ARCHIES LTD GOOD BUT UNDERPERFORMER

Hi Mahesh Kaushik,
Went through your blog which is amazingly simple and straight with good analysis.
It’s rare to find blogs like yours. Awesome work. KEEP IT UP.
My query is about Archies ( the greeting card and Gift Company)
Hallmark is out of business. And now Archies has monopoly. Mind you that this person sells other brand articles (Expression cards) and not that of Archies. So I studied their fundamental.
It’s below book value, good promoters holding, Brand name,
But what disturbed me that - Last yr. company made 8 Cr. of profit, but this yr. it had 1Cr. of loss. Pure economic recession can’t be the reason for this. And stock is coming down from 2-3 months, when sensex is going up.
So my query is can it become a multi-bagger from CMP?
With regards,
Vikas
1. archies ltd is a BSE group T share of 10 rupees face value.
2. you are right that promoter holding in archies ltd is 62.35 percent with no pledged share is good.
3. but your resulet information is wrong archies have 10.87 million net loss in FY 08-09 but in june 2009 company made net profit of 8.76 million (remember 1 million is equal to 10 lac not 1 cr) CLICK HERE TO SEE FULL RESULET OF ARCHIES.
4. archies have total 6756000 share but net sell of company is 1391.93 million means per share sell is 206 rupees is a good sign in warren buffet principle if per share sell is high compare to market price is good.
5. book value of archies is 117.93
6. i think current price of 80-90 is a good accumulating price for it but as you knew this is a speculative stock of T group this share is underperformer of current rally normally underperformer share will perform after 2-3 year so accumulate small quantity in every fall for 2-3 year view is good but I do not more optimistic about multi bagger story and do not like this share because card is replaced by SMS.
THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
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