Inspite of poor state of construction sector, Century managed to post reasonably better set of numbers in last financial year.
For last financial year, net profit rose 11.44% to Rs 168.07 crore as against Rs 150.82 crore during the previous year ended March 2015. Sales rose 6.08% to Rs 1646.86 crore in the year ended March 2016 as against Rs 1552.47 crore during the previous year ended March 2015
In March quarter, net profit of Century Plyboards (India) declined 15.53% to Rs 40.52 crore as against Rs 47.97 crore during the quarter ended March 2015. However, sales rose 11.44% to Rs 451.25 crore in the quarter ended March 2016 as against Rs 404.94 crore during the previous quarter ended March 2015. Century Plyboards is a high-quality consumer play with a dominant market share and any improvement in demand will augur well for the company.
Now, lets take another example of little known company Mayur Uniquoters which is our 8-Bagger stock. We recommended this stock 4 years back at price of Rs. 56 (adjusted price after 2 bonus issues and stock split in last 3 years, actual recommended price was Rs. 448) and today it’s trading at Rs. 439 giving absolute returns of 685%. You might be surprised to know that Mayur Uniquoter is a 145-Bagger stock for investors who invested in it 7 years back. Investment of Rs. 1 lakh in Mayur Uniquoters in Jan 2009 is valued at Rs. 1 Crores and 45 lakhs today. That's too excluding dividend payouts. Mind boggling, isn't it? It's a fact! Company has posted strong growth YoY and rewarded share holders in big way, Company was trading at Rs. 3 (bonus / split adjusted price) with market cap of merely 13 crores in Jan 2009, today market cap of the company is 2,020 crores.
Mayur Uniquoters is still a great value stock considering its consistent performance and leadership position in artificial leather industry and robust demand for its products by esteemed clients from auto and footwear industry.
The number of small-cap stocks is large and finding a quality stock that can give high returns over a long period is tough even for equity analysts. One reason is that such stocks usually have a short history and are not tracked by many analysts and brokerage houses. Then there are risks such as low liquidity, governance concerns and competition from larger players.
Below is the performance update of Hidden Gems stocks released in 2014 compared to returns given by small cap index:
We are pleased to share with our readers that 7 Hidden Gems out of 12 released in 2014 have already achieved their target price giving more than 100% returns to our members in period of 6 to 12 months. Hidden Gems stocks - 2014 average returns as on date is 108.9% compared to small cap index average returns of 26.2%, hence outperforming small cap index by whopping 82.7%.
Similarly, if we look at performance of Hidden Gems stocks released in 2015, we are pleased to inform you that our Hidden Gems stocks have outperformed small cap index by wide percentage points.
Hidden Gems - 2015 as on date average returns is 32.2% compared to small cap index average returns of 1.9% in 2015, outperforming small cap index by 30.3%.
Moreover, if we look at performance of Hidden Gems stocks released in 2016 so far, we are glad to share that our Hidden Gems stocks continue to outperform small cap index since beginning of this year.
Hidden Gems - 2016 as on date average returns is 16.5% compared to small cap index average returns of 5.3% in 2016, outperforming small cap index by 11.2%.
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.
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