A very happy new year to all of you. My first post this year is about an interesting opportunity for which I would not like to give any targets. That I would leave all of you to decide upon. If you ask me I would be happy to take a personal loan @ 15% pa for a 3 year period and invest in this script.
Current price: Rs 351.45
Price target : Atleast 5 times
Time period : 3 years
So what is the company into. It is into microfinance. I leave it to the readers to find out what microfinance is the kind of opportunites it presents. (type microfinance india on google). This time round I am also not going to give to you the financials of the company. That is because the opportunity that this company presents to you will not be contained in the financials but the business model of the company which revolves around the concept of microfinance. Please visit SE investment site
So what makes me convinced enough to say that its a multibagger. Yes the financials show an increasing trend. The revenue and net profit growth is superb. But the most fascinating thing is its plans. No it has not revealed anything as yet but going by what it has spelt out in its EGM documents the plans should be huge. Going by the EGM documents and my experience in the corporate world it has huge capital raising plans. And am sure you would agree with me that unless the management has confidence on the business model such large expansion would not be thought of.
This is what it is going to do. It is increasing its Authorised share capital from Rs 8.50 crores to Rs 125 crores. Now raising the authorised capital cost money. As per todays rates it would cost Rs 0.6 crores.
They have called an EGM on the 15th of January 2009 to get shareholders approval for the same. My hunch is that very soon there is going to be announcements of how the money will be raised. Since the business is about lending money so more the money better it is. So ideally 10 times more money should lead to 10 times more profit in the years to come Lets see if my hunch is correct.
Hi,
ReplyDeleteGreat tips with details. I have studied all the tips you have provided in detail and they are awesome to say the least. Like SEL is a real value buy. Sumeet is a great growth story. And SE Investments is in a superb sunrise sector doing really well in the space. Keep up the good work. You should actually be charging for these tips and people will easily make whatever they pay you from just one of the tips.
Thanks and regards,
Manish.
Hi,
ReplyDeleteThis company is recomended by NSEGUIDE.COM as a delivery call three months back when it was quoting @Rs.215.00. Any how your analysis put more weight on the scrip. Thanks. Good work.
Hi Ambani,
ReplyDeleteNow that SE Investment has given spectacular results from your recommendation - more than 100% up in quick succession in the lasdt few weeks - what do you suggest we do now? Continue to hold for higher levels, book profits in full or in part? Please do advice with your valuable updates on the same.
Thanks and regards.
Hi manish,
ReplyDeleteWhy do you want to share yr gains with the government in the form of tax. Stay invested. Make this a long term stock. My hunch is that the real growth is still to come. The interest in this sector is only going to increase in the near future. Am waiting for the results to post an update.