Company Research

What to do with Opto Circuits?

I’ve received a lot of emails over the past few days on my report on Opto Circuits (OCIL) and my “latest view” on the stock in light of its continuous fall – now down almost 11% from my intrinsic value of Rs 130.

Some people have also sent me hate mails asking why I researched and reported on a dud company like OCIL that is facing the “biggest problems faced by any company in the world”.

One reader also blamed me saying – “In my opinion you have just had a look at the presentations on the website of the company and not put your mind on the bigger picture.”

One reaction I can have on such emails is to rue my luck and curse myself for reporting on OCIL.

“How could you touch such a company?” the “expert analyst” inside me is itching to say.

Safal Niveshak StockTalk #9: BHEL

Welcome to the ninth issue of Safal Niveshak StockTalk. (Download PDF Report)

After covering Opto Circuits last time, this time I’ve researched on BHEL, India’s largest manufacturer of power generation equipments. Before we dive deeper into BHEL, here is a brief overview of the sections of this report.

About BHEL
Safal Niveshak’s 20-Point Checklist
Intrinsic Value Assumptions
Risk Statement (New Section)
Financial & Market Snapshot
“Should I Buy BHEL?” Checklist
Final Evaluation Checklist (New Section)

Is this Stock the “Next Page Industries”?

“What are you looking at?” my wife asked while staring at me.

“N-n-nothing dear!” I said. “I was just reading on a company.”

“All you guys are the same!” she said while rushing out of the room without even giving me a chance to explain.

“I knew this would happen!” I said to myself while turning back to that website of…Lovable Lingerie Ltd. (LLL).

I was looking at this company after a long-time reader of The Safal Niveshak Post, Nitin Shetty, asked me how he should go about researching this company and whether this could be the “next Page Industries” (the company behind the “Jockey” brand of innerwear in India).

Safal Niveshak StockTalk #8: Opto Circuits

Welcome to the eighth issue of Safal Niveshak StockTalk.

After covering Clariant Chemicals last time, this time I’ve researched on a mid-cap company, Opto Circuits (India) Ltd (OCIL). Before we dive deeper into OCIL, here is a brief overview of the sections of this report.

About OCIL
Safal Niveshak’s 20-Point Checklist
Intrinsic Value Assumptions
Financial & Market Snapshot
“Should I Buy OCIL?” Checklist

Safal Niveshak StockTalk #7: Clariant Chemicals

Welcome to the seventh issue of Safal Niveshak StockTalk.

After covering Balmer Lawrie & Co. Ltd. last time, this time I delve deeper into another small-cap company, Clariant Chemicals India Ltd. (CCIL). Before we dive deeper into CCIL, here is a brief overview of the sections of this report.

About CCIL
Safal Niveshak’s 20-Point Checklist
Intrinsic Value Assumptions
Financial & Market Snapshot
“Should I Buy CCIL?” Checklist

Infosys: Good to Buy?

Infosys On 22nd February 2012, I’d sent you a comprehensive research report on Infosys, as part of the StockTalk initiative.

The stock was then trading at Rs 2,940, and this is what my analysis told me to write to you…

…the fair value range for Infosys’s stock is Rs 2,740 to Rs 3,050. Assuming a margin of safety of around 20%, I would be comfortable buying Infosys’s stock at any price less than Rs 2,450…but not more than that.

Given that the stock’s current price of around Rs 2,940, I would wait for it to fall by around 15% before buying into the same.

That’s a good case of a great company, but not a great investment (at the current price).

So it is clear from the above words that while I was comfortable about Infosys as a business, I was not comfortable about Infosys as a stock as I believed its price was expensive (as I wrote – “…a great company, but not a great investment…”).

Safal Niveshak StockTalk #6: Balmer Lawrie & Co. Ltd.

Welcome to the sixth issue of the Safal Niveshak StockTalk.

After covering Graphite India last time, this time I delve deeper into another small-cap company, Balmer Lawrie & Co. Ltd. (BLCL). Before we dive deeper into BLCL, here is a brief overview of the sections of this report.

About BLCL
Safal Niveshak’s 20-Point Checklist
Intrinsic Value Assumptions
Financial & Market Snapshot
“Should I Buy BLCL?” Checklist

Safal Niveshak StockTalk #5: Graphite India

Welcome to the fifth issue of the Safal Niveshak StockTalk.

This time I delve deeper into a small-cap company, Graphite India Ltd. (GIL). GIL, despite being a small company, is India’s largest manufacturer of “graphite electrodes”, one of the most important components used while manufacturing steel using the electric arc furnace (EAF) route.

Before we dive deeper into GIL, here is a brief overview of the sections of this report…

About GIL
GIL’s Shareholder Value Creation Model
Safal Niveshak’s 20-Point Checklist
Intrinsic Value Assumptions
Financial & Market Snapshot
“Should I Buy GIL?” Checklist

Safal Niveshak StockTalk #4: Infosys

Welcome to the fourth issue of the Safal Niveshak StockTalk. (Download PDF Report)

This time I delve deeper into Infosys, India’s most well-known, well-understood, and well-followed company, at least within the financial analyst community.

The funny part is that, if you see 100 research reports on Infosys from 100 different analysts, while all might be using a different way to arrive at their target prices for the stock, the targets will be just 5-10% of each other.

The reason is because, unlike a majority of other Indian companies, Infosys shares a future ‘expected’ EPS number with analysts, and what analysts do is use different routes to arrive at their estimated number which is very close to what Infosys has given! 🙂

Safal Niveshak StockTalk #3: Voltas

Welcome to the third issue of the Safal Niveshak StockTalk. (Download PDF Report)

After covering L&T and Tata Steel in the first two reports, this time I delve deeper into another Tata Group company, Voltas, which is one of India’s two largest players in the business of electro-mechanical projects (includes air-conditioning, mechanical, electrical, and plumbing works), and also a leading name in the home home air-conditioner business.