Views on Life & on Equity Investing

Wonder, Wealth & Abundance

GLOBUS SPIRITS – Next sure shot multibagger

with 10 comments

After making decent money in Symphony Comfort Systems, Hawkins,  TTK  Prestige I have bid adieu those counters. These counters can still go up more than double in next year due to Fund and FII buying acceleration into these counters in Dec 09 shareholding pattern filed to the exchanges, but I believe I have found something more precious and more certain. 

I invested only a little sum in 2008 and increased it as the year closed till 2009 March. I introduced more capital in January 2010. Till date I have beaten the sensex since 2008 by a huge margin . Sensex is up about 100% from March Lows and yours truly’s portfolio is up 300% plus in same comparable time. No shorts are done, no leverage, plain Jane buy and hold without any exotic puts/calls or other derivatives. I’ve been fortunate to take out time this year to have read more than 20 books on equities to build a sizeable base of patterns just as a junior chess grandmaster would do on his ascent upwards. Thanks to the medium of internet and books that one is able to learn lifetime lessons from others in a short span for far less the price. 

The company GLOBUS SPIRITS is managed by capable and talented individuals.  Capacity is doubling, company isn’t able to meet the demand and has to buy raw material from outside ! I’d like my company to have such problems. Company is debt free which is never an issue. This is as certain a business as Nestle so I expect similar or better valuations, atleast near the market leader. There is double kicker in most of my stock picks, EPS growth and PE rerating, the key to making big money. The other options in this industry are Tilaknagar Industries with suspect management and United Breweries having fraud management on top that did not take lesson from genius investors on not entering airline industry. Besides, with an awesome business as Spirits and Breweries the profit and loss numbers of such companies with leading position indicate 100 ferrarris and masseratis being sustained at shareholders expense. Buffett would never himself be a fan of a profligate person as Vijay Mallaya. Had numbers spoken louder, I could have rethought investments in UB group. But I believe the relative statistics comapring China or West support India’s case for major volumes. This sector is scalable and has sizable opportunity something RJ Bhaiya ingrained in us.

Have a profitable investment !

—————————————————

Glory of God is great.

Written by amitdipsite

March 6, 2010 at 6:28 pm

Posted in Uncategorized

10 Responses

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  1. since our stock picks match atleast 90% i would like to draw your attention towards following scripts:
    a) CRAVATEX
    b) MAYUR UNIQUOTERS
    c)PAREKH ALUMINEX
    sincere regard,
    sarojpatni2

    saroj kumar

    March 7, 2010 at 10:16 am

  2. Hi Saroj,

    Thanks for posting your comments,

    I was quite bullish on Mayur Uniquoters, have not been following it, I posted comments on this discussion forum
    http://www.theequitydesk.com/forum/forum_posts.asp?TID=2584&PN=2

    Also there are folks at above discussion forum who are quite bullish on Parekh Aluminex.

    Will go through Cravatex

    Kind Regards

    Amit

    Multibagger

    March 8, 2010 at 5:52 am

  3. Also Saroj, please go through WIM PLAST something I owned before S P Tulsian recommended. I can provide you more information on it.

    Regards
    Amit

    Multibagger

    March 8, 2010 at 5:58 am

  4. hi Amit,
    it is indeed very weird to find our stock picks match so much. i bought WIMPLAST around 90/- but sold it around 120/- as their sept09 results were not very impressive but again their dec09 results are very good.good conservative management ,book value,dividend.sure a good company.
    i would again like to draw your attention to CRAVATEX and MAYUR UNIQUOTERS.
    sincere regards.
    sarojpatni

    saroj kumar

    March 18, 2010 at 6:53 am

  5. Dear Saroj,

    I did look at CRAVATEX but there are couple of doubts:

    A) FILA is intending to open its own subsidiary so they may sever ties with Cravatex and go alone

    B) These products are one time use only and once bought they dont need to be purchased again, I love repeat use products, shoes, cigarettes, chocolates, drinks, thats
    why I am so bullish on Relaxo Footwear, I expect it to become a 1000 Rs stock, that will be roughly equal to 1000 Crore market cap on sale of 1000 Crores in next 3 years and profits
    of 100 crores

    Kind regards

    Amit

    Multibagger

    March 18, 2010 at 10:09 pm

  6. Dear Saroj,

    I did look at CRAVATEX but there are couple of doubts:

    A) FILA is intending to open its own subsidiary so they may sever ties with Cravatex and go alone

    B) These products are one time use only and once bought they dont need to be purchased again, I love repeat use products, shoes, cigarettes, chocolates, drinks, thats
    why I am so bullish on Relaxo Footwear, I expect it to become a 1000 Rs stock, that will be roughly equal to 1000 Crore market cap on sale of 1000 Crores in next 3 years and profits
    of 100 crores

    Kind regards

    Amit

    Multibagger

    March 18, 2010 at 10:10 pm

  7. hi amit,
    just came across your blog while searching relaxo on TED through google. keep up the goodwork.

    globus as you say looks a big winner. i have put up the details on my blog hitstocks.blogspot.com.
    regards
    hitesh.–hit2710

    hitesh

    September 29, 2010 at 2:50 pm

  8. Hi Dr. Hitesh,

    Thanks and I will keep an eye on your blog for techno entry into funda stocks.

    Regards

    Multibagger

    September 29, 2010 at 9:23 pm

  9. Hi Amit,

    For FY11…

    EPS for Q1 = 3.19
    EPS for Q2 = 3.16
    EPS for Q3 = 3.56

    Even assuming a Q4 EPS for 5 would give an annual EPS of only 14.91, which is less than FY10 EPS of 17.73 and FY09 EPS of 10.55

    Could you please throw some light as to why despite doubling capacity there is a downward trend in EPS.

    Anyways, at CMP of 146, it is valued at a PE of 10, buyable.

    But the falling EPS if nagging.

    Comments and views please.

    Arvind

    April 26, 2011 at 4:33 am

  10. Hi Arvind,

    Capacity doubling effect yet to be seen. EPS is low due to higher equity base.

    Regards

    Amit Arora

    April 26, 2011 at 6:50 am


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