In last few months, Stock of Rain Industries has rose more than 500 percent which makes it one of the top multibaggers of 2017. Company operates in cement business, chemical business etc. In Q2, company has posted a great jump in its profit which is now around Rs 250 crore. Revenue also increased to Rs 3000 crore in same quarter.
As per the recent rally of more than 400 percent in stock, it becomes very difficult to make any fresh positions at current levels. After such rally, buying at current levels would be safe for only long-term investors. Because Company operates in those segments where next 5–10 years have great number of opportunities. However, one who really wishes to make any fresh position at present levels should avoid bulk buying as it can be very risky. But those who wants to avoid this risk in stock can go with other less risky stocks for short-term opportunities.
Graphite India is among the top multibagger stocks of 2017 which has given almost 400 precent return in less than 6 months. Major reasons for this rally of chemical stocks includes increasing focus on electrical cars, were available at low valuations, increase in graphite prices and few others. All this had mashup into a buying opportunity for investors. Going forward, i think focus on electrical cars will definitely have a good impact on fundamentals of chemical companies. But after such a great rally, i think chemical stocks would not suit the short-term investors as much as they can suit earlier.
So, in my opinion, investors should now look other stocks for short-term opportunities. However, in long-term, Graphite India has potential to give you a good rerurn.
Saregama, RPSG Group company, is one of the India’s oldest music label, youngest film studio and a multi-language TV content producer. Carvaan is one of the famous product of Saregama in india. It looks very similar to radio in shape but consist number of features which makes it suitable for present generation.
In India, companies like Saregama have good number of opportunities in long-term. Indian Public has a great interest towards music and it will last for many years. This will overall maintain the music businesses in india in long-term. Going forward, if company keep focusing on expanding their reach and product portfolio, then i think we would probably see a good growth in company in long-term.
Sanwaria Consumer or Sanwaria agro oils, is a FMCG Food Processing company of the Sanwaria Group. It is engaged in the business of manufacturing and selling of Rice, edible oil and staple food products like Pulses, Sugar, Soya Chunks, Wheat Flour etc.
So far, stock of Sanwaria Consumer has given a return of more than 500 percent in 2017. This great rally was supported by the last reported quarterly results. However, margins of company was not at attractive levels. Against the sales of Rs 1200 crore, company posted a profit of just Rs 20 crore. Therefore, at present levels, i think stock is fairly valued in market. However, i think stock has potential to cross levels of Rs 100 in long-term if margins of company start getting improved.
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