Monday, September 6, 2010
Saral Gyan - Hidden Gem (Small Cap Stock Research Report) for the month of September 2010 is released by our equity analysts. It has already been mailed to all our paid subscribers yesterday.
This month Hidden Gem is a small cap stock from media sector which has presence in India since last 15 years. Company was doing extremely well since 2000-20001 and stock price was quoting at 20 times to the stock's current market price. But in the later years, company performance was badly affected due to competition, government regulations and debt burden. Stock price had a worst hit due to company's poor performance showing continuous losses in the balance sheet in later years.
But in the beginning of this year, management has shown the turnaround in company's performance. This is achieved by infusing funds to repay debt and by developing and selling products which meet expectations of target audience. Management seems to be very innovative by developing products based on low cost model and successfully generates revenue from advertisement stream and by selling broadcasting content.
Team of equity analysts at Saral Gyan believe that the company is all set to deliver strong numbers in terms of growth and profitability in FY 2010-11 & 2011-12. Stock is trading at attractive valuation when compared with peer group and could be a multibagger stock with two year time horizon.
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.
You can subscribe to Hidden Gems to receive complete small cap stock research report of this month, Hidden Gem - September 2010.
Saral Gyan Team
Hidden Gem - September 2010 Released