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caps
One of the most loved after words in the stock market is the
“multibagger”. Typically multibaggers are stocks that
go up a number of times. I plan to post a series of write-
ups on the similarities in specific financial attributes for the
multibaggers of the past ten years.I have named the series
as " How to identify the next Infosys?". This is so
because Infosys was a shareholder's delight not only in
terms of price appreciation but with respect to other
financial attributes as we would notice once other write ups
are posted. I have excluded companies like Bharti
Airtel, Unitech and Pantaloon Retail because they
have not completed 10 years of listing.
In the analysis that I did for the multibaggers for the Indian
stocks markets an interesting phenomenon was identified.
All multibagger companies started from a base of
very small market capitalization
*Approximate
So pls clarify, are you saying that chances are remote that
since Pantaloon and F.T. are already large caps they will not
be multibaggers going forward from current level (10 to 15
times in the next ten years) ?:
The trailblazers
CAG
%Marketshare FY01 FY03 FY06
R
220,06 234,04 330,13
Cement (Rsm) 8.5%
2 2 9
16.6
Grasim+Ultratech* 9.8 11.6 21.1
%
ACC 11.9 10.3 11.3 -1.0%
GujaratAmbuja 5.9 6.7 9.2 9.3%
Detergents (Rsm) 51,788 44,785 53,547 0.7%
HLL 35.9 43.1 40.4 2.4%
Nirma 21.4 21.6 20.3 -1.0%
P&GHealth&Hygein 21.9
2.3 2.7 6.2
e %
1,483,6 1,559,2 1,689,4
Fabrics (Rsm) 2.6%
79 95 18
ArvindMills 0.7 0.8 0.8 2.7%
10.8
AlokIndustries 0.3 0.5 0.5
%
14.9
Raymond 0.1 0.1 0.2
%
10.0
Hotels (Rsm) 40,775 39,543 65,541
%
IndianHotels 16.9 14.4 16.5 -0.5%
EIH 11.7 9.7 11.5 -0.3%
29.2
ITC 3.3 4.9 11.9
%
Passengercars 169,97 189,80 331,98 14.3
(Rsm) 3 0 9 %
Maruti 48.2 44.5 41.6 -2.9%
Similar capex led volume game was the case with JSW Steel
in the steel sector. In the detergent market, P&G Health &
Hygiene's 'Tide' garnered better realisations as compared
to peer HLL's 'Surf Excel' and 'Rin', thus scoring higher over
the latter. The strong performance of the company was also
on the back of focused marketing initiatives and deeper
distribution.
Coffee is the only commodity that has not moved much. The
next few years could be very interesting for coffee
producers. Jim Rogers owns a lot of coffee futures in his
commodity fund.
Manish:
But there were several factors the biggest being the “Buy
what you see” that made me buy and hold it the others were
only supplementing.
Valu Grow
e th
Large 12.4 9.6%
Cap %
Small 15.4 9.3%
Cap %
Value Growth
Large Well-known boring Well-known exciting
Cap businesses. businesses.
Small Unknown boring The next Microsoft is in here
Cap businesses. somewhere!
Price-to- Price-to-
book earnings
Large-Cap Value
ExxonMobil (NYSE: XOM) 3.5 11.5
Citigroup (NYSE: C) 2.2 11.1
Large-Cap Growth
Microsoft (Nasdaq: MSFT) 6.0 22.8
Procter & Gamble (NYSE: 10.7 21.5
PG)
Small-Cap Value
Colonial BancGroup 2.0 16.0
(NYSE: CNB)
Martin Marietta (NYSE: 3.1 20.9
MLM)
Small-Cap Growth
Joy Global (Nasdaq: JOYG) 8.6 38.9
Intuitive Surgical 11.9 87.5
Value Growt
h
Large $898,96 $130,1
Cap 7 65
Small $7,307, $103,6
Cap 903 26
--------------------------------------------------
Lumbering
The Law
CM Share
Company Value % of
P s
Rs
portfo
crore
lio
s
Pantaloon Retail 21544 112.0
520 32.56
(India) Ltd. 80 3
99423
India Infoline Ltd. 820 81.53 23.69
5
56850
TV18 890 50.60 14.70
4
22000
NIIT 985 21.67 6.30
0
66000
Balaji Telefilms 270 17.82 5.18
0
24000
Zee News 71 17.04 4.95
00
110 15000
Asian Electronics 16.50 4.80
0 0
Champagne 22142
628 13.91 4.04
Indage Ltd. 0
54100
Radico Khaitan 177 9.58 2.78
0
Galaxy
29730
Entertainment 115 3.42 0.99
2
Corpn. Ltd.
Total value of
344.0
portfolio (Rs
9
crores)
Piquant observations:
o His portfolio does see some churn but not before he has
made a multibagger out of his stocks. Stocks that he
has either reduced exposure or exited include Financial
Technologies, Astra Microwave Rishi laser
(suffered a loss here) Pantaloon Industries etc.
RAKESH JHUNJHUNWALA:
Titan Industries 8.08 285.26
Nagarjuna Construction 7.14 266.50
Bharat Earth Movers 3.75 203.92
Lupin 4.30 176.07
Praj Industries 11.1 132.84
Punj Lloyd 1.93 109.11
Pantaloon Retail 1.85 97.31
Bilcare 11.62 86.66
Matrix Laboratories 1.38 59.84
CRISIL 4.55 51.84
Karur Vysya Bank 4.88 43.10
Viceroy Hotels 14.23 36.76
Infomedia <ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN> 6.39 31.88
Hindustan Oil Exploration 2.74 24.13
Federal Bank 1.29 22.23
Mid-Day Multimedia 5.03 17.75
Geometric Software 2.96 16.99
Provogue (<ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN>) 2.96 16.97
TV Today 2.74 16.75
Agro Tech Foods 4.31 14.94
JB Chemicals & Pharmaceuticals 1.38 12.88
Ramco Systems 2.20 7.96
Zenotech Laboratories 2.55 3.23
Vadilal Industries 2.86 0.96
TOTAL 1,735.87
ANIL DHIRUBHAI AMBANI
ADAG:GROUP3,4
Anant Raj Industries 6.88 104.03
Jyoti Structures 7.42 55.91
Madhucon Project 3.88 54.57
TV Today 7.29 44.56
TV18 <ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN> 3.09 42.17
Magma Leasing 14.99 30.85
Saregama <ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN> 6.04 26.06
ICSA (<ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN>) 6.67 24.15
Subex Systems 2.33 22.09
Ruchi Soya Industries 1.67 17.63
Zodiac Clothing Company 7.17 17.20
Mercator Lines 1.78 14.80
Pitti Lamination 14.67 12.24
OCL <ST1:COUNTRY-REGIoN
w:st="on">India</ST1:COUNTRY-REGIoN> 1.83 10.35
Hindustan Dorr-Oliver 1.72 8.50
Ramco Systems 2.18 7.91
K Sera Sera Productions 2.50 2.77
Sarla Polyester 3.01 2.69
TOTAL 498.46