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12/02/2017

A risky bet for all my punter friends

The infamous trading company Kushal Ltd. which gave it's investors a whooping return of 8000% (2500% to this date) in 3 years is popping again and again on my scanners.
100% deliverables.
Volume growth from 126K (daily volume) to 831K in the past 5 days.
The promoters of this company bought 3.95 lakhs in the past 5 days.
A dividend was declared on 22nd November. (First time ever)
Surely something is brewing up here.
It's in the air that Kushal Ltd. is going to acquire Rainbow papers. This would virtually make Kushal Ltd. the biggest exporter of paper in the country.
Other rumour has it that Kushal will be shifted to a better BSE group. It's likely to be shifted to B group from T given its huge Market Cap (3216 cr) and improved EPS.
One rumour says that it's circuit limit is going to be changed and some say it will get an upgrade in credit rating.
But, it's tough to verify if either of the news is true.
The company has varied interests. It is a conglomerate who manufactures Kraft Papers used in packaging materials and ships it to Malaysia, Dubai, singapore, etc. from ports in Kandla and Dahej. They have around 600 clients around the globe.
They have a recycling unit which goes by the name Wealth Creators.
They are prominent developers in Ahmedabad with an eminent housing project in Ahmedabad, destined to be completed by 2020.
It's subsidiary in Dubai, Kashish worldwide F.z.e. is an established EXIM company.

Kushal has another wholly-owned subsidiary, Kushal Impex Ltd, based in Singapore.


It is believed that this script is a manipulators den and has been accused by many for wrong doings and other Financial crimes. It has been blamed for manipulative activities including pump and dump (balance sheet manipulation), cornering the market etc.
The broker's association had imposed a ban on this script. I.e. you won't be able to buy this script through most of the brokers in our country.
Despite of all this, the IT department, regulatory dept (SEBI), the auditors and the registrars don't see any flaw in the company's financials.

Say what, you may, but the promoters, originally Rag Pickers and Raddi Wallas have ventured into India's richest 300 list.

According to me, It's tough to manipulate a script that has a market cap of 3000+crore and is under the constant scrutiny of various authorities. And the company also gave a dividend in November, proving it's fundamentals.
So, for people who love to play with fire can venture into this.
As of me, I will buy 5-10 shares at CMP of 135 for experimental purpose.
Can this be a multibagger?
This company jumped from 2rs. to 469rs and back to 135rs and all this in just 3 years, so, I wouldn't be shocked to see this company at 600 levels.

The above views are purely opinions of a stock market speculator. One may invest at their own discretion.

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