Tuesday, April 11, 2017

Elecon Engineering Company Ltd @59.05

1. Elecon Engineering Company Ltd is a 2 rupee face value industrial machinery company.

Security ID: ELECON Group / Index: B / S&P BSE SmallCap Face value: 2.00 Security Code: 505700 ISIN: INE205B01023 Industry: Industrial Machinery. 
Brief Details of Company: - 
Elecon Engineering Company Ltd. was established in the year 1951 as The Pioneers in the manufacturing of Industrial Geared Motors and Reducers, Material Handling Equipment, Mining equipment, casting processes, etc. 
Elecon is one of the largest manufacturers of Material Handling Equipments and Industrial Gears in Asia. 
Elecon's recent acquisition of Benzlers- Radicon Group, belonging to the David Brown Gear Systems adds to the expertise in the manufacturing of custom made Gearboxes for Steel Mills, High-Speed Turbines, Satellites for ISRO and also for the Naval Aircraft carriers and many growth sector industries successfully. 
A unit of Elecon Engineering Company Ltd. which is also the 3rd largest Material Handling solutions company in the country along with in-house design, manufacturing, fabrication, component manufacturing, and support system in a Vertically Integrated Model. First in India to manufacture sophisticated equipment for Bulk Material Handling and a product range that caters to almost every Industrial sector in India. 
The product solutions include designing, manufacturing, supply, erection and commissioning. 
The company has 4 divisions:-
3-FOUNDRY DIVISION Elecon's Foundry Division (EFD), is ISO 9001-2008 certified and caters to machining and foundry needs of Elecon Engineering. After five decades expertise in the industry, EFD now provides casting and machining services to several other companies other than Elecon group with its ultra modern amenities to fulfill high-quality requirements. The Ferrous and Non-Ferrous Foundry is spread over ten acres of land and has state of the art melting, molding and heat treatment and quality assurance facilities.
4-ALTERNATE ENERGY PRODUCTS: -wind power plants like Suzlon.
Source:-https://www.elecon.com/products (Company Website)
2. Year high of Elecon Engineering Company Ltd is 74.00 year low was 45.40 and stock traded at 59.05, 
Year high/ low ratio is below 2,
If you read above research terms in my book, then you may know that generally, I like a stock which year high/low ratio is below 2.
 If you are the new reader of my blog and not familiar with my research terms, then please see my research terms at this link: - Research Terms Of Mahesh Kaushik For Trading Stocks 
3. Promoters of Elecon Engineering Company Ltd hold 58.58 % stocks.
 Promoters pledged their 13.31% stocks, and for sharegenius blog tips, we accept pledged stocks till 33%. 
One more good thing which I want to tell that promoters reduced their pledged stocks from 20.10% to 13.31% it means promoters re-pay their loans and reduced their pledged stocks, see march 2017 and Dec 2016 holdings from these links:-

Now see FII and DII Holdings from this link: - 

When you open above link you may note that Hdfc Trustee Company Ltd - Hdfc Core And Satellite Fund & Hdfc Prudence Fund & Hdfc Infrastructure Fund hold 7529884 stocks, So this huge DII holding indicates future performance possibility in this stock

4.Elecon Engineering Company Ltd pay regular dividends since 2007 and you may already knew that most  of my fundamentals/trading recommendations are dividend paying, so you get dividends in your holding time, 
See past dividend history of Elecon Engg Ltd:-
EX DateAmount ()
18 Jul 20161.1000
06 Aug 20151.1000
18 Jul 20141.0000
08 Aug 20131.0000
23 Jul 20121.8000
28 Jul 20111.8000
29 Jun 20101.5000
29 Jun 20091.5000
11 Jul 20081.5000
13 Jul 20071.5000

5. The base price of Elecon Engineering Company Ltd is 61.75 So Stock is traded almost 2% below from base price and Ready to cross his base price from downside to upside this is a strong buying indicator as per my first book "The Winning Theory In Stock Market." 
6. No any bonus issue right issue and bulk deals are recorded in last 2 years.
7. Elecon Engineering Company Ltd net sale per share of FY 15-16 is 46.24. 
8. Net sale per share 46.24 is lower from CMP but last year 2015-16 net sales 518.84 cr. And first three-quarter sales of June 2016+ Sept2016+ Dec 2016 was=
111.86+ 202.04+237.30=551.20 Cr 
So this year 2016-17 net sale is increasing, and I think estimated net sale per share for the year 2016-17 is near 60, So recommended price is near the stock net sale per share.
9. The book value of Elecon Engineering Company Ltd is 50.14 Book value is near CMP, So this stock is traded near his book value. 
8. Finally, I choose Elecon Eng for 20% plus returns in 3 months time frame. 
9. 200 DMA of Elecon Engineering Company Ltd is 57.96, So at CMP 59.05  this stock recently crossed his 200 DMA and As per my 2nd book How Chandu Earned And Chinki Lost In The Stock Market  these types of stocks show good movement in short time.
If you read my both books, then you no need to wait for my free advice you can able to select these type of stocks by your own knowledge which is my main motto.
 My recent updates:
Chinki also going to invest her INR 1700 on next trading day ( 12 April 2017) closing price, If you do not know about Chinki then read this link:-

Part 2: How Chinki Earn INR 4,73,90,45,652 from Initial investment of INR 6600

Please remember that due to my follower's faith in my recommendation's it is possible that you see large volume and tradings tomorrow so please remember:-
1. Do not be hurry up to buy and wait for price and volume stability.
2. Do not invest huge money in a single stock because I am also a human and sometimes my calculations become wrong and the price will be down so if you invest huge money then do not forget to put appropriate stop loss, in this stock case stop loss is 52 ( Closing basis).
Happy Investing  

11. 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 the full disclaimer at the bottom of my blog. 

12.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 with 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 held any share of Elecon Engineering Company Ltd 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 ( Elecon Engineering Company Ltd). 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(Elecon Engineering Company Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Elecon Engineering Company Ltd). 6. I have been not engaged in market making activity for the subject company (Elecon Engineering Company Ltd).

Sunday, April 2, 2017

Part 2:How Chinki Earn INR 4,73,90,45,652 from Initial investment of INR 6600

Respected Readers,
For start your investment in the stock market you no need to invest 5 lacs or 10 lacs rupees, in my sharegenius theory of trading cum investing you only need INR 6600 as the initial investment and add INR 660 every month to grew your stock market business.
I prove this strategy with practical examples, but this article is part 2 of this Chinki story so if you forget part 1 and if you are a new reader then I request you that, for more clear and thorough, understanding of this theory, please read part 1 of this story from this link:-
If you read part 1 again, then you remember that Chinki starts his investment on 28 April 2016 and every month she adds INR 660 in his investment.
I published above first part on 9 Oct 2016 so as on 9 Oct 2016 Chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
45 Shares of Indsil Hydro
and has cash of =4986.33
Now we continue with 2nd part of this Chinki story:-

On 24 Oct 16:-
I publish my 9th recommendation Chambal fertilizer@62.65,
Read it here: -Chambal fertilizer@62.65
Now Chinki invests INR 1600 in this share and buy Chinki buys 26 Shares
Target=75.18 (20% up from 62.65)
Total investment=
26*62.65=1628.90+40 (brokerage)=1668.90
Remain Cash=4986.33-1628.90=3357.43

Same day Chinki stock Indsil Hydro power touch his target of 43.44 and Chinki sell his 45 shares and book her 5th profit as below:-
Chinki sells his 45 shares @43.44 
and get=1954.80-40 (brokerage)=1914.80. 
So chinki total profit was 1914.80-1669=245.80, 
She pays 15% short term capital gain tax 36.87 on this profit booking. 
Finally, chinki gets her fifth profit after brokerage and tax 245.80-36.87=208.93
Chinki final amount from Indsil Hydro sells ( After Tax)=1914.80-36.87=1877.93 
Remain Cash in Hand=3357.43+1877.93=5235.36
I make this report with honesty so as per rule I show that Chinki books her 20% profits on Indsil Hydro, but it is interesting to know that on 24 Oct 2016 I warn my followers that more upside remains in this stock.
New followers who do not watch this 24 Oct 2016 video, then please watch it now to understand how I catch more upside in indsil hydropower:-

On 26 Oct 2016;-
Chinki stock Panama Petro touches his target of 84.78 
Chinki sells his 22 shares and books her 6th profit as below:-
Chinki sells his 22 shares @84.78 
and get=1865.16-40 brokerage=1825.16. 
So chinki total profit was 1825.16-1587.70=237.16, 
She pays 15% short term capital gain tax 35.62 on this profit booking. 
Finally, chinki gets her 6th profit after brokerage and tax 237.16-35.62=201.54
Chinki final amount from Panama Petro ( After Tax)=1825.16-35.62=1789.54 
Remain Cash in Hand=1789.54+5235.36=7024.90
On 1 Nov 16: - 
Chinki adds fresh amount INR 660
13 Share of BGR
33 Shares of SAIL
26 Shares of Chambal Fertilizer
Due to demonetization all of Chinki stocks down badly BGR down near 100 (which she buy @117.60 and Chambal down near 56 which she buy @62.65).
She does not worry and do not ask me the reason of this downfall because she knew she has a method of long-term investing, but my weak followers put a lot of negative comment like I cheat them, why Chamble not performing and Why I put Chambal Fertilizer recommendation at a higher price of 62.65? 
For these type of followers I post this video:-

On 1 Dec 16: - 
Chinki adds fresh amount INR 660
13 Share of BGR
33 Shares of SAIL
26 Shares of Chambal Fertilizer
On 21 Dec 16:-
I publish my 10th recommendation D-link India@107.45,
Read it here: -D-Link India @ 107.45
Now Chinki invests INR 1600 in this share and buy Chinki buys 15 Shares
Target=128.94 (20% up from 107.45)
Total investment=15*107.45=1611.75+40 brokerage=1651.75
Remain Cash=8344.90-1651.75=6693.15
On 1 Jan 17: - 
Chinki adds fresh amount INR 660
13 Share of BGR
33 Shares of SAIL
26 Shares of Chambal Fertilizer
22 Shares of D-Link India
On 4 Jan 2017: -
Chinki stock Chambal Fertilizer touches his target of 75.18 and Chinki sell his 26 shares and book her 7th profit as below:-
Chinki sells his 26 shares @75.18 
and get=1954.68-40 brokerage=1914.68. 
So chinki total profit was 1914.18-1668.90=245.28, 
She pays 15% short term capital gain tax 36.80 on this profit booking. 
Finally, chinki gets her 7th profit after brokerage and tax 245.28-36.80=208.48
 Chinki final amount from Chambal Fertilizer ( After Tax)=1914.68-36.80=1877.88 
Remain Cash in Hand=1877.88+7353.15=9231.03
On 11 Jan 2017: -
Chinki stock SAIL touches his target of 55.32 and Chinki sell her 33 shares and book her 8th profit as below:-
Chinki sells her 33 shares @55.32 
and get=1825.56-40 brokerage=1785.56. 
So chinki total profit was 1785.56-1561.40=224.16, 
She pays 15% short term capital gain tax 33.62 on this profit booking. 
Finally, chinki gets her 8th profit after brokerage and tax 224.16-33.62=190.54
 Chinki final amount from SAIL ( After Tax)=1785.56-33.62=1751.94 
Remain Cash in Hand=1751.94+9231.03=10982.97
One Important Change: -Now Chinki booked her 8th 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 22 Jan 17:-
I publish my 11th recommendation Shakti Pumps@145.20,
Read it here: -Shakti Pumps@ 145.20
22 Jan 17 was Sunday, So on next trading day 23 Jan 2017 my 18000 followers rush to buy so Shakti Pumps open with a gap up opening and open @150.70 instead of recommended price 145.20. 
Chinki buys it at closing price on 23 Jan 2017 which was 156.95 ( I think honesty is the best policy so here I use buying price 156.95 instead of 145.20, ) 
Now Chinki invests INR 1700 in this share and buy Chinki buys 11 Shares
Target=188.34 (20% up from 156.95)
Total investment=11*156.95=1726.45+40 brokerage=1766.45
Remain Cash=10982.97-1766.45=9216.52
On 27 Jan 2017:- 
Chinki stock D-Link touches his target of 128.94 and Chinki sell her 15 shares and book her 9th profit as below:-
Chinki sells her 15 shares @128.94 
and get=1934.10-40 brokerage=1894.10. 
So chinki total profit was 1894.10-1651.75=242.35, 
She pays 15% short term capital gain tax 36.35 on this profit booking. 
Finally, chinki gets her 9th profit after brokerage and tax 242.35-36.35=206.00
Chinki final amount from D-Link ( After Tax)=1934.10-36.35=1897.75 
Remain Cash in Hand=1897.75+9216.52=11114.27
On 1 Feb 17: -
 Chinki adds fresh amount INR 660
13 Share of BGR
11 Share of Shakti Pumps
On 06 Feb 2017: -
Chinki stock BGR Energy Ltd touch his target of 141.12, and Chinki sells her 13 shares and books her 10th profit as below:-
Chinki sells her 13 shares @141.12 and get=1834.56-40 brokerage=1794.56. 
So chinki total profit was 1794.56-1568.80=225.76, 
She pays 15% short term capital gain tax 33.86 on this profit booking. 
Finally, chinki gets her 10th profit after brokerage and tax 225.76-33.86=191.90
 Chinki final amount from BGR ( After Tax)=1794.56-33.86=1760.70 
Remain Cash in Hand=1760.70+11774.27=13534.97
On 1 Mar 17: - 
Chinki adds fresh amount INR 660
11 Share of Shakti Pumps
On 07 Mar 17:-
I publish my 12th recommendation Andhra Bank@54.65,
Read it here: -Andhra Bank @ 54.65
Now Chinki invests INR 1700 in this share and buy Chinki buys 31 Shares
Target=65.58 (20% up from 156.95)
Total investment=31*54.65=1694.15+40 brokerage=1734.15
Remain Cash=14194.97-1734.15=12460.82
On 27 Mar 2017: -
Chinki stock Shakti Pumps Ltd touches his target of 188.34 and Chinki sell her 11 shares and book her 11th profit as below:-
Chinki sells her 11 shares @188.34 and get=2071.74-40 brokerage=2031.74. 
So chinki total profit was 2031.74-1766.45=265.29, 
She pays 15% short term capital gain tax 39.79 on this profit booking. 
Finally, chinki gets her 11th profit after brokerage and tax 265.29-39.79=225.50
 Chinki final amount from Shakti Pumps ( After Tax)=2031.71-39.79=1991.92 
Remain Cash in Hand=1991.92+12460.82=14452.74
Now we calculate Chinki net worth on 02.04.2017 (Today): - 
Andhra Bank CMP 57.90*31=1794.90 
Total Net worth=16247.64 
Next Part of this story will be published after 3 Months ( On 15 July 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 I think you want to ask that Chinki has a lot of cash why?
Simple, My formula is so practical, I scan 20-30 stocks per day as per this video:-

And If I found a fresh stock I publish on my blogs.
If I am unable to find any fresh stock from this method and our cash is increasing this mean market fall is near because when fundamentally unsound stocks give breakouts then it is a sign of overpriced market.
I am not a forecaster, but I hope in May 2017 -June 2017 we will see a market correction and after this correction, we will see many fundamentally sound stocks show breakouts.
If this happen and If I found a lot of good stocks with new breakouts, then this blog will be updated in every week so that time we need this cash, and we utilize this cash if it really happens.
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 4 books to all of my followers. 
Here are the links to 4 books which you must read before start stock market investment:-
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.
Two more important updates:-
1. If your total yearly income from share trading or other business/salary is below then 250000 then you no need to pay 15% short term capital gain tax.
 Because, In the case of the resident individual or an HUF, the basic exemption limit will be allowed for calculating income tax on capital gains. 
It means while we calculate the taxable income of an individual or HUF and there is any shortfall in basic exemption limit then capital gain can be adjusted to reach minimum exemption limit.
2. My next book is in progress, and due to a lot of demand from my Hindi speaking followers, I write my next book in Hindi.
In this new book, I will tell you how to start stock market investment this book will cover all basic to the advanced issue like how to open d mat account and how to select stocks. 
This new book name "कैसे पहुंचा अब्दुल शेयर बाजार के शून्य से शिखर तक?" will be available in ebook and paperback format. 
Schedule of publishing;-
Pre-order for e-book start from 1 May 2017
Publishing date for e-book 1 June 2017
Paperback book USA version will be published on 15 June 2017
Paperback Indian version will be published on 1 July 2017

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