Saturday, November 1, 2014
Dai-Ichi Karkaria Limited(5266821) : Buy at CMP of Rs 135-138 Target price 200
Dai Ichi is a company into special chemicals and caters needs for almost all industries with recession fears almost over and India again moving toward higher GDP demand is set to go up from the various industries it caters to.In FY 2014 top line has grown by 25% and profit margin improved by 100% which resulted in increase in trebling of net profit.
With softening of crude prices of raw material should get lowered and margin should improve further.Keep an eye on Q-2 results to be announced on Novemebr-5th .Looking at movement of stock price it appears results are going to be great and stock should zoom after results.
Excellent stock to be bought for long term.
5-11-2014 : Touched 148 today company today delivered excellent Q-2-14-15 results...... watch out tomorrow should explode and could show 5-8% increase from current levels.
Happy investing
21-11-2014 : stock hits year high of 165 long term investor continue to hold
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Respected Bhatia G,
ReplyDeleteAfter Sep 14 Results what is your view and target of Daichi Karkaria as both top line and bottom line has decreased, only Exceptional income is there.
Harpreet Singh 9034313000.
Dear Harpreet
DeleteI am not too much concerned about other income which is being received historically through investments done in mutual funds by company and with some compulsory sale of land.Since company is 100% debt free such investments are natural if company doesn't foresee immediate requirement of capital for investment in plant and machinery for capacity enhancement. Top line not growing in recent quarter is concern but currently company is in sweet spot where investments in mutual funds would have grown with rise in stock market index and falling crude oil prices will surely support reduction in raw material cost and with expected growth going forward company could experience improved performance.I remain bullish on the stock and advise holding and buying at current levels
Respected Bhatia G,
ReplyDeleteAfter Sep 14 Results what is your view and target of Daichi Karkaria as both top line and bottom line has decreased, only Exceptional income is there.
Harpreet Singh 9034313000.