Multibagger ideas: 3 stocks that can multiply your money

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Multibagger ideas: 3 stocks that can multiply your money

Deven Choksey, MD, KR Choksey Shares and Securities is bullish on Solar Industries, Emco, and Adani Enterprises.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Multibagger ideas: SP Tulsian's stock tips for long-term Expert view: Get tips to trade fertiliser pack, HUL, ICICI ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Deven Choksey, MD, KR Choksey Shares and Securities is bullish on Solar Industries , Emco , and Adani Enterprises .

He is also bullish on ICICI Bank in the banking space.

Here is the verbatim transcript of his interview with Udayan Mukherjee and Mitali Mukherjee on CNBC-TV18. Also watch the accompanying videos.

Q: Why do you like Solar Industries?

A: Solar Industries is showing good amount of promise more from the point of view of a company catering to the mining and the construction activity which is in the explosive business. They are leaders in this particular area of business.

At the same time, they are in the process of getting their coal mines allotted and that would give them a possibility to link it with some of the power plants. From that point of view, if you find, these companies getting into higher value addition activity which is very fruitful going forward.

In my view point, the stock is still available at an attractive valuation, given the kind of prospect that it holds. Currently, it trades at around 10 PE which probably would increase more because of growth itself in the base profit. We like this company from a relative longer-term investment point of view and not immediately from a one-two quarters point of view.

Q: Why do you like Emco?

A: This company is a sub sector to power sector. The coal mining activity, which has added into this company from this quarter, they already secured the Indonesian mines where they have stared extracting coal. So, from current quarter, maybe next quarter onwards, you should be seeing a larger effect coming into the books of the company from coal mining activity, apart from transformers rectifiers activity which is largely dependent on Power Grid where higher amount of orders are expected to come in, in this quarter.

They have this entire business which is largely transformed now with coal mining coming in to play. Probably we will see in the coming two quarters profits into the company's book where we see growth coming in. Like Solar, this company is also a relative longer-term investment, maybe in the next one full year, one could see maximum amount of benefits coming in.

Q: What about something like Adani Enterprises, it had a slightly patchy performance towards the end of last year, but you like that?

A: If you look at the last quarter's result, two significant things have started into this company. The entire coal trading activity has started giving them a better amount of realisation because they have gone into from mere trading, mining to logistics. That is important element as far as the margin realisation is concerned. So, the trading portfolio of Adani would probably give them higher margins because of higher shift onto coal. That is one.

They are also holding company to Mundra and Adani Power. In Adani Power, they have got larger capacity already executed and probably '11-12 would see a large jump into this capacity as well.

Along with that Mundra is already attracting higher amount of traffic. So, when you see the consolidated books for Adani, you find larger contribution coming in from port businesses as well. Along with that, the real estate business has kicked off in the last quarter as far as Ahmedabad real estate is concerned.

So, all put together, you find that this company is once again ready to give some good amount of growth into the bottom-line. This is a company, which is not a one-two quarter play, one will have to hold on to this company for at least two years to get the maximum benefit out of the business model that they have built in.