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Wednesday, October 22, 2014

10 Best Diwali "Muhurat" Stock Picks to be Released Today!

Dear Reader,

Muhurat trading is the auspicious stock market trading for an hour on Diwali (Deepawali). It is a symbolic and old ritual, that has been retained and observed for ages, by the trading community.  As Diwali also marks the beginning of the New Year, it is believed that muhurat trading on this day brings in wealth and prosperity throughout the year. 

The "muhurat" trading session will be of 75 minutes, to be conducted between 06.15 PM to 07.30 PM on the Diwali day, October 23, on leading bourses NSE and BSE. The special trading session would be conducted to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity. It would also mark the New Year for traders as per the Hindu calendar, or Samvat 2071.

Saral Gyan Diwali Muhurat Portfolio - Outperforming Sensex & Nifty since Inception

We are pleased to inform our readers that we have finalized our 10 scrips as “Muhurat Picks” that we believe should do well on the bourses during next one year outperforming major indices, Sensex and Nifty. 

Saral Gyan Deepawali Muhurat Buy - One Lakh Rupee Portfolio - 2014 will be mailed to all our Hidden Gems, Value Picks and Wealth-Builder members at 11.00 PM today.

Our stock selection is done with lot of research and data analysis. We first identified the sectors that are likely to do well in the next 12 months. Having that done, we further refined our search to select companies from those sectors. We have created a portfolio worth Rs. 1 Lakh comprising 10 scrips so that it can help investors to create a model portfolio with lump sum investment up to 1 Lakh with time horizon of one year.

We have given different allocation to each of the scrips keeping in mind the risk versus returns ratio. We have also fine tuned the portfolio with large-cap, mid-cap and small cap scrips so that the investors can invest in a complete mix of stocks to balance their portfolio.

We have also included some of our best Hidden Gems and Value Picks recommended by our equity analysts during last 2 to 3 year in our model portfolio.

Its time to also review our Rs. 1 Lakh Diwali Muhurat Portfolio of 10 stocks of 2013 released by our team on 2nd Nov 2013, we are glad to share that our portfolio has outperformed Sensex and Nifty by whopping 91% and 90.6% respectively. Sensex has given 22.9% (21,239 on 02nd Nov'13 to 26,109 on 19th Oct'14) and Nifty has given 23.3% (6,307 on 2nd Nov'13 to 7,780 on 19th Oct'14) returns during the year where as Saral Gyan Diwali Muhurat Portfolio - 2013 of 10 stocks have outperformed both indices giving absolute returns of  113.9% in same period.

Performance update of our Best 10 Diwali Muhurat Stock Picks - 2013

Four stocks out of ten of our Diwali Muhurat Portfolio of last year have given returns in the range of 150% to 350%. Star performers of our portfolio were Acrysil (returns of 346%), Aurobindo Pharma (returns of 298%), Wim Plast (returns of 246%) and Atul Auto (returns of 173%) where as laggard was J & K Bank which has given marginal returns of 2.3%.

Moreover, our Diwali Muhurat Portfolio of 2011 as well as 2012 has also outperformed major indices by wide percentage points.

Saral Gyan Rs 1 Lakh "Muhurat" Portfolio - 2014 will be emailed to all our Hidden Gems, Value Picks and Wealth-Builder subscribers today at 11.00 pm. The performance of the same will be reviewed next year a day before Diwali festival.

If you wish to receive Saral Gyan Rs. 1 Lakh "Muhurat Portfolio - 2014 of 10 Stocks, Subscribe Now! We will activate your annual subscription within few hours and ensure that you receive Saral Gyan Rs. 1 Lakh Diwali Muhurat Portfolio of 10 stocks before "Muhurat" trading session. Subscribe to our subscription services under Dussehra - Diwali Offer of the Year to avail attractive discounts and freebies during this festive season.

We continue to follow our simple but effective approach by evaluating each stock on the basis of below mentioned criteria’s.

(i) Top Quality management with high integrity:

This is an absolutely non-negotiable condition. If the management is not honest, will they want to share the goodies with you? No, they will look for the first opportunity to siphon off the profits and pull the wool over your eyes.

(ii) The scale of opportunity must be big:

Multi-bagger stocks are created because they are able to scale the opportunity rapidly. Titan Industries is a great example. In 2003-04, Titan‘s market cap was 500 crores. In 2014, it is close to 33,700 crores. The fact that India is a booming marketplace of 120 crores consumers means that most products and services have a head start at trying to scale up their activities.

(iii) Low debt; free cash flows:

We learnt from the great crisis of 2011 that companies with high debt on their books simply get slaughtered. While debt per se is not bad (if the company is able to borrow at a lower rate and deploy it in its business at a higher rate, the operating leverage works in its favour), excessive debt with high interest and repayment obligations can crunch the stock in times of downturn. So, as a long-term investment philosophy, it is best to steer clear of high-debt companies.

(iv) High ROE – Efficient users of capital:

Some company’s management is able to squeeze that little extra of every buck. A ROE of at least 25% is necessary to make into the hallowed list of model portfolio.

(v) No High Capex Requirements – No Serial Diluters of Equity:

We know from (bitter) experience the demerits of investing in stocks like Suzlon & GMR which have an insatiable appetite for more and more capital. To feed their perennial hunger, these companies dilute their equity by making FPOs, GDRs & FCCBs resulting in total destruction of shareholders’ wealth. Companies should be lean and mean requiring minimal capital but generating huge returns there from.

(vi) Reasonable growth expectations:

“If you get a tax-free return of 18% for your portfolio, you must be very happy”. So, stop craving for that overnight multi-bagger. You’ll only end up losing your precious capital that way. Instead, look for well established small, mid and blue chips companies that are growing at a reasonable rate of return (15 – 25%). With time and the magic of compounding, you will have your muti-bagger in your portfolio.

(vii) Valuations:

Most investors are obsessed about valuations, refusing to buy any stock that is “expensive”. However, one must remember that “expensive” is a relative term. If a stock is compounding at 25% on an annual basis, paying a price of 30 times earnings may be very reasonable. A stock like Nestle, for instance, has always been “expensive”. However, if an investor had gone ahead and bought the stock, he would have had an incredible multi-bagger on his hands. On the other hand, in trying to buy a “cheap” stock, one may get saddled with unsavory companies. After all, there is a reason why such stocks are “cheap”.

Of course, one should be careful not to buy in euphoric or bubble times when the pricing may be extravagant and not at all reasonable.

(viii) Concentrated Portfolio:

We like Warren Buffett approach, a believer in the concept of a concentrated portfolio. If you believe in the prospects of a stock you should be prepared to put a substantial chunk of money in it – or nothing at all. There is no point in buying a bit of this and a bit of that because that dilutes your returns.

Of course, we are no match for Warren Buffett and we do not have his conviction levels. So, we’ll stick to 10 stocks to begin with, which means that from 5% to 12% of the wealth will be invested in each stock.

(ix) Diversification:

Last but not the least; a proper portfolio must be diversified across sectors. A bit of Finance, a bit of consumption, some autos, a pinch of chemical etc will make a balanced portfolio.

If you are a new member and wish to receive Saral Gyan Rs. 1 Lakh Muhurat Portfolio, simply subscribe to our subscription services under Dussehra - Diwali Offer of the Year. You can also avail attractive discounts and freebies during this festive season. Offer is for limited period and closes on 25 Oct'14.

Attractive discounts & valuable freebies which make this festive season special for our readers are as under:

1. Discount upto 30% on combo pack subscription (valid up to 25th Oct'14 only)
2. Rs. 1 Lakh Diwali Muhurat Portfolio of 10 Stocks (to be released on 22nd Oct'14)
3. Best 4 Stocks for long term Wealth-Creation
4. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 25th Oct'14.

Saral Gyan Dussehra - Diwali Offer of the Year 2014
Hidden GemsRs. 7500 6750 / $ 150 135 
Value PicksRs. 5000 4500 / $ 100 90
Wealth-BuilderRs. 15000 13500 / $ 300 270
Combo 1: HG + VP + WB + 15%Rs. 30000 21000 / $ 600 420
Combo 2: HG + VP + 15%Rs. 15000 11000 / $ 300 220
Combo 3: HG + VPRs. 12500 10000 / $ 250 200
Combo 4: HG + 15%Rs. 10000 8500 / $ 200 170
Combo 5: VP + 15%Rs. 7500 6750 / $ 150 135

Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. If you are not comfortable paying online, click here to know about our other payment options and bank details.

We are glad to share that 22 Hidden Gems (Unexplored Multibagger Small Cap Stocks) out of 36 released  by our equity analysts during last 4 years have given more than 100% returns. 9 Hidden Gems out of 22 have given returns in the range of 200% to 1000%. Value Pick (Mid Caps with Plenty of Upside Potential) stock like Amara Raja Batteries, Godrej Industries, Yes Bank, Aurobindo Pharma, Kewal Kiran Clothing, VST Tillers, Mindtree etc have given returns of more than 100% to 600%.

Hidden Gems is one of the most admired subscription service of Saral Gyan and enjoys no. 1 ranking in Google. It’s word of mouth publicity of our readers which makes Hidden Gems and Value Picks a right choice for investments in small and mid cap stocks.

Check out - Hidden Gems and Value Picks Performance Update - 2014 

We keep reviewing portfolio of our Wealth-Builder members and suggest them to have right set of stocks including best of our Hidden Gems and Value Picks to get rewarded in long term. We also take this as an opportunity to thanks all our readers for their association with Saral Gyan and look forward to a rewarding and long lasting relationship.

You can any time contact us in case of any queries, we will be delighted to assist you.

Wish you happy and safe investing!

Team - Saral Gyan.
Saral Gyan Capital Services.