ARUN JYOTI ENTERPRISES - KEEP WATCHING

Arun Jyoti Enterprises is a company started
trading in BSE about one month back. Company
operating few Department stores in and around
Hyderabad under the brand name ‘TAAZA STORES’.
Apart from this company is in the trading
activities of agricultural inputs like bio
pesticides and bio fertilizers . Till now ,its
major income is coming from these trading
activities.Company now claiming that it is
aggressively looking for further expansion in
retail segment and backward integration in the
field of cultivation of vegetables in big way
for selling through its own shops. As per the
available informations, even now company is
sourcing part of the vegetables from its own
farms and also have some contract farming
arrangements with farmers. If the promoters
are able to tap the opportunities available ,
this integrated business model may work well
in future. It is not easy to judge the company
on the basis of tracking done in short period ,
but keep watching further developments .For the
last financial year ,company posted a turnover
of Rs.79 Cr and a net profit of Rs.1.21 Cr with
an EPS of Rs.2.40 .This is a low liquid counter ,
currently trading around RS.98/-

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GANDHIMATHI APPLIANCES - OPPORTUNITIES UNLIMITED , BUT ......

There is number of examples in Indian

stock market for promoters inability/laziness

or their negative attitude towards other share

holders wasting chances of immense wealth

creation. Gandhimathi Appliances is such a story.

Gandhimathi is making household appliances

like LPG Stove, Pressure cooker, Mixer

Grinder ..etc in the brand name 'BUTTERFLY'.

This is the No.1 brand in case of LPG Stove in

South India and also have a good

market share in other products. But the

financial side of this company is not a

robust one. We can’t blame anyone who

suspect that the promoters are siphoning 

of  funds generated in this company and

divert the same to companies privately

owned by the same/related parties. Presence

of other companies of promoters in the same

line of business is a real misfortune  to the

minority share holders of Gandhimathi

Appliances.Any way , earlier this company

went for BIFR and later as per a scheme the

promoters bring more funds to the company

to revive it. Now ,company is going

to merge another group company

Gangadharam Appliances with itself

and  final decision regarding merger

ratio ..etc are expecting soon. It is expected

that after the merger is completed company

will sell its surplus land and pay back dues

to strengthen its balance sheet. Some of the

recent indications from the management

giving some hopes about the change in the

attitude of management. I suspect ,

the huge wealth created by peers like TTK

Prestige and Hawkins

Cookers in recent past may also be a  reason

for  a second thought for the management of

Gandhimathi. If the management is really

willing to change its attitude and ready to

consolidate its operations in the listed company

and show good corporate governance 

the scope is very vast and this may be a

multi bagger even from current level. Since

its future is depends on many ‘IF’s  only high

risk takers can consider this .Now it is

trading around Rs.73/-

* Earlier discussed in MMB around Rs.55/-

* with inputs from friends

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TRANSPEK INDUSTRY - BOOK PROFIT

I have recommended a BUY on TRANSPEK INDUSTRY at Rs.100/-  on 18th  July 2010 .(YOU CAN READ THE OLD REPORT HERE ) After one  month,now it is quoting around Rs.160/  - an appreciation of   60 %. Requesting profit booking at current level.

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SANGAL PAPERS - BOOK PROFIT

I have recommended a BUY on SANGAL PAPERS at Rs.17/-  on 11th  May 2010 .(YOU CAN READ THE OLD REPORT HERE ) After three months,now it is quoting around Rs.30/  - an appreciation of  more than 80 %. Requesting profit booking at current level

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RAM RATNA WIRES - BOOK PROFIT

I have recommended a BUY on RAM RATNA WIRES at Rs.48/-  on 15th  April 2010 .(YOU CAN READ THE OLD REPORT HERE ) After four months,now it is quoting around Rs.109  - an appreciation of  more than 100 %. Requesting profit booking at current level

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SIYARAM SILK MILLS LTD - BOOK PARTIAL PROFIT

I have recommended a BUY on SIYARAM SILK MILLS LTD at Rs.168/-  on 29 April 2010 .(YOU CAN READ THE OLD REPORT HERE ) Now it is quoting around Rs.360  - an appreciation of 120 % in four months. Those who are not interested to take high level of risk may SELL 50% of holding at current level and keep balance 50% cost free.

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TWO FACES OF INDIAN STOCK MARKET CELEBRITIES

Below is a part  of an interview published in Economic Times last week with Shankar Sharma  and his wife Devina Mehra  of  First Global Stock Broking :
=============================
Q , Shankar, at 18000, are you a bull, are you a bear or I should make the standard assumption that you do not like the markets?

A ,Shankar Sharma: It should not be a standard assumption, but I do not like the markets and again just to answer your previous question all over again, it is our belief and very strong belief that it is almost impossible for anybody as an aggregate class to make money in stock markets. Stock markets are meant to enrich a handful of people at the expense of the vast masses. That is the long-term history of stock markets and I am willing to argue with anybody with any amount of data. I always have that perspective when we are going out there and talking about markets, the guy listening to this point of view should be very clear and it is a damn tough game to make money in markets, even with professionals like us.

=============================
Yes , If anybody in Indian Stock Market have right to say this ,that is only these two guys.Because they have played a vital role in previous stock market crashes  and took the money of retailers and later caught and punished by authorities like SEBI and SAT. But the irony is that popular media like CNBC and Economic Times are giving undue coverage to these type of  Culprits and presenting such peoples are the great personalities of Indian Stock Market.

These are the type of people guiding us through media .So ,Don't swallow the comments of Celebrities and Media , Think yourself before investing your hard earned money


You can access some reports on Sharma from below links.

1)
http://www.moneylife.in/article/8/4301.html

2)
http://www.india-today.com/itoday/20010409/cover-modus4.shtml
3)
http://www.indianexpress.com/oldStory/10020/
4)
http://www.suchetadalal.com/?id=990e923c-3029-eb1a-492e82209011&base=sub_sections_content&f&t=First+Global+Stockbroking%3A+Are+they+victims+or+villains%3F

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