Technical Analysis of Indian Equities by Nooresh

Micro Cap Coverage– Indag Restaurants and Leisure Limited

For the first time i am trying to recommend a small/micro cap which if works well could work out to be a 3-5 bagger or end up at 30-50% loss also in worst case.

So in simpler terms i would call this section 1 ka 5 or 1 ka 0.5

The stock name is Indag Restaurants and Leisure

Current Market Price:14-15 Rs

Market Cap : 54 cr

Time Frame: 6-12 months.


Some observations which make it an interesting bet:


The company operates some very interesting restaurants in Mumbai.

Garcias Pizza has 20 outlets in Mumbai

Ivy Wine Cafe and Bistro 7 outlets

Nandos restaurant in 3 malls in Mumbai

3 clubs Prive, Athena and Zaha which are pretty famous.

Hotel Shalini Palace a heritage hotel in Kolhapur.

So the company has some interesting brands of restaurants which if operated well could turnout to be a success story and also a franchisee model can be developed.

Another interesting part is Shivanand Mankekar a shrewd value investor is holding 10-12% stake in the company and that too from very high levels in 2007-2008.


Risk and Concerns:

Management has not been transparent and dont have a good reputation.

The debts are decently high for comfort.



Investors can take small exposure with a view of 6-12 months and be ready to risk 30-40% hit also on the above stock in worst case ( so buy only quantity where you can lose 30% and not get bothered by it) . On the upside over the next 1-2 years the stock can be a 3-5 bagger if things work out fine. So high risk higher returns.

The stock is illiquid and in t2t so accumulate slowly and take only small quantities as its high risk too. Technically the stock can see a strong move above 17 levels.

Will update further as and when more information is gathered on the stock.


Tentative Schedule:

Mumbai  November 13-14 

Ahmedabad November 20-21

Training for Mangalore has been postponed


Kazim 09821237002




Article by Nooresh Merani

Nooresh has written 2740 articles.

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{ 5 comments… add one }
  • Nidhi Doshi November 8, 2010, 16:29

    Hi Nooresh

    As always u make research so easy for us!

    Well I just wanted some more information. Is Shivanand Mankekar, the same person whose son’s name is Kedar Mankekar? If thats the case then the stock ought be a multi bagger, coz I can confirm that he is a great investor. I know this, as his son Kedar (another brilliant investor) has been my teacher for equity market specialization in my management studies in Welingkar College.

    • nooresh November 8, 2010, 17:15

      Hi Nidhi,

      For the record Mr Mankekar senior teaches at JBIMS :). But every investor makes his mistake as stake was taken at 50-60 rs or higher it seems 🙂


  • priyash November 9, 2010, 13:40

    Bhai ne bola leneka means leneka…
    baat khatam.

  • Mohib Ahmad November 10, 2010, 01:24

    Nooresh I went thru ur diwali picks and wud like to know y haven’t u included bengal and assam co. in this list? It still has a long way to go as far as the long term targets r concerned. Wud like ur view on this

    • nooresh November 10, 2010, 12:55

      Hi Mohib,

      Bengal and Assam is a value play and it was exciting at 250-280 when it was recommended but not similarly exciting at 370 !


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