Vadilal Industries an investment stock

Vadilal Industries is principally into ice creams and food processing. In ice creams, it has a weak pan-India presence; its product quality is variable and it is easily flattened by Amul which has access to the cheapest raw material among all ice cream players, as well as the money and skills for countrywide marketing. Vadilal has remained a small player in ice creams. Its processed food division makes and markets a range of fruits, vegetables and ready-to-serve Indian foods. The quality of the processed foods, parathas and palak paneer and dal makhani produced by the company is not up to the mark. It exports products to European Union, the Middle East, the Asia Pacific region and the US markets. It is now aim to supply its products to the Indian retail chains, including Reliance and Big Bazaar. So Why Vadilal is considered for investing? The company has 18% share in the Indian ice-cream marketplace and ice-cream market is growing at a rate of about 15%.

Why Vadilal is considered as a long term investment stock?

This stock’s category has a good potential, and the brand is well known, but the stock has not done anything in the past two to three years, mainly because the company has not shown a Outstanding growth. Ice-cream industry is not in good condition mainly because of power down conditions in not just larger cities, but in towns and villages which is not allowing retailers from stocking ice-cream.  So once the power situation improves, growth can be seen in the ice-cream market.

More important, Indian Warren Buffet, Rakesh Jhunjhunwala who holds 2.78% stake in the company.

6 Month Chart from MoneyControl.com

Read More:

1. http://articles.economictimes.indiatimes.com/2014-02-06/news/47089793_1_ashish-chugh-selan-exploration-barrels/2

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Selan Exploration a potential multibagger for long term investing

Selan Exploration, a potential multibagger is into exploration & production of oil & gas.It currently operates 5 small fields in Cambay onshore-Lohar, Bakrol, Indrora, Ognaj and Karjisan.These oil fields were awarded to the company in 1995-2000 under a Production Sharing Contract (PSC) with 100% participating interest by the Government of India.Selan was subsequently awarded two more fields in Gujarat namely Ognaj Oilfield and Karjisan Gas field.In-place resource stands at 73 mmbbl(million barrels)& 7 mmbbl in Bakrol & Lohar respectively.Production level is currently at ~660 bpd(barrels per day). 
The Promoters and Management have extensive experience and domain knowledge in the field of Petroleum Exploration, Development and Production as well as in the field of Geophysical Data Acquisition, Processing and Interpretation. This share is not for short trading, it is for long term investing.

Ashish Chugh on Selan
Cash flows for Selan Exploration is very healthy, one must have attribute for a multibagger stock. Selan is into Oil Drilling And Exploration sector and this is a recession-free industry, wherein whatever industry produce instantly gets sold and in fact there is no competition in the business and no marketing expenses involved. Selan was not getting approvals from the Indian Director General of Hydrocarbons and there were absolutely no approvals between 2010 and 2012, .So that was what was diminishing the growth of the company and that factor seems to have got corrected. 

As this investment stock has already seen a run-up from Rs 300 to about Rs 450-460 levels in a very small period of time, it may take a pause at these levels or maybe there could be some correction also from these levels. 

Value Investor, Porinju on Selan

Selan @ 415 - first time some MFs have shown interest. sit tight...Q3 will be normal. real growth starts from Q4 - I don't have a target
— Porinju Veliyath (@porinju) February 5, 2014

Read Porinju's view on Selan on long term investing

Why Selan Exploration is a must have in portfolio for long term financial planning

The Company has no debts. Cash flows for Selan are very rich. The company's real potential yet to come in real world. And the company is into oil drilling sector and as the company is already established, the expenses is really less. 

 Share chart for 6 months from Moneycontrol.com

 Read Full reports here:

1. http://articles.economictimes.indiatimes.com/2014-02-06/news/47089793_1_ashish-chugh-selan-exploration-barrels

1. http://www.moneycontrol.com/news/stocks-views/why-ashish-chugh-is-bettingselan-exploration-swelect_804226.html

Disclosure - We have vested interest in this share. Lion share of our portfolio is occupied by Selan.

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