Saturday, April 11, 2009

Penny Passion-Multibaggers Part II

I would like to list out the first batch of Penny Stocks as I mentioned in one of my previous post. We also had a discussion on some unethical activities occurs behind the screen in such scrips at Mr Kumaran's blog. I wish to request the readers to go through the following article before planning any investment in Penny Sctocks.

On the other side, a few number of such stocks have always turned out to be multibaggers from the bear markets or in any stage of the bull runs. But locating such srcips are almost impossible in the earlier stages because the Technical/Fundamental figures even looks very much weaken, the reason I skipped the technicals.

A close observation on such companies may help you out to assume the future prospective of the business they involved. It is also significant, you should prepare for a high risk level in the case of any negative results. Shortly, Investors should more cautious in buying penny stocks cause of the higher risk rate.

Please have a look in the following scrips and hope the buy range may help you to make a decision....

1. Western India Shipyard

BSE CODE - 531217
PRICE ON 10/04 - 5.20
SECTOR - Ship/Rig Repairing/Manufacturing
BUY RANGE - - 3.00 – 5.00
52W Low/High - 03.10/35.00

Western India Shipyard Limited (WISL), India’s largest composite ship & rig repair facility in the private sector. It is one of the world’s advanced multi-dimensional and multi-purpose yard offering modern, streamlined and sophisticated ship & rig repair facilities and services. WISL’s Floating Dry Dock has a capacity to repair ships up to 60,000dwt and to accommodate ships up to 225m. length and 32.5m. in breadth. The company has already been proved its competence in repairing a vast range of domestic/foreign vessels in an admirable manner.

The yard has been designed and established in collaboration with world leaders in Ship Repairs. WISL is strategically located at Goa along the west coast of India at 15° 25' North and 73° 47' East and is geographically best positioned to offer a complete range of ship repair services.


BSE CODE - 532818
PRICE ON 10/04 - 02.40
SECTOR - Fashion Accessories/Apparels
BUY RANGE - - 01.50 – 3.00
52W Low/High - 01.49/18.70

Evinix Accessories (EVINIX) is in the business of designing and manufacturing fashion accessories and garments for exports as well as domestic markets. The company offers products in two categories. Fashion accessories includes caps, hats and bandanas, sports bags, ladies fashion bags, soft travel bags, wallets, leather belts, fashion belts, coin purses, travel kits, gift giveaways, wraps, stoles, scarves and shawls, baby bibs, cribs blanket and beddings. Fashion apparels include kidswear like trousers and tops (denim and non denim) and women`s wear like tops and dresses.
The company also undertakes bulk trading of processed and greigh fabrics. Two plants including a 100% export oriented unit in Faridabad, Haryana have in-house facilities for fabrication, washing and embroidery.
The combined installed capacity for fashion accessories and garments is 2 million pieces. The capacity after ongoing expansion, including the unit at NSEZ, Noida, would be 3,000,000 garments and 3,500,000 accessories.
The major buyer of products in the domestic markets includes Adidas India Marketing, Gokaldas India and Arvind Brands in Bangalore, V & S International Haryana. The company has entered into a licensing and sales agreement for caps and bags in the Gini & Jony brand. Overseas buyers include The GAP USA; Esprit Europe Trading & Product Development, Germany; Next Retail, UK; H & M Hennes & Mauritz, Sweden; Fashion Box Industries, Italy; and Debenhams Retail, UK.
Some of the new international brands on this division’s client list include American Eagle (US), Cecil (Germany), Next (UK), Fun & Basics (Spain), along with domestic brands like Puma and Gant. Evinix has been adding new products and new buyers at a very rapid pace in the Fashion Accessories segment. The company employs more than 700 people in the manufacturing facilities and also has a management and administrative staff of 150 people.

Cut StoresCUT, a MaBS (Many Brand Store), addresses the young audience between 16 and 35 years, and is a home to 61 global brands (Adidas, Puma, Kappa, 454, Purple Wine, Reebok, Lee, Levi's, Mercedes Benz, to name a fews). CUT is an acronym for Comfortable, Urban and Trendy. Evinix is setting up CUT stores (averaging 4000-5000 sq feet) in fast urbanizing young Indian towns. Company-owned and company managed, the CUT stores are brand selective and sell merchandise across the entire range of Apparel, Footwear and Accessories for young men and women. Strategically located on the high streets, close to universities and youth hang-outs, the stores boast of truly youthful and high spirited ambiance.

3. Marksans Pharma Ltd

BSE CODE - 524404
PRICE ON 10/04 - 02.40
SECTOR - Pharma
BUY RANGE - - 04.00 – 05.00
52W Low/High - 03.90/24.40

Marksans was incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. In the year 2005, an alignment pact of Marksans Pharma Ltd with Tasc Pharmaceuticals Ltd resulting in a creation of new entity: Marksans Pharma Ltd. With this successful integration the company has become an integrated player for both pharmaceuticals (based on chemical substances) and biopharmaceuticals.

Marksans Pharma, Headquartered in Mumbai (India) is vertically integrated global player with strong presence across the entire value chain from Active Pharmaceuticals Ingredient's (APIs) to formulations to biopharmaceuticals. The company is also actively engaged in R&D and offers Contract Research and Manufacturing Services (CRAMS) to global pharmaceutical companies.

The specialty focus of Marksans Pharma spanning in the medical fields of Oncology, Gastroenterology, Antidiabetic, Cardiovascular, Pain Management, Gynaecology and others. Furthermore, Marksans also inroads into complex and intricate markets dealing with Biotechnology and Neuro-psychiatry.

Manufacturing plants are built as per US FDA guidelines and approved by recognized UK MHRA, Australia TGA and Brazilian ANVISA health authorities and the products are supplied to more than 54 countries. The company has received a certificate of suitability for Metformin Hydrochloride drug substance from the European Directorate for the Quality of Medicines and Healthcare (EDQM).

4. Kitex Garments Ltd
BSE CODE - 521248
PRICE ON 10/04 - 05.04
SECTOR - Textile
BUY RANGE - - 03.00 – 05.00
52W Low/High - 02.91 / 08.48

Kitex Garments Ltd (KGL) is into the business of manufacturing and exporting garments. The company`s product range include shirts, polar fleece, T-shirts, kids wear, night wear, nylon jackets and shorts. The products of the company are exported to countries like the USA, U.K, Italy, Greece, Denmark and Middle East. Some of the customers of the company include Wal-Mart, Russel, Stage II, Hills, Wilson, Dunlop, Sarah Lee and J. C. Penny. To ensure the quality and timely availability of the major raw material i.e. fabric, the company has been developed a processing plant near the existing factory at a cost of Rs 458 million. The company have great expansion plans and Anna Alluminium is a subsidiary. Expect some surprise from them in short term

5. Birla Cotsyn India Ltd
BSE CODE - 533006
PRICE ON 10/04 - 03.86
SECTOR - Textile
BUY RANGE - - 04.00 – 05.00
52W Low/High - 03.00/17.50
Birla Cotsyn (India) is engaged in cotton ginning, pressing and oil expelling. It was converted into a public limited company with effect from May 30, 2006 and is part of the Yash Birla group.

The company has its units located in Khamgaon, Ghatanji and Dhulia. The textile project at Malkapur has been granted the mega project status by the Maharashtra government and will get fiscal benefits over the next 5 years.

As part of phase II of its expansions plans, the company will manufacture finished cloth with an installed capacity of 50,000 meters per day by setting up a dyeing and processing unit. In addition to the current expansion plans, it plans to start manufacturing its own branded garments in 2009 and has put up around 20 retail outlets across major cities in the country.

I am not responsible for your investment decisions, Please do your own research before investment in any of the above srips.


  1. Dear Mr Shabu,

    Nice article on 'unknown' or little known companies. Can you analyse your bit on 'Indian Textile sector' a bit? Which all companies stand chance to benefit cleanly from this laggard sector?

    I am asking this query for discussion to all known online blog owners to gauge their response on this lagging sector.

    My Textile Picks are: Bombay Rayon & Alok.

  2. Dear Mr. Viral,

    Thank u for the comment.. Personally, I am very much interested in searching some odd. I made considerable gains in some of them... For example... I bought electrothem @3 in 2003 level and sold @580 level in 2008. The another one is IKF bought @.70 paise and sold around Rs. 20 in 2008. Still I spend a considerable time to search such stocks and I am filtering down my list based on the day-to-day global economy transitions/news.

    Frankly, on the textile sector.. It must have a regular growth like Pharma/FMCG cause of being an unavoidable stuff to the mass. Bombay Rayon is my favourite too. The others are Evinix, Century and Chandni. But I prefer this sector for a balancing of my PF only.
    Best Regards

  3. Dear Mr Shabu,

    Great article, What are your views on IKF Technologies, I was concered about the promoters holdings I do not understand why prometers are not increasing their stakes inspite such low valuations

    Also what may be the reson for Western shipyards promoters offloading thr stakes evry quater....

  4. any particular reason for being so bullish on Western Shipyard?
    The company has negative reserve and surplus amounting to over 100 is also constantly making big losses....

    what in your opinion will make it survive?

  5. Dear Mohit,

    I am not much positive on IKF for a short term. In my oppinion, the Bio Fuel spectrum will take considerable time, minimum a 10-15 years for an active materialisation.

    Dear Faisal,

    Western India Shipyard, As I said in my above post, I am not considered the technicals for an assumption. Its one of my pick for a long term investment and I am very much bullish on this scrip due to following specifics I noticed.

    The Sector they involved.
    Enriched list of Vendors
    The big list of reputed clients (>400) for construction/repairing of vessels.
    The favourable geographical position
    The efficient BOD
    The rich order Book
    Widespread network.. etc...

  6. Dear Mr Shabu,

    Can you please comment on decreasing shareholdings of promoters of western india shipyard, they have been decreasing holdings constantly....

  7. Sir,
    What is your view on V-Guard and FACT.

  8. Dear Mohit,

    I have been noticed this issue and I don't think its a good practice for any promoters.
    Please go through the following link may help you for a decision.

  9. Dear Mr Shabu,

    Thanks for your reply.


  10. Dear James,

    Both the companies you named are excellent. But I bet for FACT. It should be a definite multibagger and the company made a considerable profit after 10 years of continous loss stories. The now, visionary management have initiated a lot of new projects and expansion plans. I expect a minimum five fold return with in 2-3 years. And please note that the Agriculture is the sector in days to come.

    V-Guard is also an excellent scrip have fine technical and fundamental basis. Tight competetion exists in the consumable electronics, Voltage Stabilizers, Solar/Electric WHs, Pumps & Motors, UPSs and Cable segments. The market penitration is good in south but not well in other part of the country. But the products are very much reliable and I hope this scrip will make miracles in a long term.

  11. HiShibu,

    Are you sure it will give 600% returns..

    check out the cash flow
    Cash flow

    Check out the operating activity for the last five years.....all in negative....what u say on this?

    (Rs crore)
    Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
    Profit before tax -34.61 -16.17 -14.56 -21.04 -12.92
    Net cashflow-operating activity -11.52 -7.02 -4.17 -20.88 -6.92
    Net cash used in investing activity -0.26 -10.47 -4.89 -4.47 -0.23
    Netcash used in fin. activity 12.97 19.95 5.81 23.27 2.09
    Net inc/dec in cash and equivlnt 1.19 2.45 -3.25 -2.08 -5.06
    Cash and equivalnt begin of year 3.50 1.05 4.30 6.38 11.45
    Cash and equivalnt end of year 4.69 3.50 1.05 4.30 6.38

  12. Dear Shabu,

    I really like ur can we subscribe to your post by email?

  13. Dear Shabu,

    Please give me your email ad...i really like your blog...iam a great fan of penny stocks....shabu mine dream is to become a rich person and penny stocks can only fullfill mine dreams...for the last 1 year iam searching for the penny stocks and i had found out only assam co and ikftech...shabu iam going to invest a huge amount of money into these penny stocks...60% in penny stocks,30% in midcap and 10% in large caps stocks.....

    Please recommend me some penny stocks in the price range of 0-10...

    Shabu ru sure that western shipyard will give 600% returns....

    I had only invested in PRAJ IND 100@198...

    Iam going to invest a huge amount....for the last 6 mths i have done lot and lot of research and find out top 25 pls recommend the stocks from the list that can full fill mine dreams.....iam a long term invetsor 7- 10 years or so....

    These are the stocks list



    so pls pick ur 10 fav stock from the above list that can give exceptional returns in the long term run......

  14. Shabu Sir, Thanks. I have read your all blogs today. Your view on Eastern silk for long term

  15. Shabu Sir,

    Nice to see your comment on penny stocks. What is your view on following penny stocks.

    Antarctica,Eastern Silk,Suryachakra power,Decolight ceramics,Kitex garments,Alpa labs,Krishan Lifestyle,Sita Shree foods,Bag films

    Karturi global……………………………………………

    Ranjit Thakur

  16. I will study on the scrips u specified and will revert.

  17. Spanco - A multibagger...?

    Rs.3750cr order to bagged by Spanco.

    Please analyse the below matter and reply...

    Three telecom companies — Spanco Telesystems and Solutions, TVS Interconnect Systems (a TVS group firm) and Acme Tele Power — have emerged as the front-runners for state-owned Bharat Sanchar Nigam Ltd’s (BSNL) Rs 30,000-crore infrastructure contract. Besides, network services major GTL and power company KEC are in the second and third positions, enabling them to get 25 per cent of the total contract.

    “Spanco was the lowest bidder for the west zone, TVS for south, Acme Tele Power for north and east for the passive cellular infrastructure (tower) contract. The telecom ministry has called for a meeting of the L1 players tomorrow, and a final decision on this will come out in a couple of days,” a source close to development said.

    BSNL would be spending around Rs 7,500 crore per zone, resulting in a Rs 30,000 crore outlay for all the four zones. This means that in case Spanco and TVS win the bid they would get contract worth Rs 7,500 crore, and Acme Tele Power Rs 15,000 crore of business.

    The contract is towards building and maintenance of passive cellular infrastructure including towers, shelters, diesel generators, air-conditioning and associated services, the source added.

    When contacted, Spanco Systems Deputy Managing Director Deepak Bhagchandaney confirmed the development and said the company was in final laps of bagging the contract.

    “BSNL is a strategic account and apart from bidding for passive infrastructure, we have also put in our bid for the information technology part (billing and software solutions). We are bidding for the north and east zones in IT,” said Bhagchandaney.

    TVS Interconnect and Acme Tele Power could not be immediately contacted for comments.

    Meanwhile, GTL has emerged as the second lowest bidder (L2) in west and north zones, and the third lowest (L3) in the east zone. KEC is believed to be L2 in the west zone.

    Under the BSNL contract, 50 per cent of the total contract will be awarded to L1, while the remaining 50 per cent would be spilt between L2 and L3 bidders. GTL is estimated to get around Rs 5,500 crore worth of business.

    When contacted, a GTL official, on condition of anonymity, said the company was comfortably positioned on “both technical and commercial evaluations. However, it is premature to comment on the timing and value of the contracts”.

    According to a KEC spokesperson: “We have not won the bid yet.” However, a company source said: “We are one of the final contenders but we have not been officially informed”.

    BSNL had earlier called for a 93-million GSM line contract in 2008, and divided the country into four zones. The bidding was divided into four parts — GSM equipment for 2G, GSM equipment for 3G, passive infrastructure and IT.

  18. Thanks for sharing valueable information

  19. Hi Shabu

    According to me the best growing stock in BSE is Compact Disc India. Their Website is also very good.Can you please give your views on this stock.Also on Surya Pharma and Kaveri Seed company as their website is very good.


  20. mr.shabu i am entering the share market. hope ur guidance will help me. i am from calicut ismail wafa 9847009508

  21. Dear Mr Ismail,


    Please refer the following link for details.

  22. dear shabu,
    please guide me for the stock VEER ENERGY..


  24. Thanks everyone who have participate in above discussion. I knew a lots of information about the goodness of penny socks. Thanks again. You are always welcome.

  25. Thanks for this great job. I like it very much....

  26. Really a super creation....

  27. You described very clearly and many information in one post. Good work. Thanks for sharing this useful information.

  28. These are actually impressive ideas in regarding blogging.
    You have touched some good factors here. Any way keep up wrinting.

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The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.

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