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Monday, September 7, 2015

Our Hidden Gem Stock of August 2015 is Released!

Dear Reader,

Hidden Gem - Aug'15 research report was released yesterday by our research team. Hidden Gem of August month is a small cap stock from chemical sector with total market capital of less than 100 crores.

As we know, India continues to be a high growth economy and a significant portion of this growth comes from chemical sector. We have identified multibagger investment opportunity of this month, which belongs to chemical industry, offers good upside potential with limited downside risk 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. Company management have more than 3 decades of experience, company products are widely used in various industries. Company has made plans for venturing into newer areas increasing its products utilization.

2. Recently, company has introduced new technology for manufacturing of its products. This will help company to improvise its operating margins with significant savings in energy consumption. 

3. Company’s EBITDA and PAT margins are expected to improve significantly considering investments and efforts taken by the company during last financial year which will result in significant savings in its manufacturing costs.

4. Company is a debt free company with strong cash reserves. Company cash reserves are more than its total market capital. Moreover, planned expansions can be done without raising debt using these cash reserves by the company.

5. Company is expected to deliver strong bottom line in FY 16. As per our estimates, stock is trading at forward P/E ratio of 6.4X for FY16. Valuation looks attractive for a debt free company with expected expansion in its profit margins.

6. Stock price to book value is below 1. Management has rewarded share holders by paying regular dividends, dividend yield at current market price is above 1.

7. 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 recent initiatives towards optimizing the capacities of its existing manufacturing facilities, adding additional capacities to drive revenue growth, and improving operating margins by increasing efficiency, we find this company a good bet for long term investors.

Grab our Hidden Gem - Aug'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.

We also take this as an opportunity to share the performance update of our Hidden Gems stocks released in 2015 compared to returns given by small cap index.
We are pleased to share with our readers that 6 Hidden Gems stocks released in 2015 have outperformed small cap index by wide percentage points. Even after severe correction in small and mid cap stocks since last 1.5 month, Hidden Gems stocks - 2015 average returns as on date is 17.5% compared to small cap index average negative returns of -7.0%, hence outperforming small cap index by 24.5%.

If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong small and mid cap companies - Hidden Gems & Value Picks.   

Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price with medium to long term perspective. If you think to invest in stocks for period of 3 months or 6 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky. 

Its our mission to ensure that you reap the best returns on your investment, our objective is not only to grow your investments at a healthy rate but also to protect your capital during market downturns.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other stock brokers and research firms. We keep on updating our subscribers on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook. 

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 Special Report: 5 Stocks - 5 Baggers in 5 Years released on 3rd May'15 without any extra charges. To know more about our Special Report: 5 Stocks - 5 Baggers in 5 Yearsclick here!

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!


Team - Saral Gyan