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Dear Reader,
As we know, India continues to be a high growth economy and a significant portion of this growth comes from industries linked to construction / housing sector. Furniture, Sanitaryware, Tiles, Kitchenware industries are expected to do well which are proxy plays linked to construction and housing sector.
Rebounding construction activity, high credit availability, increased interest and a surge in demand for non-residential upgrades, will provide ample opportunities to companies operating in these sectors. We are pleased to inform you that our recently released Hidden Gem stock also belongs to one of such Industry which is expected to grow at faster pace in coming years considering robust global as well as domestic demand.
Hidden Gem Stock of April 2016
Hidden Gem - Apr'16 research report is released yesterday. Hidden Gem stock selected for the month is a small cap stock with total market cap of less than 200 crores. Company is a proxy play linked to construction sector and offers good upside potential with limited downside risk for medium to long term investors.
Rebounding construction activity, high credit availability, increased interest and a surge in demand for non-residential upgrades, will provide ample opportunities to companies operating in these sectors. We are pleased to inform you that our recently released Hidden Gem stock also belongs to one of such Industry which is expected to grow at faster pace in coming years considering robust global as well as domestic demand.
Hidden Gem Stock of April 2016
Hidden Gem - Apr'16 research report is released yesterday. Hidden Gem stock selected for the month is a small cap stock with total market cap of less than 200 crores. Company is a proxy play linked to construction sector and offers good upside potential with limited downside risk for medium to long term investors.
Few facts which make this company a right investment candidate for long term:
1. Company is almost doubling its capacity under ongoing expansion program which will help company to increase its top line significantly in coming years.
2. More than 75% of revenue is coming from exports and company operating profit margins have seen significant improvement in last 3 years.
3. Company offer high quality products which are certified with international standards to ensure product quality, hygiene and safety to meet international requirements.
2. More than 75% of revenue is coming from exports and company operating profit margins have seen significant improvement in last 3 years.
3. Company offer high quality products which are certified with international standards to ensure product quality, hygiene and safety to meet international requirements.
4. Company is continuously investing in R&D to stay ahead of the innovation curve in the industry to offer best quality products across the globe as well as in domestic market.
5. Company current market cap to annual sales ratio is below 1 and company debt to equity ratio is below 2, company managed to bring down its debt to equity ratio below 2 during last 2 years and expected to reduce it further with strong cash flows from operations.
6. Promoters share holding is well above 50% since last many years which is good by all means for such a small cap company.
7. In terms of valuation, company is trading at trailing PE ratio of 15, valuations looks discounted compared to major peer group companies considering important financial parameters. Moreover, with significant increase in its revenue from ongoing expansion, its a good bet for long term investors.
8. Last but not the least, company has achieved revenue and profit CAGR of above 25% during last 5 years with significant improvement in ROE.
Grab our Hidden Gem - Apr'16 research report and invest small portion of your savings in it for long term.
On activation of your Hidden Gems subscription, you will also receive 2 freebies at no additional cost!
On activation of your Hidden Gems subscription, you will also receive 2 freebies at no additional cost!
1. Special Report - 6 Hidden Gems to Buy / Accumulate - Released on 22nd Feb'16.
2. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599.
Subscribe to Hidden Gems annual subscription (12 monthly research reports) @ Rs. 7,500 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.
In case of any queries or doubt, do not hesitate to write back to us.
Subscribe to Hidden Gems annual subscription (12 monthly research reports) @ Rs. 7,500 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.
In case of any queries or doubt, do not hesitate to write back to us.
Wish you happy & safe Investing!
Regards,
Team - Saral Gyan,
Saral Gyan Capital Services.
