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“Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened. Matthew 7:7-8

24 Sep 2018

STOCK MARKET--Which are the best unidentified stocks to buy for period of 7 to 10 years in Indian stock market?

When we talk about long term investment then picking up the right fundamentally strong stock becomes the priority.
So I won’t be suggesting you multiple stocks but only a single stock which is capable of generating multi fold returns and has already proved itself a multibagger in past.
The name of the company is JENBURKT PHARMACEUTICALS LTD.

I’ll be talking purely about Fundamentals.
·         Market Cap is of 386.08 crore.
·         CMP is 777/- Let’s check the positive points first,
·         Good promoters holding.
·         PE ratio of 16.94 as compared to industry PE of 33.05.
·         1350% growth in EPS since 2008.
·         285% growth in SALES since 2008. (Gross Sales)
·         107% growth in OPERATING PROFITS since 2014.
·         210% growth in NET PROFIT since 2013.
·         960% growth in BOOK VALUE since 2006.
·         1100% increase in RESERVES since 2010.
·         They had debt of 6.37 crore in 2017 which they cleared in 2018 and a nominal debt of 0.24 is there.
·         They have also increased their investments by 10 times since 2010.
·         7000% increase in cash and bank balance of the company since 2010.
·         480% increase in TOTAL ASSETS since 2010.
·         Healthy increase in ROCE YoY.
·         Current ratio almost thrice since 2014.
·         Negative DEBT TO EQUITY ratio in 2018 making it virtually DEBT FREE.
·         % of return on NET WORTH is increasing YoY.
·         Despite being a small cap they are paying dividends which is not less than a gift for a long term value investor.

Now let’s come to negative points in this all dreamy and too good to be true scrip,
·         Miscellaneous Expenses has increased 2700% since 2006. ( But the logic behind increase in expense is that sales is increasing so does production and other miscellaneous expenses)
·         Recent June Quarter experienced a dip in sales.
·         Decrease in adjusted cashflow times.
That’s it! And trust me I was deliberately finding the flaws, still i managed to find only three.
Few days back I was talking about this stock with one of my doctor friend just to know his view as a professional in that industry. I am quoting his words below,
From product point of view it has got widest range of products, most of which can be used as OTC, over the counter, which means no doctors prescriptions are required to dispense these medicine by the pharmacist. It gives an added advantage. As far as company doctor relation is concerned, it has maintained a fair ethical and strong bond with doctors as much as I see and experience the medical representatives of JENBURKT. The future with this range of medicines is very vast.
Right from malaria to calcium to Antibiotics to multivitamins to anti hypertensive to anti diabetics, You name any disease and they have a drug for it. Product range is very vast and impressive. Even if World War occurs they will be able to sustain their company as they have cheap and quality products for all the ailments
Here is the technical chart of JENBURKT PHARMA,
In 2009 it was somewhere around 25 and in just 9 years it rallied up to 840–850, so now just imagine the returns you get when you invest in FUNDAMENTALLY STRONG COMPANY.
I hope I gave you a good new insight about a not so famous multibagger stock.
You consult with your Broker/analyst before investing and take decision immediately..
Happy to help ,Thanks!

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