Sunday, August 3, 2014

Some Good Companies in Indian Share Market...

According to my study, these are some of the best shares in the Indian stock market that I believe has lot of potential and these share prices can still rise:

  • Fiem Industries - manufacturing auto ancillaries,around 2 year back the sales was around 533 crores which has gone upto around 714 crores, the book value was Rs.109.00 around 2 years back and today its around Rs.150.00, EPS was Rs.17.00 and today its 31.00, the PE ratio was 10.00 and now its 17.9,  the share price was around Rs.185.00 2-3 years back and now its Rs,560.00, As per the current PE ratio of just 17.9 there is lot of scope for the share price to move up further. The sales growth is very good and has a good book value of Rs.150.00, The share price has to definetely move up still further, lot of potential.
  • MBL Infrastructure- This company is into construction, one of the fabulous company, with total equity of around Rs.17.51 crores, a very health book value of Rs.262.00,a huge sales of 1753.00 crores, the company recorded a 32% jump in sales ended march 2014, EPS of Rs.42.9 and PE ratio of 6.3, theres lot of growth that can be seen in the share price of this company in near future. At current share price of Rs.270.00 it looks attractive.
  • Force Motors - A good company manufacturing automobiles, compared to other market leaders like Tata motors, Ashok leyland this is a small company but with very healthy financial background. Sales around 2000 crores, with a PE ratio of 7.3 as compared to 13.00 around 2 years back, it looks attractive at current market price of Rs.450.00, amazing book value of Rs.930.00 , this share can be bought at these levels, but yes it will take a jump but wont show very high huge difference, may go upto around Rs.600-650 levels.
  • Motherson Sumi- One more leader in auto ancillaries, turn over of Rs.4500 crores, the operating profit margin is high of 19%, yes the EPS is not that good at just Rs.6.00, promoters stake in total company equity of Rs.88 crores is 66%, minus point is that the shares face value is Re.1.00 and not Rs.10.00, but still over all the company looks good and is doing well.
  • Shrenuj & Co - Diamond cutting and jewellery business, nice sales of Rs.2500.00 crores, equity Rs.19.00 crores, at current price of Rs.65.00 looks cheap, it was around Rs.120.00 just a month ago, but suddenly fell, around 2-3 years back the share price was in range of Rs.45.00 - 55.00 hence a these levels also looks cheap.
  • PC jewellers - Another good company in gold and jewellery business, a decent turnover of Rs.5300 crores, , net profit Rs.356.00 crores, EPS is quite good at Rs.20.00 with a Price Earning ratio PE of Rs.5.2 , the current price of Rs.115.00 looks reasonable.
  • Shreeram Transport Finance - Sales of Rs.7900 crores, EPS Earning per share is very nice at Rs.54.00, the PE ratio is just Rs.16.00, the average market PE of this sector is also Rs.16.00 so it means its not on the higher side, the price of Rs.877.00 looks decent , not very high and not low also. Can be bought at these levels for medium gains. The company,s book value is also good at Rs.350.00
  • MRF Tyres - Turnover Rs.12000.00 crores, total equity Rs.4.24 crores, book value per share at Rs.8597.00, PE is also not very high at just 12.0, Earning per share is excellent at Rs.21888.00 per share, around 2 years back the price was around Rs.9000.00 per share which has gone up to Rs.23000.00 at present, still to me it looks attractive at this price also, because the book value and EPS are very high, company has a decent record and is doing well, a cash rich company with good track record, it looks still economical at current levels.
This is my personal view about above shares, I do not recommend that these should be definetely bought. The market fluctuates due to various reasons and hence there is no guarantee about it.