Multibagger stocks below 100 having lot of potential
Here we are trying to find out 3 ‘Multibagger stocks below Rupees 100’ which can generate good return in coming days.
Market has started showing some negative signals after such a huge bull rally of more than 1 year long. However, it is too early to predict any actual slowdown and bear dominance because the liquidity is still available in the market and may continue to support the index. FIIs who were aggressively taking their money out of the market started putting money back into the market. Last week’s FIIs volume was positive and it is also an encouraging signs . am sharing herein 3 stocks which looks reasonably priced and having current value below Rs. 100 (irrespective to their face value). Keep track of these stocks and if have time make a deep research on them.
1. Welspun India Limited current price (current price Rs. 70):
Welspun India is one the potential Multibagger stocks below Rupees 100 available in the market. It is a textile company based in Mumbai. It is Asia’s largest and the 2nd largest Terry Towel producer in the world. It exports more than 68 per cent of its exports production to the US, 23 per cent to Europe and the balance to Middle East, Australia, Mauritius. Ranked No.1 among home textile suppliers in USA. Company has its distribution network in 50+ countries including USA, UK, Europe, and Canada.
The company has an equity capital of Rs 100.47 crores. Face value per share is 1 rupee.
Recently, in 2017 it has commenced operations at its state-of-the art Advance Textile plant at Anjar. It has also invested Rs.110 crore to set up a state-of the-art fully automated cut and sew unit in the made-ups .The promoters hold 73.5% of the equity capital, FIIs hold 12.3%, PCBs hold 3.3% and DIs hold 1.5%, which leaves 9.5% stake with the investing public. Company has good consistent profit growth of 81.88% over 5 years. Company has a good return on equity (ROE) track record: 3 Years ROE 37.79%. Company has been maintaining a healthy dividend payout of 18.45%.
2. IOL Chemicals & Pharmaceuticals Ltd. (Current price Rs.77).
This company was established in 1986, it is India’s one of the leading generic pharmaceutical company, and is significant player in the Organic chemicals space. It has wide presence across various therapeutic categories like, Pain Management, Anti-diabetic, Anti hypertensive, Anti Convulsants, etc.
It operates through two segments: Chemicals and Pharmaceuticals. Company is one of the largest producers of ethyl acetate and butyl benzene in India. It uses its own product like ethyl acetate and cholor acetic acid for captive consumption to prepare Ibuprofen.
The company has an equity capital of Rs 56.21 crores. Face value per share is Rs. 10.
Second quarter of 2017-18 was excellent for the Company with 352% jump in net profit and 26% jump in Sales. It has a huge expansion plan in pipeline wherein its fusing Rs. 200 crore in next 2 years for capacity expansion. Company is also setting up a facility for producing anti-diabetic products i.e. Metformin, at its Punjab facility which will be completed in 2018.
3. Jamna Auto Industries Ltd. (current price Rs.75)
It’s an Indian multinational suspension system Automotive company having its headquarters in Delhi. Incorporated in 1965, its India’s largest, and amongst world’s third largest, manufacturer of tapered leaf springs and parabolic springs for automobiles. Company has its manufacturing unit in Yamuna Nagar, Malanpur, Chennai, Hosur near Bangalore, Rudrapur and Jamshedpur and its products are sold in over 25 countries. It designs and manufactures wide range of Springs to meet requirements of-
- Heavy commercial vehicles
- Medium commercial vehicles
- Light commercial vehicles
- Sport utility vehicles
- Trailers and Air suspension system
The company has an equity capital of Rs 39.83 crore. Face value per share is 1 rupee. The Company is the market leader with 64% market share in its niche business in India. It has recently completed expansion of one of its most advanced Hosure Plant which will cater the need to international market. Its also in the process of setting up a manufacturing unit of leaf and parabolic springs in Lucknow through one of its Subsidiary Company.
Company’s Research Centre at Pune approved by Department of Scientific and Industrial Research, Govt. of India. Company spent 68 crore in expansion and new product upgradation and modernisation 90 crore spent in FY 2017.All expansion are funded through internal accruals by the Company. The Company is associated with global leader Ridewell corporation in US for design and manufacturing of Air suspension and lift Axels. Achieved a ROCE 55% in 2016-17.Company is targeting to achieve 33% revenue from newly developed products to avoid dependence on old products.
It is important to note here that these stocks are having a little bit high Beta and though they have ll the potential to generate excellent return, they may also give a downside upto 15% in case of small to medium correction in the market. It is always better to track the price of the share for some time before entering into it.
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