Thursday, April 4, 2013

Love at first sight


I am almost 50 and I have fallen in love again.

I did not even know this company till a few days back. My ex -student, expert stock picker and advisor, Jatin introduced me to this company three days back. My first impression was that it is too small and too cash rich. It sure was an unusual company – its website did not even list the services that it offers  -and  I wondered what the marketing department was doing?

Jatin persisted – sent me a few reports and as I read the reports – I fell in love slowly. I spent almost the whole day yesterday doing research on this company – slept over it last night and today I am happy to announce that I am investing in this company.

The company is NESCO  – they own 70 acres of land in Mumbai  - of this they have used 25 acres and the remaining is still to be utilised.  They own the Bombay Exhibition centre where most of the large exhibitions in Mumbai are held – the centre is booked all through the year and earns them INR  80 cr per annum. They also have commercial spaces rented out to IT companies, from where they earn INR 25 cr plus per annum. Both these are very high margin businesses.

They are  adding additional commercial space and exhibition space in the next 3-4 years. The management is conservative and uses cash generated internally for these expansions and they are very cash rich (appx 240 cr in their books).

My analysis shows that it will give a good 20% plus return every year at the current price of 790-795 per share.
 would suggest that you also do your analysis before investing in this stock.
 
Here is a small note for my readers -
I have stopped  sharing my equity calls through this blog. But in case you want to know my equity calls, please do write to me at rajasekharan.sg@gmail.com or in the comment column below -I have a private mailing list where I share my equity calls. Remember, when you decide to follow my calls, the rewards are your's but the risks are your's too.