Mehraboon Irani Stock Tips Recommendations

Mehraboon Irani Stock Tips

Mehraboon Irani of Nirmal Bang is a leading expert in the stock market. He periodically offers numerous tips and recommendations relating to stocks. Several of these stocks have become multibaggers.

It is known that Mehraboon Irani conducts a carefully analysis of every stock and ensures that it is a good investment from the fundamental and the technical parameters before recommending a buy.

Mehraboon Irani stock recommendations for 2018

In CNBC TV18’s special show “18 for 18” Mehraboon Irani recommended five multibagger stock ideas.

These are as follows:



Asian Granito

Mehraboon Irani recommended Asian Granito on the basis that it is the third most profitable tile company in India and it is the fourth largest in terms of turnover because in turnover, Johnson Tiles is ahead of it. The company has achieved this, worked very hard over the last 2-3 years, has reaped economies of scale, has merged various subsidiaries. It has concentrated on introducing new products, has concentrated on high margin products expanded into new geographies, expanded its dealer network and worked on enhancing its brand presence.

It will report earnings per share of Rs 13 in 2016-2017.

Asian Granito should report compounded annual growth rate (CAGR) growth of at least 40 percent over the next 2-3 years and earnings per share of around Rs 35-40 by 2020.

The target price is Rs 800 for Asian Granito.

Fineotex Chemical

Fineotex Chemical was recommended by Mehraboon Irani as a multibagger on the basis that it is one of India’s largest textile chemical manufacturer which provides customised solutions to the entire gamut of activities in the textile sector. It services a customer base which is in a way sticky, it doesn’t move to any other chemical manufacturer so easily. It has a high pricing power, there were higher margins. It has got its manufacturing facilities in Navi Mumbai and also a subsidiary called Biotex in Malaysia where the company has got 68 percent stake. It is a Star Export House has presence in 33 countries.

The balance sheet of Fineotex Chemical is absolutely clean with Rs 22 crore equity, zero debt and consistent dividend paying company.

The earnings per share of around Rs 1.80 of last year should at least become to Rs 2.50 this year and should move to Rs 3.50 to 4 next year, Mehraboon Irani said.

Aquastrike VCF is developed in Malaysia using European design engineering. It is an environment friendly non-toxic revolutionary solution which doesn’t kill mosquitoes alone but kills the larvae and the pupae of mosquitoes and completely eradicates mosquitoes.

The company has applied for patent and has also applied to the WHO. Aquastrike VCF has a potential to deliver business of billions of dollars in the years to come for this company.

Edelweiss

Mehraboon recommended Edelweiss as a multibagger stock pick. He pointed out that Edelweiss is not the small player in the capitals market segment which it was years ago. It has evolved itself. It has gone into lending business, started with wholesale lending, now into retail lending where it is meeting with a lot of traction.

It is into asset management business, wealth management business, but the biggest trigger is the stressed asset business where the company is number one, he said.

As far as insurance business goes, the losses should peak out over the next 12 months.

The biggest contributor apart from the asset reconstruction, stressed assets business over the next two years could come from the wealth management business, the advisory business and the asset management business. Earning could show an exponential growth over the next 2-3 years.

Sterlite Technologies

Sterlite Technologies was recommended by Mehraboon Irani on the basis that it is growing at a fast pace.

It is a global leader, number one in telecommunication equipment which includes optic fibre, optic fibre cables, data cables.

Sterlite Technologies has operations mainly in India, China and Brazil, but has marketing network nearly across the world. Global demand continues to be robust from China which has 55 percent of market globally and also from Europe and US.

The company works on three platforms. Number one is the product, number two is the services and number three is the software vertical. The company, despite having made a lovely capacity expansion does not have any stress in the balance sheet with a debt equity less than 1. The company should be spending at least Rs 10 billion on further expanding capacity over the next 2-3 years.

The earnings this year should be Rs 8-9 but will double over the next two years to Rs 17-20 by FY20.

http://www.moneycontrol.com/news/business/stocks/18-for-18-mehraboon-iranis-top-stock-ideas-for-2018-2470537.html

Old recommendations of Mehraboon Irani

Some of Mehraboon Irani’s earlier multibagger stock recommendations which have good fundamentals and are a good buy now for the long term are as follows:


(D. D. Sharma and Mehraboon Irani offer stock tips and recommendations at the CNBC TV18 Awaaz programme)



Ruchira Papers

Go with sectors which are going to benefit and which are doing well. Example in paper sector, the capacity is not picking up at all, there is no fresh capacity coming. For Ballarpur Industries two units have closed down. We continue to like Ruchira Papers. I think craft paper prices are gone up, writing paper prices are gone up and this is going to ultimately translate further and further improvement in earnings. We have a target of Rs 200 for Ruchira Paper, a stock which I have been going on repeating.

Dalmia Bharat

In cement, we like Dalmia Bharat. The stock should be Rs 2,500 to Rs 3,000 in the next three quarters. The earnings will be around Rs 110 coming in 2017-2018.

Sterlite Technologies

Sterlite Technologies is the best stock to buy. A target of Rs 200 is on the cards over the next one year.

Quess Corp

Quess Corp is the new name which we have identified. With the acquisitions Quess Corp made over the last two quarters, this should ultimately translates into better earnings coming in 2017-2018. If we see a price of Rs 900-1,000 over the next two to three quarters honestly I will not be surprised.

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Wabco India

Auto ancillary as a space should continue to attract attention and we need to give weightage to the fact that the market somewhere likes this particular space. So, whenever there is momentum, people go and start chasing it. Quite a few of the stocks have moved from the recent lows but Wabco did nothing much over the last few months.

Wabco India has great management and great products. It could be a Rs 10,000 stock over the next one and half years. At the present level, fundamentally the stock looks expensive, but I personally have always looked at one thing in a stock and that is the supply. This is not a stock in which investors are going to sell in a hurry. So, at Rs 5,500-5,600, the stock has gone up sharply today, I think even at Rs 6,000 level I think there is still money to be made on the stock despite the fact that it is looking expensive.

ZF Steering

ZF Steering is a stock in the auto ancillary pack which should be readying for a move. This stock also has done nothing much over the last one to three quarters and if that makes a move, I am quite sure people are going to chase it – otherwise it is a good company with good products.

Motherson Sumi

You need to watch the trend of a stock and you need, as far as the management goes, company goes, you need to see what they have done in the past.

Whatever Motherson Sumi has done, eventually it has added to shareholder value. If you go back through history and check out Motherson Sumi right from the time the IPO had come, I have been tracking this company right from that time.

Looking at the way the stock is and looking at the way the other auto ancillary stocks are behaving, I personally believe that Motherson Sumi is possibly giving us third best opportunity in the last 15 years for people to accumulate for the longer term. Twice in the past, it has happened. It passed through a long consolidation phase and then just took off.

Motherson Sumi could be at a level from where it can only go up. So, I would say that this is a stock which I am recommending as a fresh buy. Clear disclosures, personally holding it and clients are holding it.



Comments (2)

  1. Ramesh Desai

    All of Mehraboon Irani stock recommendations are good. I have Asian Granito and Sterlite Technology in portfolio.

    Reply
  2. MarketMojo

    Bharati Defence & Ship Building A mega turnaround – Multi Bagger Opportunity

    1. Bharati Defence is one of the largest ship building company in India with 7 large ship yards under its ownership
    2. The company had a peak debt of 12000 cr which has been restructured to 2000 cr.
    3. BDIL is one of the 4 large shipyards to have acquired the license to manufacture warships in India
    4. Total land at shipyards is 600+ acres. Dabhol shipyard has 350 acre land and is one of the largest in India
    5. The lenders are looking to sell the company for 200-250 crore (debt). At this price the asset is a gold mine.
    6. Marquee business houses like Mahindra, Shapoorji, L&T, German Dry Dock, Hyundai, Mitsubishi, Sumitomo have done due diligence and have placed their bids
    7. Post induction of new investor, the debt would be restructed to Rs. 1300 cr At CMP Rs. 7.4, the market cap is just 37.5 crore.
    8. At optimum capacity utilization, BDIL can make a topline of 6000 cr and a 10% EBITDA margin
    9. At 600 crore EBITDA, and a 4x multiple the EV can be 2400 crore. THe market cap can be 1200 cr making it a 30 bagger from here.
    10. Even in a distressed condition BDIL recently delivered a vessel to the Indian Navy
    11. BDIL has marquee clients like Reliance Industries, Adani, Qatar Shipping, ATCO, WAN HAI, MAERSK, Indian NAVY
    12. BDIL can manufacture War Ship, Defence Vessels, Interceptor Boats.
    13. Ship Building business gets incentive from both Make In India and Infrastructure Status.
    14. The Navy is supposed to procure 600 vessels and PSU shipyards books are full.
    15. Cochin Shipyard will outsource 7500 crore worth of orders to Private Indian Shipyards in the next 2 years.
    16. Other than ship building, this is a unique opportunity for Ship Repair Business.
    17. Sagarmala Project for port and coastal development with a budget of USD 16 bn will increase demand for ship building and repairs
    18. Insolvency procedure will help clean all the liabilities, making the business more attractive
    19. 25 defence vessels and 4 commercial vessels expected to be delivered over next few years
    20. Ministry of Defence have not cancelled even a single order in spite of delays due to the quality of
    earlier delivered vessels
    21. Apart from this, they have a large 15000 sq. ft. office in prime area in Andheri in Mumbai, 40 Acre Resort property in Dabhol, and 3 large land parcels in Alibaug.
    22. Govt very supportive for shipping Infra with 100% permit for FDI
    23. BDIL also has 4 fabrication facilities that are currently running with a decent order book.
    24. The Sagarmala project envisaged for USD 16 Bil. will bring in huge business for BDIL.
    25. Indian Waterways Authority plans to utilize 106 Indian rivers as means to move freight cargo. This will boost demand for freighters and smaller trade ships.
    26. BDIL’s IPO in 2004 was over subscribed 78 times.
    27. All this makes BDIL a perfect business to be acquired by large Indian/Foriegn Businesses.
    28. According to estimates and above analysis, the stock could easily be a 30 bagger.

    Reply

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