GTM-2 Answer: Umang Daries: Turn Around company, High Potential Multibagger

After recommending KSE Ltd  (Link here) , I see similar potential in Umang Daires

Answer of Guess The Multibagger 2:


India remains the largest milk producing and consuming market in the world. Milk prices registered significant inflation during the year, impacted by increased cattle feed costs at a domestic level as well as external economic and regulatory factors. While liquid milk consumption continues to drive the industry, there has been a significant shift in the dynamics of the value added segment of dairy with access to milk, portfolio strategies and increasing investments determining the right to succeed.

The dairy industry continues to benefit from an array of factors including increased per capita income driving the need for value added products, economic activity on the rise in the metro cities and the emergence of modern format retail with increased emphasis on cold chain infrastructure.  Demand for Dairy products is expected to remain robust. With increased purchasing power in the hands of Indian populace, more particularly rural one, larger number of people are likely to opt for milk products for better nutrition. Consumer preference is likely to be for long shelf life products. With increased awareness of hygiene /nutrition, packaged milk will progressively continue to replace loose milk. Value added dairy products are expected to grow at about 20%.


 Umang Dairies Ltd  was incorporated on 2 Dec.'92 by Straw Products and J K Industries by the name of J K Dairy & Foods . Not many people know Umang Dairies Ltd is a JK group of company .  The company was making losses and went into BIFR . BIFR scheme was implemented in 2009 and after BIFR scheme implementation majority stake is acquired by JK group.  Bengal & Assam Co Ltd has a stake of 45 % in Umang Dairies Ltd and total promoter holding of JK group is 74%


Umang Dairies, is a dairy product company of JK Organisation, which has medium-sized businesses in cement, tyre and paper with a turn over exceding $1.5 Billion. Umang’s key brands are White Magik, Dairy Top and Umang Ghee. In January 2014, it launched its liquid milk in Lucknow under the brand name JK Milk. Umang also makes products for private labels. It is managing a facility to process and pack liquid milk in poly-pouches for Mother Dairy.

The company has a drying plant (300,000 litres per day) and a liquid milk packaging plant (500,000 litres per day), both in Uttar Pradesh. Utilisation of the drying plant was just 55% in 2011-12; it is now up to around 75%. The liquid milk plant is operating at nearly full capacity now. Umang has 300 villages and 12,000 farmers in its milk collection network.

Demand for milk is outstripping production. However, demand does not easily translate into sales and profits. To quote from the Umang’s annual report, “Pressure on land resources is increasing. There is no way to increase the availability of land for fodder production. (The) Answer lies in the usage of high-yield fodder crop techniques and simultaneously replacing low yield breed of milch animals by high yield ones.”



Umang was in a bad financial shape until two years ago. But it turned around after restructuring and revenues went up from Rs150.22 crore in 2011-12 to over Rs216 crore in 2013-14. For the quarter ended December 2014, sales were Rs69.96 crore (Rs55.20 crore) and the net profit was Rs2.60 crore (Rs1.26 crore). For the year ended March 2014, sales were Rs216.38 crore (Rs173.80 crore) and net profit was Rs5.96 crore (Rs12.30 crore).  The net profit for this quarter came at Rs 3.57cr, exactly same as last year. There is a drop in sales this qaurter but this due to the upgradation process which will increase produciton by 25%. Howevever the company managed to bring down raw material costs by 28% and this resulted in overall costs coming down by 23%. Consequently, EBITDA came in at Rs. 7cr, up 17%.

Over the past five quarters, the average growth in sales of Umang has been 44% and the average growth in operating profit was 119%.  The return on net worth is 28%.The return on capital employed is 27% with a debt-equity ratio of 0.72. The cash earnings per share were Rs3.39. Valuation is low. The 3 year average return on equity stands at 390%.Umang’s market-capitalisation is 0.5 times sales.


 
The face value of the share is Rs5. Umang has distributed dividends of 20% in September 2014 for FY13-14 and 15% in July 2013 for FY12-13.  The share is trading at around Rs56, at a PE of 14 with industry PE at 40.   This company  would also be an excellent takeover candidate, in case the Singhanias (the promoters) decide to exit. One recent development is Groupe Lactalis SA (Lactalis) (which is the worlds largest dairy player) has shown serious interest to buy Umang diaries.  Bengal & Assam Co Ltd  has all the subsidiary companies as unlisted . If the company decides to delist Umang Dairies Ltd , then we may get 50 -150 % return in no time but that will be quite less to long term prospect of this company.

There are only a few companies which get turnaround after BIFR scheme implementation one of them is Symphony Ltd.  There are few differences in Umnag dairy and Symphony like the business model of Symphony is superior, attractive return on capital employed and it has all India presence etc. But there are many similarities between them . No doubt, there is enough competition in the dairy sector. Good promoter backing and comfortable debt to equity may help the company grow big. Umang Dairies Ltd  may achieve similar heights and it is on the same path of Symphony Ltd. The stock is worth buying for the long term.

Defensive series: Stocks to Buy in a bear run ( Continued )

Marksans Pharma

Marksans Pharma, which was a wholly-owned subsidiary of Glenmark Pharmaceuticals, manufacturers generic pharmaceutical products, such as soft gelatine capsules & tablets across regulated markets, in niche segments. It supplies its products to 25+ countries globally; UK, followed by US, are its largest markets. Its export business contributes to more than 99% of revenues with a focus on regulated markets.

Marksans’s manufacturing facilities are based in Goa and Southport (UK). These are audited by some of the most demanding global regulatory agencies in the US, UK and Australia. The business is driven through three subsidiaries—Nova Pharmaceuticals (Australia), Bell’s & Sons (UK) and Relonchem Ltd (UK).

Abbreviated new drug application (ANDA) approvals, led to a ramp-up in the US business in the past two years. Softgel product ibuprofen (OTC) is now selling at leading stores like Walmart, Walgreens and CVS. Other non-softgel ANDAs have also been approved and are being marketed via partners in the US. The softgel capsules market offers an edge to Marksans due to the complexity of developing the softgel formulation and high operational costs in running a manufacturing facility. 

It has generated a strong revenue growth in the past three quarters ended December 2014, averaging 34%. Operating profits grew 44% over this period, with an operating profit margin of around 30%. It enjoys a RoCE of 41% while market valuation is an expensive 22 times operating profits.

JB Chemicals & Pharmaceuticals

JB Chemicals & Pharmaceuticals manufactures and markets pharmaceuticals formulations, herbal remedies, and APIs in India. Its three brands, viz., Rantac (anti-peptic ulcerant), Nicardia (calcium channel blocker) and Metrogyl (amoebicides), feature the top 300 brands in terms of value and unit sales, as per data from IMS MAT March 2014. It is ranked 36th in the industry, with these three brands.

 

 

Its total exports income amounted to Rs574 crore which represents 58% of total operating revenue for FY13-14. The API business continued its upward momentum and, with sales of Rs99.33 crore, registered a growth of 59% over the same period, thanks to its wide presence in the international market. Its manufacturing facilities have approvals from authorities US, UK, Australia, South Africa, Ukraine, etc. JB Chemicals aims to create an additional capacity for tablets, liquids, ointments, vials, eye-drops, lozenges and diclofenac API plant by investing Rs140 crore on expansion. Clearly, there is no slowdown in its business. Over the past three quarters ended December 2014, the company has averaged a revenue growth of 11% and an operating profit margin of about 18%. This is one of the few companies on our list which makes a low RoCE of 11%. The stock is appropriately valued—lower than others. Its market-cap/operating profit is around 12. 

Century Plyboards

Century Plyboards is the largest producer of laminates in India and accounts for 7.5% share of the national plywood market. Year-on-year volume growth in plywood production was nearly 10%; it was about 19% in laminates, for the quarter ended December 2014. Almost 23% of the company’s revenue is from exports. Century Plyboards is looking to diversify into modular furniture and kitchen furnishings. It has six strategic manufacturing facilities across India to meet the steady growth in real estate and construction which will drive its growth for years to come.

All ply-board manufacturers face issues with raw materials from time to time, thanks to stricter conservation policies. Myanmar banned export of timber in August 2014 to save its disappearing forests. But Century Plyboards was not affected by the ban because it had set up a semi-processed peeling facility in Myanmar in 2013. So, while rivals, such as Greenply Industries, were hit by skyrocketing timber prices, Century Plyboards could easily export timber from its Myanmar facility. Revenues have grown at a steady rate of around 20%-25% each quarter and it was able to maintain an operating profit margin of 10%-15% over the past seven quarters. Century’s RoCE is 26% and the stock is quoted at 18 times its operating profit.

TVS Srichakra

TVS Srichakra is a well-known maker of tyres for two-wheelers, three-wheelers and off-road vehicles. It plans to launch radial tyres for two-wheelers in a couple of months. Its domestic clients include Atul Auto, Bajaj Auto, Hero MotoCorp, Honda Motors Cycles, Scooters India and TVS Motor Company. It exports its products to the Australia, Europe, Africa, South America and United States. It recently entered into 15 new export markets and now exports to over 80 countries. Exports constitute about 13% of its turnover.

TVS Srichakra enjoys the highest market share amongst two-wheeler manufacturers in India. It is projecting a 15% expansion this fiscal and similar growth next year, as it expects two-wheeler sales to rise. Over the past three quarters ended December 2014, it averaged a 17% growth in revenues. Operating profit growth averaged around 70% over this period. TVS Srichakra has maintained an operating profit margin of 9%-10%. The more positive part of the stock is its valuation. While it enjoys a RoCE of 30%, its market-cap to operating profit is around 8. 

The stocks discussed in this Cover Story will be less vulnerable to a market decline because these companies are on a track of higher growth. The growth comes from a business model that combines domestic and export revenues, or substantial export revenues. Unless there is a synchronised global downturn, as happened in 2008, these companies are expected to do well.

Defensive Series: Stocks to buy in Declining Market

(Please note: This is NOT Guess the Multibagger 2, GTM-2 will be released on the weekend )

This is a new series im starting ; Safe stocks to buy even on a declining market.

The biggest hurdle to finding a winning stock-picking strategy is that no strategy works under all circumstances. Indeed, after the bull run in the Indian stock market over the past year, finding hidden gems is an even more difficult task. Companies with strong and unimpeded growth are too expensive. Companies that are not exactly of the highest quality are expensive too, thanks to the bull market that has pushed up all kinds of stocks to multi-year highs.

In such a situation, the better bets are companies that, at least, have rising earnings, that is, companies that consistently make more money than they did the year before, thanks to a good business model. There is no easy formula for picking such companies. Every method of picking stocks requires some interpretation and judgement. We need to look for companies that have a diversified portfolio of products or niche products and a well diversified geographical presence. This ensures that demand is not affected by a slowdown or restriction by government regulations in a specific country.

I have looked for stocks that meet these criteria and have found them across sectors like consumer products, building materials, pharmaceuticals, industrial intermediaries and auto-component manufacturers. The companies we have picked delivered a substantial and continuous growth over the past four quarters, thanks to some edge they enjoy. Most of them have a strong export presence which helps to improve even domestic operations. Take a look at these stocks discussed below.

Granules India

Granules India is one of the few companies to offer its clients all three components of the pharmaceutical manufacturing value chain starting with active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs). Regulated markets, such as North America and Europe, account for approximately 65% of its revenues, while the rest comes from quality-conscious customers in Latin America and the rest of the world. It is among the global leaders in manufacturing paracetamol, ibuprofen, metformin, guaifenesin and methocarbamol.


According to the figures for December 2014 quarter, 42% of the company’s standalone sales came from FDs while 25% was contributed by PFI and 33% by APIs. It has a 30% market share among regulated market suppliers of paracetamol. Granules Biocause, a subsidiary, has a 16% market share of ibuprofen suppliers. Granules India delivered a robust revenue growth of 26% compounded annually and profit after tax of 63% compounded annually over the five-year period ended FY13-14. Over the past four quarters, it has averaged a revenue growth of 16% and operating profit growth of 38%, maintaining an operating profit margin between 18%-20%. Its RoCE, at 25%, is not among the top league of companies in terms of returns; so its valuation (market cap/operating profits) is lower at 8.42.

Kitex Garments

Kitex Garments is the second largest producer of children’s apparel in the world. It has been exporting from India and is now setting up operations in the US. Its dominance in the highly specialised infant-wear market comes with an edge—it is a segment where competitors have found the going tough due to stringent safety norms. Kitex derives around 80% of its garment revenues from exports, of which 90% are to the US and 10% to Europe. It has five large clients—Gerber, Toys R Us, Jockey, Mothercare and Carters—and has added two more large clients recently, viz., Children’s Place and Kohl’s.

 

The largest manufacturer of infant-wear globally is China’s Wingloo which has a capacity of 750,000 pieces per day against Kitex’s capacity of 550,000 pieces per day, according to Motilal Oswal Research. Kitex plans to be the No.1 player in infant-wear market in the next few years.

 

 

According to analysts, to improve productivity, Kitex plans to replace sewing machines older than five years with newer ones which would increase the speed from 7,000 stitches/hour to 9,000/hour and consume one-third the power of old machines. It has now introduced an Italian robotic technology which drastically reduces labour. Similarly, it has installed a bow-making automated machine requiring just one person compared with 50 people earlier. All these measures make Kitex even more efficient. The stock has had an extraordinary run ever since it started acquiring scale and larger contracts. Over the past four quarters ended March 2015, Kitex Garments averaged a growth of 16% year-on-year. Operating profit grew at an average rate of about 80% over this period. Its RoCE is around 48% and, given that factor, valuation is less expensive than many large Indian consumer products companies. Its market-cap/ operating margin is 23 times. 

Cmp 810. Short term traders can buy at 810 for a target of 950. Long term investors continue buying in sip or at declines. ( Given to members )

Guess The Multibagger

Guess the Multibagger / Gem - 2 ( Easy )

• A well reputed group is managing  this company. Another listed company holds more then 15% stake in this company.

• The top line is consistently growing. 

• The demand for this product is outstripping production. 

• This company was in a bad financial shape few years back but has turned around. 

• The average operating profit margin growth has increased 110% in the few quarters. 

• Promoter holding is more then 60%

• The Debt to Equity stands under 1. 

• Return of capital employed  stands more then 15% 

• This company is an excellent candidate for take over. We may get 50%-200% in no time if the promoter wanted to exit. 

The Multibagger will be released on Saturday 30th May 2015

You can email if you have any queries: growthinvestortrader@gmail.com

International Combustion - Good potential Multibagger

International Combustion (India) Ltd, promoted by International Combustion (Holding) (ICHL), UK, which was taken over by Northern Engineering Industries, was incorporated as a private limited company. It was a 100% subsidiary of ICH. The company  manufactures and markets automobile and industrial equipment. It operates its business through two segments: Mineral & Material Processing & Handling Equipment and Geared Motor and Gear Box. The Mineral & Material Processing & Handling Equipment segment engages in mineral, material processing and other handling equipment. The Geared Motor and Gear Box segment engages in gear boxes and other automobile products. The company products which include, vibrating screens and feeders, cone crushers, bulk material handling equipment, mining haulages, Raymond grinding mills, air classifiers and flash drying systems and geared motors and gear boxes. International Combustion (India) was founded on April 22, 1936 and is headquartered in Kolkata, India.




The company serves all the major core industries including mining, steel, cement, petrochemical, construction, sugar, power, textile, paper, rubber, pharma, chemicals etc. The company has served to an esteemed set of clientele that includes industry leaders such as Sail, Tisco, JSPL, Essar Steel, Amtek, Ashok Leyland, NMDC, Hindustan Zinc, ACC, Madras Cement, NTPC, Bayer, Dabur, Borosil, EID Parry, HUL, Marico, L&T, McNally Bharat, Thermax, Simplex, Alfa Laval, AP Paper Mills, MRF, Andhra Sugars, Cadbury India, Britannia, Nestle, HLL, Tata Chemicals, Reliance, Laxmi Machine Works, TNPL, Nevyeli Lignite, Nirma, P&G, etc. We believe, the diversified industries as its customers, not only provides ICL wider exposure, but also keeps the company isolated from the risks of slowdown in a particular sector/industry.

Fully equipped manufacturing facilities at Calcutta, Nagpur and Aurangabad ensure total control over production and product quality. IC’s products are characterized by high availability, low operating cost and energy consumption and protection of the environment. High quality products and continual search for peak technical performance, IC’s strong marketing and service organization spread over the country assures quick and direct contact with customer during all phases- Consultation. Contractual negotiation, followed by execution and after sales services. Company has offices at Bangalore, Chennai, Hyderabad, Mumbai, Delhi, Nagpur, Pune, Vadodara & Kolkata, with employee strength of 500.


Foreign technical collaborations and licensing agreements with world leaders in the respective product groups have ensured manufacture of premium quality equipment, alongwith core focus on :-

Technology Absorption & Research & Development –  The company has always been recognized as technology leader in the area of operations and this has helped the company to continually expand the business, both in India and abroad, this trend is expected to continue in future also. Several steps have been taken to improve the efficiency of the equipment's presently manufactured by the company, which resulted in substantial increase in the productivity of the end users, in future also the company is planning for continued up-gradation program of their product range to match with international standard from time to time, which helps company to remain competitive against cheap products which are less adaptive to local requirements.

Company takes full advantage of complete absorption of latest technology received from the Globally renowned, leader of their industry Licensed Partners and implement the same commercially, which helps company to match the quality of their products with the international standard at competitive pricing.

The engineering division (MMPHE) has few products of huge significance such as screens, feeders and others which are being supplied to steel (including SAIL, TISCO) and cement industries. The company enjoys leadership position in the above products with nearly 70% market share. Further, the product offerings include Sugar Graders / Sizers which is said to have pioneered by the company and thus commands a dominating position in this industry

Licensing partners of International Combustion are GLOBAL LEADERS, and as below :

In 1961, the company started its manufacturing activities, and presently has three business divisions, viz
Heavy Engineering Division (Nagpur & Kolkata Factory)

Vibratory Equipment : Grizzly Screen Feeder, Linear & Circular Motion Screen, Mogensen Sizer (Sizers, Sizer 2000, Bar Sizers & Vibro Bar Sizers), Omni Screen, Flip Flop Screening Machines, Vibrating Feeders (Mechanical Feeders & Electromagnetic Feeders), Vibration Exciters, Polyurithine & Rubber Screen Decks & Liners & Monitoring Systems for Electronic Vibrating Machines



Grinding Mills Classifiers for Drying Systems : Raymond Roller Mills, Raymond Impax Pulverizers, UFG Vertical Mills, Turbine Air Classifiers, Mechanical Air Seperators

Bulk Material Handling : Spiralling Belt Conveyors, Scooping Belt Conveyors, Girdle Pocket Elevators, Apron Feeders, Haulages.

Crushers : Jaw Crushers, Cone Crushers, Vertical Shaft Impactor, Roll Crushers.

Rotary Drum Dryers / Coolers : Mozer Drum Dryer & Cooler, Allgaier Process Fluidised Bed Plants

Bauer Gear Motors Division (Aurangabad Factory)

B2000 Series : Shaft Mounted Geared Motors, Roller Tabled Geared Motors

G96 Series
Being a leading suppliers of high quality Bauer gear motors & gear boxes with extensive success in Mill Table, Rolling Mill, Bottling Plant, Conveying Packaging, Water & Waste Water Technology, Environmental Technologies & Textile Printing, Packaging, Crane Application, Etc.
Utilizing Bauer’s application and expertise customers can work with them to choose the correct gear motor manufacturing facilities that enable them to deliver a complete solution to fit all type of environment and demands. With in-house motor manufacturing facilities specialized motor characteristics can be designed and optimized to cater with precision exactly what the application demands. Fully crowned gear teeth provide the highest misalignment and torque ratings & smooth axial travel.



Project Plant Systems

Crushing, Screening & Conveying Systems for Iron Ore, Aggregate, Coal and other Minerals.
Project Division is well equipped for Design, Engineering with Electrical and Automation of complete Crushing Systems and equipment., Company’s extensive experience in handling systems for Coal, Limestone, Iron Ore ,Aggregate and other minerals can give the customer the most effective solution. We can provide complete solution with supply of Structural and civil engineering, Erection & commissioning of the complete plant.

Tertiary Crushing  and Sand manufacturing

VSI Crusher ensures product quality and specification to meet the Industry standards for combined Flakiness and Elongation Index, its also an ideal machine to manufacture Sand, which can be washed and segregated by our Mechanical Air Separator / Ecutec Turbine Classifier to remove unwanted micro-fines.

Grinding, Drying & Classification Systems

In Joint Venture with world leaders, ALLGAIER, company offer drying process based on Fluidized bed system and “MOZER system” rotating Drum Dryers. This includes complete solutions that represent combination of various drying processes as well as  granulating and screening system. IC offers complete grinding Mill systems designed  to pulverize and classify various kinds of materials including non- metallic  Minerals, fertilizers, chemicals, etc. Application covers stones , waste / recycling, chemicals, food , mining(Coal/Ore), metallurgy, Plastics ,Pharmaceuticals etc.

Manufacture and Supply of Specialized Bulk Material Handling Equipment

Specialized Bulk Material Handling for intelligent solutions to suit even difficult to handle materials. They are categorized in particular by high economy proven under harsh service conditions and are environment friendly. The range of equipment covers  Paddle Feeders(Slot Bin Extractors), Girdle Pocket Elevators, Spiralling  Belt Elevators, Scooping Belt  Conveyors, Belt and Pan Conveyors.



Business Outlook :
In last few years, there was steady increase in cost of raw materials and the increasingly unfavorable exchange rate, which used to be an issue of concern, the company has recognized this situation and has made efforts to minimize the impact of this on the business and performance for the future years. The company is now in comfortable position due to falling input prices, which are at multi year lows and stable exchange rate, thanks to the RBI.

In recent years to facilitate smooth recovery of sales proceeds, the company has adopted various recovery measures and th debtor management system have resulted in improvement in the liquidity position of the company.

The comfortable liquidity position arising out of retained earnings over the preceding few years has enabled the Company to meet all its capital expenditure out of internal generation. The surplus remaining after meeting the capital expenditure has been kept invested partly in Fixed Maturity Plans (F.M.P.) and partly in Fixed Deposit Schemes for short periods with various banks/finance Companies/ mutual funds.

The business environment has started showing certain improvement and company expects that the business environment will improve further during the current year. Joint Venture with Allgaier Werke GmbH, Germany for Mozer Type Rotary Dryers and Coolers has been formed during the year FY 14 and capital investment has been made by the Company for manufacture of these Dryers at Nagpur Plant and Company expect these hi-tech equipment and systems to make substantial contribution to the performance of the Company in the current and the future years.

The current average blended capacity utilization runs at around 50-55% and thus, the company can easily manage a turnover of Rs.200-230 crores with the existing capacities on a single shift basis.
The market demand for the products of Gear Box and Geared Motor Division has been increasing steadily during the last few years and the capacity enhancement undertaken by the Company in the recent past is expected to support the business growth in this area.


: This BSE Listed DEBT FREE business (FV Rs 10 paid up) at CMP of Rs 221 (Book Value Of Rs 392 per Share) is getting at close to 50% discount to its Book Value, is available at market cap of just Rs 55 Cr, Mcap to Sales ratio of 0.5 (Sales of close to 100 Cr in FY 14), Even in bad economic conditions, the company has paid dividend of Rs 5 per share, which is now reduced to Rs 1.5 per share due to capex.

The financial position of the company is very strong. It has very low equity of Rs 2.5 crore, of which 53% is held by promoters. Its Reserve & Surplus is 91 Crore against market cap of 55 Crore. Company also has Land & Buildings (factory & offices) which was acquired decades back, the value of which should be several times at current price.Nett block is at 29 cr as on 31-3-2014. Investment in Mutual Funds is 22 cr, 4.85 cr in FDs and Bank Balance.

The company is DEBT FREE and its spare land at Kolkata is nearly worth Rs 50 Crore (Rs 200 Per Share, means we are getting this debt free capital goods business almost at NIL Valuation) if monetized by the company.

As government is serious to provide Power 24x7 with the help of Locally Mined Coal, this has lead to coal block re-allocation at a faster pace, coupled with turn around in capital goods sector cycle, Being a Licensed Partnership with Global Leaders, this company is fully equipped with its products to take full benefit of Mining orders inflow.

With “Make In India” initiative, International Combustion to remain preferred choice of its International Partners for out sourcing their manufacturing activities from India.

 With big investors paying huge premiums for companies like Elecon, Eimco , which had good run up in last few months, this company cannot remain hidden for long time, as it caters to the entire range of high growth Infra Sector, Road Building, Mining Sector and Capital Goods Sector.

Can target 400 in the near term. 

TOP 5 INVESTMENT BASICS BOOKS

Which are the books we would recommend unhesitatingly to beginner investors, and perhaps in what order?

I am recording my top 5 beginner investor books. Please pitch in with your favourites with brief comments, so we can all take quick decisions to enrich our reading lists! Beginner investors will perhaps benefit the most, if we do a good job of this, but am sure all of us will be the richer for it.

1. Five Rules for Successful Investing, Pat Dorsey

I wish this book was the first on my reading list. If you want a practical do-it-yourself, step by step tutorial on how to analyse/research a stock in-depth, this is a no contest, hands down winner! My learning curve shot up tremendously after I read this book. By following Pat Dorsey's framework and applying it diligently (took me a month) I

Earlier my investment arguments could not/did not hold the attention of seniors. They would usually pick this or the other hole. That's because I lacked a holistic framework. Suddenly I was talking to them at their level; could hold a meaningful discussion. A big jump for me!

2008: Recommended by Subhankar Ghose, Kolkata; remain eternally grateful

2. Intelligent Investor, Ben Graham

Fascinating first read for me, loved the depth of this book.

Important concepts like "Margin of Safety" and "Mr Market" got driven home. Learnt how to AVOID the usual mistakes!!

2005: I started out with this one and the Peter Lynch book, in tandem.

3. One up on Wall Street, Peter Lynch

This one made investing look so easy. One really didn't need to be a hot-shot analyst to spot winners!

2005: I learnt that it is very much possible to find success on the street, if we keep our eyes and ears open (where are the crowds). ICICI Bank, HDFC Bank and Amalgamated Beans (Cafe Coffee day parent) interested me, as a complete newcomer like me tried to apply the Lynch principles. Bought and read along with Intelligent Investor.

4. Common Stocks Uncommon Profits, Phil Fischer

Got some insights into how to separate the wheat from the chaff! The novice got really interested in identifying probable multibagger candidates:)

Found it real hard to apply! Nevertheless the book is a fascinating read, and my interest in identifying excellent businesses got kindled.


5. The future for Investors, Jeremy Siegel

Regular Dividend Re-Investment and staying Invested a in consumer-facing branded Pharmaceutical, FMCG and Tobacco companies has proven to be the best Long-Term Investment strategy of all-time, revealed Prof. Jeremy Siegel's outstanding research for the US market.