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LORD JESUS CHRIST SAYS

In the same way, let your light shine before others, that they may see your good deeds and glorify your Father in heaven. Matthew 5:16

21 Apr 2019

SHARE MARKET--Which penny stock will you suggest in BSE, strongly to hold for an year or two and why?




According to me a very good penny stock listed on BSE is: Birla Precision Technology
Birla Precision Technologies Ltd (BPT) the erstwhile Birla Kennametal Ltd was established in 1986, as a joint venture company between YBG and Kennametal Inc, USA In July 2007. YBG acquired the stake of Kennametal in the JV consequent upon which Birla Kennametal was renamed as “Birla Precision Technologies” (BPT). BPT continues to be a primary vendor of Kennametal worldwide –USA, Germany and APAC supplying rotating tool holders in AT3 class. Besides, BPT also exports in a large way to other major customers in the USA, Europe and in recent times to the Far East including China.
WHY TO BUY IT:
·         CONSISTENCY IN RESULTS:
From previous 5 quarters the company has posted continuous increase in profits. The profit is expected to rise even for this quarter. One very important point regarding the profit has been that it has been generated through the operational business of company, not through other subsidiary companies. The revenue generation of the company has also been good.
The profit generation of a company tells about the ongoing business of the company. And as it has been stable it somewhat assures us for good future performance.
·         GOOD DEBT TO EQUITY RATIO:
The debt to equity ratio has been kept on decreasing which is a positive for the company. And for a stock becoming a multibagger, the debts have a very essential role to play.
·         GOOD CUSTOMER BASE:
All the customers of the company are recognised names of their respective fields.
·         CHEAP VALUTION:
The stock is currently trading around 18rupees, while the book value of the stock is 19 rupees. This implies the stock is currently trading below its intrinsic value.
·         PART OF A VERY PRESTIGIOUS GROUP:
This company belongs to the BIRLA group. And it is a very renowed business house. As the other businesses of the group are booming up, it shows the ability of group to excel in different fields.



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