- 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.
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.
As one year is completed since the release of our report, its important to review the performance of these companies in last financial year and suggest corrective action (if any) to our members. We are glad to inform you that our 3rd Issue of Special Report 5 Stocks - Potential 5-Baggers in 5 Years Update is scheduled to release on 29th May 2016 which will cover complete update on these companies based on evaluation of last financial year performance, recent developments and future growth outlook. Report will also include update on any exclusion of existing stocks or inclusion of new stocks to ensure that these stocks can deliver 5 times returns over a period of 5 years.
Lets review the performance of these 5 stocks in last 12 months against major indices Sensex and Nifty:
Two out of our five 5-Bagger stocks have not performed up to our expectations giving either negative returns or negligible positive returns as indicated in table above. Remaining ones have performed much better outperforming all major indices in last 12 months. We are in process of reviewing all these five companies and inform our members what strategy needs to be followed going forward with these 5 stocks in terms hold / exit / buy or add on dips update in our 3rd issue of Special Report which is scheduled to release on 29th May 2016.
As target of 5 times returns was almost achieved within 2 years, our Special Report Update was made publicly available.
Later in the month of March and April, we have witnessed strong rally on positive global as well as local cues. Factors like positive Union budget with focus on fiscal discipline, change in Fed views regarding US rate hike, stability in commodity prices and positive monsoon forecast helped major indices, Sensex and Nifty to rise by more than 15% from their recent lows made in last week of Feb this year.
However, if you are a long term investor, you must avoid timing the market and invest systematically. Any severe downfall in market must be to start accumulating high quality companies with strong fundamentals to get rewarded in long term.
In an effort to ensure that our members get rewarded getting better returns on their investments in medium to long term by investing in good quality small and mid cap companies, we published our 2nd Issue of Special Report - 5 Baggers in 5 Years on 3rd May 2015. Now its time to review these 5 companies based on their performances in last financial year and to take corrective action, hence we have scheduled release of 3rd Issue of Special Report 5 Stocks: Potential 5-Baggers in 5 Years Update on 29th May 2016.
If you wish to receive our Special Report 5 Stocks : Potential 5-Baggers in 5 Years Update (to be released on 29th May'16), 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! Our existing members of Hidden Gems, Value Picks and Wealth-Builder will receive our Special report under their current subscription.
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Wish you happy & Safe Investing!
Team – Saral Gyan