SMART SIP A new & unique SIP

 What is a SIP?

SIP, or Systematic Investment Plan, is an investment option provided by mutual funds that enables investors to invest a fixed amount at regular intervals, typically monthly or quarterly. It promotes the habit of regular savings and investing, regardless of market conditions

What are the benefits of SIP?

The benefits of SIP investment are several. A few of them are rupee cost averaging, disciplined investing, flexibility of investment & amount, long term wealth creation as a resultant of compounding effect.

What is SMART SIP

I have developed a very unique product which i believe no MF house or distribution platform can offer due to technical & skill limitation.

SMART SIP carries all the advantages of the conventional SIP but some disadvantages with conventional SIP due to technical limitations are

1. Timing is predefined irrespective of mkt sentiments.

2. Continues to invest in a pre-selected fund even if the fund is not performing .

3. The short term returns are many times very low which is demotivating for investors and investors consider discontinuation of SIP which destroys LT objectives or Goal of investment.

4.In a standard SIP investment is not actively managed once mandate is given for date, amount and selected fund it regularly gets invested passively and returns are more dependent on selected fund performance.

5. The  returns are dependent upon the Benchmark index selected by the MF scheme.No scope of Alpha generation

So in our SMART SIP it is actively managed SIP wherein we keep control of timing of investment in our hand & also  have the option to select any other fund or portfolio for investment depending upon the mkt sentiments.This ensures that every monthly contribution is getting invested in the most appropriate portfolio based upon our research and performance which results in higher short & long returns thus generating Alpha which is just not possible in standard SIP.

Capitalisation of Long term tax advantages 

Also after one year of investment the fund is actively reviewed and regular switch advised to take advantage of long term capital gain tax advantages which makes overall corpus more tax efficient.

2023 Diwali pick: Ratnaveer Precision Engineering Limited

Ratnaveer Precision Engineering a recently listed company is my 2023 Diwali pick for my valuable blog follower s.IPO had come at around Rs 98 price.

It is India’s leading stainless steel washers manufacturer & supplier manufacturing  around 4000MT PA.Stanless steel is becoming more popular because of its anti corrosion property and food safety in the food ,engineering 

Company has recently registered a business unit in Dubai UAE,which indicates company's Long term vision to expand.

1. Ratnaveer produce more than 2500 washers in different sizes and international standards.

Apart from special washers & nuts they also manufacture 

2. stainless steel sheets(used elevators,malls,Pharma & food packaging industries)

3. stainless Steel pipes and tubes.

4. solar mounting hooks.

Product applications:

Products find application in  escalators, conveyors, bus stands,malls, food, Pharma packaging machines, solar panels etc.

All products have rising demand for domestic & export 

 During the last five years, the company is regularly expanding its infrastructure and facilities and has achieved a decent Compound annual growth and targeting to achieve 850+crores turnover in next 2 years through capacity expansion.

Fundamentals

Current Mcap : Rs581 crores 

ROE:28%

PE : 15

Financials:

Post listing company has delivered H1 results and achieved turnover of 260 crores and earned EPS of 3.97 in H1 resulting in a 17% growth over the previous year .On an estimated basis the company should deliver revenue of Rs540 -550 crores in FY23-24 at conservative EPS estimate of 9 the stock is available at forward multiple of around 14 .

Companies which are into precision steel component manufacturing such as Rolex,Harsha, steel tube manufacturers enjoys much higher PE multiples in current scenario.

Application of products is very wide and in diversified industries makes it A proxy to engineering, industrial,solar panel(Renewables),auto, etc 

Looking at growth potential and expected margins improvement in future stock looks very attractive my target price by next Diwali 🪔 is Rs170.

Long term investors may consider investing & add on dips..

Happy Diwali 🪔

Happy investing

"invest and earn"new WhatsApp channel

 

Dear followers 

Happy to share that I have launched my WhatsApp channel today.

The main objective of this channel is for Financial educational purposes only and to increase the reach.

The channel is open to all for free those who have interest in Mutual funds,stocks and investing may join this.

I will be sharing financial & economical insights & updates, my research based stock ideas & MF investment, SMART SIP a unique actively managed SIP, wealth management,tax saving & financial learning .

Disclosure: the channel is only for educational purposes please decide your investment strategy and decision based upon your risk appetite.

Happy Learning

Mukesh Bhatia

Follow the Invest And Earn channel on WhatsApp: https://whatsapp.com/channel/0029Va8k87v9mrGcW3hEMO3I

Gulf oil Lubricant India limited : A consumable play in Auto & Industrial segment CMP Rs562 TP Rs 785

 

About Company 

Gulf Oil Lubricants India Limited (GOLIL), part of Hinduja Group and Gulf Oil International, is one of the leading players in the lubricant market in India and has a top 2 / 3 position in key segments amongst the private sector brands. GOLIL has a wide range of world class-leading products in the automotive and industrial lubricants space catering to B2B and B2C segments with a growing distribution network. The brand has tie-ups with around 40 OEM's and is a leader in the direct sales network to industrial, infrastructure and institutional customers, and exports to over 25 countries. 

Gulf Oil India is one of the prominent manufacturer and marketer of quality Adblue product range and is one of the preferred supplier of many automotive OEMs. Along with automotive and industrial lubricants, greases, They Have a Top 5 share in the 2-wheeler batteries replacement segment. In India, 

Gulf oil has a strong manufacturing and R&D bases with two plants in Silvassa and Ennore, Chennai. The brand is working towards being future-ready to offer additional mobility solutions and has recently tied up with Indra Technologies- UK based charger/mobility company and ElectreeFi, an EV SaaS provider to drive the change. 

Today, globally the Gulf brand is present in more than 100 countries across five continents. The Gulf Oil international Group's core business is manufacturing and marketing an extensive range of over 400 Performance lubricants and associated products for all market segments.

Gulf enjoys a strong brand recall built through association with brand ambassadors like Mahendra Singh Dhoni, hardik Pandya, Smriti Mandhana, Chennai Super Kings coupled with global sporting partnerships like Williams

AdBlue® is a diesel exhaust fluid used in vehicles with Selective Catalytic Reduction (SCR) technology to reduce harmful gases being released into the atmosphere. AdBlue® is solution of high-purity, synthetically manufactured urea in de-mineralized water. It is a safe-to-use fluid.

Financials

Gulf oil Q1: results topline grew by approximately 15% and net profit grew by 23% thanks to lower RM prices. adlube brand which is a consumable to reduce engine exhaust pollution is received by the market well and seeing good demand and contributing to the growth of company, diversifying and focussing on EV ,also industrial lubricant segment catering to,engines,compressor, bearing,marine,turbine segment will see a rise in demand due to higher domestic manufacturing activities & expansion 

Promoter holding:72%

ROE: 21%

ROCE:24%

Last Dividend: Rs 25

Face Value :Rs 2

Gulf oil  came with buy back offer last year at Rs600 current price after becoming ex dividend is less then the last buy back.Looking at trend it has potential to deliver EPS of Rs 52-55 for year 23-24 based on estimated EPS stock is available at forward PE of just 10-11.

Long term investors may accumulate on dips for one year TP of Rs 785.

A unique platform for NRIs for MF investment

 I am happy to inform that i have partnered with SBNRI an investment platform a one stop platform for NRIs. 

India offers huge investment opportunities for NRIs, but lack of transparency, knowledge and differences in time zones makes it more challenging for NRIs to gain accurate information about financial assets. platform offers online facility for KYC,NRE account opening and facilitate permitted Mutual fund investment in India.

We as a partner provide necessary hand holding to clients and guide them to invest better based upon our research based selection of MF portfolio and timely advise on switch,reedeem &invest to generate Alpha in Mutual fund investing based upon the risk profile.

SBNRI is a first Fintech platform providing seamless investment & NRI taxation and documentation services to NRIs all over the world. Guiding NRIs through online facilities such as sign-up, KYC (Know Your Customer), investment, advisory services with registered partners etc. SBNRI solves the financial needs of 30Mn+ NRIs on a single app.

Non-Resident External account is where you can deposit your foreign earnings. In contrast, in the case of a Non-Resident Ordinary account, you can only deposit the income earned in India. Moreover, money held in a Non-Resident External account can be freely remitted to the country of your residence. This facility is not available in the case of a Non-Resident Ordinary account. Therefore, if you want to use your foreign earnings for investing in Indian funds, opt for the Non-Resident External account.

You may refer your NRI family members & friends to avail our services and collaboration with this unique online  facility which makes Mutual fund investment in India very easy & simple.use below link to download app

https://sbnri.app.link/iPkunC2tGzb

You may reach me on my WhatsApp number 8130911019 for any further queries related to investment.

Thanks

Regards

Mukesh Bhatia

Open icici direct trading account to avail FREE STOCK recommendation

 Dear followers. Open ICICI trading account using below link and get my research based stock recommendations for Long term(minimum 1 year) investing.

Please note👉 no traders or trading calls

👇 *Please follow the below link to sign up through our digital account opening process*

https://secure.icicidirect.com/customer/accountopening?rmcode=MUKA5770&ibempcd=735442

DODLA DAIRY LIMITED : A Milk product company of south India A value pick at CMP Rs 495

 

Face Value : Rs 10

Current Market cap :2949 crores

ROE :15.74

ROCE:19.1%

Promoters :62.21%

Sector : Dairy(FMCG)

About Company : : Founded in 1995, Dodla Dairy Limited is an integrated dairy company based in South India. Processes and sells milk and produces dairy-based value-added products viz. Curd, ice-cream, butter, Ghee, Paneer, Youghurt, cheese, Paturised pouch milk, UHT Milk. Currently, Dodla procurement is centered in 5 states(Telangana,AP,Karnatka,TN and products are available for purchase in 13 states. Total 15 milk processing plants in India &Uganda, It has 113 milk chilling centers,1300 plus milk product distributors,2700+ distribution agents,555 Dodla retail parlours. selling value added products.

               

Dodla Dairy got listed on bourses after successful IPO in June 2021 (at IPO price of 428).Later in 20222 it acquired Sri Kisna Milk (P) Ltd,

 

Financials :

 

Rational Investment:

1.       3^RD Largest player in south India in terms of  milk procurement.

2.       The Company enjoys a debt free status and is steadily expanding its capabilities and capacities which is reflected in the growth of Non-current assets from FY19- FY22.Dodla Dairy is investing heavily in expanding its range of value-added products, a move that is anticipated to boost margins. It has invested significantly in value-added products such as Curd, Ice Creams, Flavored Milk, Lassi, Butter Milk, Yoghurt to name a few.

3.       The rapid economic growth and urbanization have resulted in a fundamental shift in consumer preferences and food preferences

4.        Consumer desire for branded, healthier, and more nutritional alternatives is growing

5.        Rising disposable incomes driving demand for value added dairy products

6.       Global presence Uganda + Kenya.

7.       Topline growth at CAGR 14% over last 10 years.

8.       Recovery &Improvement in EBIDTA margins in Q2 vs Q1(22-23)

 Market cap almost = year sale(2023E)

Target Price: FY 21-22 Revenue 2243 Crs EPS 22.24,H1FY-222-23 achieved 1412crs resulting in 31% YOY growth. FY-22-23 Estimated revenue 2900Cr ,expected EPS 24-24.5 Management is targeting 15% CAGR  for next 3 years  going forward the earnings and profitability is expected to grow proportionality ,with expansion in margin with increase in VAP ,next 3 years EPS could grow proportionately to ,28,32,37. At CMP of Rs 495 stock is available at forward PE of 20 which is low and attractive for FMCG company. .Going forward PE expansion and rising EPS could take this stock at much higher levels in next 3 years. At next year expected EPS of 28 & at a forward PE OF 25 stock has potential to touch Rs 700 in 1 year.

Recommended to accumulate(SIP) only for Long term investors on all dips with target price of Rs700