However, our team is confident enough to achieve 5 times returns in period of 5 years by monitoring performance of these companies and taking corrective measures in case any of them does not perform up to our expectations.
Few important parameters which have been looked by our equity analysts while finalizing the stock selection are as under:
- Market leader in the business / any one segment in which the company is operating in.
- Scalable business with significant moat (sustainable competitive advantage)
- Prudent Management with promoters increasing their shares holding in the company
- Zero or negligible debt on books with healthy cash flows.
- CAGR of above 15% with increase in operating and net profit margins in last 5 years.
- Consistent dividend payment with dividend yield above 2% in last 5 years
- Increasing EPS, single digit PE ratio with ROE and ROCE above 20% in last 5 years.
- Zero or negligible share holdings of Institutions (FIIs & DIIs) to get first mover advantage.
We at Saral Gyan recommend good businesses to buy with long term view and any change in our stock views will be based on strong structural trend and not on any short term movement.
In case of any queries, simply write to us. We will be delighted to assist you!
Team – Saral Gyan
Saral Gyan Capital Services.