Patience is the key while investing in equities, start investing in fundamentally strong small and mid cap stocks to create wealth in long term.

SERVICES:        HIDDEN GEMS    |    VALUE PICKS    |    15% @ 90 DAYS    |    WEALTH-BUILDER

NANO CHAMPS (DEEPLY UNDERVALUED & UNDISCOVERED MICRO CAPS)

PAST PERFORMANCE >>> HIDDEN GEMS, VALUE PICKS & WEALTH-BUILDER >>>  VIEW / DOWNLOAD

SARAL GYAN ANNUAL SUBSCRIPTION SERVICES

Thursday, January 5, 2023

Benefits & Concerns of Investing in Small Cap Stocks

Owning Multibagger Stocks which can multiply Investments in Future

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.

Scores of once small companies have over the years grown big, giving investors a 30-50 percent annual return over 10-15 years and creating fortunes for investors. However, more often than not, we find ourselves at the wrong side of the fence and regret our inability to spot such stocks on time.

Benefits of Investing in Small Caps

1. Huge growth potential: The first and the most important advantage that a small cap stock gives you is their high growth potential. Since these are small companies they have great scope to rise as opposed to already large companies.

2. Low Valuations: Usually small cap stocks are available at lower valuations compared to mid & large caps. Hence, if you invest in good small cap companies at initial stage and wait for couple of years,  you will see price appreciation not only because of growth in top line and bottom line but also due to rerating which happens with increase in market capital of the company.

3. Early Entrance Advantage: Most of the fund house and institutions do not own small caps with low market cap due to less liquidity which make it difficult for them to own sufficient no. of shares. This gives retail investors an opportunity to be an early entrant to accumulate such companies shares. When company grows in market cap by delivering consistent growth and becomes more liquid, entry of fund houses and institutions push the share prices up with re-rating of stock giving maximum gains to early entrants. 

4. Under–Researched: Small cap stocks are often given the least attention by the analysts who are more interested in the large companies. Hence, they are often under - recognized and could be under-priced thus giving the investor the opportunity to benefit from these low prices.

5. Emerging Sectors: In a developing economy where there are several new business models and sectors emerging, the opportunity to pick new leaders can be hugely beneficial. Also the disruptive models in the new age is leading to more churn and faster growth amongst the nimble footed smaller companies.

Buying Strategy for Small Caps

1. Go for companies with low debt ratio (preferably less than one)

2. A high interest coverage ratio (above 3x) and a high return on equity are big advantages

3. Avoid companies with huge liabilities in the form of foreign currency convertible bonds / external commercial borrowings

4. Look at the quality of the management, its governance standards and how investor-friendly the company is.

5. Mid-cap and small-cap companies can be future market leaders, so be patient with your investments

Those who wish to invest in small-cap stocks should do so only if they have a long investment horizon and tolerance for volatility. Small-cap stocks suffer the steepest falls in a bear market and rise the most in a bull market. An investor should stay invested for at least three-five years to allow their portfolio to gain from at least one bull run. If you are looking for multibaggers, stock must have high growth rates along with expanding PE ratios. The price we pay for the stock is important as it will determine whether there is enough scope left for a PE expansion to take place. 

Concerns while Investing in Small Caps

1. Risk: The first and the most important disadvantage a small cap stock is the high level of risk it exposes an investor to. If a small cap company has the potential to rise quickly, it even has the potential to fall. Owing to its small size, it may not be able to sustain itself thereby leading the investor into great loses. After all, the bigger the company, the harder it is for it to fall.

2. Volatility: Small cap stocks are also more volatile as compared to large cap stocks. This is mainly because they have limited reserves against hard times. Also, it in the event of an economic crisis or any change in the company administration could lead to investors dis-investing thereby leading to a fall in prices.

3. Liquidity: Since investing in small cap stocks is mainly a decision depending upon one’s ability to undertake risk, a small cap stock can often become illiquid. Hence, one should not depend upon them for an important life goal.

4. Lack of information: As opposed to a large cap company, the analysts do not spend enough time studying the small cap companies. Hence, there isn’t enough information available to the investor so that he can study the company and decide about it future prospects.

If these factors scare you but you still want to gain from the upside potential of such stocks, Saral Gyan  Nano ChampsHidden Gems & Value Picks is a great choice for you. At Saral Gyan, team of equity analysts keep on evaluating micro, small and mid cap stocks to explore the best Nano Champs and Hidden Gems of stock market. Saral Gyan - Nano Champs, Hidden Gems and Value Picks are the micro, small and mid cap stocks with high probability to become multi-bagger stocks in future and a path for our investors to create wealth through equity investments in a long run. Multibaggers evolve over time, many successful investors follow plenty of processes to identify these stocks early and continue to ride them till they evolve as multibaggers.

Grow your Wealth by Investing in Potential Multibagger Small Caps

Multibagger Hidden Gems Stocks
Its a fact that 74 Hidden Gems stocks out of 102 released during last 11 years have given more than 100% returns to our members. Moreover, 27 stocks out of these 74 are giving returns in the range of 400% to 7000%. Stocks like Cera Sanitaryware, Camlin Fine Sciences, Acrysil, Balaji Amines, Kovai Medical, Wim Plast, Mayur Uniquoter, Dynemic Products, Roto Pumps, TCPL Packaging, Globus Spirits, Rajratan Global Wires etc are some of our multibagger stocks which have given whopping returns in the range of 900% to 7000%.

We do update our members in terms of profit booking / exits depending upon various factors like overall Industry / Sector outlook, fundamentals of the company, management action plan and annual performance in terms of top line, bottom line, operating margins and other important parameters.

Its appreciation and support of our readers that one of our most admired service - Hidden Gems ranks on top not only in performance but also on Google search engine. Try it out yourself by searching "Hidden Gems SIP" or "Unexplored Multibagger Small Caps" or "Best Hidden Gems Micro Caps" on Google, you will find our website www.saralgyan.in featuring on top in search results. Its your appreciation and word of mouth publicity which make our website featuring on 1st page in Google.

We decided to pass on the maximum benefits to our readers by offering great savings and valuable freebies with Merry Christmas - Happy New Year 2023 Offer, this is a limited period offer and closes on 05 Jan'23 at 11.59 PM. We suggest our members to consider ongoing market correction as a buying opportunity and invest in high quality small and mid cap stocks.

Attractive discounts & valuable freebies which make our offer special for our readers are as under:

1. Discount up to 30% on combo pack subscription (valid up to 05 Jan'23 only)
2. Portfolio of 10 Small & Mid Cap Stocks for 2023 (Released on 1st Jan'23)
3. Special Report - 5 Hidden Gems to Buy / Accumulate (to be released in Jan 2023)
4. Special Report - 5 Value Picks to Buy / Accumulate (to be released in Feb 2023)
5. Existing Portfolio Health Check Up under Wealth-Builder subscription

Below table indicates subscription services and discounted prices valid up to 05 Jan 2023.
 
SARAL GYAN
SUBSCRIPTION SERVICE
XMAS - NEW YEAR 2023 OFFER
ANNUAL SUBSCRIPTION PRICE
PAY VIA CARD
(3% CHARGES EXTRA)
Hidden GemsRs. 14,000 12,600 (10% OFF)
Value PicksRs. 8,000 7,200 (10% OFF)
15% @ 90 DaysRs. 5,000 (No Discount)
Wealth-BuilderRs. 28,000 25,200 (10% OFF)
Combo 1: HG + VP + WB + 15%Rs. 55,000 38,500 (30% OFF)
Combo 2: HG + VP + 15%Rs. 27,000 21,500 (20% OFF)
Combo 3: HG + VPRs. 22,000 18,500 (16% OFF)
Combo 4: HG + 15%Rs. 19,000 17,000 (11% OFF)
Combo 5: VP + 15%Rs. 13,000 11,500 (11% OFF)
 
There is no combo option for Nano Champs, you need to opt for this service separately.

SUBSCRIPTION OPTION

PAY VIA CARD

(3% CHARGES EXTRA)

Nano Champs– 1 Year  - Rs 12,000 10.800 (-10%)

SUBSCRIBE

Nano Champs– 3  Year - Rs. 30,000 27,000 (-10%)

SUBSCRIBE


Simply choose the subscription service / combo subscription you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card.
 
Time has shown that smart investors have made their fortune by investing in equities in long term. None other asset class can match giving you such extra ordinary returns. Yes, its important for you to invest in right set of companies at right price.

Start investing in Nano Champs, Hidden Gems & Value Picks of stock market to get rewarded by creating a Wealth-Builder portfolio in long run. Remember, "If you want your Money to Grow, Equities is the only Way to Go" in long term. If you think to invest in stocks for period of 6 months or say 12 months, we suggest you to stay out of stock market because you are not investing, you are betting on volatility of stock market which could be risky.

The stocks we reveal through Nano ChampsHidden 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.

Enjoy great savings and receive valuable freebies under 
Merry Christmas - Happy New Year 2023 Offer by availing  our subscription services. Hurry! Last 3 days... offer closes on 05 Jan 2023.
 
Do contact us in case of any queries, we will be delighted to assist you.
 
Wish you happy & safe Investing.
 
Regards,
Team - Saral Gyan.