Mudar Patherya Recommends Five Micro Cap Stocks With Multibagger Potential. Mudar Patherya has homed in on five micro cap stocks which he describes as rainbow among dark clouds. It is explicit that these stocks are powerhouses with multibagger potential Virinchi Ltd operating leverage from hospital will generate mega profits Virinchi Ltd, a little know micro cap with a market capitalisation of only Rs. Porinju Veliyath in August 2. Scada Symbol Library on this page. Without a seconds thought, Porinju pounced on the stock and scooped up a massive chunk of 1. August 2. 01. 6 in a bulk deal. Later, on persistent requests from his battalion of fans and followers, Porinju explained the rationale for the stock pick in the following words Virinchi hospital in Hyderabad is a 3. That is also getting merged with this company and the promoter stake is going up to around 5. So, I am seeing many things happening in the organisation and it looks like an inflection point from a stock picking perspective. Porinju also did number crunching to satisfy the needs of his fans At Rs 1. India there may be some pockets, some cities which are overcrowded with hospitals. But generally speaking India is still in shortage of hospital beds, so that is where a lot of money can be made by investors. Porinjus present holding in Virinchi is not known. However, the stock has done well since then by notching up hefty gains of nearly 3. Now it is the turn of Mudar Patherya to put the spotlight on Virinchi. He has explained that the best part of Virinchi is the fact that the flagship hospital enjoys attractive operating leverage, which means as utilisation rises, the bottom line and Ro. CE return on capital employed pass throughs could be quicker. Mudar has also done number crunching and pointed out that the fact that the Ebit of 5. June 2. 01. 6 quarter transformed to 1. June 2. 01. 7 quarter, despite an increase in depreciation from 3. Company is doing the right things. Orient Cement new animal spirit discovered Orient Cement has the distinction of being recommended by Porinju Veliyath in his world famous tweet of 2. August 2. 01. 3 when it was quoting at a throwaway valuation of Rs. Balaji Telefilms3. RPDg_HEs8k/hqdefault.jpg' alt='Micro Cap 7' title='Micro Cap 7' />Investment Strategy. The Driehaus Micro Cap Growth Fund generally invests in companies that are within the same market capitalization range at the time of investment. Micro Cap 7' title='Micro Cap 7' />Orient Paper5, Orient Cement3. KRBL2. 3, Mirza Intl2. BUY Porinju Veliyath porinju August 2. The stock has since surged from Rs. Unfortunately, the stock has been languishing in the recent past with a 2. Mudar claims that Orient Cement has now discovered a new animal spirit which is shown by the fact that the aggregate capacity goal outlined for 2. He has also opined that there will be higher capacity utilisation across the next few quarters on the one hand coupled with the acquisition led benefits kicking in. Mudar has drawn a parallel between Orient Cement and its arch rival Dalmia Cement a. Dalmia Bharat. Dalmia Bharat has given a return of 3. Orient Cement may walk on the same path and delight investors. Dilip Buildcon Baby, there is something happening here Mudar has been charmed by Dilip Buildcons staggering quarterly results. Baby, there is something happening here, he has exclaimed in an excited tone. He has pointed out that the revenue has increased every single of the past four quarters from 9. Ebit has more than doubled from 1. The deduction Interest outflow increased 1. Search over 18,000 small cap and micro cap stocks traded on the NYSE, NASDAQ, AMEX, TSX, OTCBB or even PINK SHEETS. Find small cap companies that match your. News Spectrum Software has released MicroCap 11, the eleventh generation of our SPICE circuit simulator. For users of previous MicroCap versions, check out the new. Stoxline. com provides stock quote, technical analysis, fundamental analysis, stock rating, stock market headline news. Ebit strengthened to 1. This implies that Dilip Buildcon could be a powerhouse multibagger even from here despite the hefty Yo. Y gain of 1. 42 already notched up, Mudar says. Axis Direct has confirmed Mudars hypothesis by recommending a buy for the target price of Rs. The rationale is convincing Sale of BOT assets right step forward Dilip Buildcon DBL has signed an agreement with Shrem Group for sale of its entire BOT portfolio 1. Hybrid Annuity Model HAM projects at an equity value of Rs 1. Rs 1. 05 bn. DBL has invested equity and sub debt Rs 6. Rs 8. 4 bn is yet to be invested. The transaction values BOT portfolio at 1. The transaction is expected to be completed in tranches, wherein DBL would receive Rs 5. FY1. 8 and remaining in FY1. With the monetization of BOT assets, DBL has delivered on its strategy of being a focused EPC player in infrastructure space. Phillips Carbon Black megabagger with 5. Phillips Carbon Black has been an unstoppable juggernaut with a massive 5. The stock was first identified by ICICI Direct when it was still a Nano Nivesh quoting at Rs. The stock has since surged to Rs. ICICI Directs followers. The massive gains have not deterred ICICI Direct from expressing confidence that Philips Carbon has further upside potential. The core logic is as follows Improving operating matrix, re rating to sustain, retain BUYThe operating matrix of PCBL is steadily on the uptrend with the company realising robust profitability at the P L level in FY1. On the balance sheet side, the matrix is even more encouraging with PCBL generating Rs 3. Rs 3. 50 crore in FY1. It incorporates a steady improvement in net working cycle with net working capital NWC days coming in at 4. FY1. 7 vs. 7. 2 days in FY1. We expect the robust cash flow generation trend to continue with PCBL offering a cash flow yield of 1. FY1. 7 1. 9E. On the return ratios front, PCBL clocked double digit return ratios in FY1. FY1. 2 1. 7 with Ro. E at 1. 4 Ro. CE at 1. We expect return ratios to further improve to 2. Ro. E level and 2. Ro. CE level over FY1. E. Going forward, in FY1. E, we expect sales to grow at 9. CAGR in FY1. 7 1. E while EBITDA is expected to grow at 1. CAGR in FY1. 71 1. E. Consequent EPS is expected at Rs 5. FY1. 8E and Rs 5. FY1. 9E. We value PCBL at Rs 8. PE on FY1. 9E EPS of Rs 5. We maintain our BUY rating on the stock. We have been positive on the stock ever since our initiation under the Nano Nivesh brand price level at Rs 1. We believe there is a further leg up in the story with further upside potential in the stock. IDBI Capital has also jumped onto the bandwagon by issuing an initiating coverage report in which all the virtues of the stock are explained in crystal clear terms Product mix and efficiencies to drive profitability. Summary Phillips Carbon Black PCB is the largest manufacturer of carbon black in India 4. Rising tyre demand in India alongside production curbs in China lower supplies provide strong visibility on volume growthmargins for PCB. We expect PCBs salesEBITDAnet profit to grow at a CAGR of 1. FY1. 7 1. 9E. Its net debt to EBITDA to improve from 2. FY1. 7 to 1. 3x by FY1. FY1. 7 to 1. 8. 5 in FY1. Given these factors, PCBs stock is currently trading at an inexpensive valuation of 1. FY1. 8FY1. 9 EPS. We initiate coverage on the stock with a BUY, Target price Rs. Key Highlights and Investment Rationale Brownfield expansion with modest capex. PCB is expanding carbon black capacity by 6. Rs. 1,7. 00 mn by Q2. FY1. 9. Further, PCB is doubling its high margin specialty grade carbon to 2. Rs. 70. 0 mn by Q3. FY1. 8. We expect volumes to grow at a CAGR of 4. FY1. 7 FY1. 9E. EBITDAtonne to expand on better product mix, efficiencies and volumes. We expect PCBs EBITDA margin to expand on the back of improving operating efficiencies, higher volumes and better product mix in favour of non rubber products. We expect EBITDAtonne to increase from Rs. FY1. 7 to Rs. 11,0. FY1. 9E. Initiate coverage with BUY TP of Rs.