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Whispers May 2018

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By IE&M Research

Bhagyanagar Properties Ltd.
BSE Code/ NSE: 540621/BHAGYAPROP; Face Value: Rs2; CMP: 23
52 Week H/L: 36.50/16.50

 

Although real estate companies are not the flavor of the time still there are some which have strong potential to grow phenomenally. This flagship company of the Surana group is one such company. The government initiatives like RERA, REITS, GST and Benami Transaction Prohibition will certainly change the scenario and the much needed transparency will make buyers flock to the market very soon. The Government’s Smart City project and Housing for All by 2022 beside Atal Mission for Rejuvenation and Urban Transformation (AMRUT) has already started showing the anticipated growth providing enough opportunities for the real estate developers. Having been the second largest employer after the agriculture sector is getting full cooperation from the government. The expected growth in Indian real estate sector is pegged to be around 12% CAGR, which includes hospitality and commercial as well. The logistics alone are capable of changing the picture. The demand for industrial parks and modern warehousing space is continuously growing. With clients like Amazon Bhagyanagar is already trying to explore the area having some prime properties suitable for such projects. However, only investors who are ready to wait for two years can think of this, but if everything went as planned, this is indeed a multibagger in the long run. An analyst has prepared a very convincing report suggesting to accumulate whenever the market is in a nose diving position.

Mallcom (India) Ltd.
BSE Code/ NSE: 539400; Face Value: Rs10; CMP: 280
52 Week H/L: 361.90/174

 

A very astute investor is bullish on this scrip with some logical reasoning. He has been advocating about this not very well-known company with glowing words and also accumulating. This is a debt free company with strong financial and a very formidable track record. Promoter’s holding is around 74 percent, which itself shows its healthy condition and bright future. With its first mover advantage in the field the company has a very strong brand value for its product range. It’s in a very good spot with not many competitors. The company derives approximately 60% of its revenue from overseas market. The company has been consistently paying dividends, but the important investment rationale is its book value which is `115 per share as on FY2017. In the last six years the company has grown from `90 crore to `255 crore with a profit after tax `9.3 crore. The company is internationally recognized and engaged in the business of manufacturing, distribution and export of Personal Protective Equipment (PPE) used in various fields like Warning Protection, Hand Protection, Eye Protection, Hazard Protection, Feet Protection, Head, Body and Fall Protection. The product range is accordingly helmets, PVC, synthetic, textile and leather gloves, Latex and Nitrile gloves, Body Protection equipments for light and heavy industries, harnesses and accessories, winter and other protection equipments for hospitality and healthcare industry and metal free, winter and premium shoes.

NIIT Ltd.
BSE Code/ NSE: 500304/ NIITLTD; Face Value: Rs2; CMP: 110
52 Week H/L: 125/78.65

 

The company holds about 23% stake in NIIT Technologies, valued at around `1550 crore. Right now the market cap of NIIT is `1855 crore. That makes the company interesting, the reason some investors have been lately very active over this counter. NIIT is a leading Global Talent Development Corporation, building skilled manpower pool for global industry requirements. The company, which was set up in 1981, to help the nascent IT industry overcome its human resource challenges, has today grown to be amongst world’s leading talent development companies offering learning solutions to individuals, enterprises and institutions across 40 countries. The company recently announced that it has been selected as a 2018 Top 20 Training Outsourcing Company for the eleventh consecutive year by TrainingIndustry.com.

About the author: IE&M Team

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