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Dear Reader,
We are pleased to inform you that Hidden Gem - Jun'14 research report is released by our team. Hidden Gem stock selected for the month is a small cap stock with total market cap of less than 200 crores. Company is the market leader with a substantial market share in the
respective segments
and looks attractive offering good investment opportunity at current levels.
Hidden Gem Stock of June 2014
While finalizing Hidden Gem stock of the month from chemical industry, our team has followed Walter Schloss priniciple's. Walter J. Schloss (August 28, 1916 – February 19, 2012) was a well-regarded value investor, as well as a notable disciple of the Benjamin Graham school of investing.
Our Hidden
Gem stock of Jun'14 belongs to Chemical Industry.
While finalizing Hidden Gem stock of the month from chemical industry, our team has followed Walter Schloss priniciple's. Walter J. Schloss (August 28, 1916 – February 19, 2012) was a well-regarded value investor, as well as a notable disciple of the Benjamin Graham school of investing.
The legendary Walter Schloss checked the stock on the following 4 criteria to determine if the stock merits a place in the portfolio:
• Zero or very low debt equity ratio
• High Promoter holding
• Dividend yield of at least 3%
• Stock purchase price lower than book value
This company satisfies 3 criteria's out of 4 and offer good upside potential with limited downside risk in near future.
Few facts which make this company a right investment candidate for medium to long term Investors:
1. Company enjoys an esteemed customer profile including some of the most
trusted names in the world. It is also the largest exporter of its product from
the country with a presence in 16 countries covering three continents of Asia,
Africa & Australia.
2. Company possesses a highly experienced team of professionals and holds significant experience in various industries including FMCG, Food, Paper, Pharmaceuticals, Plastics and Printing etc. Its clients include large domestic and international players like Asian paints, Dabur, Colgate, ITC, Unilever, Wipro, Ranbaxy etc. Long term engagements with a majority of these esteem clients emphasize strong uninterrupted profitable business operations for the company.
3. Company has posted good consistent profit growth of 26.8% over last 5 years. Company has achieved compounded sales growth of 23.2% and ROE (return on equity) is 18% over last 5 years. Moreover, Management has rewarded share holders by paying regular and uninterrupted dividends since last many years, dividend yield at current market price is above 1.
4. Promoters share holding is well above 70%. Moreover, promoters have increased their share holding significantly doing open market purchases during last one year. Looking at bright future prospects of the company, we believe that promoters will continue to increase their stake in the company to achieve maximum shareholding of 75%.
5. In terms of valuation, company is trading at estimated PE ratio of 4.9 for FY 2014-15. Considering increase in revenues with commencement of new facilities and better operating margins with increase in global demand for company's products, it offers good investment opportunity for medium to long term investors.
Grab our Hidden Gem - Jun'14 research report and invest small portion of your savings in it for long term. On activation of your Hidden Gems subscription, you will also receive 2 freebies at no additional cost!
2. Company possesses a highly experienced team of professionals and holds significant experience in various industries including FMCG, Food, Paper, Pharmaceuticals, Plastics and Printing etc. Its clients include large domestic and international players like Asian paints, Dabur, Colgate, ITC, Unilever, Wipro, Ranbaxy etc. Long term engagements with a majority of these esteem clients emphasize strong uninterrupted profitable business operations for the company.
3. Company has posted good consistent profit growth of 26.8% over last 5 years. Company has achieved compounded sales growth of 23.2% and ROE (return on equity) is 18% over last 5 years. Moreover, Management has rewarded share holders by paying regular and uninterrupted dividends since last many years, dividend yield at current market price is above 1.
4. Promoters share holding is well above 70%. Moreover, promoters have increased their share holding significantly doing open market purchases during last one year. Looking at bright future prospects of the company, we believe that promoters will continue to increase their stake in the company to achieve maximum shareholding of 75%.
5. In terms of valuation, company is trading at estimated PE ratio of 4.9 for FY 2014-15. Considering increase in revenues with commencement of new facilities and better operating margins with increase in global demand for company's products, it offers good investment opportunity for medium to long term investors.
Grab our Hidden Gem - Jun'14 research report and invest small portion of your savings in it for long term. On activation of your Hidden Gems subscription, you will also receive 2 freebies at no additional cost!
1. Saral Gyan 5 Hidden Gems - 5-Baggers in 5 Years Report - April'14 update
2. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599.
Start investing systematically in Hidden Gems and Value Picks of stock market, to know more about Saral Gyan annual subscription services and discounts available on combo packs, click here.
In case of any queries or doubt, do not hesitate to write back to us.
Start investing systematically in Hidden Gems and Value Picks of stock market, to know more about Saral Gyan annual subscription services and discounts available on combo packs, click here.
In case of any queries or doubt, do not hesitate to write back to us.
Wish you happy & safe Investing!
Regards,
Team - Saral Gyan,
Saral Gyan Capital Services.
