The Penny Passion - Multibaggers - I

I would like to list out the first batch of Penny Stocks as I mentioned in one of my previous post. We also had a discussion on some unethical activities occurs behind the screen in such scrips at Mr Kumaran's blog. I wish to request the readers to go through the following article before planning any investment in Penny Sctocks.

http://www.stockanalysisonline.com/search/label/Guest%20Articles

On the other side, a few number of such stocks have always turned out to be multibaggers from the bear markets or in any stage of the bull runs. But locating such srcips are almost impossible in the earlier stages because the Technical/Fundamental figures even looks very much weaken, the reason I skipped the technicals.

A close observation on such companies may help you out to assume the future prospective of the business they involved. It is also significant, you should prepare for a high risk level in the case of any negative results. Shortly, Investors should more cautious in buying penny stocks cause of the higher risk rate.

Please have a look in the following scrips and hope the buy range may help you to make a decision....

1. Western India Shipyard

BSE CODE - 531217
PRICE ON 10/04 - 5.20
SECTOR - Ship/Rig Repairing/Manufacturing
BUY RANGE - - 3.00 – 5.00
52W Low/High - 03.10/35.00

Western India Shipyard Limited (WISL), India’s largest composite ship & rig repair facility in the private sector. It is one of the world’s advanced multi-dimensional and multi-purpose yard offering modern, streamlined and sophisticated ship & rig repair facilities and services. WISL’s Floating Dry Dock has a capacity to repair ships up to 60,000dwt and to accommodate ships up to 225m. length and 32.5m. in breadth. The company has already been proved its competence in repairing a vast range of domestic/foreign vessels in an admirable manner.

The yard has been designed and established in collaboration with world leaders in Ship Repairs. WISL is strategically located at Goa along the west coast of India at 15° 25' North and 73° 47' East and is geographically best positioned to offer a complete range of ship repair services.

I expect a 600 to 700% return within 2-3 years from this stock.

2. EVINIX ACCESSORIES LTD

BSE CODE - 532818
PRICE ON 10/04 - 02.40
SECTOR - Fashion Accessories/Apparels
BUY RANGE - - 01.50 – 3.00
52W Low/High - 01.49/18.70

Evinix Accessories (EVINIX) is in the business of designing and manufacturing fashion accessories and garments for exports as well as domestic markets. The company offers products in two categories. Fashion accessories includes caps, hats and bandanas, sports bags, ladies fashion bags, soft travel bags, wallets, leather belts, fashion belts, coin purses, travel kits, gift giveaways, wraps, stoles, scarves and shawls, baby bibs, cribs blanket and beddings. Fashion apparels include kidswear like trousers and tops (denim and non denim) and women`s wear like tops and dresses.

The company also undertakes bulk trading of processed and greigh fabrics. Two plants including a 100% export oriented unit in Faridabad, Haryana have in-house facilities for fabrication, washing and embroidery.

The combined installed capacity for fashion accessories and garments is 2 million pieces. The capacity after ongoing expansion, including the unit at NSEZ, Noida, would be 3,000,000 garments and 3,500,000 accessories.

The major buyer of products in the domestic markets includes Adidas India Marketing, Gokaldas India and Arvind Brands in Bangalore, V & S International Haryana. The company has entered into a licensing and sales agreement for caps and bags in the Gini & Jony brand. Overseas buyers include The GAP USA; Esprit Europe Trading & Product Development, Germany; Next Retail, UK; H & M Hennes & Mauritz, Sweden; Fashion Box Industries, Italy; and Debenhams Retail, UK.

Some of the new international brands on this division’s client list include American Eagle (US), Cecil (Germany), Next (UK), Fun & Basics (Spain), along with domestic brands like Puma and Gant. Evinix has been adding new products and new buyers at a very rapid pace in the Fashion Accessories segment. The company employs more than 700 people in the manufacturing facilities and also has a management and administrative staff of 150 people.

Cut Stores
CUT, a MaBS (Many Brand Store), addresses the young audience between 16 and 35 years, and is a home to 61 global brands (Adidas, Puma, Kappa, 454, Purple Wine, Reebok, Lee, Levi's, Mercedes Benz, to name a fews). CUT is an acronym for Comfortable, Urban and Trendy. Evinix is setting up CUT stores (averaging 4000-5000 sq feet) in fast urbanizing young Indian towns. Company-owned and company managed, the CUT stores are brand selective and sell merchandise across the entire range of Apparel, Footwear and Accessories for young men and women. Strategically located on the high streets, close to universities and youth hang-outs, the stores boast of truly youthful and high spirited ambience.

Certifications/Awards

Registration by the Fair Trade Organisation, UK, as per international standards set by the international certification body, Fairtrade Labelling Organisation International (FLO).

Worldwide Responsible Apparel Production (WRAP) registration, USA, as a mark of compliance with a growing list of retailer requirements and audits of factories, based upon 12 principles established by WRAP.

Garmenting, knitting and processing operations have been evaluated, approved and certified by Control Union, Switzerland, earlier known as SKAL.

Awarded Silver Trophy, the second highest award in the 100% EOU/EPZ- Made-ups category, for determined marketing and promotional efforts that led to cotton made-ups exports of over Rs. 5 crores (for outstanding export performance in the year 2001-02) by TEXPROCIL, The Cotton Textiles Export Promotion Council, India.

One of the few companies to get a certificate of quality from Flocert, Germany, for maternity wear.

PASS (Perfect Asia Sourcing Services) is a hologram of quality certification. Every product quality-checked through CUT, is fixated with a unique PASS hologram, doubly assuring the authenticity of the quality of the product.

I expect, this scrip will be a multibagger with in few years or after the recession menace. They have all that stuff to make our teens addicted.

3. Marksans Pharma Ltd

BSE CODE - 524404
PRICE ON 10/04 - 02.40
SECTOR - Pharma
BUY RANGE - - 04.00 – 05.00
52W Low/High - 03.90/24.40

Marksans was incorporated in 2001 as a wholly owned subsidiary of Glenmark Pharmaceuticals Ltd. In the year 2005, an alignment pact of Marksans Pharma Ltd with Tasc Pharmaceuticals Ltd resulting in a creation of new entity: Marksans Pharma Ltd. With this successful integration the company has become an integrated player for both pharmaceuticals (based on chemical substances) and biopharmaceuticals.

Marksans Pharma, Headquartered in Mumbai (India) is vertically integrated global player with strong presence across the entire value chain from Active Pharmaceuticals Ingredient's (APIs) to formulations to biopharmaceuticals. The company is also actively engaged in R&D and offers Contract Research and Manufacturing Services (CRAMS) to global pharmaceutical companies.

The specialty focus of Marksans Pharma spanning in the medical fields of Oncology, Gastroenterology, Antidiabetic, Cardiovascular, Pain Management, Gynaecology and others. Furthermore, Marksans also inroads into complex and intricate markets dealing with Biotechnology and Neuro-psychiatry.

Manufacturing plants are built as per US FDA guidelines and approved by recognized UK MHRA, Australia TGA and Brazilian ANVISA health authorities and the products are supplied to more than 54 countries. The company has received a certificate of suitability for Metformin Hydrochloride drug substance from the European Directorate for the Quality of Medicines and Healthcare (EDQM).

4. Kitex Garments Ltd

BSE CODE - 521248
PRICE ON 10/04 - 05.04
SECTOR - Textile
BUY RANGE - - 03.00 – 05.00
52W Low/High - 02.91 / 08.48

Kitex Garments Ltd (KGL) is into the business of manufacturing and exporting garments. The company`s product range include shirts, polar fleece, T-shirts, kids wear, night wear, nylon jackets and shorts. The products of the company are exported to countries like the USA, U.K, Italy, Greece, Denmark and Middle East. Some of the customers of the company include Wal-Mart, Russel, Stage II, Hills, Wilson, Dunlop, Sarah Lee and J. C. Penny.

To ensure the quality and timely availability of the major raw material i.e. fabric, the company has been developed a processing plant near the existing factory at a cost of Rs 458 million.

The company have great expansion plans and I realised the south always asked for kitex lungies.. :-), Anna Alluminium is a subsidiary.

5. Birla Cotsyn India Ltd

BSE CODE - 533006
PRICE ON 10/04 - 03.86
SECTOR - Textile
BUY RANGE - - 04.00 – 05.00
52W Low/High - 03.00/17.50

Birla Cotsyn (India) is engaged in cotton ginning, pressing and oil expelling. It was converted into a public limited company with effect from May 30, 2006 and is part of the Yash Birla group.

The company has its units located in Khamgaon, Ghatanji and Dhulia. The textile project at Malkapur has been granted the mega project status by the Maharashtra government and will get fiscal benefits over the next 5 years.

As part of phase II of its expansions plans, the company will manufacture finished cloth with an installed capacity of 50,000 meters per day by setting up a dyeing and processing unit. In addition to the current expansion plans, it plans to start manufacturing its own branded garments in 2009 and has put up around 20 retail outlets across major cities in the country.

Please spend a few minutes to comment on the article as we consider it as a big appreciation whether it is negetive or positive. It will also encourage me to research and find more for you. The following screenshot showing the details of readers in last 7 days and its blatant that I am eager to know, what u think on the article.