Few Multibagger Small Cap Stocks
Inspite of poor state of construction sector, Century managed to post reasonably better set of numbers in last financial year. Century Plyboards net profit rose 11.44% to Rs 168.07 crore in the year ended March 2016 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. Century Plyboards is a high-quality consumer play with a dominant market share and any improvement in demand will augur well for the company.
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 around Rs. 425 giving absolute returns of 660%. You might be surprised to know that Mayur Uniquoter is a 140-Bagger stock for investors who invested in it 7.5 years back. Investment of Rs. 1 lakh in Mayur Uniquoters in Jan 2009 is valued at Rs. 1 Crores and 40 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 1,969 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.
We are delighted to inform our readers that Hidden Gems 2016 continue to outperform small cap index by wide percentage points like that of last 5 years.
Below is the performance update of Hidden Gems stocks released in 2016 so far compared to returns of small cap index:
Moreover, our Hidden Gems of 2015 and 2014 also continue to outperform small cap index like that of initial years giving much better returns.
Hidden Gems - 2015 as on date average returns is 34.1% compared to small cap index average returns of 4.9% in 2015, outperforming small cap index by 29.2%, 3 stocks out of 12 released in 2015 have already achieved their target price giving returns of more than 100% to our members in period of 12 months.
Similarly, 7 Hidden Gems out of 12 released in 2014 have already achieved their target price giving more than 100% returns as illustrated in table below.
Hidden Gems stocks - 2014 average returns as on date is 115.7% compared to small cap index average returns of 29.9%, hence outperforming small cap index by whopping 85.8%.
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.
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.
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