Multibagger stock analysis

Multibagger stock analysis – Spice Mobiles , 15th feb 2008
It is one of the companies which has a strong growth in future in terms of Revenue and Profit . The company from the B.K.Modi group had come out with a IPO in 2006 . It manufactures mobile phones and PC in india and china .The plant in India was commissioned in 2007. Mobile phones is a high growth industry , as the subscriber base in India will continue to grow rampantly. Recently the company was awarded the golden peacock innovation award for its dual mode mobile phone , in which a cdma and gsm service can be simultaneously operated . The company has launched several other models recently , a high end movie phone , a low budget 20$ phone, etc. For the quarter ending dec. the company recorded a growth of 111% in sales to 120 cr and a profit of 6.69 cr compared to a loss in dec 2007 quarter. This growth will accelerate in the coming quarters , as the benefits of expansion will start reflecting in the quarterly results . Further the promoters are planning 400 cr IPO for two of their group companies in 2008 . At the current price of Rs. 22 , it is a dirt cheap buy and has the potential to reach Rs. 70 in 2 years time . The face value of the share is 3 .
Risk factors include the promoters are virtually new in the field and the company might face stiff resistance from cheaper models of mobile phones from china.

short term stock tips - 15th feb 2008
For this week the market ended positively on short coverings . Looks like the buying is limited in certain sectors . Only when the overall breadth of the market is positive then we can say the market is bullish . We will have to wait for such indicators to enter the market . The global situation has still not stabilized yet . Next week we might see the BSE sensex shedding around 800 – 1000 pts.
Earlier short term recommendations -
Scrip Recommendations Target Remarks
Maruti Suzuki sell@812 790 hold
Nucleus software Buy @ 270 282 hold

Todays short term recommendations –
Scrip Recommendations Target Remarks
Tata Steel sell@819 802 --
Reliance Power sell@384 371 --
Unitech sell@418 402 --

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