Modern Dairies is a good value stock

[ram.ramanathan]

Hi Kalyan
No problem. You can call me Ram as well.

EV is useful. Over here Yahoo Finance provides that. But in India I found some information (ratios) in Economic Times website and SIFY Finance website.

I liked this the most:
http://sify.com/finance/equity/quotes/ratios.php?code=MDE.B

This was ok:
http://economictimes.indiatimes.com/ratio.cms?ticker=moda&exchange=b

Well I love information. Please post any other sites you are using, I use Myiris as well. The more information you have, the better investments you can make. Which part of India are you from? where are you living in?

Ram

 

[moksh]

dear ramanathan,

can u let me knw the target u have set for modern dairies.

thanks in advance

moksh

 

[ram.ramanathan]

Hi Moksh
That is a very good question. I didn't put a price target in my original post because this stock is so cheap right now, so there is a lot and lot of upside. I didn't wanna put a number which some people might think is too high given the current cheap price. But look at some of the charts of certain stocks, they looked cheap as well, but they have increased several fold 2, 3, 4... even 10 times.

Since you asked, I'm going to put a target and this is how I derive it:

Modern Dairies current P/E = 3.76
Milkfood P/E = 36

(Modern and Milkfood are the best comparsion because they operate in the same segment, same region near Delhi, Modern has better customers and better retail brands)

Modern Dairies Price/ Revenues = 0.12
Milkfood Price/ Revenues = 1.15

Short term price target = Rs. 60
Medium term price target = Rs. 120
Long term price target = Rs. 180

So there is still a lot of room for upside in my opinion. Again please do your research, please post your comments. I'm just doing the analysis and like this stock a lot, I have purchased it, I'm letting others know.

Why should the FIIs make all the money. Let us Indians make some money as well from the Indian Stock boom. What do you say.

 

[ram.ramanathan]

This is how my targets work:

1. Short term price target is what the stock is worth today in my opinion, so you are getting a big discount.

2. Medium term target, once we reach the short term target, we re-evaluate and see the trends in the sector and profitability and growth. Then that justifies the medium term price target.

3. Long term target: Do the same as 2 after reaching medium term price target.

 

[kkseal]

Hi Kalyan
No problem. You can call me Ram as well.

EV is useful. Over here Yahoo Finance provides that. But in India I found some information (ratios) in Economic Times website and SIFY Finance website.

I liked this the most:
http://sify.com/finance/equity/quotes/ratios.php?code=MDE.B

This was ok:
http://economictimes.indiatimes.com/ratio.cms?ticker=moda&exchange=b

Well I love information. Please post any other sites you are using, I use Myiris as well. The more information you have, the better investments you can make. Which part of India are you from? where are you living in?

Ram

I am from Calcutta (rechristened Kolkata) in West Bengal.

The ratios can be found at a no. of sites I get them all from ICICIDirect & MyIris. But the PEG is missing. Also from what i hear from a couple of CA friends of mine (who are also investors) the EV ratios found at some of these sites are erroneous and can't be relied upon. The calculation is also quite complex and time consuming.

Do you also invest in US stocks? Options are much wider out there - sectors like nanotech, Alt. Energy and, off-course, oil.

Regards,
Kalyan.

 

[moksh]

dear ramanathan,

i am really new to this trade world and ur post really help me a lot to undertstand market .

will be looking forward for your guidance.

r u from california...

 

[ram.ramanathan]

Thank you all

 

[ram.ramanathan]

Moksh
Sure, I'll try to help out with your questions. Yes, I live in Northern California.
Ram

 

[ram.ramanathan]

Thanks to all for posting replies to my analysis. That is what makes it interesting. If there are any other Modern Dairies shareholders who read this post, please post your thoughts and comments. I love research & analysis, but the best part is the discussion after that when everyone gives their opinion. I think Modern Dairies is just waiting for huge upside. Good stories get out to investors in time.

 

[krishna murthy]

Mr. Ramanathan,
Thanks for recomending modern dairies stock. I am new to this forum and loved your analysis and justification about the stock. Good and please keep it up.

Krishna Murthy.