Multi bagger:Adani Gas

Multi bagger:Adani Gas

Adani Gas is developing City Gas Distribution (CGD) Networks to supply the Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic (residential) and Compressed Natural Gas (CNG) to the transport sector.

The company has set up city gas distribution networks in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. In addition, the development of Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar gas distribution is awarded to consortium of Adani Gas Ltd and Indian Oil Corporation Ltd

The stock can be bought at current levels with stop loss 150 with 15 % trailing stop lossfrom 52 week high  to safeguard profit

below is important financial numbers:

  • Market Cap:  19,648 Cr.
  • Current Price:  178.65
  • 52 weeks High / Low  180.25 / 70.20
  • Book Value:  10.11
  • Stock P/E: 79.84
  • Dividend Yield: 0.00 %
  • ROCE: 25.03 %
  • ROE: 21.60 %
  • QOQ EPS growth: 300%
  • yearly sales growth:24%
  • screenshot_20190603-224749screenshot_20190603-224735screenshot_20190603-224727screenshot_20190603-224802Price Chart:


Multi baggers stocks for 2018

HAPPY NEW YEAR 2018 . . . Guys 🙂 Wish u more money and PEACE

Well I am not in a mood to write much in the new year eve,huh …lets cut short the post only to multi bagger stock list for 2018

The below list contains the businesses which have potential to grow at better rate

I won’t be narrating business of the companies here but I am sure u would get the idea of what the company does by name itself

I would suggest you do bit of research on the business overview front but other fundamental and technical factors has been thoroughly researched by us

Below is the list of multi baggers for 2018

Stock Price Number of shares amount invested
VARDHACRLC 49 102 5000
SRIPIPES 405 12 5000
BANCOINDIA 260 19 5000
NFL 68 74 5000
SONATSOFTW 265 19 5000
TNPL 430 12 5000
GHCL 313 16 5000
NITINSPIN 115 43 5000
MARATHON 580 9 5000
GICHSGFIN 440 11 5000
VIPIND 355 14 5000
NOCIL 180 28 5000
EVEREADY 439 11 5000
MANAPPURAM 117 43 5000
BLISSGVS 215 23 5000
PURVA 177 28 5000
COROMANDEL 540 9 5000
V2RETAIL 483 10 5000
RADICO 280 18 5000
BRIGADE 325 15 5000


Stock selection criteria for investment

With the advancement technology Analysis of financial statements become easy also its readily available in many of the stock market related portals such as screener

In this article we will show how to filter out good stocks for investment

while the criteria used is subjective below is the one we prefer

Sales Growth:

The Revenue a company derives from sales compared to a previous year

Growth should be consistent Year on Year

Companies with sudden spike in sales in one year should be ignored since it’s unlikely to be sustainable

Sales Growth >15% CAGR for last 5 years

Profit Growth:

To be successful and remain in business, both profitability and growth are important and necessary for a company to survive and remain attractive to investors

The Sales growth should be converted to profit growth

There is no use only sales grows but no impact on profit

Profit is key to basic financial survival as a corporate entity, while growth is key to profit and long-term success

Profit Growth >15%  CAGR for last 5 years


 Profit Margin:

Profit margins are perhaps the simplest and most widely used financial ratios in corporate finance

For investors, a company’s profitability has important implications for its future growth and investment potential

Look for companies with sustained operating & net profit margins over the years

Choose companies with Net profit Margin(NPM) >10


Tax Payout

Tax rate should be near general corporate tax rate

Specific tax incentives are applicable to the company such as textile

A flat rate of 25% corporate tax is levied on the income earned by a domestic corporate

A surcharge of 5% is levied in case the turnover of a company is more than Rs.1 Crore for a specific financial year

3% educational Cess is levied

Hence Tax Paid out ratio should be >30%

Interest coverage:

 The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay interest on outstanding debt

Interest coverage >4

Debt to Equity ratio:

Filter out for companies with lower D/E ratio

Debt to Equity ratio < 1.5

Price to Earning ratio:

It is the Ratio for valuing a company that measures its current share price relative to its per-share earnings

We will use Double the bank interest rate or average equity returns as benchmark



Price to Sales ratio (P/S ratio):

The P/S ratio measures the price of a company’s stock against its annual sales

P/S should be less than 2

You can watch below video to know how automate the stock selection

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