Investing Stories

We at Prospero Tree strongly believe in the power of research-backed investing. When it comes to equities, we follow a flexible portfolio investment strategy that focuses on delivering adequate returns over a long period of time without taking inadequate risks. We achieve this by selecting multiple investments from varies sectors having appropriate upside opportunities. Though there are inherent risks in equities as an asset class, we strive to build a diversified portfolio and selecting companies paying appropriate attention to business and valuation risks. Through our stock stories section, we bring certain stock specific research on the companies that we are tracking. Please understand that these are not investment recommendations but helps in understanding the companies better.

Patels Airtemp: Second Half to be better than First Half 14-Nov-2014 / Category: Update Report We recommended Patels Airtemp at Rs. 125-130 on 09.Sep.2014. Here is the first report on Patel Airtemp. We remain positive on the company's future and advice Buy / Hold at current market price of Rs. 164.
Lloyd Electric: How Will FY15 Results Pan Out? 13-Nov-2014 / Category: Update Report We had first recommended to Buy Lloyd Electric at Rs. 115 on 25-Jul-2014. The first report can be accessed here Lloyd First Report. We again came out with a further detailed report on Lloyd here - Lloyd Second Report at Rs. 152 with a target price of Rs. 275 - Rs. 300.
ISGEC: Remains a POWERful Investment after 220% returns 10-Nov-2014 / Category: Update Report ProsperoTree.com first recommended ISGEC Heavy Engineering at Rs. 950 - Rs. 1050. The first research report can be accessed here (ISGEC Heavy Engineering Research Report). Since then ISGEC has performed very well and reached Rs. 3200 mark, making it a 3.2x (220% Returns) in less than a year
Accelya Kale: 2.5 times; Waiting for New Orders 4-Nov-2014 / Category: Update Report We recommended Accelya Kale Solutions Ltd at Rs. 350-400 range in May2013. Since then Accelya has given a dividend of Rs. 119 and the stock is quoting at a market price of Rs. 807, giving a total returns of Rs. 146% (2.46 times including dividends).
JBChem: Promising Even After 176% Returns 27-Oct-2014 / Category: Update Report We recommended JB Chemicals at Rs. 75-85 on 8Aug2013. At CMP of Rs. 221, JB Chemicals is already giving returns of 176%. First Report on JB Chemicals can be accessed here: JB Chemicals First Report. Here is the quick update on JB Chemicals.
Muthoot Finance: Set to Glitter Again 26-Oct-2014 / Category: First Report Headquartered in Kerala, Muthoot Finance is the country largest gold loan company. It has a pan India network of 4,271 branches and a loan book of Rs 21,400 crore which is completely secured against gold ornaments.
Financial Tech: Book Loss; Logic Wrong as of now 21-Oct-2014 / Category: Update Report The Central Government has proposed to issue the order that may lead to amalgamation of NSEL with Financial Technologies.
Delisting: Essar Oil vs Ports & Shipping 21-Oct-2014 / Category: Update Report Essar Group has announced de-listing of Essar Oil, Essar Ports and Essar Shipping. We believe that Essar Oil Delisting Arbitrage provides good risk-reward ratio as against that of Essar Ports and Essar Shipping. You can view our first recommendation of Essar Oil Arbitrage here.
Linc: Beneficiary of Crude Price Fall 11-Oct-2014 / Category: Update Report We recommended Linc Pens at Rs. 95 in our first report dated 02-Sep-2014. Linc Pens is currently trading at Rs. 128. We further gave a couple of updates here and here.
Sanghi Cement: 3.7 times, what now? 8-Oct-2014 / Category: Update Report We recommended Sanghi Cement at Rs. 17 on 10-May-2014, just before elections results were going to be announced.
Lloyd Electric: Growing Brand At Low Valuation 6-Oct-2014 / Category: Update Report After our interaction with the management, we were able to solve a lot of our questions and get clarity on working capital requirements, segment-wise margins, and segment-wise growth among others.
Financial Tech: Perception Risk, Real Value 28-Sep-2014 / Category: First Report Financial Technologies (FT) started its operations in 1988 with development of technology products that helped ease operations in financial markets. FT is popularly known for its software named ODIN. When ODIN was launched, it was the only software that aggregated the data feeds from BSE as well as NSE on a single screen and is therefore still a market leader in this area.
Shilpa Medicare: Multiple Engines of Profitable Growth 24-Sep-2014 / Category: Update Report We had first recommended Shilpa Medicare to be accumulated between Rs 260 - Rs 275 in January 2014. Based on ProsperoTree'sÃƒâ€šÃ‚Â analysis we came out with a report titled
Sharda Crop IPO: 50% on listing day; what now? 23-Sep-2014 / Category: Update Report We had recommended to apply in Sharda Cropchem IPOÃ‚Â at price of Rs. 156. We further tried to clear the doubts raised by many on Sharda Cropchem story in a report titled,
Repco: Continue to Hold with 145% already 22-Sep-2014 / Category: Update Report We recommended Repco Home Finance in April 13 at the price of Rs. 175. At the current market price of Rs. 429, it has delivered 145% returns since our first recommendation. At this stage, we recommend long term investors to add more stock to their portfolios.
Muthoot Capital - 74% Returns in 4 Months 22-Sep-2014 / Category: Update Report We recommended Muthoot Capital in Jun'14 at the price of Rs. 126. At the current market price of Rs. 219, it has delivered 74% returns since our first recommendation.
Shriram City Union: 62% Returns in 6 Months 22-Sep-2014 / Category: Update Report We recommended Shriram City Union in March 14 at the price of Rs. 1,020. At the current market price of Rs. 1,650, it has delivered 62% returns since our first recommendation.Ãƒâ€šÃ‚Â At this stage, we recommend long term investors to add more stock to their portfolios.
Acrysil: Exit with 271% Returns in 9 Months 14-Sep-2014 / Category: Update Report We recommended Acrysil Ltd in Dec'13 at the price of Rs. 174. At the current market price of Rs. 646, Acrysil Ltd has delivered 271% returns since our first recommendation. At this stage, we recommend to book profits in this stock.
Snowman: Returns of 68% on the listing day 14-Sep-2014 / Category: Update Report We had recommended to apply in Snowman Logistics IPO in Aug'14 at a price of Rs. 47. The stock on the listing date itself has surged 68% closing at Rs. 80. Though we had recommended Rs. 80 as our target price, we think that the price can move up to Rs. 90-100 range based on the strong interest seen by institutions and HNIs in Snowman Logistics.
Axis Bank: Returns of 100% in two years, what next? 14-Sep-2014 / Category: Update Report Our investment premise in Axis Bank was based on its strong liability franchise, stable asset quality and strong growth potential in the segment. Most of these themes played out in the past two years asset quality remains stable with GNPAs at 1.3% as on June 14 (1.1% on Sept 12) while CASA ratio improved to 43% (41% in Sept 12) despite the tough macro environment. Its retail strategy successfully offset the corporate slowdown over the past two years and franchisee benefits are here to stay.
Aegis: Exit with 135% Returns in 6 Months 14-Sep-2014 / Category: Update Report We recommended Aegis Logistics in Mar'14 at the price of Rs. 160. At the current market price of Rs. 376, Aegis Logistics has delivered 135% returns since our first recommendation.
Sharda Cropchem: Case for higher valuation than UPL! 13-Sep-2014 / Category: Update Report There are many doubts raised on the investment thesis of Sharda Cropchem Ltd. However, a deeper analysis of the company will only make one more comfortable about the company
LINC Pen: Channels Checks; Maintain View 13-Sep-2014 / Category: Update Report We recently interacted with the LINC management and conducted some channel checks with dealers to understand the turnaround at LINC. Here is a short summary of the same.
Banco: 2 times in 4 months; Book Partial 11-Sep-2014 / Category: Update Report We recommended Banco Products in May'14 at the price of Rs. 81. At the current market price of Rs. 160, Banco Products has delivered 100% returns since our first recommendation. At this stage, we recommend to book partial profits in this stock.
Patels Airtemp: Strong Orderbook Led Growth 9-Sep-2014 / Category: First Report Established in 1973, Patels Airtemp (PAT) is a manufacturer of engineering products like Heat Exchangers, Pressure Vessels, Refrigeration and AC equipments. The Company's sales have been static in the range of Rs. 70 crores to Rs. 90 crores in the last 5 years and its net profit margins have declined from 12% in FY10 to 6.6% in FY14.
Sharda Cropchem: Asset-light Agrochem Play 8-Sep-2014 / Category: First Report Sharda Cropchem Ltd. (SCL) is primarily a crop protection company engaged in identifying generic molecules, preparing dossiers, seeking registrations, marketing and distributing formulations across the globe. Sharda Cropchem does not have any manufacturing plants of its own and gets most of its products manufactured in China.
Balaji: Management buying strengthens belief 5-Sep-2014 / Category: Update Report We recommended a BUY on Balaji Telefilms at Rs. 43 in April 2013 when its market cap was Rs. 275 crores. At that time, the company had a total cash of Rs. 215 crores. We recommended Balaji due to its deep undervaluation, exploding growth in movie industry, maturing serial businesses, and focus on cost rationalization.
Lloyd Electric: Celebrating Onam Festival in Kerela 4-Sep-2014 / Category: Update Report We had recommended Lloyd Electric at Rs. 115 on 25.July.2014. The research report has been published here (LLOYD REPORT). We further suggested to Buy after the 1QFY15 results was announced at Rs. 137. We further suggested a STRONG buy at Rs. 159. Below is the update on same:
LINC: Marketing Strategy 3-Sep-2014 / Category: Update Report Why does LINC have a reasonable chance to move up the value chain?
LINC Pen: Set to write a new chapter 2-Sep-2014 / Category: First Report Established in Kolkata in 1996, LINC Pens is the 3rd largest writing instruments company in India after Cello Pens and Reynolds. It is engaged in manufacturing and sale of pens, refills, pencils and all kinds of student stationery.