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Just to remind, Rajoo is a supplier to plastic players so it is riding on growth in that sector and increase in plastic business in India. It is the largest manufacturer of thermoforming solutions and has a wide range of blown film. It is a market leader and thus enjoys ensured business. Good play for multi-bagger returns. This is a micro-scale stock so it should be in your B catagery. Rajoo Q1 nos are technically good as NP and thus EPS has gone up significantly y o y. Valuation is not expensive. Downside is limited and upside could be decent if one can hold for a few years. Only thing which I did not like about the result is their revenues were lower y o y. Good think is they managed production with stock-in-trade (which is a low margin way) and thus their operating efficiency went up. If this is coupled with revenue growth in coming quarters, it will post even better nos. Balance sheet is good - net debt is nil. It is a add on dips and hold for 3 year stock. I already have good amount of shares but may add more if it falls more.  

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  1. Dear Raja,

    Inspite of good fundamentals i am not seeing Rajoo picking up like what vidhi / waterbase did ... any reason for that ?

    ReplyDelete
    Replies
    1. Well there is no particular reason for that but i would like to say that every stocks has a time on which it performs. Also it depends upon govt policy on industry. Right now the stock you can see the difference. I have been quoting about the stock since that days also. The more we see fall in crude, there is expectation for rise in indian industry.
      Read about the Rajoo's performance

      Delete
  2. current rate is around 14 Rs, what woiuld be the target if it is a multibagger?

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