8. Top Multibagger script: an ocean of opportunties: ITD Cementation (SIP portfolio also given below)

8. Top Multibagger script: an ocean of opportunties: ITD Cementation

I don't see why every well-known researcher is either fooling traders or is very very dumb. They always suggest a share after it already has undergone a massive upward rally and probably after they themselves or their premium clients have bought at an earlier discounted rate. Plus they give obvious targets with near about 15-25 % gains while they themselves bag 80-100% on an average. Also their targets do not have time bound approach. I can easily predict that Reliance will touch 2000 (be it after 100 years, what's the point then). Let's take an example.
Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "Kolte-Patil Developers is a buy with a stop loss of Rs 114 for target of Rs 128. Marico is a buy with a stop loss of Rs 239 and target of Rs 252." - 11th march

Whereas check out my post of 14th March: http://sharemarketguru7.blogspot.in/2017/03/mitron-ka-mitron-and-his-tryst-and.html and also http://sharemarketguru7.blogspot.in/2017/03/notice-target-upgradation-for-kolte.html. The target given by me was 160 at 118 and by him, 128 at 114 that too without specifying time period.
His recommendation = 12 % without specified time (achieved but no upgradation or follow up.)
My  recommendation = 35% with a time period ( achieved and upgradation done followed by regular follow up.) Why man, why?

Lets have a look at my other recommendation now,


8. ITD Cementation: CMP: Rs. 154.95 Target: Rs. 232

India is a land of rivers. So it is but natural that all those who ruled this country have used the waterways for trade. During the Mughal rule, inland trade flourished, which in turn gave rise to many economic hotspots. There were various sea ports too and so it could have overseas trading relations with the Arab countries, Persia and Egypt. Besides they traded with various countries of South-East Asia and China. They mainly imported horses from West Asia, silver from Japan and gold from East Indies. There had been increasing demands for European toys and luxury items in India. But over the centuries inland water trade collapsed as rail and road trade improved. But history always comes to a full circle and now that the road and rail lines are congested, there is an express demand to reopen the waterways. In March, Parliament passed the National Waterways Act, 2016, paving the way for the Union government to turn 111 rivers across India into national waterways. Taking that decision forward, the Centre has signed a deal with the Massachusetts Institute of Technology for developing ferry services at 18 locations in Allahabad, Varanasi, Patna Munghyr, Kolkata and Haldia.
Though India has a 7,500 km long coastline with approximately 14,500 km of navigable waterways, it has not been able to harness the potential to the fullest. A minuscule 3.5 % of trade is done through waterways in India as against 47% in China, 40% in Europe and 35% in neighbouring Bangladesh. The logic behind the decision is simple: Transport by shipping is far more cost-efficient than that by road or railways. 

1. WHY ITD?
The Government of India has been taking several initiatives to harness its natural advantages and to tap the vast potential for growth in maritime sector. One of the flagship programmes of the Government is the “Sagarmala” to promote coastal and port led development in a comprehensive and holistic manner.

Under the “Sagarmala” programme, large number of projects have been identified for strengthening the maritime infrastructure and increasing the total cargo handling capacity of the ports in the country. Apart from capacity addition, port efficiencies are being improved through mechanization and modernization. Sagarmala Development Company (SDC) has been incorporated to drive investments in identified projects.

The National Perspective Plan prepared under Sagarmala project has also identified around 75 connectivity projects including 10 Expressways, 7 ICDs, 4 Pipelines and more than 50 last mile connectivity projects.

Simultaneously, the Government also intends to boost the share of coastal and inland waterways in cargo transportation from the present 6% to 12%. It is expected that coastal shipping volume could grow from around 90 million tonnes at present to around 400 million tonnes by 2025. 111 National Waterways have been identified for movement of goods through inland waterways.

We Indians are inheritors of a glorious maritime heritage: PM Modi

It is my Government’s endeavour to revive and restore India’s position of eminence in the global maritime sector: PM Modi

Our vision is to increase port capacity from 1400 million tonnes to 3000 million tonnes by 2025: PM Modi

India has had a glorious maritime history. We are on the path of shaping an even better maritime future: PM Modi
ref: http://www.narendramodi.in/pm-modi-at-the-inauguration-of-maritime-india-summit-2016-in-mumbai-44034

2. Company Profile: 

Areas of Operation

• Maritime Structures
• Highways, Bridges & Flyovers
• TBM & NATM Tunnels
• Foundation & Specialist Engineering
• Airport
• Industrial Structure & Building
• Mass Rapid Transit Systems
• Box Pushing, Tube Heading & Microtunelling
• Hydroelectric Power, Dams & Irrigation
• Water & Waste Water  

3. Shareholding pattern: 

4. Key Ratios and Numbers:

Parameter	Values
Market Cap (in ₹ Cr.)	2,449.17
Earning Per Share (EPS TTM) (₹)	3.10
Price To Earnings (P/E) Ratio	50.92
Book Value Per Share (₹)	32.75
Price To Books (P/B) Ratio	4.82
EBIT Margin (%)	0.96
PAT Margin (%)	-2.16
ROCE (%)	2.35
PAT Growth (%)	-405.49
Total Debt to Equity (D/E) Ratio	0.96

5. My Opinion: 

Market cap seems to be decent enough. Always look out for fundamental midcaps and ITD cementation seems to be one of them. Debt to equity looks like a major concern here. But, given the current form and winning spree of BJP I am super bullish on this script. Undoubtedly, the government is aiming for Total electrification + Power Supply, 100% housing and unmatched transport and trade system. Inland waterways seems to be a crucial part for achieving this goals, and there are very few listed companies who focus on maritime engineering and it seems that ITD is one of the biggest. Another interesting thing is its biggest promoter is a FII (51%) named Italian thai development public company limited. ITD is mapping the sea transport and maritime infra as well as logistics around the world!  We all know what value and specialisation a FII brings with it. 

Take the case of Nilkamal, which zoomed in from 144 in 2014 to 1914 due to FII entry.

ITD had seen a rally just before few days. Now it will be consolidating for some time. So, this might be the chance to start buying and sitting tight for a year or two. Over a period of 2 years, 1 Lakh Crore will be pumped by the government itself in this sector, not to mention the private indulgence.Every maritime company is bound to profit from this.

I am currently super bullish on this sector and am going on SIP (will buy on dips) mode with a portfolio including:

1. IL&FS Eng/ NCC

2. IL&FS Transport/ Shipping Corp. Of India

3. ITD cementation/ Dredging Corporation Of India.

4. Navkar Corporation

5. Gateway Distriparks

MARKET UPDATES

• SPICEJET suggested at 77.40 on 8th March. It touched 96 today (24%).  http://sharemarketguru7.blogspot.in/2017/03/3.html
• KOLTE-PATIL & Jkumar Infraprojects suggested on 14th march at 118.70 and 243 respectively. They reached 161 and 270 respectively. Also gave a target upgradation. - http://sharemarketguru7.blogspot.in/2017/03/mitron-ka-mitron-and-his-tryst-and.html
• Reviews for Caplin, IDBI, JK tyres, South Indiabank coming soon.
• For wonderful calls like KOLTE-PATIL ( 36% returns in just 8 days!) stay tuned to http://sharemarketguru7.blogspot.in/

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