Visaka, one of our multi-bagger

Housing for all scheme by the Government is a positive for the economy in various manners. 4 Crore houses to be build by 2022, the creation itself will bring huge business opportunities for the Cement, Steel and home construction goods manufacturers. Once the houses are ready, the occupants will need to have the basic necessities to run their homes, utensils, durable’s, furnishing etc., these businesses will flourish.

In line with this thought, our investment in Visaka Industries, a company that manufactures sheets for houses as well as other home construction accessories. We purchased this stock when it came in our research ranking table in the month of January 2017 at a price of ₹190 per share. It is 8 months since we are holding this stock, apart from the dividend of r₹6 per share, the current price of the stock is ₹672.00. An appreciation of ₹482 or 250% growth in 8 months.

One of the Multi-baggers in our portfolio…..

 

2 years of normal monsoon a boon to the markets

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Met department has predicted normal monsoon this year. It follows the previous year which was also normal. This means big good news for the markets. We are going to see big gains coming…. Reason, farmers will have surplus income in their hands and will add to consumption. Rarely does such occurrences happen, where always there are drought conditions following one good or normal year of monsoon. Where our farmers clear off all their loans when there is normal monsoon and a fairly good crop. Now, if there is a second year of good income, where they will not have loans to pay, and can think of some luxuries for their families.

Once they have surplus funds, they will think of buying a new TV, automobile, renovate his home and more such goodies…. As their lifestyle improves, so will the economy. Businesses will have good sales, sectors like home construction, which already has a booster in the form of the Government’s “Home for all Scheme”, consumer goods and auto companies.

We look forward to have a great year for the markets. As this writing happens, the market is in consolidation, with no mood to get into correction. Mid caps, which were the stars as always have corrected to some extent. Sector rotation is happening, Sugar is showing signs of weakness, while banking is showing strength.

Good times ahead…….