Some Friends are asking me what I saw in Chaman Lal Setia Exports in 2014 that I considered it a definite 35 Bagger…. When I discussed about this stock with my investors friends in 2014, nobody heard this name and they all wondered whether I am discussing some stock or some person because name of company is like a name of some individual….:)….After my buying, Stock rocketed from 5 to 180 in less than 4 years….It rose so fast that promoters had no option but to announce a Split of 5:1 and a Bonus Issue..!!! ….So today I will tell you just 7 out of many reasons because of which I bought Chaman Lal Setia Exports…. This list is not exclusive.
1. It owns “Maharani” brand of branded Basmati Rice which is in top 3-4 brands in market
2. With growing and prospering Indian middle class with double household incomes, demand of branded basmati rice will increase.. Packaged rice market growing at 30% CAGR
3. India and some part of Pakistan are the only countries in the world which produce Basmati Rice.. So no competition from other countries.
4. Books are clean and company paying full 30%+ tax
5. Vijay Setia is Chairman of “All India Rice Exporters Association” and is appointed recently as consultant by a leading international company for his expertise.
6. Company developed a new “Diabetic Rice” for which I think demand will rise very fast as people becomes health conscious…As per management, no other company has the know-how to make this kind of rice…. Also the company developed a special low pesticide rice… So the very experienced management is using their expertise in developing new techniques which will give them huge competitive advantage.
7. Management is spending more on advertisement to make brand differentiation which will improve margins going forward.
HDFC Bank took 15 years (2003 to 2018) to multiply 40 times ( Rs 50 to 2000) …. While Chaman Lal Setia took just 4 years to multiply 40 Times !!!!
Happy Investing !!