Do you have the killer instinct to making a killing by buying Kilpest?

Kilpest India limited located at 7-C, Industrial Area, Govindpura, Bhopal, is one of India's leading Agri based companies. Kilpest is an ISO certified company and has representation in India in the field of agriculture business comprising Crop Protection Products and Public Health Products, Bio products, Micro-Nutrients and Mix fertilizers.

Moving with a lustrous record of providing quality products to its customers since past many years, the company's management is now shifting its focus towards 'Biotechnology', keeping in view the hazardous effects of chemical pesticides. Since Biotechnology has been described as a "Sunrise sector" by Government of India, the company is now on its adventurous journey towards exploring potentials of Biotechnology in the field of Organic Agriculture, Public Health, Nutraceuticals, industrial enzymes etc

Considering the above business, lets take a quick look at some key data:

BSE Code	532067	Dividend Yield	0	Face Value	Rs.10
NSE Code	Not Quoted	Market Cap	Rs.8.6 crs	52 week H/L	Rs.19.40 8.10
Book Value	Rs.13.27	PE	18.22	Prom. Stake	38.99 %

Further, let’s see whats happening to the share price and whether you can making a killing in a short time frame by riding the momentum:

Date	Closing Price Rs.	Total Traded Qty
24.09.2010	9.91	16492
27.09.2010	11.89	195179
28.09.2010	14.26	361959

Now, tell me where in the world can you get 43.89 per cent returns and that too in 3 days flat – this happens in India and in stock markets around the world and n where else. That’s why I say – the markets can make you rich beyond your dreams provided you have confidence and conviction in your calls and you take laser swift action to get into a scrip.Now, if the price movement of Kilpest is so very exotic then its fundamentals should be great but alas, that’s not to be:

Rs.crores

	2009-10	2008-09	2007-08	2006-07	2005-06
Sales	19.11	15.13	13.82	13.65	9.66
PAT	0.49	0.26	0.25	0.29	0.25
Profit Margin%	2.59	1.71	1.83	2.15	2.58

So, it’s a no brainer – fundamentals by no stretch of imagination justifies the smart and quick gain of 43 per cent plus returns that the stock has churned out in 3 days flat.
Many stocks go up and down without rhyme or reason but when a stock abruptly goes up or down with corresponding increase in volumes, then you need to sit down and think hard – there must be some good buzz if stock is spiking or there must be some bad news because of which a stock is sliding downhill. In the case of Kilpest there is some good news because of which the stock is zooming its way up and up everyday – so ride the bullish scrip ride and make a fast killing. Today, Kilpest is a value buy whose value is  difficult to quantify since its  embedded in the JV  - if all goes well, perhaps Kilpest will be a multibagger - maybe a two or three bagger from current levels.

Kilpest India has entered into a Memorandum of Understanding (MoU) with Spain headquartered -- Biotools B&M Labs, S.A for establishing a joint venture (JV) company in India. Kilpest will have 51% of stake in the said JV, while rest of the stake will be held by Biotools.

The JV company will carry out research and development (R&D) of innovative products and technologies in the clinical, molecular biology and Agfood areas, as well as a local production facility, in order to develop and commercialize diagnostic kits and research tools optimized for the growing public and private Indian Healthcare, R&D, Agfood sector, as well as serving as base to distribute these kits into surrounding countries.

Biotools B&M Labs, S.A is one of the leading biotech companies in the field of molecular biology reagents, applications and technologies in Europe with a global network in Latin America and Asia, having an extensive range of products and international patents.

To my mind, the JV with Biotools is the prime reason why the stock is on a run and expect upward movement to continue for some time into the future – play the volume game by buying decent quantities and sell on hitting your pre determined profit target, net of taxes, inflation etc. By decent quantities, I mean beyond 1 and definitely beyond 100!

May you become richer than your dreams. Go don the mantle of the killer instinct and make a killing on Dalal Street. And be afraid not , for there is nothing whatsoever in the Indian Penal Law or The Code of Criminal Procedure that can get you into trouble for making a killing on Dalal Street. So long as you adhere to Indian Income Tax Act, 1961 no body can snatch your profits so long as you don’t park them in a Co=operative bank who may go under and won’t be able to co-operate with you when you want to withdraw funds lock, stock and barrel!

Happy Investing!

Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd