Home
Saral Gyan Articles
Saral Gyan Services
Subscription
About Us
Contact Us
Dear Reader,
We have seen significant
correction in Sensex and Nifty along with broader indices since beginning of
this year. Small Cap Index has fallen the most, down by -17.3% since 1st
Jan 2016. Steep fall in small and mid cap index have hurt sentiments and
created panic for many of retail investors who invested in stocks last year or
early this year. Its important to know, whether you would be able to hold on
your positions in case stock market tanks?
Below are some of the major
reasons of recent downfall in Indian equities:
- Continuous Selling by FIIs
- Slowdown in China Economy
- Weak Corporates Earnings
- Slower Growth Forecast in IT Sector
- Surge in Bad Loans of PSU Banks
- Weakness in Indian Currency
It is important to
understand that with every fall, Indian equities valuations are getting
attractive day by day. Moreover, once the markets bottom out and form a base,
we can see renewed buying interest from global investors. Bad sentiments will
not last forever, its time for medium to long term investors (1-3 years) to
start accumulating good quality stocks which are becoming available at
discounted price.
While short listing these 6 stocks, we evaluated each company on the basis of I-B-M-V-E-D parameters (Industry, Business, Management, Valuations, Earnings & Debt Management) and rated every parameter using a rating scale – E,V,G,F,P (E=Excellent, V=Very Good, G=Good, F=Fair, P=Poor)
One of the important key to
successful investing is to pick the right business at decent valuations. We
finalized these 6 stocks with a long term view (2-3 years) and find them
superior over other Hidden Gems stocks in terms of valuations, earning visibility,
debt management and integrity of promoters towards their business and interest
of minority shareholders.
These 6 Hidden Gems stocks
have a market capital below 500 crores and seen a price correction between 20%
to 43% from their 52 week high without any major changes in fundamentals. We
believe these stocks will outperform giving much better returns compared to
broader indices in medium to long term. Our members can add these stocks in
their portfolio with long term view (2 to 3 years). We suggest our members to
start investing in these 6 Hidden Gems stocks with initial allocation of 1-2%
and increase allocation gradually to 3% in staggered way in case stock
prices of these companies falls by another 8% to 10% or more during market
correction.
Important parameters which
we looked into while finalizing stocks are as under:
1.
Industry – Operating in Industry / sector which is expected to grow > 12%
CAGR during next 3 years
2.
Business – Leadership position in the business or one of its business segment
3.
Management – Prudent & trustworthy management keeping interest of minority
share holders
4.
Valuations – Reasonable / attractive valuations compared to peer group
companies
5.
Earnings – Consistent past performance & strong earning visibility with
planned / recent expansion
6. Debt Management –
Company is able to generate cash flows with no or low debt on books
If you wish to receive our Special Report - 6 Hidden Gems Stocks to Buy / Accumulate, you can subscribe to our Hidden Gems or Wealth-Builder annual subscription. Click here to know more about our services and discounts available on our combo packs.
If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong small cap companies - Hidden Gems.
If you have invested in stocks and believe that your investments are not performing well, subscribe to our Wealth-Builder service and get your portfolio reviewed by us. We will review fundamentals of the companies you are holding and guide you which stocks to hold and which to exit. We will also review your equity investments across sectors and companies to ensure that your portfolio allocation is right and outperforms major indices giving you better returns in medium to long term.
The stocks we reveal through Hidden Gems & Value Picks are companies that either under-researched or not covered by other stock brokers and research firms. We keep on updating our members on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.
Subscribe to Hidden Gems & Value Picks and start investing systematically. Avail attractive discounts by subscribing to our combo packs, click here for details.
Do contact us in case of any queries, we will be delighted to assist you.
Wish you happy & safe Investing.
Regards,
