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4 stocks to buy this Valentine's Day

Last updated on: February 14, 2013 11:28 IST

4 stocks to buy this Valentine's Day

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Narendar Lokwani

What has the dreary subject of stock picking got to do with the festival of Love -- Valentine's Day? Everything, if you ask us! Stocks move purely on sentiment and with the sentiment of love abounding on this lovely day, following are the Valentine's Day's concept stocks that can move and make you money.

Archies Ltd.

Archies Limited was started in 1979 by Anil Moolchandani and is a market leader in India for greetings cards with over 50 per cent market share. In addition to cards, Archies Ltd is in business of gifts & products such as posters, artificial jewellery, crystal ware, chocolates and perfumes.

Archies has about 2000 outlets and franchisees, called Archies Galleries, spread across 120 cities and 6 countries. With the advent of online wave, Archies also started its online portal archiesonline.com in 2000.

The stock is available at a value price of Rs 24, with total market cap of just about Rs 80 crore.

The firm has doubled its top-line from Rs 117.9 crore in 2008 to Rs 201 crore in year 2012. It's a regular dividend paying firm and 61.74 per cent equity ownership is with promoters. Thus the stock is a hidden gem in Indian markets and waiting for its value to be discovered. 

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Disclaimer: This article is for information purpose only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products /investment products mentioned in this article or an attempt to influence the opinion or behavior of the investors /recipients.

Any use of the information /any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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Image: Price movement of Archies Ltd. from March 2012
Photographs: Rediff MoneyWiz

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Lovable Lingerie

Loveable Lingerie is a concept stock and was in very hot uptrend while the trend lasted. The stock started its journey at Rs 245 and reached price levels of Rs 630 or so in a few months timeframe. Currently the stock is available at a value price of Rs 312.

The firm is one of India's leading women's innerwear manufacturers. Lovable's products include brassieres, panties, slips, homewear and sleepwear products.

The firm licensed the brand 'Lovable' from Lovable World Trading Company, USA on an exclusive basis for the territories of India, Nepal, Sikkim and Bhutan.

Lovable and Daisy Dee are their flagship brands. The brand Lovable is amongst the top three most preferred brands in women's innerwear in India.

The revenues for the firm are in uptrend and so are profits. The firm is debt-free and has provided strong profit growth and return on equity over the years.

Promoters have high holding of 67 per cent which is very positive for the stock. Book Value is at Rs 95, and total market cap is about Rs 524 crore, which is very reasonable value for a concept stock like this.

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Image: Price movement of Lovable Lingerie from March 2012
Photographs: Rediff MoneyWiz

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Mahindra Holidays & Resorts India Ltd.

Mahindra Holidays and Resorts is a unique concept stock as not many listed firms exist in this segment, other than Sterling Resorts and Country Club to an extent. However, in comparison to Sterling, just to take an example, Mahindra Holidays is not trading cheaply.

It is richly valued at Rs 2,500 crore market cap with Rs 1,000 crore of debt. The revenues are growing sequentially with decent growth and annual topline is close to Rs 620 crore for March 2012, which has doubles from revenues of Rs 352 crore in year 2008.

The trick in this stock is to look at shareholding percentage and 82.69 per cent holding is with promoters themselves. Thus being a concept stock with little freehold, there are not many sellers available, even on a bad day, which provides good support to the stock.

The company's flagship brand 'Club Mahindra Holidays' has a fast growing customer base of over 150,000 members and firm owns 40+ beautiful resorts at some of the most exotic locations in India and abroad.

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Image: Price movement of Mahindra Holidays & Resorts India Ltd. from March 2012
Photographs: Rediff MoneyWiz

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Gitanjali Gems

Gitanjali Gems is among the pioneers in diamond and jewellery businesses in India and boasts of powerful brands like Gili, Nakshatra, D'Damas, Sangini, Asmi and Diya to name just a few.

It's amazing for most investors to see such plethora of successful brands under one name and business group.

Over the course of past 5 years the annual revenues for Gitanjali grew from Rs 2,654 crore to Rs 7,755.00 crore, a 3x topline growth in 5 years.

Even on margins front, the firm did well and grew its profits from Rs 138 crore to Rs 258 crore, thus growing its EPS (earning per share) from Rs 16 to Rs 28.

Of course, it helped that equity capital hasn't been diluted significantly, which is again a good thing and hallmark of a great firm. Gitanjali has also launched an online venture Gitanjali Online, which has vast collection of gift items for your loved ones at the click of a button.

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Image: Price movement of Gitanjali Gems from March 2012
Photographs: Rediff MoneyWiz

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