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Monday, July 24, 2017

Last 7 Days to Grab Discounts upto 30% & Valuable Freebies!

Dear Reader,

It gives us immense pleasure to share that Saral Gyan has completed its 7th year this July. Since 2010, Saral Gyan team has successfully published hundreds of articles providing insight to equity market and today cherish association of more than 37,000 readers. Articles published on our website received lot of appreciation as it helped our readers to make educated and smart investment decisions based on facts.

During past 7 years, we launched suitable services to help Investors to create wealth by investing in Indian stock market. Its appreciation and support of our readers that one of our most admired service - Hidden Gems ranks on top not only in performance but also on Google search engine. Try it out yourself by searching "Hidden Gem Small Caps" or "Multibagger Hidden Gems" on Google, you will find our website www.saralgyan.in featuring on top in search results. Its your appreciation and word of mouth publicity which make our website featuring on 1st position in Google.

To cherish this event, we are celebrating Saral Gyan 7th Anniversary with our readers by offering maximum benefits on our subscription services. Its Saral Gyan 7th Anniversary and here comes great savings and valuable freebies for our members (limited period offer) to grab the best deal.

Discounts & valuable freebies which make our 7th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released in April'17
3. Value Picks Flash Back Report - Released in July'17
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'17
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'17.
Saral Gyan 7th Anniversary Offer 
SARAL GYAN
SUBSCRIPTION SERVICE
7TH ANNIVERSARY OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan 7th Anniversary Offer.

Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price. Remember, "If you want your Money to Grow, Equities is the only Way to Go" in long term. If you think to invest in stocks for period of 3 months or 6 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

Its our mission to ensure that you reap the best returns on your investment, our objective is not only to grow your investments at a healthy rate but also to protect your capital during market downturns. We also take this as an opportunity to share the returns on investment given by one of our most admired service Hidden Gems during last 7 years.

Hidden Gems (Unexplored Multibagger Small Cap Stocks) continue to shine giving average returns of whopping 285% to our Hidden Gems subscribers compared to 85% returns of small cap index during last 7 years.

We are glad to inform you that 42 Hidden Gems out of 64 (released till Dec'16) have given more than 100% returns to our members during last 7 years. Moreover, 32 stocks out of these 42 have given returns in the range of 200% to 1900% during the same period.

As we made most of these reports public, you can access read / download our research reports by clicking on the Read / Download link:

1. SAB TV NETWORK >>> Rec. Date: 05 Sep'10 >>> ROI: 890% >>> Read / Download

2. DE NORA >>> Rec. Date: 07 Nov'10 >>> ROI: 299% >>> Read / Download


3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 1402% >>> Read / Download


4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 1566% >>> Read / Download

5. KOVAI MEDICAL >>> Rec. Date: 27 Oct'11 >>> ROI: 1240% >>> Read / Download


6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1818% >>> Read / Download

7. SUPERHOUSE >>> Rec. Date: 29 Feb'12 >>> ROI: 208% >>> Read / Download

8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 552% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 616% >>> Read / Download

10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 648% >>> Read / Download

11. TIDE WATER OIL >>> Rec. Date: 30 Oct'12 >>> ROI: 216% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 348% >>> Read / Download

13. BAMBINO AGRO >>> Rec. Date: 25 Dec'12 >>> ROI: 308% >>> Read / Download

14. TCPL PACKAGING >>> Rec. Date: 31 Jan'13 >>> ROI: 653% >>> Read / Download


15. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 199% >>> Read / Download


16. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 563% >>> Read / Download

17. DYNEMIC PROD. >>> Rec. Date: 29 Jul'14 >>> ROI: 174% >>> Read / Download

18. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 361% >>> Read / Download

19. CONTROL PRINT >>> Rec. Date: 30 Nov'14 >>> ROI: 115% >>> Read / Download

20. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 168% >>> Read / Download

21. MOLD-TEK PACK >>> Rec. Date: 22 Mar'15 >>> ROI: 176% >>> Read / Download

22. SMS PHARMA >>> Rec. Date: 09 May'15 >>> ROI: 59% >>> Read / Download

23. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 178% >>> Read / Download

24. ULTRAMARINE >>> Rec. Date: 11 Oct'15 >>> ROI: 138% >>> Read / Download

25. STYLAM IND. >>> Rec. Date: 08 May'16 >>> ROI: 267% >>> Read / Download

We are confident that we will continue to hunt best Hidden Gems from universe of small caps by doing authentic, in-depth and unbiased research work and support our members to make educated investment decision.

Through Hidden Gems and Value Picks, we're providing you opportunities to invest in such small / mid caps stocks today. Infosys, Pantaloon, Unitech, Glenmark were the small cap stocks in past and today are the well known companies falling under mid and large cap space.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other stock brokers and research firms. We keep on updating our subscribers on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.

Moreover, under our Wealth-Builder service, we encourage our members to replicate our Wealth-Builder portfolio by investing in selective high quality small and mid cap companies. These companies are reporting 20-30% + annualized growth and got their due share of re-rating and delivered exceptional returns to our members so far. Since 1st Jan 2013, Nifty has given returns of 64.2%, Sensex returns is 62% where as Wealth-Builder portfolio has given returns of 347.8% returns to our members. In case you have not yet started building a portfolio of high quality and fundamentally strong growth stocks for long term wealth creation, please find below the Wealth-Builder portfolio allocation & performance update for your reference.

We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating, very good returns over a longer team and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement.

Now you can add power to your equity portfolio by investing in best of small & mid cap stocks - Hidden Gems & Value Picks. Enjoy great savings and receive valuable freebies during Saral Gyan 7th Anniversary Offer by availing subscription of our Hidden GemsValue Picks & Wealth-Builder services.

Hurry! Last 7 Days... Offer will disappear on 31st July'17 at 11.59 pm. Click here for details.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing.

Regards,
Team - Saral Gyan.

Saturday, July 22, 2017

Wim Plast - Our 16-Bagger Stock - ROI @ 1530% in 6 Years

Dear Reader,

If you invest in fundamentally strong small and mid cap companies with a medium to long term horizon, you will get rewarded for sure that too in a big way. Wim Plast Ltd (BSE Code: 526586) is classic example of "Buy Right and Sit Tight" strategy.

Our equity analysts published Hidden Gem - Aug 2011 research report and shared it with all Hidden Gems members 6 years back on 30th Aug 2011. Hidden Gem stock - Aug'11 - Wim Plast Ltd was recommended at price of Rs. 92.50 (bonus issue adjusted price, actual average recommended price was 185) with target price of Rs. 215 over period of 1 to 2 years which was achieved sooner than later, however we suggested our members to continue to hold it and add more on dips considering strong fundamentals and reasonable valuations.

In 6 years, stock has multiplied investment of our Hidden Gems members by more than 16 times. Wim Plast share price closed at Rs. 1507.95 on Friday giving absolute returns of 1530% since our initial recommendation. We kept on advising our members to add this stock in their portfolio at higher levels during last 5 years for long term wealth creation post our initial recommendation in 2011.

Last year, management rewarded shareholders by issuing bonus share in the ratio of 1:1. Issue of Bonus share is a good move by company which indicates that company is Investor friendly and also shows the confidence of management in future growth outlook of business.

We believe Wim Plast is well positioned to deliver robust top line and bottom line growth in coming quarters. Stock at current price looks fairly valued, however any significant correction in stock price must be considered as buying opportunity by long term investors.

Wim Plast is a zero debt company promoters holding of 72.59%. Company is maintaining operating margins above 17% since last 5 years and is taking all right steps to deliver consistent growth. In last five years, Wim plast have shown healthy CAGR growth of 9.6% and 16.4% in Revenue and PAT, respectively. ROE is 22.7% in last 5  years, which is impressive for such a small cap company.

Wim Plast continuously introduced new range of products to drive revenue growth and profitability in past. Company has strengthened its brand equity of ‘cello’ branded products throughout country and has been continuously increasing the ad spend. Company has launched new models for its product range including various new designs. Another prominent brand of the company ‘Cello Bubble Guard Sheets’ has gained rich response from the users for applications like Tile Protector, False Ceiling, Wall Panel and Packaging materials in past.

In plastic furniture segment, Wim Plast is the third largest manufacturer after Nilkamal and Supreme. Among listed players, Wim Plast has an edge over its peers by reporting better margins. Balance sheet has remained strong for the company as it has zero debt in its balance sheet. Strong operating cash flows enable the company to remain debt free and fund the expansions through internal accruals.

Wim Plast Forayed into Air Cooler Segment with Cello Coolers

India air cooler market is growing with a CAGR of 11.26% from last four years and market is projected to grow further due to rising mercury, increasing disposable income, growing demand in middle class people and low price of air coolers as compared to air conditioners. India air cooler market is divided into two parts viz. residential and industrial. Residential and Industrial air cooler market is growing with a CAGR of 15.68% and 9.04% respectively from past four years. Keeping in point, low capital expenditure and electricity benefits of air coolers, the middle income group majorly fuelled the sales in residential market. Whereas, industrial cooling is slowly gaining increasing importance as corporate are now looking to create an amiable working environment for their employees.

The Indian air cooler market size is estimated to be around Rs 3,000 crore in value term and around 30% of this is in the organised sector and rest is catered to by the unorganised segment players. According to “India Air Cooler Market Outlook, 2021”, India’s Air Cooler market is anticipated to reach INR 8,000 Crore by 2021 from current estimated size of 3000 crores. There are an estimated 247 million households in India and about 65% own fans, while only 4% of these households own air conditioners and 8% own air coolers. High and rising temperature levels are leading to greater demand for cooling solutions. With rising incomes, cooling solutions are increasingly viewed as necessities. Considering lower cost of ownership vis a vis ACs (70% lower capital costs and 90% lower running costs) and the constrained power supply situation in India, air coolers are the mass market option for Indian consumers. So, the potential customer base for cooling solutions in India is huge.

Symphony, Kenstar and Bajaj are the dominant players in the organized air cooler market. Voltas has also forayed into the industry and is expected to give fierce competition to the market leader Symphony. Room coolers account for almost two-third of the total market and is expected to dominate going forward, followed by desert coolers. North India caters to the largest revenue sales as the region is growing at a fast pace and the growth is fuelled by a shift from unorganized to the organized market.

Symphony is the market leader. Symphony domestic sales in FY 16-17 was ~ Rs. 597 crores with nearly 50% market share in organized market, other players too grown from zero to over 15% share of the organised market in value terms in last 3 to 5 years.  

Wim Plast is the new entrant in air cooler market and already started selling its coolers under brand “Cello” with all major online retailers – Amazon, Flipkart, Snapdeal, Paytm and Pepperfry. Various models of Cello coolers are launched in price range of Rs. 7,000 to Rs. 15,000 under Dessert, Mini Dessert, Personal and Window category with water capacity of 22 Litres to 60 Litres. Cello coolers are available in wide range with latest features to compete well with other major players to grab market share in organized air cooler industry. Cello Coolers TV commercial were already started by the company to position and market its products in this summer season.

We have also seen Wim Plast coolers at supermarket stores like Hypercity and Big Bazaar in places like Mumbai and other metro towns.

Wim Plast has history of strong brand positioning under brand Cello to market and sell its products in moulded furniture (plastic furniture and material handling products) and boards (false ceiling, wall panel, bubble guard sheet etc) category.

We believe entry into air cooler business will augur well for the company in coming years as it will give a major boost in terms of revenue growth going forward. 

Below is the summary of Wim Plast Ltd - Hidden Gem - Aug'11 Research Report released on 30th August 2011.

Company Background

Wim Plast Limited incorporated on 7th October, 1988, and listed in the year 1994 at the Bombay Stock Exchange Ltd. (BSE) and the Ahemedabad Stock Exchange Ltd. (ASE).

In the year 1994 company setup manufacturing unit of plastic moulded furniture at Daman in which company got grand success in the business. In the process of diversification in 2005 company has setup plants at Baddi, Himachal Pradesh for processing of bubbleguard extrusion sheets and also moulded furniture which a new innovation in India in the field of extrusion technology.

Presently the company has manufacturing units at Daman, Baddi and Chennai also have Depots in Gujrat, Rajasthan, Andhra Pradesh, Haryana and Punjab and have strong consumer base through out the country.

Cello is the undisputed leader in plastic finished goods. Since 1975, the group has been shaping plastics into high quality convenience products for homes and industries making life better & easier. Ceaselessly endeavoring to set new bench marks in quality and constantly innovating to blaze new trails in the marketplace. Today Cello offers larger range of products than any other manufacturer in India.

All surpassing the highest international standards in quality Cell's R&D, manufacturing technology, production processes, materials, quality standards and the high skilled workforce of 5000 people are among the best in the world making Cello the no. 1 brand of plastic products in India.

Product Range:

1.Plastic Moulded Furniture 2. Material Handling 3. Cello Bubble Guard Board  

False Ceiling

Stronger and Lifelong Revolutionary False Ceiling Panels (first time in Asia), a perfect product to fulfill all your needs of false ceiling.

Ideal for Offices, Warehouses, Stores, Industrial sheds, Textile Industries, Chemical Industries, Pharma Companies, Hospitals, Hotels, Docks, Ports & Commercial Complexes.

Inherent Advantage
  • Light Weight Strong & Durable
  • Moisture & Water Proof
  • Termite, Insect & Bacteria Proof
Wall Panels

Cello Bubble Guard Wall Panel has various advantages over other material namely, moisture & termite proof, Fire retardant, Economical, Maintenance free. Available in various designs.

Wall Panels can be directly pasted on the solid surface with the adhesive recommended (SG 1000 of 3 M / SP5 of Pidilite) and joints can be finished with sealants, tapes or decorative beadings.

The panels offers high tensile strength, resists stress cracking, retains stiffness & flex. These wall panels are also available in seamless appearance, clad with tongue & grove system offer permanent utility / decorative paneling designed to provide flexibility, durability & beauty.

Door Panel/Partition

Cello Bubble Guard Part ions / Door Panels are versatile to use available in various attractive designs, which don’t need paint or polish.

They are easy to install and easy to cut, can be fixed by any unskilled laborer. The panels are light weight, water proof, termite proof & non-toxic. The panel offers high tensile strength, resists stress cracking, retain stiffness & flex. These panels are used as filler of aluminium, PVC, Wood & other frame. They are non-staining. The panels are insured of better durability, longer functional life & also effective cost.

Floor Protector

In the under construction sites, the floor tiles are laid prior to the finishing of the buildings. All the electrical and other fittings are done after the flooring is completed. Portable scaffoldings, tools and other equipments move on the floor, to complete the remaining work.

To avoid the damage to the tiles, Plaster of Paris (POP) is laid on the Flooring and removed after the completion of the job. POP has many disadvantage as it is cumbersome to lay & remove, Skilled labour is required, Time Consuming , Disposition of debris after completion is the major problem, while removing / scrapping operation chances of getting scratches to the tiles. Construction site becomes shabby, uncomfortable, dusty, and unhygienic.

Recent Developments  (as on 30 Aug'11)

Business Expansion Plans, 24 August 2011

Wim Plast Ltd has informed BSE that the Company has initiated following expansion projects:

1. The Company has acquired land of 8092 sqmt. at Haridwar, for setting up of manufacturing unit of Plastic Moulded Products. The commercial production of the Unit will start by the end of last quarter of current financial year.

2. The Company is in the process of setting up of new extrusion plant at Daman for manufacturing of Flutted & S-flutted polypropylene sheets. The sheets will mainly used for packaging and advertisement. The Commercial production of the unit will start by the end of the second quarter of current financial year.

Total cost of the above projects will be funded by internal accruals of the Company.

Investment Rationale

1. Earnings Visibility: Wim Plast revenues are expected to improve significantly on the basis of manufacturing unit at Daman getting operational by the end of 2nd quarter of current financial year.

2. Innovative Product Launches: Management is focusing on innovative products like Cello Bubble guard board offering unique benefits to its consumers. Company has the advantage of early entrant in this segment with minimum competition and wide distribution network across the country.

3. Open Market Purchase of Shares by Promoters: Promoters share holding is 72.96%. Promoters have been continuously making open market purchase since last one year. During last one year, promoters have increased their stake by almost 1%. (as on date, promoters holding is maximum at 75%)

Saral Gyan Recommendation (30 Aug'11)

i) Management has been conservative in past but now with new developments with expansion plans for their existing facilities and set up of new plants at new locations give visibility for revenue growth in coming years. New facilities at new location will also give opportunities to company to move into new regions expanding their customer reach.

ii) The Management holds 72.96% equity in the company and has been continuously increasing its stake at current valuations (increased holding by 1% during last one year) which gives confidence of growth prospects in coming quarters.

iii) The stock is available at low valuations, existing P/E ratio of 6.5 make the stock valuations attractive while comparing it with peer stocks like Nilkamal and Supreme Industries.

iv) The operating margins and net profit has grown significantly. Since last 2 years, company has improved its margin and profit margins of 11-13% seems sustainable even after expansion due to less dependence on debt, currently cash balance is in excess of total debt of the company. No equity dilution since last many years is another positive.

v) At current market price of Rs 204.55, dividend yield works out to be more than 2% (Company has announced Rs. 4.50 dividend per share). On equity of Rs. 6 crore the estimated annualized EPS for FY 2011-12 works out to Rs. 38 and the Book value per share is Rs. 139.16. At a CMP of Rs. 204.55, stock price to book value is 1.47. Currently, the scrip is trading at 6X FY 2011-12 estimated earnings which make it an attractive buy at a price range of 175-180.

Saral Gyan Team recommends “BUY” for Wim Plast Ltd for a target price of Rs. 430 over a period of 12-18 months.

Buying Strategy:
  • 20% at current market price of 204.65
  • 80% at price range of 175-180
To Read/Download Hidden Gem Aug'11 Research Report - Click Here 

An opportunity missed an opportunity lost. If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong small and mid cap companies - Hidden Gems & Value Picks. 

The stocks we reveal through Hidden Gems & Value Picks are companies that either under-researched or not covered by other stock brokers and research firms. We keep on updating our members on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.

We are pleased to inform you that we are celebrating this season by giving maximum discounts and freebies to our members under our ongoing Saral Gyan 7th Anniversary Offer, this is a limited period offer and closes on 31st July'17.  Check out the benefits you will get with our 7th Anniversary Offer - Click here for details.

Discounts & valuable freebies which make our 7th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released in April'17
3. Value Picks Flash Back Report - Released in July'17
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'17
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'17.
Saral Gyan 7th Anniversary Offer 
SARAL GYAN
SUBSCRIPTION SERVICE
7TH ANNIVERSARY OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan 7th Anniversary Offer.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan

Peter Lynch: Making Money by Investing in "Fast Growers"

“The investor of today does not profit from yesterday’s growth.” Warren Buffett

Most of us have relatives who like to fashion themselves as ‘stock-gurus’, with their stories revolving around how they ‘could have been’ millionaires now, if only they had held their nerves. The stock that comes up frequently in these conversations is Infosys. If you had invested Rs. 9,500 to buy 100 shares of Infosys in the IPO (that went undersubscribed in 1993), 51,200 shares (adjusted for bonus issues) worth sum of Rs. 5,01,81,120 would be in your kitty.

Infy has given CAGR returns of whopping 42.9% to investors during last 24 years (that too after keeping dividend payouts aside). Infosys got listed in June 1993 at price of Rs. 145 per share and investment of Rs. 9,500 in June 1993 is valued at 5.02 crores today. But, is Infosys still the key to riches? As often repeated, past performance is no guarantee of future results. So, how does one find out the next ‘Infy’?

A Fast Grower is a small yet aggressive & nimble firm, which grows roughly at 20-25% a year. This is an investment category which can give investors a return of 10 to as much as 200 times the investment made by them. No doubt, it remains a favourite of Peter Lynch!

In 1950s, the Utility & Power Sector were the fast growers with twice the growth rates to that of the US GDP. As people got more power-hungry gadgets for themselves, the power bills ran through the roof & the power sector surged with booming demand. Post the Oil Shock in 70’s, cost of power generation became high with power tariffs going up; people learnt to conserve electricity. Demand, thus, fell and power sector witnessed a slowdown. Prior to it, similar decline was observed in the Steel Sector & Railroads. First, it was the Automobile Sector, and then the Steel, followed by Chemicals & Power Utility & now the IT Sector is showing signs of slowing down. Every time, people thought, rally in the fast growers of the age would never end, but it did end, with people losing money as well as their jobs. Those who thought differently like Walter Chrysler (founder of Chrysler Corporation), who took a pay cut and left the railroads to build new cars in the turn of the last century, became the next millionaires.

Three phases involved in their life cycles, are:

1. The Start-Up Phase: Majority of the companies either burn up all the cash or run out of ideas by the end of this phase. Maximum casualties have been observed here, making it one of the riskiest phases. However, maximum returns can be made from them, if one enters near the end of this phase.

2. Rapid Expansion Phase: The Company’s core proposition has worked now, with the strategy being replicated by expansion of product/service portfolio or consumer touch points.

3. Mature Phase: Growth slows down, either due to high debt or low cash, owing to the massive expansion witnessed in early stage. Fall in demand or legal restrictions might also contribute to faltering growth.

The trick is to track, which phase the organization is in, at the moment. If the firm is in late start-up phase with possibility of moving to rapid expansion phase, buy the stock when it is still cheap. Once firm’s earnings start falling with its products witnessing poor demand, it’s time to bid goodbye to the stock.

The key parameters involved in Peter Lynch’s ‘two minute drill’ are:

1. P/E Ratio: avoid stocks with excessively high P/E
2. Debt/Equity Ratio: should be low
3. Net Cash per Share: should be high
4. Dividend & Payout Ratio: should be adequate
5. Inventory levels: lower the better

Stay away from companies which are being actively tracked, followed & invested in by large institutional investors. News about buy back of shares or internal stakeholders increasing their stakes should be construed as positive.

Checks specific to Fast Growers:

1. The star product forms a majority of the company’s business.
2. Company’s success in more than one places to prove that expansion will work.
3. Still opportunity for penetration.
4. Stock is selling at its P/E ratio or near the growth rate.
5. Expansion is speeding up Or stable

One must judiciously walk the tightrope between the unquestioning belief that made the stock to be held for so long and the fear of the end from nose-diving prices due to a one-off bad year. The key is to always keep revisiting the story & ask some pertinent questions like ‘What would really keep them growing?’, ‘What is their next offering? or ‘Are their products & services still in vogue?’ It is here, that one must track the point of time when the phase 2 of the firm’s expansion comes to an end. This is usually the dead-end for organizations as success is difficult to be replicated. Unless, innovation happens, downfall is imminent & thus, an exit is necessary. P/E of these stocks is drummed up to unrealistically high levels by the madness of crowd towards the end. One must keep one’s eyes & ears open to signs, which mark the end of the road for these fast growers. A great case in point is Polaroid which had its P/E bid up to 50, only to be rendered obsolete later by new technologies.

A sure shot sign of a decline is a company which is everywhere! Such a company would simply find no place to expand any further. Sooner, rather than later, such a company would see its ‘Manhattans’ of earnings reduced to ‘plateaus’ of little or no growth, simply because no space is left to expand further.

1.The quarterly sales decline for existing stores.
2. New stores opening, though results are disappointing: weakening demand, over supply.
3. High level of attrition at the top level.
4. Company pitching heavily to institutional investors talking about what Peter Lynch calls ‘diversification’.
5. Stock trading at a P/E of 30 or more, when most optimistic estimates of earning growth are lower than 15-20%, thus, unable to justify the high price.

Fast Growers, which pay, are ephemeral & one misses them more often than not. It is a High Risk & High Gain Category of Stocks. One must remember along the classic risk & return principle, that when one loses, one loses big! So, if you are in the quest for magnificent returns, a Fast Grower can be your bet provided you know when to bid Goodbye!

If you feel its difficult for you to identify Fast Growers stocks at early stage, you can subscribe to our Hidden Gems and Value Picks subscription services. We put best of our efforts to identify companies having potential to give exponential returns in medium to long term. Its our mission to ensure that you reap the best returns on your investment, our objective is not only to grow your investments at a healthy rate but also to protect your capital during market downturns. 

If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong small and mid cap companies - Hidden Gems & Value Picks.

We are pleased to inform you that we are celebrating this season by giving maximum discounts and freebies to our members under our ongoing Saral Gyan 7th Anniversary Offer, this is a limited period offer and closes on 31st July'17.  Check out the benefits you will get with our 7th Anniversary Offer - Click here for details.

Discounts & valuable freebies which make our 7th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released in April'17
3. Value Picks Flash Back Report - Released in July'17
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'17
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'17.
Saral Gyan 7th Anniversary Offer 
SARAL GYAN
SUBSCRIPTION SERVICE
7TH ANNIVERSARY OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan 7th Anniversary Offer.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 

Team - Saral Gyan

Friday, July 21, 2017

Wealth Creators - Stock Picking & Not Timing Create Wealth

Dear Reader,

Are you looking for a long-term winner — a multibagger? It's simple! Buy shares of a company with strong fundamentals and consistently high financial performance.

To evaluate a company’s efficiency and the quality of its management, the two key financial ratios to be keenly observed are return on net worth (RoNW) and return on capital employed (RoCE). Besides, price-to-earnings ratio could be used to determine the market price of a company’s stock and to compare it with peers’ in the same sector. Price to book value measures the value of shareholder's ownership in the company. 

While earnings yield — the quotient of earnings per share divided by the share price — needs to be seen to compare directly against the returns offered by alternative investments such as interest on a bond or savings account, debt-to-equity ratio could measure a company’s financial leverage. A high debt-to-equity ratio generally means that a company has been aggressive in financing its growth with debt. This could result in volatile earnings because of additional interest expenses. 

TTK Prestige, a leader in the Indian kitchenware market, is one of the stock in the list of multibaggers, with compound annual returns of 59.6 per cent in 11 years. In other words, Rs 1,000 invested in 2005 is valued at more than Rs 1 lakh today. A 100-Bagger stock in 11 years. This is just one of the example, there are companies which have given much better returns than TTK Prestige during the same period. Do you know, Symphony has given compounded annual returns of astonishing 102% in last 11 years. Investment of Rs. 1000 in Symphony in Jan 2005 is valued more than Rs. 22 lakhs today. Mind boggling, isn't it? It's a 2200-Bagger stock in last 11 years. These companies have turnaround their performance and hugely benefited from market growth driven by rising consumer spend, offering value added products with strong moat, evolving lifestyle preferences and broad demographic trends.

TTK’s product range and distribution have complemented the strong brand, helping it clock a revenue CAGR of 22.6 per cent in 11 years. The profit has grown at an even higher CAGR of 32.5 per cent, backed by its premium products and a debt-free status, from a debt-to-equity ratio of two in 2004. The efficiency and the quality of its management measured from consistently high RoNW and RoCE helped it become the most valuable company in the past decade. 

Titan Industries, has made its investors 37 times richer in last 10 years, with its profit growing at 27.1 per cent CAGR. However, the top-class performance in the decade may cool a little in the coming years, as demand is expected to slow down, given the tough environment. Among other most valuable mid and large cap companies of the decade are Godrej Consumer, GMDC, SKF India, IndusInd Bank, Bajaj Finance and HDFC Bank.

Stock market investment runs in sector-specific cycles. The stocks in a particular sector get bigger and give better returns as that sector gets popular. For example, between 2002 and 2007, realty, metals and capital goods companies topped the gainers’ list. The demand for housing and strong investment in capital goods and infrastructure projects saw Unitech, JSW Steel, Pantaloon Retail, Sesa Goa, Alstom T&D, Jubilant Life, Crompton Greaves, Siemens and Thermax emerge as top companies on the multibagger list.

If we look into top 200 stocks by market capitalisation with trading history of more than 10 years, we find there are 158 stocks that have outperformed the benchmark index with 10-year CAGR of more than 17.4 per cent each. Of these, as many as 99 stocks have been multibaggers — giving their stakeholders gains of over 10 times on investment made 10 years earlier, or annual average returns between 26.6 and 71 per cent. Of these, 59 have been long-term winners — the companies that have given very good high returns in 10 years as well as during the economic slowdown seen in last couple of years.

Among these 59 stocks, 10 have been consistent performers, that is, 20 per cent CAGR in sales and profit over the past decade as well as in last two consecutive years. These companies have recorded very high financial ratios, both RoNW and RoCE, and given strong earnings yield — significantly higher than the other prevailing investment avenues.

The consistent performers are from the sectors like auto ancillaries, banks, consumer durables, pharmaceuticals, housing finance, fertilisers, FMCG and mining. The drop down list of 59 companies, too, has similar sectoral compositions, with additions from automobiles and capital goods.

This clearly shows the merit in backing fundamentals over trying to time the market. Fundamentals are the most important; one has to analyse management credibility and capability, quality of the product, financial health and competitors’ position and then decide on whether to buy a stock. At the same time, when markets are not doing well, choice of high dividend paying companies and those with healthy cash balance helps. Hence, there is an element of market environment which needs to be considered. 


Not everyone has the time and inclination to analyse stocks and be able to identify potential wealth creators. If that’s the case for you as well, don’t fret. Either identify above average funds or choose services of independent equity research firm and invest in good quality stocks yourself, that outperform the benchmark consistently over a period of 5-10 years and put your money at work. The strategy remains the same — identifying wealth creators and investing in them for long term. 
Saral Gyan Wealth Creators (Since our Inception Year - 2010)
Saral Gyan was founded in the year 2010 with a vision to create wealth by investing in equities, our research team includes working professionals from different streams which are contributing to our success. Its dedication and passion of our team towards equities that make Saral Gyan one of the best independent equity research firm in identifying Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) from small and mid cap space.
Below are some of the stocks which have given excellent returns to our members in the range of 200% to 1800% over a period of last 2 - 6 years.

1. Camlin Fine Sciences Ltd: Camlin Fine Sciences Ltd is one of the India's leading manufacturers and exporters of Bulk Drugs, Fine Chemicals and Food Grade products. The company manufactures active pharmaceutical ingredients (API's), food antioxidants and sweeteners. Company acquired subsidiary of Borregaard in March 2011 which was expected to help Camlin Fine Sciences in realizing better operating and profit margins in coming quarters. This acquisition ensured the easy availability of raw material Hydroquinone manufactured by Borregaard for Camlin Fine Sciences ltd. Company also introduced new products and continuously strengthening its marketing activities throughout Europe and USA. The scrip was trading at 4X FY 2011-12 estimated earnings leaving good scope for stock price appreciation.

Investment Returns: We recommended Camlin Fine Sciences on 27th Mar'11 at Rs 6 (2 stock split adjusted price, actual recommended price was Rs. 60), stock price touched its all time high of Rs. 129 in 2015 and today closed at Rs. 87.95 giving as on date returns of 1354% to our members. It's a 14-Bagger stock as on date in 6 years, we recommended partial profit booking to our members by selling 50% of their holdings and keeping remaining quantity in their portfolio for long term.

Camlin Fine Sciences Research Report: Click here to Download

2. Cera Sanitaryware: Our equity analysts team identified Cera Sanitaryware in Dec 2011 and recommended our Hidden Gems members to invest in it at a price of Rs. 157. What made us to believe in Cera Sanitaryware as an investment opportunity was its superior products and potential to drive growth by expanding its reach to various geography of the country. Another important factor which impressed our team is significant increase in its market share by growing faster compared to well established competitors like HSIL in the same segment. 

Investment Returns: Stock of Cera Sanitaryware has made all time high of Rs. 3315 recently and closed at Rs. 2933 today giving absolute returns of 1768% to our members since Dec 2011. As on date, Cera is our 19-Bagger stock and no profit booking suggested by our team and we suggest our member to continue to hold this stock for long term. Moreover, we reiterated buy on Cera at price range of 400-450 and added it in our Wealth-Builder portfolio 4 years back.

Cera Sanitaryware Research Report: Click here to Download

3. Mayur Uniquoters: We recommended investment in Mayur Uniquoters at price of Rs. 56 (2 bonus issues and stock split adjusted price) in March 2012. Company is a market leader in the industry it operates, artificial leather industry offers great growth potential considering huge untapped market and its well accepted replacement products to original leather products. Company was in expansion spree with continuous rise in demand for its products and was distributing healthy interim dividends. Needless to say, nobody wants to kill animals to use their leather products. With continuous research and development, company offers more than 300 variety of artificial leather to its esteem clients like Ford, Chrysler, Hyundai, Nissan, Tata Motors, Maruti, Mahindra, Bata, Relaxo and many more.

Investment Returns: Mayur Uniquoter stock price has made all time high of Rs. 515 in April 2015 and today closed at Rs. 367.95, giving as on date returns of 560% to our members since March 2012, recommended at price of Rs. 56 (2 bonus issues and 1 stock split adjusted price), As on date, Mayur Uniquoter is a 7-Bagger stock for our members. No profit booking suggested by our team yet and we suggest our members to continue to hold this stock.

Mayur Uniquoter Research Report: Click here to Download

4. Aurobindo Pharma: Aurobindo Pharma Ltd is one of the largest generic suppliers under ARV contracts, with a 35% market share. The company enjoys high market share as it is fully integrated in all its products apart from having a larger product basket. Among peers, it was trading at a 22% discount to Ipca Laboratories and a 17% discount to Torrent Pharmaceuticals, though it had a stronger product pipeline.Aurobindo Pharma Ltd was also aiming to maintain 25 ANDA filings per year, which should see the product pipeline strengthening further. Its focus on margin would also help it strengthen the bottom line. Moreover, the USFDA clearance would be an immediate booster for the company. Considering all these factors, we recommended Aurobindo Pharma as there was good scope for re-rating of the stock looking at valuations among peer group companies and growth prospects. 

Investment Returns: Aurobindo Pharma was recommended in Jan'2013 at price of 93.5 (bonus issue adjusted price) for target of Rs 137 which was achieved within 12 months and we informed our members to continue holding Aurobindo for long term. We suggested complete profit booking in the stock last year to our Wealth-Builder members around 750 levels, stock has delivered returns of 700% within 4 years.

Aurobindo Pharma Research Report: Click here to Download

5. Kewal Kiran Clothing Ltd (KKCL): A company with experience of building strong brands since last 2 decades. As we know, strong brands offers huge competitive moat which yields to better operating and profit margins and help companies to own pricing power for their products. Our analysts missed Page Industries (owns right for selling Jockey in India and other Asian countries) and was looking for similar opportunity with justified valuations. KKCL owns brands like Killer and Lawman and is the only company from apparel industry which stands out in tough scenario with consistent profit when other companies like Provogue, V2 Retail were struggling due to high debt on books.

Investment Returns: KKCL was recommended during Diwali in 2012 at price of 729 for target of Rs 990 and later again reiterated buy at Rs. 1050 for long term. Stock price touched its all time high of Rs. 2380 in 2015 and today closed at Rs. 1771.80 giving as on date returns of 145% to our members in 4.5 years. Fundamentals are intact, valuations are reasonable and company has strong brand building expertise in apparel industry, hence we suggested our members to stay invested in this stock for better returns in future.

Kewal Kiran Clothing Ltd (KKCL) Research Report: Click here to Download

6. TCPL Packaging: TCPL Packaging Ltd., (formerly known as Twenty-First Century Printers Ltd) began commercial production in April 1990. It is one of India's largest manufacturers of printed folding cartons, and one of the few listed packaging companies in India. TCPL Packaging signed a technical collaboration agreement with AR Packaging Group AB, Lund Sweden in Nov 2012. The objective of the agreement was a strategically partnership mainly in the manufacturing, sourcing and sales and marketing in India for solid folding cartons which was expected to augur well for the company. Moreover, TCPL's corrugated cartons plant at Haridwar commenced production from March 2012 to offer innovative packaging solution.

Investment Returns: TCPL Packaging was recommended in Jan 2013 at average price of 70.50 for target of Rs 160. We suggested to hold the stock once target was achieved considering improved fundamentals and reasonable valuations. TCPL stock price made all time high of Rs. 780 in the month of June last year and today closed at Rs. 683.45 giving returns of 869% to our members, almost our 10-Bagger stock in period of 4.5 years.

TCPL Packaging Ltd Research Report: Click here to Download

There are many other stocks which have given returns in the range of 200% to 1500% during last 6 years to our Hidden Gems and Value Picks members, the list includes Sri Adhikari Brothers, Wim Plast, De Nora, Super House, Indag Rubber, WPIL, Acrysil, Kovai Medical, Atul Auto, ABM Knowledgeware, Premier Explosives, Balaji Amines, Rane Brakes, Chemfab Alkalies, Amara Raja, Godrej Consumers, Force Motors, Roto Pumps, Visaka Industries etc. If you wish to invest in fundamentally strong small and mid cap companies which can give you far superior returns compared to major indices like Sensex or Nifty in long term and help you creating wealth, you can join our services like Hidden GemsValue Picks & Wealth-Builder.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other stock brokers and research firms. We keep on updating our subscribers on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.

Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for your to invest in right set of companies at right price with medium to long term perspective. If you think to invest in stocks for period of 3 months to 6 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

At Saral Gyan, team of equity analysts keep on evaluating small and mid cap stocks to explore the best Hidden Gems and Value Picks of stock market. Saral Gyan - Hidden Gems and Value Picks are the small and mid cap stocks with high probability to become multi-bagger stocks in future and a path for our investors to create wealth through equity investments in a long run.

We are pleased to inform you that we are celebrating Saral Gyan 7th Anniversary this July by offering maximum benefits on our subscription services. Its Saral Gyan 7th Anniversary and here comes great savings and valuable freebies for our members (limited period offer) to grab the best deal.

Discounts & valuable freebies which make our 7th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released in April'17
3. Value Picks Flash Back Report - Released in July'17
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Aug'17
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'17.
Saral Gyan 7th Anniversary Offer 
SARAL GYAN
SUBSCRIPTION SERVICE
7TH ANNIVERSARY OFFER
DISCOUNTED PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden GemsRs. 10,000 9,000
Value PicksRs. 6,000 5,400
Wealth-BuilderRs. 20,000 18,000
Combo 1: HG + VP + WB + 15%Rs. 40,000 28,000
Combo 2: HG + VP + 15%Rs. 20,000 15,000
Combo 3: HG + VPRs. 16,000 13,000
Combo 4: HG + 15%Rs. 14,000 11,500
Combo 5: VP + 15%Rs. 10,000 8,500

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan 7th Anniversary Offer.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan