BGR Energy: Building the Power Story

Last week I heard a very interesting story which eventually gave me the idea of investing in BGR Energy Systems Ltd. Thought of sharing with you.

Years back when the South African Government opened their country for outsiders to come and do mining for diamonds, entrepreneurs form all over the world rushed to South Africa in the hope of finding diamonds and changing their fortunes. Of them only very few were able to do so and become rich. But there was one African business man who instead of joining this rat race to discover diamond started the business of selling/renting hammers and other mining material whoever was coming to discover diamond. He eventually became a millionaire and one of the most successful entrepreneur of this Diamond run.

I hope some of you must have realized the point I am trying to put here. In India currently most of the companies are running to set up the power plant to generate power and other half are running to build the great power generating turbines or boilers. But very few are there in the business of building the Balance of Plants (BOP) which accounts for more than 35% of the total money spent in building up a power plant.

Thus, I strongly believe that there is a huge potential in this sector and BGR energy being the undisputed leader with a strong order book and execution track record offers great long term investment opportunity.

I would recommend one to start a SIP form of investment in this stock for a minimum of 2.5-3 years period, since at the current levels investing lump sum might be a little dangerous given the market conditions.

For further information regarding the stock, please use the LINK to download a detailed report on the same.

Happy Investing...!!!

Continuing the Medication...!!

Suppose you are seriously ill since 2 years and are on medication. Your condition is also improving slightly. However, on your last doctor's visit, he says that he will continue your medication for the extended period. What would this mean to you and your family, that actually you have not recovered well and so accordingly is the doctor's advice.

However, instead of being concerned with this advice of the doctor, your family and friends started celebrating and became very cheerful.

Doesn't this sounds a little funny or strange...?

But that is exactly what the Global capital markets has done in last 18 odd hours since the US Fed maintained the pledge that it would keep the interest rates low for an "extended period". This could only mean that the FED believes that the economy is not completely back on tracks from the slump. But the overall mood in the global markets is really cheerful, with all the key benchmark indices being up by around 1-1.5%.

Hence, I would again as always suggest that the things are not as good as the media is putting in, the markets have already given a whopping over 110% plus returns since last one year and hence the upside potential is capped. So, be cautious...!!

There are two stocks I believe could be added to an investment portfolio with 2-3 yrs time horizon. BGR energy and Karuturi Global. I will shortly come up with a detailed analysis of the same.

Happy Investing..!!