Monday, August 9, 2010
Saral Gyan - Hidden Gem (Small Cap Stock Research Report) for the month of August 2010 has been released by our equity analysts. It has already been mailed to all our paid subscribers yesterday.
This month recommendation is a micro cap stock which has presence in India since last 60 years but company has shown robust growth in terms of revenue and profitability in last couple of years only, started paying dividend from last 3 years and now dividend yield has moved to above 4 percent. Management is looking quite aggressive by diversifying company's business into new sectors. Equity analysts at Saral Gyan believe that this company is all set to deliver stellar performance in FY 2011 - 12 and stock is currently trading at a lower PE which makes it a cheap bargain keeping a long term view of 12 to 24 months.
While selecting Hidden Gem of the month, our approach differs from that of most other firms. No attempt is made to provide research on all or most of the companies within a given industry. Instead, the role of the analyst at Saral Gyan is to select and follow only those companies that have above-average growth prospects and above-average quality, the thesis being that investing in these companies will generate above-average returns over the long term.
We use a number of factors in selecting a coverage universe of micro & small cap companies with good growth prospects. Among them are the company's product line, level of service and, most important, the company's management. In terms of growth, analysts look for companies that can sustain annual earnings gains of 15% or more over the long term. The research universe is almost evenly divided among micro-cap and small-cap stocks.
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Saral Gyan Team
Hidden Gem - August 2010 Released