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Monday, May 11, 2015

Hidden Gem Stock - April 2015 is Released!

Dear Reader,

Hidden Gem - Apr'15 research report was released yesterday by our research team. Hidden Gem of April month is a small cap stock from pharmaceutical sector with total market capital of less than 500 crores.

As we know, India continues to be a high growth economy and a significant portion of this growth comes from pharmaceutical sector particularly from exports. We have identified multibagger investment opportunity of this month, which belongs to pharmaceutical industry and is expected to multiply its revenue by three times in next 4 to 5 years. Company is going through expansion by increasing capacity of existing facilities and setting up new facilities.

Hidden Gem Stock of April 2015

Our Hidden Gem stock of Apr'15 belongs to pharmaceutical sector. India is among the top five emerging pharma markets and has grown at an estimated compound annual growth rate (CAGR) of 13 percent during the period FY 2009–2013. The Indian pharmaceutical market is poised to grow to US$ 55 billion by 2020 from the 2009 levels of US$ 12.6 billion, according to the report titled ‘India Pharma 2020’ by McKinsey & Co. 

An increase in insurance coverage, an ageing population, rising income, greater awareness of personal health and hygiene, easy access to high-quality healthcare facilities and favourable government initiatives are some of the important factors expected to drive the pharma industry in India. The Government of India has unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end drug manufacturing.

Our Hidden Gem - April stock which is from pharmaceutical sector offers good upside potential and is a great investment opportunity for medium to long term investors. 

Few facts which make this company a right investment candidate for long term:

1. More than 2 decades of experience with strong clientele from more than 70 countries is expected to auger well for the company going through significant expansion.

2. Company offers a robust product portfolio and is the market leader in one of its segment
3. Company is increasing its capacity under ongoing expansion program by setting up new plants and increasing capacity of existing facilities to meet growing demands and to tap opportunities from various countries.

4. As per management guidance, company revenue will be trebled (3 times) in next 4 years. 

5. Company is focusing to broaden its product portfolio which will yield higher profits and lead to increase in EBITDA margins. 

6. Company is having world-class facilities with a wide range of process equipment fully compliant with WHO GMP standards and meet the requirements of USFDA and other regulatory markets.

7. Management has rewarded share holders by paying regular dividends, dividend yield at current market price is below 1.

8. Last but not the least, stock is attractively priced at current valuations compared to peer group companies and offers good upside potential with limited downside risk in medium to long term.

Considering company’s plan to work towards optimizing the capacities of its existing manufacturing facilities, adding additional capacities to drive revenue growth, and improving operating margins by offering broad product portfolio, we find this company a good bet for long term investors. 

Grab our Hidden Gem - Apr'15 research report and invest small portion of your savings in it to get rewarded in long term. Subscribe to Hidden Gems annual subscription (12 monthly research reports) @ Rs. 7,500 [$ 150] and start investing systematically in fundamentally strong small cap companies. To know more about Saral Gyan annual subscription services and discounts available on combo packs, click here

On activation of your Hidden Gems subscription, you will receive Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 at no additional cost!

Wait! You will also receive our recently released Special Report: 5 Stocks - 5 Baggers in 5 Years without any extra charges.

To know more about our Special Report: 5 Stocks - 5 Baggers in 5 Years, click here!

In case of any queries or doubt, do not hesitate to write back to us.

Wish you happy & safe Investing!


Team - Saral Gyan