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Nitin Fire Protection Industries – Amitabh Bachchan’s Latest Stock Pick

Last month, we featured Big B-Amitabh Bachchan’s latest portfolio and his stock investment history. In the article, we mentioned that Bachchans latest pick – Stampade Capital has more steam left when it was trading at Rs. 500. Well, with 45 days it reached a peak of Rs 800 (60% up) and currently it is trading at Rs. 650. 

Now our Big B is again in the lime light of Indian Stock market for his latest pick. Most of the people are still wondering what could be the reason of his latest pick – Nitin Fire Protection Industries. On August 14, Amitabh Bachchan bagged a big sum of 15,00,000 shares at a rate of Rs. 42.99 per share. 

Just after his purchase, company reported excellent quarter result. It reported a consolidated total income from operations of Rs 337.90 crore and a net profit of Rs 20.77 crore for the quarter ended Jun ’15. The net profit surged to Rs. 20.77 crore as compared to Rs. 6.82 crore on quarterly basis and Rs. 18.79 crore on yearly basis. 

Possible Reasons for Amitabh Bachchan’s Entry

1. Excellent Growth Rate: Rahul Shah, executive director of the firm, said the company has been growing at 20-25 percent compound annual growth rate (CAGR) since last three-four years and is hopeful of continuing that momentum for a couple of more years. 

2. New Markets and Business: Recently Nitin Fire Protection  received approval from Underwriter’s Laboratory in the US for emergency lights for fire safety protection. The market size for this product in the US is USD 250 million.  The company is currently enjoying 15-20 percent margins in the domestic market. It is looking to penetrate the US market with this new approval.

3. Dollar Appreciation: In FY15, company had a guidance of 25 percent growth which was missed primarily due to Dollar devaluation. But going forward, company is confident on meeting the targets due to Dollar appreciation.

Today Nitin Fire Protection Industries zoomed to upper circuit at locked at Rs.47.15. From a short term point of view,it seems more steam is left in this counter as it has given a bullish flag breakout.

Now lets us wait and see where  Nitin Fire Protection Industries will stand after 1 year. Will it be a disaster like Birla Pacific Medspa or will it be a blockbuster like Stampade Capital??

We feel that if company is able to achieve what it is targeting,it could be a blockbuster show from Nitin Fire Protection!!

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