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Saturday, January 14, 2017

Important Update - Increase in Prices of Saral Gyan Services

Dear Reader,

We at Saral Gyan operates as an independent equity research team with objective to guide and facilitate our members to create wealth in long term by investing in fundamentally strong small and mid cap companies at attractive valuations. We launched our services - Hidden Gems, Value Picks, 15% @ 90 Days and Wealth-Builder during last 6 years and cherish readership of more than 35,000 members today.

We would like to inform you that prices of our annual subscription service will increase during last week of January 2017. The increase in subscription prices of our services is decided after evaluating important business aspects and value addition to our existing services during this year. Moreover, there was no revision in our subscription prices since 2012, we offered our services at similar prices during last 4 years.

Below table indicates current and revised subscription prices of our services:
We are glad to inform you that you can subscribe to our services at current prices before the subscription prices increase. This is the last opportunity to subscribe to our services at old subscription prices as you would not be able to avail these discounted prices after revision of our subscription prices by end of this month.

Below are the details of our annual subscription charges currently which will increase by end of this month. Click on SUBSCRIBE! link to subscribe to our services online using debit / credit card or net banking facility.

SARAL GYAN
SUBSCRIPTION SERVICE
ANNUAL SUBSCRIPTION
PRICE
PAY ONLINE 
CARD / NET BANKING 
Hidden Gems
Rs. 7,500
Value Picks
Rs. 5,000
15% @ 90 Days
Rs. 2,500
Wealth-Builder
Rs. 15,000
Combo 1: HG + VP + WB + 15%
Rs. 25,000
Combo 2: HG + VP + 15%
Rs. 12,500
Combo 3: HG + VP
Rs. 11,000
Combo 4: HG + 15%
Rs. 9,000
Combo 5: VP + 15%
Rs. 7,000

In case if you are not comfortable in subscribing online, you can make the payment through cheque / cash deposit / NEFT transfer in any of our bank and writing back to us sharing transaction details. Click here for bank details.

1. Hidden Gems (Unexplored Multibagger Small Cap Stocks): Based on fundamental analysis, our equity analysts release one Hidden Gem research report every month with buy recommendation and share it with all Hidden Gems members. Stock finalized as Hidden Gem belongs to small / micro caps space with market cap of less than 500 Crores, expected returns from Hidden Gems is above 100% in period of 12 - 24 months. Annual subscription charge of Hidden Gems is INR 7,500 under which you will receive total 12 Hidden Gems research reports (one on monthly basis). Click here to read more about Hidden Gems.

2. Value Picks (Mid Caps with Plenty of Upside Potential): Our equity analysts team consider Warren Buffet approach to short list stocks from mid cap segment as Value Picks. Market cap of Value Pick will range from 1000 crores to 10,000 crores. Holding period of Value Picks is 12 - 24 months and one can expect returns of 40-50%. Annual subscription charge of Value Picks is INR 5,000 under which you will receive total 12 Value Picks research reports (one on monthly basis). Click here to read more about Value Picks.

3. 15% @ 90 Days (Buy to Sell Stocks for Short Term Gain): Based on technical analysis, our team recommends one stock every month to our members. It’s a short term call under which you can expect returns of 15% within period of 90 Days. Annual subscription charge of 15% @ 90 Days is INR 2,500 under which you will receive 12 stock recommendations. We suggest lower allocation in 15% @ 90 Days stocks and higher allocation in Hidden Gems and Value Picks which are our portfolio stocks based on fundamental analysis.​ 15% @ 90 Days stocks recommendations are based on buy to sell and gain strategy, hence we suggest our members to book complete profits once target is achieved and exit in case target is not achieved or stock has broken its 2nd support level as per report. Click here to read more about 15% @ 90 Days.

4. Wealth-Builder (An Offline Portfolio Management Service): Wealth-Builder is our model portfolio of Rs. 10 lakhs and currently we are holding 16 stocks in our portfolio. We suggest higher allocation in our Wealth-Builder stocks which includes best of our Hidden Gems and Value Picks released during last couple of years. Our team suggest all our Wealth-Builder members to invest in the stocks which are part of our Wealth-Builder portfolio. Every month our team updates our Wealth-Builder members which stocks they need to buy / sell / hold with % allocation of these stocks in their portfolio, the suggested changes need to be replicated in the same proportion. Annual subscription charge of Wealth-Builder is INR 15,000 ($300) under which you will receive total 12-18 portfolio updates. We also review existing equity portfolio of our members and advise them which stocks to hold and which to exit based of fundamental analysis under Wealth-Builder service. Our Wealth-Builder service is suitable for those investors who have an existing portfolio of at least 2 to 3 lakhs or planning to invest similar amount or more in equity market. Click here to read more about Wealth-Builder.

We do update our members in terms of profit booking / exits depending upon various factors like overall Industry / Sector outlook, fundamentals of the company, management action plan and annual performance in terms of top line, bottom line, operating margins and other important parameters.

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.

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 for medium to 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.

Ongoing market correction is giving good opportunity to invest in good quality small and mid cap stocks to get rewarded in long term. Start investing some portion of your savings in high quality small and mid cap stocks backed by strong fundamentals. Subscribe to our services before increase in annual subscription charges to grab the best deal, you can avail additional discounts by subscribing to our combo packsclick 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

Wednesday, January 11, 2017

Hidden Gem: Chemfab Alkalis - ROI @ 240% in 16 Months

Dear Reader,

We are pleased to inform you that our Hidden Gem stock of August 2015 - Chemfab Alkalis Ltd (BSE Code: 506894, NSE Code: CHEMFALKAL) which was released on 6th Sept'15 has given absolute returns of 240% to our Hidden Gems members in period of 16 months. Our team suggested Buy on Chemfab Alkalis Ltd at average price of Rs. 90.80 on 06 Sept'15 with a target price of Rs. 170, stock has already achieved its target price in matter of 10 months and we suggested our members to continue to hold the stock. Chemfab Alkalies stock made its 52 week high of Rs. 347.70 on 3rd Nov'15 and currently trading at Rs. 309 on NSE giving absolute returns of 240% to our Hidden Gems members in period of 16 months.

Company has posted strong set of numbers in Sept 2016 quarter, net profit of Chemfab Alkalis rose 157.82% to Rs 5.44 crore as against Rs 2.11 crore during the previous quarter ended September 2015. Sales rose 25.20% to Rs 31.40 crore in the quarter ended September 2016 as against Rs 25.08 crore during the previous quarter ended September 2015

Recently the company has commenced its commercial operations by producing and dealing in the product Industrial Grade Salt at its Mariyur Unit on August 24, 2016.

The company’s plant at Puducherry has bagged some of the prestigious awards which include FICCI Chemicals and Petrochemicals Award 2016 for the most environment friendly company in the chemical sector, won first place in the chemical sector for the CII Southern region Environment Health and Safety (EHS) Award 2015 – 16 and special commendation for the Golden Peacock Environment Management Awards 2016.

As per the management, the company plans to double the company’s capacity in next 2 to 3 years. The company is planning to raise the capex of Rs 50 crore next year for expansion purposes via inter accruals. Presently company’s capacity is 100 tonnes per day and is almost utilized fully.

We suggested our members to continue to hold the stock in our Hidden Gems Flash Back report released on 1st August 2016. We expect the company to post strong set of numbers in 3rd quarter as well. If company manages to post similar performance like that of last 2 quarters, we can see significant upside in the stock from current levels.

Below is the summary of Chemfab Alkalies Ltd shared by our team under Hidden Gem stock of August'15 released on 06th September 2015.

Note: This report is shared only for the purpose of information and not an investment advice. Kindly carry out your own due diligence in case of investment in Chemfab Alkalies. 

Company Background:

A Chennai based company Chemfab Alkalis Ltd (CAL) was incorporated in 1983. The company was promoted by M/s Titanium Equipment and Anode Manufacturing Company Limited. CAL manufactures chemicals for industrial applications. In June 2009, chlorates division has been closed permanently due to frequent power problems and labor unrest. Company established India’s first Membrane Cell Caustic Soda Plant and commenced production from July, 1985.

CAL is the first Indian company to use the power saving ion exchange membrane cell technology to manufacture caustic soda. Chemfab Alkalis (CAL) also produces Sodium Hypochlorite and sodium Chlorate and the bye products of caustic soda like chlorine and hydrozen. Chemfab Chlorates, a group company was amalgamated with Chemfab Alkalies Ltd during the year 2001-02 on the approval from High court of Madras.

The company has also takenover the management of Salt fields by the way of backward integration. The salt fields are situated at marakanam 25 kms from the factory of the company. Chemfab Alkalis was selected for the 1988 award of excellence in Environment Preservation and Pollution Control by the Federation of Indian Chambers of Commerce and Industry for its membrane cell technology which totally eliminated the use and disposal of mercury.

Products
  • Caustic Soda Lye in two grades (33% & 48%)
  • Liquid Chlorine
  • Hydrogen Gas
  • Hydrochloric Acid 
  • Sodium Hypochlorite / Bleach Liquor 
  • Barium Sulphate
The above products are completely free from mercury and are used in food processing industries as well.

The first ever pollutant free caustic soda in the country was from CAL. The quality of the products matches the requirements of BIS and meets international specifications.

CAL commenced the operation with the production capacity of 25 TPD and now operates at 100 TPD. The features of the plant recently revamped it’s with the latest-state-of-the-art BiTAC technology, and looking forward to double its production capacity to 200 TPD.

Chlor alkali market in India has witnessed healthy growth in recent years, largely driven by increasing demand from end user industries due to higher output from the chemicals sector. Chlor alkali market is broadly categorized into three segments, namely Caustic Soda, Chlorine and Soda Ash. Caustic Soda finds major application in diverse industries, such as soap & detergents, pulp & paper and textile processing among others. Chlorine is produced as a by-product during caustic soda production and is widely used during PVC manufacturing, drinking water disinfection and pharmaceutical production. Soda Ash is used mainly during glass, soap & detergent and silicate production.

With strong growth anticipated in all these end use industries, the market for chlor alkali in India is forecast to grow considerably in the next five years.

According to India Chlor Alkali Market Forecast & Opportunities, 2019, the market for chlor alkali in India is projected to exhibit a CAGR of around 7% during 2014-19. The market is expected to witness high penetration rate in the Western and Northern regions of the country. The market, though highly fragmented at present, is gradually moving towards consolidation, particularly with the entry of foreign players and expansion in distribution network of existing players. Among the three market segments, caustic soda held the highest revenue share, followed by chlorine and soda ash segments.

Soap & detergent is the main end user industry in the chlor alkali market, followed by glass, pulp &paper, alumina and other industries.

Research & Development

The Company has an in-house Research Development Department, where the main areas of focus are Energy Conservation, Process Upgradation and Environmental Preservation. The Ministry of Science and Technology, Department of Scientific and Industrial Research, Government of India, has recognized the Company’s inhouse R & D facilities, which is valid upto 31st March, 2017. The Company has a sophisticated Quality Assurance (QA) Laboratory recognized by DuPont, USA for the analysis of Chlor- Alkali brine.

The Brine from various Chlor- Alkali Industries in India is being analyzed at CAL-QA Laboratory. The Company continues to take all possible steps to conserve energy in every area of its operations recognized by DuPont, USA for the analysis of Chlor- Alkali brine. The Brine from various Chlor- Alkali Industries in India is being analyzed at CAL-QA Laboratory. The Company continues to take all possible steps to conserve energy in every area of its operations.

The company continues to use hydrogen gas instead of conventional fuel reducing the carbon footprint. The company has also installed solar street lightings and also the Bio Gas plant for replacing conventional energy sources by making investment of Rs. 10 lakhs.

2. Recent Developments: (as on 6th Sept'15)

i) Replacement of old plant with Bipolar BiTAC Electrolysers Plant from CEC, Japan.

In 2014, company introduced a new BiTAC® Electrolysers from CEC, Japan for the first time in the Country. The new Plant was commissioned during August 2014, and is operating well within the agreed operational parameters and will result in savings in energy consumption to the tune of 30% to 40%.

Company has also replaced the old Caustic Concentration plant with a new Plant and this was commissioned in the month of March 2015. This will also result in improved operational efficiencies.

ii) Ongoing Expansion Plans to drive Revenue Growth & Profitability

Company awaits the statutory clearances for its expansion plans and a favourable decision on its appeal before the National Green Tribunal. Company has also made plans for venturing into newer areas for Chlorine utilisation.

The Company is in the process of developing 632 acres of salt fields and the production of salt is expected to commence post completion of the development activities.

The new Salt fields which were acquired are slated to commence production shortly. With all these measures, management is confident that company is poised for a great leap ahead and achieving good results in the forthcoming years.

3. Financial Performance:

Chemfab Alkalis standalone net profit declines 51.69% in the June 2015 quarter

Net profit of Chemfab Alkalis declined 51.69% to Rs 1.57 crore in the quarter ended June 2015 as against Rs 3.25 crore during the previous quarter ended June 2014. Sales declined 25.78% to Rs 22.92 crore in the quarter ended June 2015 as against Rs 30.88 crore during the previous quarter ended June 2014.

Chemfab Alkalis standalone net profit declines 6.08% in the March 2015 quarter

Net profit of Chemfab Alkalis declined 6.08% to Rs 1.39 crore in the quarter ended March 2015 as against Rs 1.48 crore during the previous quarter ended March 2014. Sales rose 4.83% to Rs 25.60 crore in the quarter ended March 2015 as against Rs 24.42 crore during the previous quarter ended March 2014.

For the full year, net profit declined 37.81% to Rs 10.23 crore in the year ended March 2015 as against Rs 16.45 crore during the previous year ended March 2014. Sales declined 1.97% to Rs 109.85 crore in the year ended March 2015 as against Rs 112.06 crore during the previous year ended March 2014.

Company performance was impacted in FY 2014-15 mainly due to the fall in international caustic prices which averaged during the year between USD 320 – 340 per MT CIF. However, we believe that international caustic prices will remain in the range of USD 350-380 per MT CIF in the short term which will have a positive impact on company’s realizations.

Moreover, we believe company to post significant improvement in operating margins considering replacement of old caustic concentration plant with a new plant which was commissioned in the month of March 2015.

4. Peer Group Comparison:
5. Key Concerns & Risks:

i) The Rupee depreciation during the year will make imports cheaper, resulting in increased flow of caustic soda imports into the country thereby impacting company’s product realizations.

ii) International caustic prices were at USD 330-380 per MT CIF levels during the year and are expected to remain in this band in the short to medium term, any drop in prices below USD 330 will have a negative impact on company’s realizations. On the chlorine utilization front, slow demand growth continued to have an adverse impact on the Industry.

iii) Dependence on the grid power continues to be a risk though the Puducherry power scenario remains reasonably stable but with the cost of power continuing to be a concern. The Company is working with the Puducherry Government for the implementation of open access which would help de-risk our power sourcing.

6. Saral Gyan Recommendation: (as on 06 Sept'15)

i) Chlor-Alkali is the basic Heavy Chemical Industry, manufacturing Caustic Soda, with Chlorine, Hydrogen, Sodium Hypo Chlorate and Hydro Chloric Acid as by-products. Overall, the Financial Year 2014-15 was an average year for the Industry, primarily due to the fall in international caustic prices which averaged during the year between USD 320 – 340 per MT CIF. International caustic prices have now moved to USD 360-380 per MT CIF levels and are expected to remain in this band in the medium term which will have a positive impact on company’s realizations.

ii) Caustic Soda finds major application in diverse industries, such as soap & detergents, pulp & paper and textile processing among others. Chlorine is produced as a by-product during caustic soda production and is widely used during PVC manufacturing, drinking water disinfection and pharmaceutical production. With the rebound in the country’s GDP, the demand for caustic is likely to grow strong which will help company to boost its revenue growth with higher capacity utilization. However, slower chlorine demand is expected to continue to impact the capacity utilisation of the company.

iii) In 2014, company introduced new BiTAC® Electrolysers from CEC, Japan for the first time in the country. The new Plant was commissioned during August 2014, and is expected to result in savings in energy consumption to the tune of 30% to 40%. Company has also replaced its old caustic concentration plant with a new plant which was commissioned in Mar’15. These initiatives will help company to improve its profit margins significantly with increase in revenues going forward.

iv) With the rebound in the country’s GDP, the demand for caustic is likely to grow strong. However, slower chlorine demand is expected to continue to impact the capacity utilisation of the industry. The investments and efforts taken by the Company during last financial year are expected to result in significant savings in its manufacturing costs, especially power cost.

v) Company’s EBITDA and PAT margins are expected to improve significantly considering investments and efforts taken by the Company during last financial year which will result in significant savings in its manufacturing costs, especially power cost.
vi) Chemfab Alkalis is virtually debt free with reserves of Rs. 125 crores in its books which is much more than the company’s current market capital of Rs. 87 crores. Promoter’s shareholding is at 75% without pledging any shares and rest is held by non-institutional investors. FII and DII shareholding is nil in the company.

vii) Company awaits the statutory clearances for its expansion plans and a favourable decision on its appeal before the National Green Tribunal. Company has also made plans for venturing into newer areas for Chlorine utilisation. The new Salt fields which were acquired are slated to commence production shortly. With all these measures, management is confident that company is poised for a great leap ahead and achieving good results in the forthcoming years.

viii) Management has rewarded shareholders by paying regular dividend in the past. For FY 14-15, company has declared dividend of Rs. 1.25 per share.

ix) As per our estimates, Chemfab Alkalis Ltd can deliver bottom line of 13.5 crores for full financial year 2016, annualized EPS of Rs. 14.7 with forward P/E ratio of 6.4X for FY16. Valuation looks attractive for a debt free company with expected expansion in its profit margins.

x) On equity of Rs. 4.59 crore, the estimated annualized EPS for FY 15-16 works out to Rs. 14.7 and the Book Value per share is Rs. 142.86. At current market price of Rs. 94.40, stock price to book value is 0.66.

Considering recent initiatives taken by the management in terms of improving operational efficiencies and company’s expansion plans to drive business growth, Saral Gyan team recommends “Buy” on Chemfab Alkalis Ltd at current market price of Rs. 94.40 for target of Rs. 170 over a period of 12 to 24 months.

Buying Strategy:
  • 70% at current market price of 94.40
  • 30% at price range of 82-85 (in case of correction in stock price in near term)
Portfolio Allocation: 3% of your equity portfolio

To Read / Download Saral Gyan Hidden Gem - Aug'15 Research Report - Click Here

Add power to your equity portfolio by investing in best of small & mid cap stocks - Hidden Gems & Value PicksIts 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.

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 with medium to long term perspective. 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.

Ongoing market correction is giving good opportunity to invest in good quality small and mid cap stocks to get rewarded in long term. Start investing some portion of your savings in high quality small and mid cap stocks backed by strong fundamentals. Avail attractive discounts by subscribing to our combo packsclick 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

Tuesday, January 10, 2017

Multibagger Stocks: Hidden Gems - SIP Returns @ 281%

Dear Reader,

A small investment of Rs. 10,000 a month over a period of 10 years can help you create a corpus of Rs. 25 lakhs. Total amount invested over period of 10 years by you will be Rs. 12 lakhs and you will have profit of Rs. 13 lakhs. Not Good? This might look less to you as we are assuming returns of 13.5% per annum. If we assume returns of 27% per annum, your corpus will be Rs. 50 lakh and your profits would be more than 3 times of your actual investments that too when you are investing a nominal amount of Rs. 10,000 on monthly basis. Impressive! Right?

You might think that investing in mutual funds could be one of the way to start SIP (Systematic Investment Plan). However, returns may not be that high which you can generate by directly investing into good quality small and mid cap stocks. Hence, we suggest our members to start SIP by directly investing in stocks every month. What you are suppose to do is to invest your savings in a particular stock once in a month instead of putting it into mutual fund. Next month, same amount would be invested in another stock which at that point of time gives you good medium to long term investment opportunity. This could be an ideal choice for salaried employees as well as businessmen / entrepreneurs, as it will help you to directly invest in fundamentally strong small and mid cap companies to build a diversified portfolio of high quality small and mid cap stocks over a period of time to achieve wealth creation.

Investing in stocks is a great way to build your diversified investment portfolio. It is a simple and time tested approach for accumulation of wealth in a disciplined manner. Simply get some savings from your monthly income and invest in equities for long term. It not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.

Invest some portion of your monthly income in good companies without  timing the stock market and you will definitely get rewarded in long run.

Just take care of Basic Principle of Investing in Equities:

1. Invest in stock market with a long term view (3 - 7 years or more).
2. Invest in companies which are fundamentally strong with scalable business.
3. Follow disciplined approach by Investing regularly in equities.
4. Build a diversified portfolio by investing in small & mid cap companies.
5. Avoid frequent buying / selling of stocks, Its trading not Investing!
6. Review performance of your holding companies at least once a year to decide whether to buy / sell or hold.

Hidden Gems - SIP Returns @ 281% Vs Small Cap Index Returns @ 52.5%

It gives us immense pleasure to share that average returns of Saral Gyan 52 Hidden Gems stocks (Our Unexplored Multibagger Small Caps) released since inception (from Sept 2010 to Dec 2015) during last 6 years is 281% compared to 52.5% returns of BSE Small Cap Index. Monthly investment of Rs. 10,000 in Hidden Gems till Dec'15 during last 6 years not only allowed you to save Rs. 5.2 lakh but also appreciated your investment by almost 3 times making your total Hidden Gems stocks portfolio of Rs. 19.81 lakh with overall profit of Rs. 14.61 lakh. However, if you would have invested the same amount in Small Cap index, you would be sitting with overall gains of Rs. 2.63 lakh. If we look at past performance from Sept 2010 till Dec 2015, Hidden Gems SIP stocks have given annualized returns of almost 50%.

Below is our Multibagger Stocks - Hidden Gems performance scorecard since inception (from Sept 2010 to Dec 2015) which illustrates value of Rs. 10,000 invested every month in Hidden Gem (Unexplored Multibagger Small Cap Stocks) stock of the month vis a vis value of Rs. 10,000 invested in BSE Small Cap Index during last 6 years as on 10th Jan'17.
We are glad to inform you that 39 Hidden Gems stocks out of 52 during last 6 years have given more than 100% returns to our members. Moreover, 29 stocks out of these 39 have given returns in the range of 200% to 1800%.

Note: Total 52 Hidden Gems stocks were released during last 64 months (from Sept'10 to Dec'15), we have not released Hidden Gems for the months not displayed in the table above.  

We also suggested our members, which earlier recommended Hidden Gems stocks can be added more in their portfolio based on company's strong fundamentals. Ex: Mayur Uniquoter, Cera Sanitaryware, Wim Plast, Camlin Fine Chemicals, Acrysil, Kovai Medical, Superhouse, De Nora were some of the stocks which we recommended to our members to accumulate later also at higher price from our initial recommended price. Now profits can be seen as these stocks have given multibagger returns.

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: 224% >>> Read / Download


3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 1803% >>> Read / Download


4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 1522% >>> Read / Download

5. KOVAI MEDICAL >>> Rec. Date: 27 Oct'11 >>> ROI: 845% >>> Read / Download


6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1233% >>> Read / Download

7. SUPERHOUSE >>> Rec. Date: 29 Feb'12 >>> ROI: 232% >>> Read / Download

8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 509% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 433% >>> Read / Download

10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 201% >>> Read / Download

11. TIDE WATER OIL >>> Rec. Date: 30 Oct'12 >>> ROI: 210% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 402% >>> Read / Download

13. TCPL PACKAGING >>> Rec. Date: 31 Jan'13 >>> ROI: 771% >>> Read / Download


14. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 210% >>> Read / Download


15. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 392% >>> Read / Download

16. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 140% >>> Read / Download

17. CONTROL PRINT >>> Rec. Date: 30 Nov'14 >>> ROI: 55% >>> Read / Download

18. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 98% >>> Read / Download

19. SMS PHARMA >>> Rec. Date: 09 May'15 >>> ROI: 70% >>> Read / Download

20. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 210% >>> 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 are providing you opportunities to invest in such small / mid cap stocks today. Infosys, Pantaloon, Dabur, 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 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 growth 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 you 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 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.

Ongoing market correction is giving good opportunity to invest in good quality small and mid cap stocks to get rewarded in long term. Start investing some portion of your savings in high quality small and mid cap stocks backed by strong fundamentals. Avail attractive discounts by subscribing to our combo packsclick 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

Sunday, January 8, 2017

Multibagger Stocks - Hidden Gems Vs Small Cap Index

Investing in High Quality Small & Mid Caps with Strong Fundamentals 

On 3rd January, 2005, Hawkins Cooker had a market cap of Rs 18 crore and its stock was at Rs 33.25. Today, on 08th Jan'17 the stock price is at Rs 2587 and the company's market cap is Rs 1,368 crore. Rs 1 lakh invested in Hawkins Cooker in Jan 2005 is valued at almost Rs. 78 lakhs today.

Lets take another example of little known company Camlin Fine Sciences which is our 19-Bagger stock as on date. We recommended this stock 6 years back at price of Rs. 6.05 (adjusted price after 2 stock splits in last 6 years, actual recommended price was Rs. 60.50) and today it’s at Rs. 116.55 giving absolute returns of 1826%. That's too excluding dividend payouts. Mind boggling, isn't it? It's a fact! Company has posted strong growth YoY and rewarded share holders in big way in last 6 years.

Do you own such stocks which can give you similar returns in future?

The number of small-cap stocks is large and finding a quality stock that can give high returns over a long period is tough even for equity analysts. One reason is that such stocks usually have a short history and are not tracked by many analysts and brokerage houses. Then there are risks such as low liquidity, governance concerns and competition from larger players.

Scores of once small companies have over the years grown big, giving investors a 30-50 per cent annual return over 10-15 years and creating fortunes for investors. However, more often than not, we find ourselves at the wrong side of the fence and regret our inability to spot such stocks on time.

If these factors scare you but you still want to gain from the upside potential of such stocks, Saral Gyan Hidden Gems and Value Picks is an ideal choice for you.

It’s a fact that 39 Hidden Gems out of 52 released by our equity analysts in last 6 years (till Dec'15) have given more than 100% returns.

Buying Strategy for Small Caps

1. Go for companies with low debt ratio (preferably less than one)

2. A high interest coverage ratio (above 3x) and a high return on equity are big advantages

3. Avoid companies with huge liabilities in the form of foreign currency convertible bonds / external commercial borrowings

4. Look at the quality of the management, its governance standards and how investor-friendly the company is.

5. Mid-cap and small-cap companies can be future market leaders, so be patient with your investments

Those who wish to invest in small-cap stocks should do so only if they have a long investment horizon and tolerance for volatility. Small-cap stocks suffer the steepest falls in a bear market and rise the most in a bull market. An investor should stay invested for at least three-five years to allow their portfolio to gain from at least one bull run.

Benefits of Investing in Small Caps

1. Huge growth potential: The first and the most important advantage that a small cap stock gives you is their high growth potential. Since these are small companies they have great scope to rise as opposed to already large companies.

2. Low Valuations: Usually small cap stocks are available at lower valuations compared to mid & large caps. Hence, if you invest in good small cap companies at initial stage and wait for couple of years,  you will see price appreciation not only because of growth in top line and bottom line but also due to rerating which happens with increase in market capital of the company.

3. Early Entrance Advantage: Most of the fund house and institutions do not own small caps with low market cap due to less liquidity which make it difficult for them to own sufficient no. of shares. This gives retail investors an opportunity to be an early entrant to accumulate such companies shares. When company grows in market cap by delivering consistent growth and becomes more liquid, entry of fund houses and institutions push the share prices up giving maximum gains to early entrants.  

4. Under–Researched: Small cap stocks are often given the least attention by the analysts who are more interested in the large companies. Hence, they are often under - recognized and could be under-priced thus giving the investor the opportunity to benefit from these low prices.

5. Emerging Sectors: In a developing economy where there are several new business models and sectors emerging, the opportunity to pick new leaders can be hugely beneficial. Also the disruptive models in the new age is leading to more churn and faster growth amongst the nimble footed smaller companies.

Concerns while Investing in Small Caps

1. Risk: The first and the most important disadvantage a small cap stock is the high level of risk it exposes an investor to. If a small cap company has the potential to rise quickly, it even has the potential to fall. Owing to its small size, it may not be able to sustain itself thereby leading the investor into great loses. After all, the bigger the company, the harder it is for it to fall.

2. Volatility: Small cap stocks are also more volatile as compared to large cap stocks. This is mainly because they have limited reserves against hard times. Also, it in the event of an economic crisis or any change in the company administration could lead to investors dis-investing thereby leading to a fall in prices.

3. Liquidity: Since investing in small cap stocks is mainly a decision depending upon one’s ability to undertake risk, a small cap stock can often become illiquid. Hence, one should not depend upon them for an important life goal.

4. Lack of information: As opposed to a large cap company, the analysts do not spend enough time studying the small cap companies. Hence, there isn’t enough information available to the investor so that he can study the company and decide about it future prospects.

Saral Gyan team do take care of above concerns by doing in-depth research and analysis of small cap companies before releasing Hidden Gems research reports with buy recommendation. Its sincere efforts, dedication and passion of our equity analysts that 39 out of 52 Hidden Gems released by us during last 6 years have given more than 100% returns to our members. In fact 29 out of these 35 stocks have given returns in the range of 200% to 1800%.

Let us evaluate the performance of Hidden Gems stocks of 2014, 2015 and 2016 compared to BSE small cap index.

Hidden Gems Stocks 2014 Vs Small Cap Index:
As illustrated in the table above, average returns of Hidden Gems stocks released in 2014 is 170.7% compared to small cap index average returns of 37%. As on date, Hidden Gems stocks of 2014 are outperforming small cap index by whopping 133.8%.

Total 8 Hidden Gems stocks out of 11 released in 2014 have already achieved their target price giving more than 100% returns to our members in period of 6 months to 2 years.

Hidden Gems Stocks 2015 Vs Small Cap Index:
Total 6 stocks of 2015 have already achieved their target price. As illustrated in the table above, average returns of our Hidden Gems stocks released in 2015 is 73% compared to average returns of 10.6% of small cap index, out performance of 62.4%.

Hidden Gems Stocks 2016 Vs Small Cap Index:
Our Hidden Gems stocks of 2016 have also outperformed small cap index. Average returns of our Hidden Gems 2016 stocks is 35% compared to small cap index average returns of 10.7%, out performance of 24.2%.

And that's not all! We have a strong history of exploring multibagger micro and small cap stocks. It gives us immense pleasure to share that 39 out of 52 Hidden Gems stocks released in last 6 years (till Dec'15) have given returns above 100%. Moreover, 29 out of these 39 Hidden Gems stocks have given returns in the range of 200% to 1900%.

As many of these reports were made public, you can access read / download our research reports by clicking on the links below:

1. SAB TV NETWORK >>> Rec. Date: 05 Sep'10 >>> ROI: 882% >>> Read / Download

2. DE NORA >>> Rec. Date: 07 Nov'10 >>> ROI: 222% >>> Read / Download


3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 1826% >>> Read / Download


4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 1522% >>> Read / Download

5. KOVAI MEDICAL >>> Rec. Date: 27 Oct'11 >>> ROI: 840% >>> Read / Download


6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1225% >>> Read / Download

7. SUPERHOUSE >>> Rec. Date: 29 Feb'12 >>> ROI: 238% >>> Read / Download

8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 513% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 428% >>> Read / Download

10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 198% >>> Read / Download

11. TIDE WATER OIL >>> Rec. Date: 30 Oct'12 >>> ROI: 195% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 405% >>> Read / Download

13. TCPL PACKAG. >>> Rec. Date: 31 Jan'13 >>> ROI: 737% >>> Read / Download


14. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 210% >>> Read / Download


15. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 398% >>> Read / Download

16. DYNEMIC PROD. >>> Rec. Date: 29 Jul'14 >>> ROI: 231% >>> Read / Download

17. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 140% >>> Read / Download

18. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 101% >>> Read / Download

19. SMS PHARMA >>> Rec. Date: 09 May'15 >>> ROI: 77% >>> Read / Download

20. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 212% >>> 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.

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.

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 for medium to 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.

Ongoing market correction is giving good opportunity to invest in good quality small and mid cap stocks to get rewarded in long term. Start investing some portion of your savings in high quality small and mid cap stocks backed by strong fundamentals. Avail attractive discounts by subscribing to our combo packsclick 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