yes, it may be certainly possible. as posted early, i already present my bullish view about india, its economy and its market, i see a opportunity, which will share with all of you friend,
India is at verge of "break-out country", which will enable it to grow at rate of 9-10% every year in future(just ignore the present headwind).consumption is going to be the biggest theme of all time. just think about it, we are now country of 1.2billion and every day, around 50,000 people join this club. these all are esteemed consumer and will be a beneficiary of great India growth story. so where one of the best bet is awaiting on this theme, which is almost risk free and have a greater story to unfold........yes it is KERALA AYURVEDA Ltd - a story which lay its inception from god's own country. It has really potential to become a great value-creator and one of the biggest multibagger company.it has potential to change life of its investor and it was a one-time life opportunity.
ABOUT COMPANY:-
As the name suggests it is a Kerala based company operating in Ayurveda based products and services..Company manufacturing Ayurvedic medicines,running Ayurvedic Hospital and Clinics,operating Ayurveda based wellness centers and Resorts.KAL running an Ayurvedic Hospital at Aluva in Kerala and running more than 30 Ayurvedic clinics . Company selling its products through Ayurvedic Medical shops established in franchise model throughout India. Recently its ‘AyurvedaGram ‘ located in Bangalore selected as the ‘ Wellness services provider company of the year 2011’ by Frost and Sullivan’ .In 2006.KAL taken over by Katra Group headed by Ramesh Vangal. He is well known in India as the person who brings Pepsi to our country and also his business Interests in Tamilnadu Merchantile bank and Scandant group.Even after the takeover by Vangal ,there is any substantial improvement in Company’s performance so far .In an interview,he explained that the company is in the process of establishing some base and standards and making some re arrangements in its business strategy.Anyway in recent times company streamlined the operations of its overseas subsidiaries and exited from some non performing assets.The business of Ayurveda having tremendous potential in India and abroad especially at a time there is more and more discussions about the side effects of Allopathy medicines.In medical tourism segment ayurvedic wellness centers having huge potential .Being a pioneer in all these segments KAL having very good future if it utilised properly.Vangal is a shrewd business man with great deal making skills and I don’t think he will waste the opportunity available in front.Recently KAL signed an agreement with Banaras Hindu University to undertake research and development in areas like geriatric care, cancer, anemia, metabolic diseases, diabetes and epidemic prevention, etc. In another important development KAL signed a Memorandum of Understanding with Tata Global Beverages to explore formation of a joint venture.Purpose of this JV will be to focus on development of a range of beverages and food products based on proven ayurvedic recipes and formulations for the global market.For the latest March quarter company posted sharp improvement on its performance. Turnover almost doubled and loss reduced substantially .Actually if we exclude a one time expenditure ,company posted a profit of Rs.2 Cr .Considering the history of promoter ,potential of the industry ,lack of other listed companies in this sector and its improving financial performance ,it is surely a company to watch .
5 REASON WHY IT IS GOING TO CLIMB MOUNTAIN :-
1. the most favorable point about the company is its promoter. i am now confirm from my 17 year experience( 2 years of experience of mine and 15 years of my father about investing) that a company can not give return of a single paise to its minority investor till its promoter really believe in sharing of value creation theory.its promoter Ramesh vangal is really heavyweight, with cash and asset-proof. he is not going to leave this great opportunity in halt. he will make sure that the last potential in this field will explored by his team. also the corporate governance of this group is beyond credibility.
2. the company operate in field where any of major institutional competitor is yet to finalize any aggressive move. though their is many companies operate in same field(in health,spa and Ayurveda medicine) in kerala but certainly their scale is much more small than katra group.
3. in future,India specially kerala is going to be biggest hotspot of foreign tourist arrival and health tourism is going to expand upto what our IT services industries is of the scale. . kerala already show its competence in early time for attraction of tourist. the highly renowned campaign of kerala goverenment with tag line "god's own country" already make history in popularity.
4. the financial turnaround of company is going to be experience by its investor in near future(hopefully from next quarter). already in last quarter, company show great turnaround and it may be just start of a long prosperous journey. i am betting for at least 100 percent growth in both revenue and net profit for company for at least 4-5 years.
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5. you cannot expect a company with potential of several 1000's of crore of esteemed market and leader in its core competence of area in which it operate and headed by one of the most aspiring entrepreneur of country to be sold at rate of 40/share and market cap of just 42 crore.
i am estimating that it can become 1000 crore company in next 3-4 years, which will be about 25 times from herein on.
you can mail any query at perseuit@gmail.com.
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