Dear Reader,
We released our first issue of Nano Champs [Deeply Undervalued & Undiscovered Micro Caps] report on 09 Oct 2022. The objective of Nano Champs is to achieve 10X returns in a period of 6 years (6Y-10X). Under this service, we have researched on micro-sized companies with market capital of less 120 crores and put our efforts to identify the companies which are not only deeply undervalued but also have the potential to grow at faster pace.
Later, we released the second issue of Nano Champs report on 02 April 2023. We have not only reviewed the 10 Nano Champs stocks but also guided our members which Nano champs stock can be accumulated further. We have short listed few more micro cap stocks post March quarter results and are in process of finalizing two new Nano Champs stocks which are available at attractive valuations and has the potential to turn multi-bagger in long term. We will update our Nano Champs members with these 2 new Nano Champs stocks during this month. If you wish to receive our new Nano Champs stocks and also want to access our old Nano Champs reports released in Oct 2022 and later in April 2023, you can subscribe to our Nano Champs service.
Below is the performance update (as on date) of 10 Nano Champs stocks released on 09 Oct 2022. As on date, Nano Champs average returns is 26.5% within a period of one year. The actual returns are higher as we suggested our members to add stocks at lower levels in our next issue of Nano Champs report.
The market capital of 10 Nano Champs stocks covered in the report is in the range of 25 crores to 120 crores. As there is always a higher risk involved while investing in micro caps, we have created a well diversified basket of 10 stocks from different sectors / industries. We advise our members to limit their maximum investment exposure in Nano Champs to 10 percent of their equity portfolio. It means, if your equity portfolio is of INR 10 lakh, the maximum allocation in Nano Champs will be 1 lakh i.e. 10k in each Nano Champs stock (maximum 10% in 10 Nano champs, maximum 1% of your equity portfolio in each Nano Champs).
In this report, for each Nano Champs stock, we have covered information related to:
i) Company's Business at a Glance (Important data points)
ii) Company's Background
iii) Financial Performance
iv) Investment Rationale
v) Recommendation & Buying Strategy
We will continue to review these stocks on 6 monthly basis, we may also release an ad-hoc update in case of any major change or development happens in any of these particular companies. As Nano Champs are micro caps, the daily trading volume in some of Nano Champs is just a few thousand shares, hence its advisable to accumulate them over next few weeks / months as per buying strategy rather than aggressively buying them at one go.
NANO CHAMPS - STOCK SELECTION PARAMETERS:
i) QUALITATIVE PARAMETERS:
- Quality of Management - able & honest with good integrity
- Promoter holding - should not be less than 45%
- Pledging of shares by Promoters - should be nil
- Demand & supply gap in the Industry - sustainability of business
- Growth drivers - scalable business / catalyst in business
ii) QUANTITATIVE PARAMETERS:
- Cash Flows - Positive operating cash flows
- Leverage - Debt to equity ratio should be less than 1.5
- Capacity expansion - Capex and financing through equity / debt
- Visibility of future growth - Expected revenue and profitability
- Management of Accounts - Any change in accounting policy
iii) VALUATION PARAMETERS:
- Business valuations should be below its intrinsic value
- Market capital to Revenue / Sales - should be less than 1
- Relatively cheap business - compared to peers and overall market
PAST PERFORMANCE (MARKET CAP < 200 CR):
S.NO | COMPANY | RELEASE DATE | MARKET CAP | X-BAGGER (IN 6 YRS) | % CAGR | OLD REPORT |
1 | CAMLIN FINE | 27 MAR11 | 56 CR | 21-BAGGER | 66% | DOWNLOAD |
2 | WIM PLAST | 30 AUG11 | 123 CR | 17-BAGGER | 60% | DOWNLOAD |
3 | KOVAI MEDI | 27 OCT11 | 126 CR | 13-BAGGER | 53% | DOWNLOAD |
4 | ROTO PUMPS | 05 AUG12 | 32 CR | 9-BAGGER | 44% | DOWNLOAD |
5 | ACRYSIL INDIA | 25 NOV12 | 51 CR | 8-BAGGER | 41% | DOWNLOAD |
6 | TCPL PACK | 31 JAN13 | 65 CR | 11-BAGGER | 49% | DOWNLOAD |
7 | DYNEMIC PRO | 29 JUL14 | 52 CR | 6-BAGGER | 35% | DOWNLOAD |
8 | INDO BORAX | 10 APR16 | 100 CR | 7-BAGGER | 38% | DOWNLOAD |
9 | STYLAM IND. | 08 MAY16 | 159 CR | 13-BAGGER | 53% | DOWNLOAD |
10 | SAHYADRI IND | 30 AUG17 | 166 CR | 5-BAGGER | 36% | DOWNLOAD |
These companies were covered under Hidden Gems service over last 10 years, all above companies market capital was less than 200 crores at the time of recommendation. Over last 7 to 11 years, companies like Acrysil (51 Cr), Camlin Fine Sciences (56 Cr), Kovai Medical (126 Cr), TCPL Packaging (65 Cr), Roto Pumps (32 Cr) etc. have multiplied investment by 20X to 50X. You can click on the download link to access these reports.
If you wish to receive our first as well as second issue of Nano Champs and also want to get the update of two new Nano Champs stocks (to be released during this month), you can subscribe to our Nano Champs service.
SUBSCRIPTION OPTION | PAY VIA CARD (3% CHARGES EXTRA) |
Nano Champs– 1 Year - Rs 12.000 | SUBSCRIBE |
Nano Champs– 3 Year - Rs. 30,000 | SUBSCRIBE |
Do write to us at info@saralgyan.in in case of any queries.
Regards,
Team - Saral Gyan