I am looking for a bargain. I want to buy one smallcap stock for a huge appreciation in the near future. I want a multi bagger for the next 2 years. I want a safe and sure bet. Do we have a stock fulfilling all the above criteria? Answer is a definitive Yes.
Bartronics is a screaming buy at the current price of about 200. It has announced its third quarter results and profit soared 217% Quarter - on - Quarter basis (1094.72 lacs vs 344.57 lacs )and 216% Year on Year basis (2823 lacs vs 891 lacs). Net sales increased 300% (Q-o-Q) and 258% (y-o-y). With the trailing EPS of 15.48, stock is trading at around Rs 220, P/E is just 14 for a niche company growing at over 100%. With an expected EPS of 20 for year ending March 2008, the stock is available with a P/E of just 10. Even if we take a conservative P/E of 20 for such a fast growing company with an expected EPS of around 20 for year ending March 2008, stock should trade at around 400.
Such stocks will suddenly attract market and FII attention and would appreciate within no time. I would not be surprised if the stock moves beyond Rs 1000 in the next 2 years and it would be prudent to hold at least 100 stocks in one's portfolio without worrying about the short term price fluctuations.
JM Emerging leaders fund has bought over 3 lac shares of Bartronics in December.
Note: I am holding this stock as of this writing and this stock is part of my portfolio.
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