Midcap and Small Cap Stock Ideas

Though the title says it to be ideas but the post below is not about Stock Ideas but about stocks which are worth a look for researching. Not at all a buy or sell recommendation.

 

So readers who track the stocks below and have a much detailed view or data on the stock below can put it in the comment box or mail it to me on nooreshtech@analyseindia.com

 

As always the focus remains on studying midcaps and smallcaps and currently it seems a good time as the activity has started in the segment finally after a year !!

 

I would just be putting a stock Name a couple of Cues and would leave it to the readers to add more research. Mind you these are not buy or sell recommendations so we dont need price targets or criticism about the stock/management etc. This is an exercise to inculcate the idea of Researching before Investing as majority of Investors first buy a stock and then research on it.

 

1) 3i Infotech -------  CMP 16.2

 

Market Cap of 310 crores. Revenues of 2500 odd crores. But the major concern is debts of 2000-2500 crores. Will it turnaround with CDR or die a slow death?

 

2) Aarti Inds  ---- CMP 48.85

Div yield of 5%. Book Value of 65 +. P – E of 6. Debts of 550 cr. Looks pretty interesting on the numbers but does the business have that potential.

 

3) Allsec Technologies --- CMP 11.15

Current Market Cap of 17 cr.

At one point of time First Carlyle Ventures had an open offer to buy at 260. The stock also went to 370 + levels in 2007. Marquee names in the shareholding pattern have 48% holding:). Ashish Dhawan is one with 7% holding. Will the company ever revive ? its quoting at less then 5% of its peak value.

Even if its not an Investment it definitely is a great study of Where not to INVEST πŸ™‚

 

4) B L Kashyap & Sons ---- CMP 11.6

Market Cap of 246 crores. A provident fund evasion led to a suit of 590 crores :). Good enough debts, promoter holding pledged and the concerns just continue. But there seems to be an entry of some domestic funds like ICICI Prudential Discovery Fund and an exit of many of the funds which bought the stock at superbly high levels πŸ™‚

 

5) Balmer Lawrie --- CMP 507

Majority of the fundamental analysts love this company as a defensive bet at particular price levels. Currently it quotes at a div yield of 5% and p-e of less then 7.

I would personally suggest this stock at 500-420 levels to be accumulated but please do your own research.

 

6)Balrampur Chini --- CMP 40.2

This could be the most interesting bet to play if one is looking at the sugar cycle. Read this well written post by Neeraj -

One of the reasons to look into the stock is the company did a buy back of 9% of equity at a price of 71 rs in July 2011. Maybe they got the timing wrong with Mayawati and the government. But is definitely worth a watch as in the next cycle this would be very well placed.

 

7) Bartonics

Not at all a buy call. This was one of the example shown to me by a good fundamental analyst as to how companies keep showing great profit nos on accounting but hiding them in the sundry debtors. A must case study for all πŸ™‚

 

8) BF Utility --- CMP 364

The NICE corridor had P-E arms waiting to dole out a lot of cash and still the potential remains it seems. ( I have not looked into details but have a technical buy call initiated fro 315 levels for 380 + targets and we have been initiating day calls on the stock for last few days. Technically the stock seems to have turned around for long term.  )

 

9) BOC India  ---- CMP 309

This is yet another defensive pick which can be a good delisting candidate. Disclosure: Have had a buy view since long at 310-270 levels:) waiting patiently. Expect delisting offer at 400-450 whenever it comes. Also the shareholding suggests the offer can go ahead this time.

 

10) Bombay Burmah Trading Corporation --- CMP 396

Had earlier covered at 400-450  and saw a 50% jump quickly. The holding value is huge check detailed post here. With yesterdays runup in Bombay Dyeing the stock looks pretty interesting. If somebody has a view of 3-5 years one may definitely look into this stock. Holding value should be 1500-2000 crores. Current market cap at 550 crores. So downside could be limited over the long run.

In the same breadth i would mention about Bombay Dyeing --- where insiders have been continously buying at 330-360 levels and has given a technical breakout yesterday.

 

So today we have covered stocks with the alphabets A-B and we still have space till Z. Definitely we do have a lot of work and opportunities.

 

For more of our services β€” www.analyseindia.com

Meanwhile the New Year Gift offer at Rs 2999 for a year may not stay for long β€” For more call Asif 09833666151

Happy Investing,

Nooresh Merani

nooreshtech@analyseindia.com

14 Comments

  1. Anjali
    January 19, 2012

    Sir what is ur view about JSWISPAT, GVKPOWER?

    Reply
    1. nooresh
      January 19, 2012

      Hi anjali,

      No views as such as many other options

      Reply
  2. Vipul Shah
    January 19, 2012

    3I INFOTECH:

    One of the more promosing small cap stocks.Unlikely to go under.Good Management team,promoters being ICICI BANK should ensure that it comes out of troubles triggered by short term mismatch in fund flows.

    The company is cleaning up the stables by selling off the low margin services and concentrating on the high margin products business.Recently sold US based subsidiaries and reduced debts by about Rs.600 crores.Rupee depriciation should help improve gross profit margins and should be able to raise funds to pay off FCCB’s.Geographical spread of revenues appear to lessen the dependence on troubled areas like the US and EU.

    3I Infotech also happens to the 15th largest IT Company in terms of revenues .Pls also recall that the company has been consistently paying dividends and the current yield works out to about 9% and that the IPO was priced at Rs.90/- and the all time High was Rs.324,cum1:1 Bonus in 2007-2008.

    Remember the best time to invest in a stock is when a Company with good Management is going through short term bad patch.

    Reply
    1. VENUGOPAL GOVIND
      January 19, 2012

      It is an Interesting analysis,if based on facts.

      Reply
      1. nooresh
        January 19, 2012

        Hi venugopal,

        If you read the post it is not a detailed analysis but cues to research the stock.

        From the above i am pretty much bullish on Bombay Burmah

        Reply
    2. nooresh
      January 19, 2012

      Hi Vipul,

      Thanks for your views but the company went on making a lot of acquisitions as a strategy will they be able to turn all of them around is something one needs to see.
      But any indications of improvement must be seen as there is potential.

      Reply
  3. Anjali
    January 20, 2012

    Sir,
    what is ur view on market now? is this a turn around?
    can we start booking profits or buy more ?

    regards
    Anjali

    Reply
    1. nooresh
      January 20, 2012

      Hi Anjali,

      Even if its a turnaround it will not just keep going up.

      One should book partial profits at least and get back on dips. Partial profits gives comfort and cash

      Reply
  4. saurabh shankar
    January 24, 2012

    Hi,

    Have a look at Magma Fincorp. Small NBFC quoting near BV. KKR has put in money at around Rs.60 and IFC is also one of the stakeholders.

    fundamentally. has extremely strong presence in East India, which i think is going to be a next boom market. Almost negligible NPA, with focus on CV/Auto sales. They are planning to start Home Loans business also.

    Reply
    1. nooresh
      January 27, 2012

      Hi Saurabh,

      Technically not come in the radar. Fundamentally πŸ˜› i dont understand much of it.

      Reply
  5. Atul Sethia
    February 14, 2012

    Hi Nooresh Sir,

    First of all, I am a big fan of yours

    Was going through the charts (as well as the fundamentals) of an illiquid scrip- Technofab Engineering.

    The co. has an order book of over 1000 crores executable over 18 mths (as per co.’s announcement on exchanges). Co is debt free too.

    Above 145, stock looks gud for tgts of 160 (and may be 190)…. (Im learning technicals so pardon me if i’m wrong)

    Await your views.

    Reply
    1. nooresh
      February 14, 2012

      Hi Atul,

      Thanks for the kind words.

      Yes i have been looking into the segment.

      Tecpro Systems, Technofab Engineering came on the technical radar.

      One can definitely take an exposure !! else wait for a technical breakout.

      Reply
  6. nikhil lakhotia
    July 5, 2012

    Hi Nooresh,

    First of all, would like to thank you as the stock charts which you have on your website has helped me in making money.

    Just wanted to ask you if you track J&K Bank, a technical view on it would be very helpful.

    Awaiting your response.

    Reply
    1. Nooresh
      July 5, 2012

      Thanks for your kind words.

      Jammu and Kashmir Bank is superb on technicals and fundamentals both. Only reason is its illiquid and difficult to trade.

      Reply

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