SANKHYA INFOTECH LTD:

*IT co available at Mktcap of just 41cr*

*Only IT co available at 0.28xRevenue*

*Big big big developments taking place*

_FY18 topline to witness 35% growth and EPS can be 10_

*Stock can be in 3 digits in CY17 itself*

IT Co with _play of Defense and Aerospace_

Hyderabad based Sankhya Infotech Ltd, a small software company may witness HUGE UPSURGE in its business in coming years due to strong emphasis of Modi govt on Make In India, domestic production of Defense equipment and growing clout of Aerospace in India. It is major challenge to provide high value, result oriented and immersive

training solutions for Aerospace and Defense industry. SIL designs training solutions that are customer driven.

Its solutions are used by many Aviation schools and Aerospace companies.

SIL offers several innovative products and services for Aerospace and Defense industry. SIL is catering to following segments:

DEFENSE

AEROSPACE

BFSI

TRANSPORT

ENERGY

HIGHER EDUCATION

.SIL is world's FIRST company which offered remote training facility for any airlines in the world.

SIL has partnered with various Defense PSUs and Defense Labs . And its solutions of advanced training programs suitable for ALL 3 arms of defense forces i.e. Army, Airforce and Navy.

BIG DEVELOPMENT:  One American defense Contractor has tied up with SIL to integrate SIL's solutions with their own solutions.

For Aeropace industry, SIL offers following solutions:

TMIS

LMS

LCMS

Crew Rostering

Desktop Simulations

For Defense industry, SIL offers the following:

TMIS Defense

LMS

Simulators

Video integration

SIL's other portals of BFSI, Higher education are also doing well. However, SIL expects HUGE HUGE growth in its size from Aerospace and Defense segment.

Another Wealth Creator for 2017:

_Goldiam International Ltd_

100% EOU. No domestic sales. Hence, zero impact of Notebandi. *Big profit margin expansion due to weak Re*

Exports diamond jewellery directly to Retailers

Avlbl at 0.70x Book

Tdg @ 5.90xFY16 EPS

Avlbl @ 4.58xFY17Eeps

*Investments ( at cost, mkt value much higher) RS 108.40 cr works out to Rs 43/ share. Hence, biz avlbl just for Rs 44*

Mumbai based Goldiam belonging to Bhansali family, is engaged in production and exports of designer diamond jewellery. Co is exporting directly to big retailers in USA. Goldiam has been improving its financials ( DEBTFREE, takes short term borrowings only for working capital against security of its investments) and is definitely underpriced

           H1FY17. H1FY16

Sales     152.    160

PAT        17.14. 160

Equity.    24.94

EPSRs    6.84.   4.17

BValueRs.          112

For FY16, Goldiam had reported NP of 33 cr on sales of 330cr, translating into EPS of 13.03.

*For H1 it's Pat has leapt by 60% with H1 EPS of 6.84*

_Goldiam can easily report Eps of 16 for FY17 as (a) H2 is always better due to Christmas/NY demand (b) to benefit from strong dollar_

It may be noted that co don't hedge it's dollars( of export revenue), hence full benefits of weak rupee will lead to margin expansion
But hedges dollar for gold imports
Co also benefits from rising gold prices( inventory gain). Family one of the oldest in this business, hence understand gold biz ( volatility) extremely well

*Investments in current, non-existent current asset class AT COST 108.40 cr which means RS 43/ share*

Goldiam trading at 0.70x,Book, PERatio 4.58, debt free, consistently profit making is grossly underpriced.

_Even if Goldiam gets modest PERatio of 12, stock price can be 170-200 in 12-15 months_

Definitely worthy of investment. Stock still below its recent high of 94 makes it safe buy at cmp

HUGE TRIGGER IN OFFING:

_Triveni Glass Ltd_

Andhra  Pradesh govt is building huge township name AMRAVATI to be state capital. This new city entails huge huge demand for building materials.
*Triveni Glass will be big big beneficiary as it's plant is just 80km away from AMRAVATI and there is no other plant within 200 km radius*

Such huge demand will change fortunes of TGL completely as TGL will wield strong pricing power.

If all goes well, TGL can become 400 cr company by 2020 by which time stock should cross 200

Cmp still lower than recent high of 33

_Cheapest building materials stock_

Update on Triveni Glass Ltd:

Earlier  only 1 production line was operational and 2nd production line was shut. However due to improved liquidity and higher demand, TGL has made 2nd line also operational. With this production capacity stands doubled. Present utilization of 2nd line is 40% which  should go upto 80% after 1-2 quarters. Hence FY18 should be significantly better vs FY17

Kamadgiri fashion Ltd:

Subsequent to our recommendation on above stock, some tweets doing round in market that Kishore Biyani may raise stake in KFL from 28% to 51%. If it happens, then KFL will be re-rated and stock can yield multibagger appreciation

Q2 PAT up 1000%: Cheapest Textile Stock(Uninterrupted Dividend track record)

Kamadgiri Fashion Ltd:

               Q2/FY17 Q2FY16

Sales.     86.           71

PBT       1.80.        0.18

PAT        1.21.        0.12

Equity.    5.87

Q2 PAT has risen 1000% YoY as co has increased sales of its *OWN BRAND fabrics(True Value,True Linen)* and cost cutting

KFL is largest supplier of garments to FUTURE group and also supplies to all major Garment brands in India

*Kishore Biyani thru Pvt firms holds 28% stake*

_Watch for some big corporate action_

Stock is trading at just 10%xFY18 sales

TP Rs 120-130 in short term

( Low liquidity means faster rise in share price)