Are Indus Gas Limited, AdEPT Telecom plc And Gulf Marine Services PLC Set To Make You A Fortune?

Can Indus Gas Limited (LON: INDI), AdEPT Telecom plc (LON: ADT) and Gulf Marine Services PLC (LON: GMS) deliver multibagger returns?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Times of woe can be great for those prepared to take a bit of a risk when looking for growth bargains, and I’ve been trawling the FTSE indices to see what potential I can find. Here are three that I’m getting good feelings about:

Small oily

Invest in a small oil explorer now? Am I mad? Maybe, but I’ve been looking to see what’s wrong with Indus Gas (LSE: INDI) and why its shares are valued so lowly, and I can’t see it. We’re not looking at a loss-maker here, no: Indus has been in profit for several years and there’s a near doubling of EPS expected for the year just ended, which would put the 108p shares on a P/E of just 10.

That expectation is based on the firm’s Indian resources, with last December’s Competent Person’s Report suggesting the presence of 872 billion cubic feet equivalent of natural gas! That’s a lot of gas, but even that hasn’t pleased the punters over the past 12 months as the shares have lost 70% of their value.

Indus isn’t one to bet the farm on, but I reckon a small punt could easily turn into a multibagger.

Telecoms wealth

I have to confess to taking my eye off the ball with AdEPT Telecom (LSE: ADT), which I really liked the look of a few years ago. I let it slip off my screen — and the share price has rocketed by nearly 1,300% in the past five years! That included a 126% rise in the past 12 months alone, and yet at 265p the shares are still on a P/E of a modest 15 with further growth predicted.

It’s growth with a good track record too. The year to March 2015 brought in the firm’s twelfth consecutive year of increased underlying EBITDA, with a rise of 13.5% — and it’s that kind of steady growth that builds into the big money.

Dividends only commenced in 2013 with 1.5p paid, but by this year shareholders saw 4.75p, and 6.7p per share by 2017 is currently forecast. The early massive share price appreciation is surely over, but AdEPT looks like it’s set for long-term profits.

Picks and shovels

My third choice is Gulf Marine Services (LSE: GMS), which provides various sized floating barge things to the oil industry in the Gulf. Not too exciting, you might think, but I’m seeing a picks and shovels business that has serious potential over the long term, especially when oil starts to recover.

Right now, Gulf Marine is on a valuation that’s so low it looks silly to me, with forward P/E multiples of just 6.8 for the year to December 2015, dropping to only 5.5 based on 2016 forecasts. And it’s currently profitable, with H1 revenue this year up 8% on 2014, although adjusted EPS did fall a little in line with a forecast full-year drop. But forecasters expect a return to growth in 2016, and there’s a unanimous Strong Buy rating on the shares from the analysts.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Up 10% today, I think this FTSE 250 growth share could continue to surge!

Babcock International's flying after upgrading its full-year forecasts. I think the FTSE 250 defence share might just be getting started.

Read more »

Investing Articles

The AstraZeneca share price jumps 5% on today’s strong results – but is it too expensive?

Harvey Jones hails the brilliant long-term performance of the AstraZeneca share price, but wonders whether the FTSE 100's biggest company…

Read more »

Investing Articles

Is this my chance to buy Alphabet shares?

A big step up in AI spending at Google has investors nervous, but has it created an opportunity to buy…

Read more »

Senior woman potting plant in garden at home
Investing Articles

£10k in savings? Here’s how an investor could aim for a monthly second income of £1,200

Mark David Hartley considers how investors could build towards an early retirement plan with a second income from a portfolio…

Read more »

Investing Articles

2 cheap shares to consider buying in a £20k ISA for income of £1,000 a year

Harvey Jones loves buying cheap shares and says these two FTSE 100 stocks look tempting today, especially as they offer…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Is it worth me buying Lloyds shares for 61p after a 49% rise?

Lloyds shares have risen significantly from their one-year traded low seen last February, which could mean no value is left…

Read more »

Investing Articles

I think this FTSE 100 fashion stock could skyrocket in 2025

JD Sports has had a disastrous few months of losses but 2025 looks primed to be the year for this…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Down 13%, this FTSE gem delivers a 9.4% yield and looks 57% undervalued to me!

This is one of very few FTSE 100 stocks with a combination of a 9%+ yield, forecast earnings growth of…

Read more »