Thank you once again for flooding my mail box with your suggestions, apprehensions and crtisism. I appreciate all of them. The genesis of this update is the response (and the queries) that I have got from some of you. Before I begin answering them I would just like to make a request.
I would really appreciate, if all of you post your suggestions, mistakes / errors that I might have made or absolutely anything about the post through the comments mode. I say this because some of the mails received by me have very genuine concerns which I think should be shared with all of the readers of this blog. Makes it easier for me to reply as well.
That in no way means you cannot send me personal mails. I am really delighted to hear from all of you. Its just that the comments mode is much more convenient.
So lets get down to the updates.
Question 1: What is the Nakoda Limited's website?
Answer: Nakoda's website can be accessed on http://www.nakoda.co.in/
Question 2: How have you arrived at the FY10 revenue number of Rs 1500 crores and margin numbers?
Answer: The numbers quoted by me have been mentioned by the management during their interview on CNBC. The transcripts of the interview can be read on moneycontrol. (link)
Question 3: This script seems to be operator driven? Whether the management is good or not?
Answer: Personally I am not sure that the script is operator driven. It is just that its not been discovered by the market. Once some paid service recommends it to its clients it should start flying. Now about the management, I am sure your guess is as good as mine after the Satyam episode. But my gut feeling says that these people are not all that bad. That because of the following reasons. Their shareholding is currently at about 50% and this has increased from about 44% in March 07. This could only mean that these people have faith in their business. However, I would again reiterate that this is purely my gut feeling.
Question 4: Anything unique about the company which makes it a value proposition?
Answer: The answer to this question is really contained in the management interview which can be corroborated with the company's performance over the years. What I like about the company is the way it has approached its business till now. Creating capacities which it can market. Going in for backward as well as forward integration.
Question 5: Am I invested in this company? What level should one enter
Answer: The answer is an absolute yes. Its a steal at this level. Anything below Rs 11 is a great level to enter.
Dont go by what I say. I suggest all of you to have a look at the results and the management interviews as well as the announcements. Let me know if I am wrong. I would be more than happy to acknowlede my mistake.
Time for your comments
good pick
ReplyDeletehi, this stock was already suggested by nse guide in their 'june2009-penny stocks'(Call given at 39, target 80+ acheived in NOV-09, they suggested to Book 50% profits at 80 and hold the rest for Long term.
ReplyDeletedear sir
ReplyDeleteI was thnking of buying Nakoda textile a month back but was a bit apprehensive. After your excellent analysis i invested a small sum of money in the stock . Needless to say, the stock has risen abt 25% from those level and i'm surprised by why no one else has suggested the scrip(except you, of course). Thanks and looking forward to further gems from you.
Thanks Aditya,
ReplyDeleteJust a suggestion though. Please dont sell out soon. Try and remain invested for about 6 months to a year to get good returns
Dear Sir,
ReplyDeletePer management estimate year ending Dec 2010,around 1400 - 1500 cros sales and increase margin by 6 percent means margin of 8.45 %.
after split, considering the above, EPS is going around 12 +.
so it is a amgazing pick.
after your suggestion this has gone from 11 rupees to 15 rupees.
I HAVE INVESTED 7200 SHARES AT 10.90 RUPEES PER YOUR SUGGESTION.
I WILL HOLD FOR AT LEAST 6 SIX MONTHS.
THANKS AGAIN YOU VERY MUCH.
PRADEEP