Interesting Observations on Small Cap Companies— Views Invited

Just running through a few companies which come on a technical and fundamental radar. As it is impossible to track so many companies on a fundamental basis its good to take ideas from other readers/investors.

 

Below are a few stocks which look interesting to study. Please do not take it as a buy call but worth researching and maybe something interesting will pop up.

 

 

Ahluwalia Contracts India --- Promoters hold 72% and Institutional Investors with some good names hold around 18%. Stock available at 52 week lows. Good volumes seen in last few sessions.

 

Ceat Limited – The stock looks interesting with rubber prices taking a hit. Management consideration has been a major problem for the stock. But worth keeping a tab on.

 

Dalmia Bharat Sugars --- Pretty cheap in terms of replacement cost to market cap but at the same time huge debts too. If the sugar cycle turns the stock can get market fancy

 

Elecon Engg – A big fund has exitted the stock at 52-55 levels. Fundamentally people expecting some restructuring and new order flows. Needs a further research. Again available closer to 52 week lows

 

 

Will invite views from readers on the above stock.

12 Comments

  1. bhanu
    July 18, 2012

    hi Nooresh,

    Have a question, If i have to buy into agri sector, what would you be suggesting?
    thanks
    bhanu

    Reply
    1. Nooresh
      July 18, 2012

      Rallis seems the only safe play

      Reply
  2. nikunj
    July 18, 2012

    see govind rubber small cap stock @ 19 cmp ….. my trgt 100 / 150 long term ….. reason this company turnaround good profit……..& last week he was plan new greenfield project in dahej in gujarat ….. he invest 750 crore in new project….. i long @ 10 rs ……. this is golden multibagger stock….. norresh ji you check all details in economics times & business standard newspaper for new investment plan ……last week newspaper…… in any down 15 rs …..buy for longterm ……..jai jinendra…….

    Reply
    1. Nooresh
      July 18, 2012

      Hi Nikunj,

      Will look into the stock.

      Reply
  3. Vivek Talwar
    July 18, 2012

    Hi Nooresh,

    Alhuwalia contracts: Seems down trend has ended in the stock. Has shown good bounce back from 48 levels previously also. I think one can enter with 47-48 as strict stoploss for good 20-30% return. 4-5 months back also good volume was seen and scrip bounced to 80 odd levels. Similar can be seen again if 48 is protected on downside.

    Ceat ltd: Forming a bullish flag pattern. If broken on upside can show 120 levels

    Dalmia sugar: Short term resistance 15.5 then 17. Any big move above 17 only.

    Elecon Engg: Good volume last few sessions. may be due to exit of biggies. Good buy around support of 51-52. Above 60 can show 70.

    Apart from these, I would like to refer you balkrishna industries. Recently many big funds have bought this share around 270 levels. As per charts 300 is acting as a good resistance for it. Above 300 a quick 70-80 move is expected. What are your views on this share?

    Thanks and Regards,
    Vivek Talwar

    Reply
  4. jitesh
    July 20, 2012

    Also 1 more small cap stock is Om metals and Infra @ rs 23. Promoter holding of 70% and abt 23 % with HNIs and Institutions. Some big ticket real estate projects to be launched shortly. Small equity of Rs. 10cr only and pft from just 1 real estate project to be launched in Jaipur will result in NP of close to 300 cr in nxt 3 yrs !!! Also JV for its Mumbai Bandra project on the cards in nxt 6 months time !!! A multibagger with a target of 100 by April 2014 !!! Nooreshji ur views pls.

    Reply
    1. Nooresh
      July 21, 2012

      Hi Jitesh,

      The problem is will they really show the net profits on the books ? and what is the debts of the company. I used to track the company for some time but price movement did not follow up even in the good times will have a re look.

      Reply
      1. jitesh
        July 23, 2012

        Actually after having collapsed from 100 to 5 rs, the stock went on to hit 70. Rs 300 cr is figure announced by the management in lot of interviews. So i guess figure in books will not deviate much from this amt. Moreover promoters holding 70%.

        Reply
  5. VISHAL
    July 31, 2012

    sir,

    hows shree ganesh jewellry for investment. good profit good dividend qtr on qtr.

    Reply
    1. Nooresh
      August 6, 2012

      Hi Vishal,

      Have never been able to understand that business so no view fundamentally. People do like Thangamayil more.

      Reply
      1. VISHAL
        August 6, 2012

        sir,

        I have thangamayil since from ipo. please suggest any other small cap company that will do better in coming months.

        Reply
        1. Nooresh
          August 6, 2012

          Look towards Satyam and Tech Mahindra.

          Reply

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