FINANCE & STOCK ADVICE: Analysis of Walchandnagar Industries Limited

About The Company

Walchandnagar Industries Ltd is an ISO-9001 -2000 certified, multi product,multi discipline,high-tech, heavy engineering, Projects execution company catering to diverse Industries such as: Projects Include Steam & Power generation , Cement , Mineral processing & Sugar Plant Products Include Heavy duty gear boxes , Material Handling & Process equipments , Castings & precision instruments , & Production of customer designed equipment of National importance for Aerospace , Defence and nuclear power.

The company was incorporated on 25th November 1908 , at Mumbai with 2,500 No. of equity shares issued without
payment in cash.In 2008  the Company has issued Bonus Shares in the Ratio of 1:1 & has splits its face value
from Rs10/- to Rs2/-

About The Financials

For the second quarter ended 31st March 2010, the topline of the company remains flat, with a QoQ fall of 4% and 2% rise on a YoY. Net profit fell sharply on the back of mounting operating costs, down 52% QoQ and 61% on a YoY. NPM was its lowest at 1.5%.

Major News

Walchandnanagr has signed a MoU with French naval shipbuilder DCNS, to manufacture critical
equipment for Scorpene submarines to be used by the Indian Navy.

It shortly expoected to have a second contract P75i project, advanced submarines with DCNS.

India plans to source 70% of its defence requirement from indigenous sources by the end of this year.

My Recommendation

The company profile is satisfactory with a diverisified portfolio in the working field. The company has always rewarded its shareholder in form of bonus , split , dividend and hike in price of the stock. From long term prospective the stock is a good buy and could be bought on dips by averaging method.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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Analysis of Walchandnagar Industries Limited