Market is getting interesting for value pickers

Since last few months, markets have turned jittery with few temporary rebounds. And when this fear starts prevailing in market with everyone talking only negatives, it becomes interesting time to look at what Mr. Market is offering. Though it is still not that kind of gloom days still there is value available now. Few things I found interesting recently-

1. Piramal Healthcare- It sold its main business for some Rs.17000Cr odd and now sitting with cash and if you only count cash(received and to be received), you get remaining business OTC, CRAMS and now merged drug discovery business for almost free. And market seems to be negative on cash utilization but considering past record of Piramal, it has been value creating fair and competent management. I feel there is little downside from here and it is worth accumulating. For detailed story, one can read few research report available on websites like moneycontrol.com. I first read logic on one blog quite popular among value investing community - http://fundooprofessor.wordpress.com/

2. Bajaj Auto- If you have seen past success of Hero Honda and even Bajaj Auto itself, this stock makes very compelling pick. It is gaining market in motorcycle market and main competitor Hero has lost technology edge after separation from Honda and Japanese competition is still not that great considering reach of Bajaj in even in small towns. And it is huge cash generating business with economies of scale, written down plants etc.

Good time to buy.

3. Jain Irrigation - This is somewhat concept stock for value investor and more of long term story on trend change. Its business will only get boost from long term changes in population growth, scarce land and water and need to increase productivity of agriculture.

Will post few more stories.....

P.S. - This blog is not intended for stock or market advice.