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Sunday, May 3, 2015

Releasing Today! 5 Stocks - 5 Baggers in 5 Years Report

Dear Reader,

We continue to believe that ongoing market correction is giving an opportunity to long term investors to invest in equities to reap good returns. While many retail investors are getting panic with the fall in stock prices day by day, we are happy considering the fact that stock market after a long time is going through a significant correction and giving an opportunity to invest in high quality companies at lower prices. We are glad to inform you that our equity analysts are working on finalizing the best investment opportunities from small and mid cap segment which can deliver excellent returns during next 5 years. Our team will publish 2nd Issue of Special Report 5 Stocks - Potential 5-Baggers in 5 Years today with an objective to achieve average annualized returns of 38% each year to achieve 5-Bagger returns in period of next 5 years.

As illustrated in table below, if these 5 companies generate returns on your investment @ 38% annually, your investment will be 5 fold in period of 5 years. Even if we take conservative scenario considering that only one out of five achieve CAGR of 38% and remaining four delivers CAGR of 20%, your investment will be trebled (3 times) in period of 5 years which is also good compared to returns from any other asset classes like Fixed Deposits, Real Estate, Metals – Gold / Silver or even major indices - Sensex and Nifty.

However, our team while selecting these stocks 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 
  • Low 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 1% in last 5 years
  • Increasing EPS, low PE ratio with ROE and ROCE above 20% in last 5 years.
  • Low share holdings of Institutions (FIIs & DIIs) to get first mover advantage.
Each parameter is equally important and plays a vital role to ensure that you get healthy returns on your investment with limited downside risk in long term. One of the important key to successful investing is to pick the right business at decent valuations. Once you buy shares, you own a part of company’s business.

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.

We would like to inform our readers that our 1st Special Report titled 5 Hidden Gems Stocks - Potential 5-Baggers within 5 Years was released by our research team on 26th July’13, it was the time when there was lot of pessimism around the market and we find it as one of the best time to invest in some of the fundamentally strong small cap companies. Later in April 2014, we released update on our 5 Hidden Gems - Potential 5-Baggers within 5 Years report in which we included company’s performance, updates and development in these companies along with our views and recommendation with buy / sell / hold decisions and also the fair price range to accumulate these stocks.

Update on this report was published in April'14 which we shared with all our Hidden Gems and Wealth-Builder members. We are glad to share that all 5 Hidden Gems stocks selected by us have given astonishing returns in the range of 210% to 520% within 2 years and investment made by our members in these stocks have already multiplied by 4.5 times. 
As our objective is almost achieved, we have decided to make our report public. This will help our readers to understand the potential of investing in good companies in bad times with a long term view. 

Average returns of our 5 Hidden Gems as on 23rd Apr'15 is 353% compared to Sensex returns of 40% (19748 to 27735) and Small Cap index returns of 105% (5516 to 11310) since 26th July’13. Our 5 Hidden Gems stocks have outperformed small cap index by 248% and Sensex by whopping 312% in last 2 years. Moreover, one of the Hidden Gem stock of 2013 (Ador Fontech) which we replaced by another stock (Atul Auto) in April 2014 proved to be a good decision as Atul Auto has delivered returns of 212% in last 1 year.

Major indices - Sensex and Nifty have corrected by more than 10% from their all-time highs in recent times. Moreover, small and mid cap companies stock prices have seen a healthy correction and giving an opportunity to long term investors to buy high quality companies at lower levels. Market may correct by another few % points in near term. However, if you are a long term investor, you must avoid timing the market and consider ongoing downfall to start accumulating high quality companies with strong fundamentals to get rewarded in long term.

Considering ongoing correction as a buying opportunity, we have decided to release our 2nd Issue of special report 5 Stocks - Potential 5 Baggers in 5 Years today on 3rd May 2015 with an objective to achieve average annualized returns of 38% each year to achieve 5-Bagger returns in period of next 5 years. Please note that stocks selection under this report will be done on the basis of fundamental analysis considering above mentioned parameters. These 5 Stocks will be either mid cap or small cap companies with a market capital of less than 5,000 Crores. Our research team may include our Hidden Gems / Value Picks stocks released in past having potential to multiply your investment by 5 times within 5 years.

Moreover, if we find any major change in fundamentals in any of these 5 stocks which can impact their performance going forward, we will inform you to take corrective measures. For Ex: We informed our members to exit Ador Fontech (one of the 5 Hidden Gems stocks covered in Special Report) last year and replace it with Atul Auto which was offering better investment opportunity at that point of time as mentioned in the report. This proved to a great move for our members as Atul Auto has given much better returns compared to Ador Fontech during last 1 year.

Note: If you wish to receive our Special Report 5 Stocks : Potential 5-Baggers in 5 Years (to be released today), simply subscribe to Hidden Gems, Wealth-Builder, Value Picks or any of our Combo Packs and we will send you the report without any extra charges! The report will be shared with all our existing subscribers of Hidden Gems, Wealth-Builder and Value Picks without any extra cost.

You can avail attractive discounts on our combo packs, click here for details. So what are you waiting for? Simply subscribe to our services at discounted price and grab our Special Report - Potential 5-Baggers in 5 Years (2nd Issue) for Free! You can subscribe online to our services by simply click on SUBSCRIBE! link, To know about other payment options and bank details, click here

In case of any queries, simply write to us. We will be delighted to assist you!

Note: Hidden Gem stock of April'15 will be released shortly.

Wish you happy & Safe Investing!

Team – Saral Gyan