00,000 = Rs.6,72,00,000 or Rs.6.72 crores for the year 2013.
Best part: dividends are also not taxed at the hands of the shareholder (as of FY 2013-14). So you can take all of this Rs.6.72 crores for yourself.

For a comparison, just calculate your (or your dad’s) current salary per annum and imagine getting Rs. 5-6 crores every year as additional income. How does this Rs.10000 investment compare to all the other money invested in other products like real estate or gold. No other investment would’ve given you annual tax-free payouts. If only my dad had the surplus money to invest in this.

Has anybody really done this? Can I go buy Wipro now?

As the saying goes “hindsight is 20/20”, we can calculate all this only after the company has grown from selling vegetable oils, soaps to becoming an IT major. Had everyone known that this cooking oil company would give such returns in 1980, everyone would have invested in this and become billionaires. Also the shares wouldn’t have been listed on any exchange in 1980 and you would have had to invest privately into the company. Buying Wipro now wouldn’t give you the same returns as the company is already grown to such proportions and such a large cap stock giving multi-fold returns is very hard.

How can I get returns like this?

There have been numerous such companies that have given great returns to investors, like Reliance, Titan, Dr. Reddy Labs, etc. No one can predict which company would grow to such a huge levels before 30 years. Remember, for every Wipro like story, there are thousands of companies which has eroded investors wealth and become penny stocks. Investing in equities alone isn’t enough, investing in the right company at the right time is even more important.

Even if someone invested in the best company in the world, its basic human psychology to book profits when the stock prices increase so many fold. Some investors don’t feel comfortable even for a 50% increase in their investment. No one would have the patience to hold such a stock when he sees how volatile the market is in short-term.

If you really want such phenomenal returns, you would have to do lot of fundamental research, do your due diligence on the company and invest in it when it’s in the early stages. Most important of all is, staying invested in the company for the really long-term to reap the entire benefits.

Porwal Auto - Making New high

The stock was recommended @ 41 on 20/4/17 Click to View ,  Today  making New High @ 71 +++ with good volume,  WATCH IT OUT !!!!

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मैं अकेला ही चला था जानिबे-मंजिल मगर

लोग आते गए और कारवां बनता गया

मजरूह सुल्तानपुरी 

Thanks.

Vatech wabag -update

Well, i have data that co. Paying dividend since 2012 continously, co. Equity was 5.3 in 2014, in 2015 co gave bonus 1:1 so it became 10. something, co. Has 8000 cr. Order book, co has great room for expand npm, and co is exploring , expanding biz globally and has good brand value. Looking to eps 27 fy 2018, its avalble @ 23 pe, and every good quality command premium and you have to pay.. read this what amrish baliga says on tv.....
Ambareesh Baliga on VA Tech Wabag: The stock cracked about 4-5 percent and that in fact gave me an opportunity to pick up. The main story is water treatment and I think that is a big story going ahead even from a country, even from a global point of view. The company is sitting on orders worth about Rs 8,200 crore or so. But the opportunity size is huge. Namami Gange itself is about Rs 25,000 crore, couple of states, Maharashtra, Karnataka, Tamil Nadu and Delhi, the opportunity size in terms of the tenders, which would be coming that is about Rs 18,000 crore, I am not even talking about the rest of the India. So Rs 43,000 crore just between these, so there is no way VA Tech Wabag will not have worked – clearly the visibility is there at least for the foreseeable 8-10 years.
So again, looking at an EPS of over Rs 38 for FY18, Rs 46 for FY19, I don’t think the downside is very much from here. It may just correct in case the market corrects and I am looking at a price of about Rs 850.
I would place this company a slightly better compared to other company

Diwali pick

Well many of viewers emailed me about diwali pick,  so going to post diwali pick. I cant detail about co.  as posting in hurry but i am sure the co has good business and reputation in the country as well out of country.  The co.  is VATECH WABAG. It is in water solution business and good value picking at 590-595 for the medium to long term.
Happy investing

WISH YOU HAPPY DIWALI

WISH ALL THE VIEWERS AND READERS A HAPPY AND COLORFUL DIWALI AND PROSPEROUS NEW YEAR . AND WISH STOCK MARKET CLIMBING HIGH AND HIGH EVERY DIWALI.

THANKS FOR YOUR SUPPORT. 

Poddar Pigment - Making New High

The stock was recommended @ 145 on 16/11/2014, making new high trading @ 327 ++++   Watch it !!!!!!!!! 

Bajaj electrical - New High

This stock recommended  @ 190  CLICK TO VIEW ,  making new high today and trading @ 411 + , WATCH IT OUT !!!!!!

HIL - Making New High

The stock was recommended @ 630 on 13/02/17, Today crossed 1300 mark and making new high !!!! WATCH IT OUT ####### 

Porwal Auto - New High

The stock was recommended @ 41 on 20/4/17 Click to View ,  Today  making New High @ 58 +++ with good volume,  WATCH IT OUT !!!!

Porwal Auto - New High

Porwal auto made new high today @ 52.80  WATCH IT !!!!!

Porwal Auto - Update

The stock was recommended @ 41 on 20/4/17 Click to View ,  Today trading @ 49 +++ with good volume,  WATCH IT OUT !!!!

Lakshmi Electrical - Making New High

The stock was recommended @  425 on 8/09/14, today trading @ 730++++ WATCH IT OUT !!!

Vikas Ecotech - Rare Product

This co. was recommended technically  on 24/03/2017  Click Here ,  and stop loss  was given @ 18, The stock has maintained stop loss and never closed below that till today.
 The co. is in good business and its monopoly in making lead free pipe. You can view what CNBC TV 18  interviewed with analyst :

Below is the verbatim transcript of Ravi Kataria's interview to Prashant Nair, and Ekta Batra on CNBC-TV18.

Prashant: What stocks are on top of your mind?

A: Vikas Ecotech is a specialty chemicals player and the company provides the compounds and specialty chemicals which are lead free. It drives majority of its revenue from organotin stabilisers, recycled compounds -- organotin is lead free which is supplied to pipes, manufacturing, engineering kind of industries. This is US FDA approved product, so, that is why it has gained a lot growth in exports over the past say two years’ time. Worldwide we are seeing the regulation being put in place for the usage of chemicals which are toxin free. As a result, we are expecting in India also the government to come up with a regulation for pipes manufacturing which can be lead free.

If that happens as we envisage in over the one or two years’ timeframe, there will be a serious run for the stock because it is one of the few players globally which manufactures such commodity. Its space in recycled compounds, it manufactures certain products from waste cooking oil, it has tied up with Nafigate Corporation in Czech Republic for supplying of technology and when you see these two-three spaces, they have grown from nothing to almost like Rs 50-80 crore in their topline in just last two years’ time.

We are estimating doubling of the topline over the next two years because of one, operating capacity expansion to 50,000 metric tonne in their plant in Gujarat, says opening up in Noida. So, they will see a tickering of their operating margins. There are just four or five which have got this kind of technology in place or the chemicals manufactured. PMC is one, Galata Chemicals is one, couple of players from China, and if we see, their operations in India are limited and cost constraints if we consider, the multiple parameters, the Indian players would certainly go for something like Vikas Ecotech for their long term supplies. As a result, we saw Jayant Chheda also putting up increasing stake from 2 percent to 10 percent in the stock.

Ekta: Your target price is Rs 49 by when?

A: By FY19. It is Rs 27 by FY18 because their Gujarat plant is expected to commission by end of FY18. So, the rolling over of the benefits will come in FY19.

Once the our government  publish  notification to ban lead in making pipe and food packing items, the co. will have sky limit opportunity.

The stock is worth to hold in portfolio only medium to long term view @ price of  21- 21.25. 

Lakshmi Electrical - Making New High

The stock was recommended @  425 on 8/09/14, today closing @ 697 all time high WATCH IT OUT !!!

Deepak Fertilser - Making New High

The stock was recommended @ 148 on 19/8/2014 , today closed  @ 435 all time high closing  Watch it  !!!!!

Deepak Fertilser - Making New High

The stock was recommended @ 148 on 19/8/2014 , now trading 397+++ making new high Watch it  !!!!!

Minda Corp - New High

This stock was recommended @ 109 on 29-06-2017, Today trading  @  144++  and has made new high  , WATCH IT OUT!!!!