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Hello Friends!!! Time to start with a Bang!!! and here comes our First Investment Idea Bang Overseas Limited. Below is the detailed research report justifying this small cap company to be a roller costar ride for the Investors:

BACKGROUND:

Bang Overseas Ltd is one of the leading manufacturers and exporters of men's wear. Headquartered in Mumbai, the fast growing company was established in the year 1992. Since then it has been engaged in apparel, textile and retail market. It has always focused on the men's wear section however it also deal in providing rare services like concept development, designing, manufacturing, logistics and marketing.

Its Brand Chain Includes Thomas Scott, Italian Gold, Hammersmith, Bang Europa, and FCC. Also, it has developed two highly efficient manufacturing units in Bangalore and Europe (Macedonia).


FUNDAMENTALLY SPEAKING

  1. The Net worth of the company stands at 60Cr whereas the debt figure is 40.05 Cr. Clearly a Favorable liquidity position (Debt Equity ratio being less than 1 ).
  2. The P.E Ratio is around 12, whereas the industry P.E stands around 30, making it a very cheaply priced share
  3. Again, Book Value of the Company is around 45, much higher than current price; therefore the script is trading cheap.
  4.  Q2 net profit of the company on QOQ basis had been more than 4 times which is worth appreciating.The Profit trend  too is impressive, have a look : 
  5. Moreover the first 2 quarters of F.Y 2016-17 had already brought up a net profit of 3.49 Cr i.e. a threefold increment already with 2 quarters left. Therefore, this F.Y. is going to be great for the company.
  6. Almost 73% of Share Capital is consistently held by Promoters, which represents promoter confidence. Moreover, no shares are pledged by promoters.
  7. Going through the Balance Sheet, the company is cash rich company with around 10Cr. Cash in its books. Moreover going through the quick ratio, the company is capable of paying off its debts through current assets. 
  8. Going through the receivable shown under, the company has been successful in regular recovery of its receivables, therefore a lower probability of the being Bad-Debts.
  9. TheFair Price of the script when compared to financials of peer companies should be :               On Basis of Price Earnings Ratio >> >87
  10. On Basis of Book Value>>>>>>>>>>53
Therefore Fundamentally the company is cheaply valued and therefore investors can look upon to make good returns in the medium and longer term

TECHNICALLY SPEAKING :
  1. The Script is in uptrend whether we talk about short term, medium term or a long term, and riding with the trend is the greatest hedge you can make. Look at 2 year chart below, upward sloping trend lines.
  2. The Stock is above its 20day, 50day, 200day DMA/EMA/WMA. Therefore it is bullish.
  3. The script recently after a consolidation of 6 months crossed 25-26 levels on 29th November, and is now comfortable at higher levels.
  4. More than 50% volumes everyday are brought for delievery as shown below, which is a clear indication of huge accumulation and good upmoves in near term
  5. Other Indicators namely ADX, MACD, ATR, RSI , MFI, OBV and Stochastic too provide bullish signals for the script.
Therefore technically too, the stock is a screaming Buy.

CONCLUDING DECISION:

Investors can look forward at CMP of  Rs 35 with 25.50 as stop for positive returns

Best wishes for you investment.

Thanks !!!

Any Queries and suggestions will be entertained timely.



      Note : The above is just information available in public domain and therefore should not be taken as research report.

     Registration status with SEBI:  I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.

     Disclosure : I personally do not have any holding in this script, Investors are advised to consult financial advisory before any Investments.

   

Disclosure
** This Blog, its owner, creator /contributor is not a research analyst and expressing opinion only as an individual investor in Indian equities. He is not responsible for any loss arising out of any information, post or opinion appearing on this blog. Investors are advised to consult financial consultant before acting on any such information. All information in this blog is posted for personal study, All information posted on blog is as available in public domain.

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