Monday, October 24, 2016

Chambal Fertilisers and Chemicals Limited @ 62.65

1. Chambal Fertilisers and Chemicals Limited is a 10 rupee face value diversified company. 
Security ID : CHAMBLFERT  Group / Index : B / S&P BSE 500  Face value : 10.00  Security Code : 500085  ISIN : INE085A01013  Industry : Fertilizers.
Brief Details of Company: - Chambal Fertilisers and Chemicals Limited has two divisions, three subsidiary and one joint venture so in future this stock has an excellent chance to the demerger , 
Here are the details of Chambal divisions:-
1. Agri Divison: -Chambal Fertilisers and Chemicals Limited is one of the largest private sector fertilizer producers in India. It was promoted by Zuari Industries Limited in the year 1985. It's two hi-tech nitrogenous fertilizer (urea) plants are located at Gadepan in Kota district of Rajasthan. The two plants produce about 2 million MT of Urea per annum. The first plant was commissioned in 1993 and the second plant in 1999. These plants use state-of-the-art technology from Denmark, Italy, United States and Japan. The company caters to the need of the farmers in eleven states in northern, eastern, central and western regions of India and is the lead fertilizer supplier in the State of Rajasthan. The Company has a vast marketing network comprising 13 regional offices, 1,700 dealers, and 20,000 village level outlets.
The Company has donned the mantle of providing all agri-products through a 'single window' to enable the farmer to buy all products from one source. The Company dealers offer Urea and other agri-inputs like DAP (Di-Ammonium Phosphate), MOP (Murate of Potash), SSP(Single Super Phosphate), pesticides and seeds. Most of these products are sourced from reputed suppliers and sold under the 'Uttam' umbrella brand. Today, the Company has attained a leadership position in the pesticide business in North India.
2. Shipping Divison: - In 2004, Chambal decided to enter the energy transportation sector and acquired India Steamship Company Limited, one of India's oldest shipping companies.
Today, India Steamship has a fleet capacity of over 4,00,000 DWT in the form of four Aframax tankers.
Ratna Shruti
Ratna Shradha
Ratna Namrata
Ratna Shalini
In line with international shipping standards, all the Aframax tankers are double hull and built in 2008 and later. Three new Aframax Tankers of about 105,000 DWT each joined the fleet between April and July 2008. The latest addition is 'Ratna Shalini' which joined the fleet in the first quarter of 2010. 
The subsidiary of Chambal Fertilizer: - 
 Chambal Fertilizers have three subsidiaries:-
1.Chambal infrastructure venture Ltd: -Chambal proposes to foray into infrastructure related business including the Power Sector. A wholly owned subsidiary of Chambal - Chambal Infrastructure Ventures Limited (CIVL) has been set-up for the purpose. Chambal's endeavor in the power sector would be to build a major integrated power business, across various sectors, including fuel sourcing through coal mining to take advantage of the significant and expanding opportunities in the fast-growing power sector in India.
2.India Steamship Pvt. Ltd Singapore: -A wholly owned subsidiary engaged in the shipping business in Singapore.
3. CFCL Technologies Ltd: -With the aim to enter the software technology market, Chambal Fertilisers set up the India Software Group (ISG) in 1998 as its software arm. In an attempt to further expand in the overseas market, the company soon acquired Novasoft Information Technology Corporation, a New Jersey, U.S.-based company, along with its subsidiaries.
After a decade in the business and years of experience in product development and applications maintenance, the combined entity (ISGN®) decided to focus on providing technology solutions to the U.S. mortgage market to capitalize on its strengths.
The acquisition of MortgageHub Inc, a pioneer of web-based IT solutions and services, enabled ISGN’s plans of restructuring the mortgage industry. With a host of services and a clientele consisting of some of the largest lending organizations in the U.S., MortgageHub added greatly to the range of services offered.
A further expansion occurred with ISGN’s acquisition of the mortgage software division of the Fair Isaac Corporation, a leading U.S.-based enterprise decision management solutions provider for global businesses and Dynatek, a U.S.-based provider of mortgage automation software for retail and wholesale lenders.
Today, ISGN is one of the most diverse and experienced providers of mortgage technology and services. Its industry leading solutions cover the entire spectrum of the loan lifecycle, from origination to settlement services, to support core servicing, loss mitigation, and home retention services. With the acquisition of Fiserv’s Fulfillment Services division, ISGN has expanded to 7 U.S. and two global centers. With 1,000 employees and over 1,000 customers, ISGN delivers business solutions to large global financial institutions, national lenders, credit unions and neighborhood banks.
ISGN has a market reputation for quality and an unwavering focus on the mortgage industry. Since 2005, it has emerged as a formidable transformational leader, delivering exceptional quality and innovative solutions through its flexible and comprehensive suite of mortgage products and services.
Joint Venture of Chambal:-
Indo Maroc Phosphore SA (IMACID):-
Phosphoric Acid is an important raw material in the manufacture of Phosphatic fertilizers. This vital ingredient is in short supply in India. With the country being the largest importer of Phosphoric Acid, there was a clear need to secure captive sources of this chemical.
Initially, IMACID produced 3300 MTPD of Sulphuric acid, making it the largest single stream plant using Monsanto Environ Chem, USA Double Contact Double Absorption Technology Process and produced 1000 MTPD of merchant grade Phosphoric Acid based on Dihydrate Mark IV Process of Prayon Rupel Technologies, Belgium. After debottlenecking in 2006, the production of Sulphuric Acid has gone up to 3800 MTPD and Phosphoric Acid to 1400 MTPD.
Located at the port of Jorf Lasfar, IMACID factory is utilizing the mega infrastructure provided by OCP like a railhead for Rock phosphate and a modern port facility for liquid Sulphur and Phosphoric Acid. Further, IMACID has constructed a power plant of 27 MW Steam Turbo Generator, Water Treatment and Instrument Air system, Storage Tanks and Sea water pumping station to meet its requirements.
2. Year high of Chambal Fertilisers and Chemicals Limited is 73.40 year low was 50.85 and stock traded at 62.65, Year high/ low ratio is  below 2 , So stock is stable for fresh buy., If you are new reader of my blog and not familiar with my research terms, then please see my positional research terms at this link
3. Promoters of Chambal Fertilisers and Chemicals Limited hold 57.34 %  Promoter continue increasing his holdings since Dec 15 from 56.87% to 57.13% now this is 57.34%; I think promoters knew their company very well, so I like increasing promoters holding. 

Promoters pledged his 7.08% shares although promoters pledged shares quantity is very low, but the rule is the rule so due to my rule about pledged share I do not publish this stock on and publish it under trading stocks for 20%+ return only.
See full list of public shareholding including FII and DII here:-
Public Shareholding of Chambal Fertilizer
4.Chambal Fertilisers and Chemicals Limited is a dividend paying company and my regular followers knew that most of my recommendations are dividend paying because if you read my chinki story from this link:-
How Chinki Earn INR 4,73,90,45,652 from Stock Market
Then you understand that I do not use stop loss so if I hold any stock for a long time then I get dividends, see earlier history of Chambal Fertilizers Dividends here:-
Dividend Declared (  )
EX DateAmount ()
01 Sep 20161.9000
28 Aug 20151.9000
28 Aug 20141.9000
16 Aug 20131.9000
16 Aug 20121.9000
22 Aug 20111.9000
30 Jul 20101.9000
31 Jul 20091.8000
30 Jul 20081.8000
16 Jul 20071.8000
17 Jul 20011.4000
5. The base price of Chambal Fertilisers and Chemicals Limited is 57.01 and Chambal Fertilisers and Chemicals Limited cross his base price from down price to upper price ( read my book for more details). 
So at CMP 62.65 CFCL traded 9% above from his base price, Now I think the valuation of Chambal Fertilisers and Chemicals Limited is still cheap at this level.
Click here to download last three-year closing price data with the graph.
6. No any bonus issue right issue and bulk deals are recorded in last two years. (at BSE )
7. Chambal Fertilisers and Chemicals Limited net sale per share of FY 15-16 is 229.12.
8. Net sale per share 229.12 is  near four-times high from CMP, so stock has a good chance to become multi-bagger
9. Book value of Chambal Fertilisers and Chemicals Limited is 56.57 So CMP is near book value, and stock is not bad for 20% quick return.
8. Finally, I think Chambal is a good trading stock for 20%+  gain from here.
 Due to his subsidiaries and business diversified model stock have good chance to demerge in future.
So Chambal Fertilizer is a good company, but I am not going to buy it due to it pesticide business.
Why I do not buy this stock
For answer of this question remember point 8 of my 2014 recommendation of super crop safe (which I recommended at 14.55 and now traded at 121.60, If you do not remember it then read it again here: -Buy Super Crop Safe@ 14.55

So as I told earlier that I do not buy any stocks which have the business of Alcohol, Pesticides, Cigarettes, Meat and Poultry and this company is engaged in pesticides business.

9. 200 DMA of Chambal Fertilisers and Chemicals Limited is 61.68 So at CMP 62.65  Chambal fertilizers  recently cross his 200 DMA, and If we see June 2016 Result then we find that company turns around from loss to profit which is a good sign for upward movement.
10. I give this recommendation for 20% plus returns, but long term fundamental target price of the stock is 102.80 So you may hold it till 102-103 price.
11. My recent updates: -  Fedders Lloyd Ltd.
12. Disclaimer: - This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
13.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Chambal Fertilisers and Chemicals Limited, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Chambal Fertilisers and Chemicals Limited). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Chambal Fertilisers and Chemicals Limited) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Chambal Fertilisers and Chemicals Limited). 6. I have been not engaged in market making activity for the subject company (Chambal Fertilisers and Chemicals Limited).

Sunday, October 9, 2016

How Chinki Earn INR 4,73,90,45,652 from Initial investment of INR 6600

Respected Readers,
Read this premium article carefully because every point of this article will give you a new insight about stock market investing.

In Chapter 2 of my book The winning theory in stock market, I told that" if you invest initially $100 ( INR 6600) and add $10 (INR 660) every month and book 15% profits in my style, then your initial investment of $100(INR6600) will grow $71803722 (INR 4739045652) in 20 Years". 
Some of my book readers do not believe in this chapter 2 theory so for proving this theory from 21 April 2016 I start giving Short term positional calls with 20%+ target and 10% stop loss. 
Now I tell you how to use these short-term trading calls. For more interesting and easy understanding, I write this performance report in my Chandu style. 
New readers, please visit my Chandu story here: - 
How Chandu Follow my Fundamentals Tips. 
If you read all parts of Chandu story from above link, then you may understand that Chinki is Chandu best friend and after seeing Chandu progress in the stock market she also plans to invest in stock market, but Chinki does not complete his study yet. 
Chandu gifts my book to Chinki, and when Chinki read my book the winning theory in stock market, then she was very impressed with chapter 2 of the book. She was very excited after reading this chapter and unable to sleep the whole night. 
Next day she discusses this chapter with chandu that how it possible that she invest only INR 6600  and add INR 660 every month then she earn INR 4739045652 in 20 years. Chandu says" Chinki you are so lucky because from today ( on 21 April 2016 ) Mahesh Kaushik update on his sharegenius blog that he start giving short term positional calls for 3 days to 3 months so you may follow him from today and check chapter 2 practically. 
Chandu provides the link of this article to Chinki- 
After reading above, link chinki was very happy, while she enjoys reading of above blog posts Chandu ordered two ice cream cone. 

Chinki opens her ice cream cone and starts eating. 
After 2 minutes of silence, Chinki ask " But Chandu one thing I cannot understand clearly that you and Mahesh Kaushik both say do not book profit before one year then why I book profit before one year?" 
Chandu laugh and say " Chinki Mahesh Kaushik and me both are in 20% income tax range so If we sell our stock below 1 year then 20% income tax is applicable on our profits, we already pay huge income tax on our salary income, so we want tax free income from stock market, so this is the reason that we cannot book profit below 1 year of holding. 
Chandu takes a bite of his ice cream cone and continues"But you are a student and if you want to earn in short term selling then no problem to pay 15% flat short term capital gain tax on profits.Mahesh Kaushik wife also books profits in the short term and liable to pay 15% short term capital gains"
"Ok, I Got it," Chinki say. 
After this conversion, Chinki decided to invest his saving of INR 6600 as per my sharegenius blog recommendations, and she also decided to save/add INR 660 per month in his trading account. 
So Now we see what happen after 21 April 2016. 
On April 28, 2016: - I published my first short-term recommendation, read it here: - Punjab and Sindh Bank @ 37.90
Chinki divided his INR 6600 in 4 lots of INR 1500 each (1500*4=6000 remain 600 will use to pay brokerage and maintain saving account balance).
She invested his 1 part INR 1500 in PSB at 37.40 and bought 41 shares of PSB 
Total investment:-
41*37.40=1533.40+40 brokerage=1573.40 
Now Chinki remains cash was:-6600-1573.40=5026.60 
Chinki target price =44.88 which are 20% over from buying price 37.40.
( In my book I told 15% profit as standard profit but if you book your profit in short term means 3 days to 12 months then you need to pay 15% short term capital gains on your profit So If you book 20% profit then you get near 15-16% return after brokerage, short term capital gain tax, and interest depreciation.) 
Interest depreciation mean if you do not trade in the stock market and put your money in saving account then you get near 4% interest without doing anything so when we buy a stock then we do not get this 4% interest I called this interest as interest depreciation during our holding period.
On 1 May 2016:-
Chinki added his savings INR 660 so now Chinki hold 41 shares of PSB and has cash of 5026.60+660=5686.60
On 4 May 2016: - I published my 2nd short term recommendation, read it here: -
BGR Energy Systems @117.60 
Chinki invests his 2nd part INR 1500 in BGR Energy at 117.60 and buys 13 shares of BGR Energy. 
Total investment 
13*117.60=1528.80+40 brokerage=1568.80 
So now chinki remain cash is:-5686.60-1568.80=4117.80 Chinki target price =141.12 which are 20% over from buying price 117.60 
and as chapter 1 of my book in this story, I do not use stop loss because shopkeeper never uses the stop loss.
On 28 May 2016: - I published my 3rd short term recommendation, read it here: - Balasore Alloys Ltd @19 Chinki invest his 3rd part INR 1500 in Ballasore Alloys at 19 and buy 79 shares of BAL of 30 May 2016 because on 28 May 2016 market was closed ( Saturday). 
Total investment 19*79=1501+40 brokerage=1541
target 22.80 (20% above from 19)
So now chinki remain cash was:4117.80-1541=2576.80
On 1 June 2016:-
Chinki adds his savings INR 660
Chinki holding:-
41 share of PSB
13 Share of BGR
79 Share of Balasore Alloys
Total cash of 2576.80+660=3236.80
On 13 June 2016:-
I publish my 4th recommendation Jain Irrigation DVR @ 42.80, Read it here: -Jain Irrigation DVR @ 42.80 So Chinki buy 36 shares @42.80
Target=51.36 (20% up from 42.80)
Total investment=36*42.80=1540.80+40 brokerage=1580.80
Remain Cash=3236.80-1580.80=1700
On  14 June 2016:-
PSB target is achieved @44.88.
Chinki sell his 41 shares @44.88 and get=1840.08-40 brokerage=1800.08, 
So chinki total profit is 1800.08-1573.40=266.68, She pays 15% short term capital gain tax 40.00 on this profit booking so finally chinki get her first profit after brokerage and tax 266.68-40=226.68
( This first profit amount 226.68 is so small but do not forget power of compounding as you going through this story  you wonder how profit amount is increasing day by day ).
Chinki final amount from PSB sell ( After Tax)=1800.08-40(Tax)=1760.68
Remain Cash in Hand=1700+1760.68=3460.68
On  1 July 2016: - Chinki adds his savings INR 660 so now chinki hold:-
 13 Share of BGR
79 Share of Balasore Alloys
36 Shares of Jain Irrigation
 and has cash of 3460.68+660=4120.68
On 3 July 2016:-
I publish my 5th recommendation SAIL @ 46.10, Read it here: -SAIL @ 46.10 So Chinki buy 33 shares @46.10
Target=55.32 (20% up from 46.10)
Total investment=33*46.10=1521.30+40 brokerage=1561.40
Remain Cash=4120.68-1561.40=2559.28
On  14 July 2016:-
Balasore Alloys target is achieved @22.80 Chinki sell his 79 shares @22.80 and get 79*22.80=1801.20-40brokerage=1761.20, 
So chinki total profit is 1761.20-1541=220.20, 
She pays 15% short term capital gain tax 33.03 on this profit booking so finally chinki get her second profit after brokerage and tax 220.20-33.03=187.17
Chinki final amount from BAL sell ( After Tax)=1761.20-33.03=1728.17
Remain Cash in Hand=2559.28+1728.17=4287.45
On 18 July 2016:-
I publish my 6th recommendation Time Technoplast @ 52.30, Read it here: -Time Technoplast @ 52.30 
So Chinki buys 29 shares @52.30
Target=62.76 (20% up from 46.10)
Total investment=29*52.30=1516.17+40 brokerage=1556.70
Remain Cash=4287.45-1556.70=2730.75
On  29 July 2016:-
Time Technoplast target is achieved @62.76.
 Chinki sell his 29 shares @62.76 and get=1820.04-40brokerage=1780.04, 
So chinki total profit is 1780.04-1556.70=223.34, She pays 15% short term capital gain tax 33.50 on this profit booking.
 Finally, chinki gets her third profit after brokerage and tax 223.34-33.50=189.84
Chinki final amount from TTL sell ( After Tax)=1780.04-33.50=1746.54
Remain Cash in Hand=2730.75+1746.54=4477.29
On  1 Aug 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
36 Shares of Jain Irrigation
33 Shares of SAIL
 and has cash of 4477.29+660=5137.29
On 21 Aug 2016:-
I publish my 7th recommendation Panama Petro@ 62, Read it here: -Panama Petro @ 62 But 21 Aug was a Sunday, so chinki buys this stock on 22 Aug 2016
On 22 Aug 2016:-
Panama petro open with a gap up opening and open @65.70 instead of recommended price 62.
 Chinki buys it at closing price of 22 Aug which was 70.50 ( I knew honesty is the best policy so here I use buying price 70.65 instead of 62.00, and in future, I publish my recommendations during market hours only for prevent such kind of gap up opening)
Chinki buys 22 Shares
Target=84.78 (20% up from 70.65)
Total investment=22*70.65=1547.70+40 brokerage=1587.70
Remain Cash=5137.29-1587.70=3549.59
On the other hand:-
Jain Irrigation DVR target @51.36 also achieved on 22 Aug 2016.
Chinki sells his 36 shares @51.36 and get=1848.96-40 brokerage=1808.96. 
So chinki total profit is 1808.96-1580.80=228.16, She pays 15% short term capital gain tax 34.22 on this profit booking.
Finally, chinki gets her fourth profit after brokerage and tax 228.16-34.22=193.94
Chinki final amount from JIDVR sells ( After Tax)=1808.96-34.22=1774.74
Remain Cash in Hand=3549.59+1774.74=5324.33
One Important Change: -Now Chinki booked her 4th profit initially she divide his money into 4 lots, so after 4th profit booking she decided to increase per share investment amount as per chapter 13 of my book  "every time increase 7.5% of your initial investment amount for buying a new lot."
So 7.5% of 1500 is 112.50 she rounded off it in nearest hundred, so she increases INR100 per lot and new lot size is INR1600 per share.
So after every four profit booking chinki increase 7.5%  his per share invest amount.
On  1 Sept 2016: - Chinki adds his savings INR 660 so now chinki hold:-
 13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
 and has cash of 5324.33+660=5984.33
On  20 Sept 2016: - Panama petro gives 0.50 per share dividend, so chinki get 22*0.50=11 as dividend so total cash in hand=5984.33+11.00=5995.33

On 29 Sept 2016:-
I publish my 8th recommendation Indsil Hydro Power@36.20, Read it here: -Indsil Hydro @ 36.20 
Now Chinki invests INR 1600 in this share and buy
Chinki buys 45 Shares
Target=43.44 (20% up from 36.20)
Total investment=45*36.20=1629+40 brokerage=1669
Remain Cash=5995.33-1669=4326.33
On  1 OCT 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
45 Shares of Indsil Hydro
and has cash of 4326.33+660=4986.33
Now we calculate Chinki net worth on 09.10.2016 (Today):-
BGR CMP 117.30*13=1524.90
SAIL CMP 49.95*33=1648.35
Panama Petro CMP 77.90*22=1713.80
Indsil Hydro CMP39.70*45=1786.50
Total Net worth=11659.88
Next Part of this story will be published after 3 Months ( On Jan 2017) and every three months I update that how Chinki was building her Share Business.
Please remember I choose 6600 initial amount for practical to prove Chapter 2 and 13 of my book If you have more free money then you can start it with any amount suppose you want to start it with INR 50,000 then  I advise to add INR 5000 every month and initially start it with 4 lots of 11,000 each.
Now, This is your time:-
If you want to start your share market business in Chinki style, or in last three months you do not earn from the stock market like Chinki then, first of all, I recommended reading these three books to all of my followers. 
Here are the links to 3 books which you must be read before start stock market investment:-
1.The Winning Theory in Stock Market
2. How Chandu Earned And Chinki Lost In The Stock Market
3.The Richest Man in Babylon: Discover the Universal of Financial Abundance
4.How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor
After ordered above books tell your view in comments that what you think about this? Can it is possible to earn 4,73,90,45,652 from 6600 initial investment or my theory will fail in near future?
You enjoy this story or not? Will you like to start your stock market investment in Chinki style?
Please share your view in comments because they give me a lot of energy for my free work.


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