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Wednesday, February 8, 2023

Performance Update - 6 Hidden Gems to Buy / Accmulate

 Dear Member,

We have seen significant correction in broader market over last one year. While major indices - Sensex and Nifty are merely down by around 7% from their all time high, most of the small and mid caps which turned expensive in 2021 - 2022 have seen significant price correction over last 12 to 18 months. At current juncture, where large caps are fairly priced, small and mid caps segment offers good investment opportunities with plenty of stocks available at attractive to reasonable valuations with significant upside potential from current levels.

BSE Small Cap Index made all time high of 31,304 in Jan 2022 and later witnessed correction of -25.7% making low of 23,304 in Jun 2022. Currently, BSE Small Cap Index is around 27,600 i.e. down by around 12% from its peak of Jan 2022, where as many small cap stocks are down by 20% to 70% from their peak prices.

“The first rule of investment is ‘buy low and sell high’, but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.”
Sir John Templeton

Performance Update of Hidden Gems Special Report released in Sept 2018

We would like to inform you that we released our Special Report - 6 Hidden Gems to Buy / Accumulate on 30 Sept 2018. We selected stocks from our past recommendations and advised our members to accumulate them during 2018 and 2019. Below is the performance update of Hidden Gems stocks shortlisted under our Special Report:
We are glad to share that despite the severe correction in broader market over last 12 to 18 months, Globus Spirits is delivering as on date returns of 433% followed by Acrysil (343%), Talbros Automotives (103%) and Sahyadri Industries (99%), other two stocks i.e. Control Print and Bhageria Industries is giving 35% and 13% returns respectively as on date.

Imp Note: You can access our Special Report - 6 Hidden Gems to Buy / Accumulate which we released on 30 Sept 2018, Click here to download the old report. 

Please note we do not advise investment in these companies, the report is shared to update you on the past performance of our small cap picks covered in Special Report (released on 30 Sept 2018) under Hidden Gems service.

Special Report - 5 Hidden Gems to Buy / Accumulate - Released on 29 Jan 2023

Post significant correction in small caps, we reviewed our past recommendations released under Hidden Gems of last 3 to 4 years and short listed 5 Hidden Gems stocks which offer good long term investment opportunity and have potential to give excellent returns on your investment during next 2 – 3 years. These stocks are covered in our Special Report - 5 Hidden Gems to Buy / Accumulate which we released on 29 Jan 2023.

While short listing 5 stocks under Hidden Gems, we evaluated each company on the basis of I-B-M-V-E-D parameters (Industry, Business, Management, Valuations, Earnings Growth & 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 5 stocks with a long term view (2-3 years) and find them better 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.

The 5 Hidden Gems stocks which we finalized have a market capital below 700 crores and seen a price correction between 20% to 60% from their peak (made is 2021 - 2022) without any major change in business 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 at least). We suggest our members to start investing in these 6 Hidden Gems stocks with initial allocation of 1-2% and increase allocation gradually to 3-4% in staggered way in case stock prices of these companies falls by another 10% to 20% or more during ongoing 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 in certain geography
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 low or reducing debt on books

If you wish to receive our Special Report - 5 Hidden Gems Stocks to Buy / Accumulate, you can subscribe to our Hidden Gems service. We will soon release another Special Report - 5 Value Picks Stocks to Buy / Accumulate in Feb 2023, you can subscribe to our Value Picks service, to receive the same.

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 and Value Picks.

Moreover, 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.

Start building your equity portfolio by making educated investment decisions, subscribe to our Hidden GemsValue PicksWealth-BuilderNano Champs annual subscription services.

SARAL GYAN
SUBSCRIPTION SERVICE

ANNUAL SUBSCRIPTION PRICE
PAY VIA CREDIT CARD
(3% CHARGES EXTRA)
Hidden GemsRs. 14,000
Value PicksRs. 8,000
15% @ 90 DaysRs. 5,000
Wealth-BuilderRs. 28,000
Combo 1: HG + VP + WB + 15%Rs. 55,000 44,000 (20% OFF)
Combo 2: HG + VP + 15%Rs. 27,000 22,000 (20% OFF)
Combo 3: HG + VPRs. 22,000 19,000 (14% OFF)
Combo 4: HG + 15%Rs. 19,000 17,000 (11% OFF)
Combo 5: VP + 15%Rs. 13,000 11,500 (11% OFF)

SUBSCRIPTION OPTION

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Click here to know more about our services and discounts applicable on combo packs.

Do write to us at info@saralgyan.in in case of any queries, we will be delighted to assist you.

Regards,
Team - Saral Gyan

Saturday, February 4, 2023

Investors queries raised on Adani Group Companies

Dear Member,

Most of the investors are busy looking at stock prices of Adani group companies these days. The recent crash in Adani Group stocks like Adani Enterprises, Adani Ports (these two are the Nifty 50 companies), Adani Green, Adani Total Gas etc collapsed by 60% and more over the last couple of weeks.


We continue to receive emails from our subscribers regarding any investment opportunities arising in Adani group companies post recent fall in stock prices.


Over the last 15 years of our investment journey, we have seen that many retail investors who have missed buying a particular company stock which has delivered strong returns like 20X - 50X or more in the last couple of years, try to add the stock thinking it's a great bargain. Example: Unitech (post 2009 stock market crash), ADAG Group Companies (2009 market crash and also post 2018 crash in stock prices) etc.


Retail investors (mostly those who have not witnessed or experienced the same thing in the past or do not look at business valuations) are not aware of how brutal the market could be from time to time making the mistake of investing in such companies. The investor's capital can be turned to zero also if the company is unable to service its debt or unable to pay the interest on time on its borrowings. So it's very important to evaluate a company looking at its business fundamentals and not just the fall in share price.


Despite the fact that we have seen how Adani Green stock price moved from Rs 50 to Rs 3,000 over last 4 years and other Adani group companies turning out to be 5X to 30X during the same time, we never ever recommended any of these stocks because we never had the conviction in these companies looking at business fundamentals and most importantly the valuations these companies were commanding in the past.


Adani Group Stocks - No Means No!


Now coming to the queries we received since the last few days on Adani Group stocks, we do not advise to invest in any of these companies as valuations are still not justified and overall risk is high considering excessive debt on books. In fact, there is a survival risk on companies like Adani Green which is highly leveraged and its listed bond in  crash in its bond price over the last one week.


Remember, it's not like that if a stock price fell by 50% or say 80% from its peak, it becomes attractive. If a particular company has taken excessive debt and is unable to pay to lenders, there is a solvency risk with the company. We have seen how the investors' capital has been turned to zero by investing in other big groups in the past. We have seen this happening with ADAG group companies, Future Group companies, Kingfisher Airlines, Lanco Infratech, Sintex Industries and many others.


We do not state that Adani Group will collapse like others, we do not want to say that at all. The group has high value assets and can manage the things well in future, this can also happen. But post FPO reversal (returning 20k crores back to investors) and the company's bond prices collapsing (as the company has raised funds from international markets), and various allegations on the Adani group which may further create hurdles for the company to liquidate its assets or to get new investors to reduce borrowings, the situation is not good. Moreover, valuations of most of the Adani Group companies are still very expensive. Either you look at debt levels, the PE multiple these companies are commanding, the price to book value etc, all these valuation parameters indicate that the business is still expensive. That is one of the reasons that total mutual funds has investment of merely 1 percent in the biggest group company i.e Adani Enterprise. LIC has majorly invested in it and is currently holding more than 4% stake which might have its own reasons, we do not want to comment on it.


Most importantly, there are plenty of other investment opportunities available in the market which do not have excessive debt on books, have good cash flows from operations, do not seek lot of capital for business expansion, have good growth outlook, so when there are various options available, why should we need to invest in the companies which involve higher risk.


We have recently released our Special Report - 5 Hidden Gems to Buy / Accumulate on 29th Jan 2023 and shared it with all our active Hidden Gems members, the detailed report will be released during this weekend. 


We will also release a similar report for our Value Picks service in Feb 2023. Click here to know more.


Worth Reading - Why Share Price is not Important while Buying Stocks?



Wish you happy & safe Investing!

Regards,
Team - Saral Gyan

Tuesday, January 31, 2023

Special Report - 5 Hidden Gems to Buy is Released

Dear Member,

We have seen significant correction in broader market over last one year. While major indices - Sensex and Nifty are merely down by around 7% from their all time high, most of the small and mid caps which turned expensive in 2021 - 2022 have seen significant price correction over last 12 to 18 months. At current juncture, where large caps are fairly priced, small and mid caps segment offers good investment opportunities with plenty of stocks available at attractive to reasonable valuations with significant upside potential from current levels.

BSE Small Cap Index made all time high of 31,304 in Jan 2022 and later witnessed correction of -25.7% making low of 23,304 in Jun 2022. Currently, BSE Small Cap Index is at 27,600 i.e. down by around 12% from its peak of Jan 2022, where as many small cap stocks are down by 20% to 70% from their peak prices.

“The first rule of investment is ‘buy low and sell high’, but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.”
Sir John Templeton

Special Report - 5 Hidden Gems to Buy / Accumulate - Released on 29 Jan 2023

Post significant correction in small caps, we reviewed our past recommendations released under Hidden Gems of last 3 years and short listed 5 Hidden Gems stocks which offer good long term investment opportunity and have potential to give excellent returns on your investment during next 2 – 3 years. These stocks are covered in our Special Report - 5 Hidden Gems to Buy / Accumulate which we released on 29 Jan 2023.

While short listing 5 stocks under Hidden Gems, we evaluated each company on the basis of I-B-M-V-E-D parameters (Industry, Business, Management, Valuations, Earnings Growth & 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 5 stocks with a long term view (2-3 years) and find them better 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.

The 5 Hidden Gems stocks which we finalized have a market capital below 700 crores and seen a price correction between 20% to 60% from their peak (made is 2021 - 2022) without any major change in business 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 at least). We suggest our members to start investing in these 6 Hidden Gems stocks with initial allocation of 1-2% and increase allocation gradually to 3-4% in staggered way in case stock prices of these companies falls by another 10% to 20% or more during ongoing 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 in certain geography
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 low or reducing debt on books

If you wish to receive our Special Report - 5 Hidden Gems Stocks to Buy / Accumulate, you can subscribe to our Hidden Gems service. We will soon release another Special Report - 5 Value Picks Stocks to Buy / Accumulate in Feb 2023, you can subscribe to our Value Picks service, to receive the same.

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 and Value Picks.

Moreover, 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.

Start building your equity portfolio by making educated investment decisions, subscribe to our Hidden GemsValue PicksWealth-Builder, Nano Champs annual subscription services.

SARAL GYAN
SUBSCRIPTION SERVICE

ANNUAL SUBSCRIPTION PRICE
PAY VIA CREDIT CARD
(3% CHARGES EXTRA)
Hidden GemsRs. 14,000
Value PicksRs. 8,000
15% @ 90 DaysRs. 5,000
Wealth-BuilderRs. 28,000
Combo 1: HG + VP + WB + 15%Rs. 55,000 44,000 (20% OFF)
Combo 2: HG + VP + 15%Rs. 27,000 22,000 (20% OFF)
Combo 3: HG + VPRs. 22,000 19,000 (14% OFF)
Combo 4: HG + 15%Rs. 19,000 17,000 (11% OFF)
Combo 5: VP + 15%Rs. 13,000 11,500 (11% OFF)

SUBSCRIPTION OPTION

PAY VIA CREDIT CARD

(3% CHARGES EXTRA)

NANO CHAMPS – 1 YEAR  - Rs 12,000

SUBSCRIBE

NANO CHAMPS – 3 YEARS - Rs. 30,000

SUBSCRIBE


Click here to know more about our services and discounts applicable on combo packs.

Do write to us at info@saralgyan.in in case of any queries, we will be delighted to assist you.

Team - Saral Gyan