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Showing posts with label Micro Cap Stocks. Show all posts
Showing posts with label Micro Cap Stocks. Show all posts

Tuesday, November 1, 2022

Rajratan Global Wire - Our 24-Bagger Stock in 5 Years

Dear Reader,

We are pleased to inform you that our Hidden Gem stock of Oct'17 - Rajratan Global Wire Ltd (BSE Code: 517522) is a 24-Bagger stock for our Hidden Gems members within period of 5 years. 

Our team suggested Buy on Rajratan Global Wire Ltd at price of Rs. 54.77 on 30 Nov 2017 (stock split and bonus issue adjusted price, actual recommended price was Rs. 639 with target of Rs. 1250). The company rewarded shareholders by issuing bonus share in the ratio of 4:3 in 2019 and later did a stock split of 1 shares into 5 shares (face value of Rs. 10 to Rs 2 per share) in March 2022. Hence, every 3 shares held by our members have increased to 35 shares. Rajratan Global stock price made all time high of Rs. 1410 and closed at Rs. 997 on Friday giving absolute returns of 1720% i.e. more than 18 times within 5 years against double digit returns of Sensex & Nifty in the same period.

We advised partial profit booking in Rajratan Global Wires to our Hidden Gems members recently at Rs. 1300, booking returns of 2270% (almost 24X) within period of 5 years. Rajratan Global Wires has delivered CAGR of more than 90% to our Hidden Gems members.

Below is the summary of Rajratan Global Wires Ltd shared by our team under Hidden Gem stock - Oct'17 report released on 30 Nov 2017.

1. Company Background

Multibagger Stock Rajratan Global Wire
Established in 1988 by Mr Sunil Chordia, Rajratan Global Wire Ltd (Rajratan Global) is a market leader in supply of tyre bead wire in India. The company along with its subsidiary Rajratan Thai Wire Company (Rajratan Thailand) has around 40% share of the Indian tyre bead wire market. The company earlier entered into the Joint Venture with Gustav Wolf (Germany) for gaining technical know-how, later in 2003 shareholding held by Gustov Wolf was bought back by the promoters. The company commenced international operations in 2008 by setting up a plant in Thailand through a wholly owned subsidiary Rajratan Thai Wire Company. The company is second largest manufacturer (by capacity) of automotive tyre bead wire in India and only player manufacturing tyre bead wire in Thailand. Along with tyre bead wire, the company also manufactures other specialized steel wires (black wires) like rope wires, spring wires, auto cable outer etc. Steel wire rods is the primary raw material used for manufacturing by the company.

Rajratan Global has 2 manufacturing facilities, one in India and another in Thailand.
Rajratan Global Wire Capacity

Rajratan Global is a long term supplier for almost all major tyre manufacturers in India and is the market leader in the automotive tyre segment since 2012. The company has long term standing relationship with marquee clients.

Rajratan Global Clients:
Rajratan Global Wire Cients

Products Description:

i) Tyre Bead Wire 

Tyre bead wire is high carbon bronze coated steel wire used in all kinds of automobile tyres, tyres of earth moving equipments and aircrafts. The main function of bead wire is to hold the tyre on the rim and to resist the action of the inflated pressure which constantly tries to force it off. The bead is the crucial link through which the vehicle load is transferred from rim to the tyre. It significantly affects the safety, strength and the durability of tyres.

Bead wire is a drawn steel wire, which is manufactured from quality wire rods with high carbon content. Bead wire’s surface is coated with copper or bronze which ensures proper adhesion with the used rubber compound. 

Bead wire being a crucial component in any kind of tyre manufacturing, the company always ensure that not only the best of raw-material goes into its manufacturing, but that it also goes through toughest of quality tests. The company specializes in bead wire of customized tensile grades as per the requirements of its clients. Besides bead wire, it also produces high carbon steel wire and uncoated wires of varying specifications for different applications. 

2) High Carbon Steel Wire 

High carbon steel wire is popularly known as black wire. It is a drawn steel wire which is manufactured from quality wire rods with high carbon content. With a wide range of usage, black wire plays a vital role in many industries from automobile and construction to engineering industries. The company manufactures high carbon steel wire in its stateof-the-art plants and employ world-class patented heat treatment processes.

The high carbon steel wire manufactured by the company are of two Grades: 
1. Spring / Rope grade confirming to Grade I, II & III. 
2. Rolling quality / flattening quality grade.

2. Recent Development (30 Nov'17)

i) India’s Tyre Market to witness a CAGR of over 9% during 2016-2021 

India’s tyre market is forecast to witness a CAGR of over 9% during 2016-2021, according to the report of Research and Markets, a leading international market research agency. As per the report, titled “India Tyre Market Forecast & Opportunities, 2021, India ranks among one of the largest tyre markets in the world. Growing automobile sales coupled with expanding automobile fleet are the major factors boosting demand for tyres in the country. 

Though the replacement tyre demand had majority share in 2015, the OEM tyre demand is expected to outpace replacement tyre demand during 2016-2021 with more than 60 tyre manufacturing plants spread across the country. 

Moreover, with favorable inflationary scenario, expanding middle class population and increasing national disposable income, tyre sales across all the automobile segments are expected to grow in the coming years. As per report, presence of major automotive OEMs such as Ford, Hyundai, Honda, Mahindra, Maruti Suzuki, TATA, BMW, etc. has been hugely contributing to the sales of tyres in India. 

Two-wheeler tire segment, which accounts for a volume share of over 50% in the country’s tyre market is also expected to maintain its position as the largest tyre segment over the next five years, adds the report. 

ii) India imposes Anti-Dumping Duty on select Tyres from China 

In Sept 2017, India has imposed an anti-dumping duty on a certain types of unused radial tyre for trucks and buses for the next five years in an attempt to protect the domestic tyre industry from low-cost Chinese imports.

The duty slapped on “new/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having nominal rim dia code above 16 (inch),” ranges between $245.35 to $452.33 per tonne, according to a notification by the Central Board of Excise and Customs.

Earlier, the Directorate General of Anti-dumping and Allied Duties had suggested such as levy on Chinese imports which are dumped in India for a cost below normal value. While the duty does not ban the import of these goods, it is meant as a tool that levels the field between the foreign and domestic industry.

This is a positive development as tyre industry gets nearly 55 percent of its revenue from trucks and buses radial tyre.

3. Financial Performance (30 Nov'17)

Rajratan Global Wire consolidated net profit rises 30.61% in the Sept 2017 quarter

Net profit of Rajratan Global Wire rose 30.61% to Rs 5.76 crore in the quarter ended September 2017 as against Rs 4.41 crore during the previous quarter ended September 2016. Sales rose 24.54% to Rs 90.44 crore in the quarter ended September 2017 as against Rs 72.62 crore during the previous quarter ended September 2016. 

Rajratan Global Wire consolidated net profit declines 43.26% in the June 2017 quarter

Net profit of Rajratan Global Wire declined 43.26% to Rs 3.58 crore in the quarter ended June 2017 as against Rs 6.31 crore during the previous quarter ended June 2016. Sales rose 5.92% to Rs 71.08 crore in the quarter ended June 2017 as against Rs 67.11 crore during the previous quarter ended June 2016.

Rajratan Global Wire Financial Performance

The company performance in Jun’17 quarter was subdued mainly on account of increase in input cost and lower offtake due to GST. However, it managed to post better Sept’17 quarter results by increasing its product prices due to rise in of raw material cost.


4. Peer Group Comparison (30 Nov'17)
Rajratan Global Wire Peer Group Comparison

5. Key Concerns / Risks (30 Nov'17)

i) Steel wire rods is the primary raw material used for manufacturing by the company. Increase in steel prices can adversely impact the operating margins of the company. As per management, the company passes on 60-100 percent of the higher raw material prices to its customers.

ii) Sluggishness in automobile demand globally can impact tyre industry, this can have a direct impact on revenue growth of the company.

iii) Steel wire Industry is highly fragmented and competitive. Any adverse development in market conditions, trade or government policies, foreign exchange fluctuations may impact company’s performance.

6. Saral Gyan Recommendation (30 Nov'17)

i) The growth outlook for Indian tyre industry looks promising with imposing of antidumping duty on a certain types of unused radial tyre for trucks and buses for the next five years and expected rise in domestic automobile sales going forward. This will augur well for the company being a market leader in India with 40% market share in automotive tyre bead wire segment and preferred supplier of more than 15 major tyre manufacturers in India and abroad. Moreover, growth momentum is expected to sustain in Thailand with addition of new clients like Bridgestone. 

ii) With rise in demand, Rajratan Global expanded its Thailand plant capacity from 24,000 MT to 26,400 MT last year. The company has planned further expansion of 9,600 MT over next 2 to 3 years to meet the growing demand for the company’s product. Moreover, the company has also invested in a new warehousing facility which is expected to help Rajratan Thailand to maintain sufficient inventory levels. Increase in minimum stock volume is being prioritized which will ensure efficient delivery performance.

iii) The company’s Thailand operations are in sweet spot. The company is sole manufacturer of tyre bead wire in Thailand and enjoys significant logistic benefits as major tyre manufacturers are located in close proximity. Thailand is one of the largest producers of natural rubber making it a market of choice for global tyre manufacturers. Presently there are around 20 tyre manufacturers in Thailand out of which 5 are Japanese and Taiwanese, providing good opportunity for Rajratan. The company is preferred supplier of Global OEM’s, major Japanese clients includes Sumitomo, Bridgestone and Yokohama. Recently, the company gets into agreement with Bridgestone and expect good revenue growth with rise in orders in coming quarters.

iv) The company continue to target 100% share of business in Thailand, it’s a sole supplier to companies such as Otani Radial, ND Rubber, Siam Rubber, Hihero, Union, BKF & Camel. Moreover, the company is continuously growing its exports market, it’s a largest supplier to the Sri Lanka tyre market with strong foot hold in other South East Asian countries like Vietnam and Malaysia.

v) Rajratan Global has registered sales CAGR of 2.8% and profit CAGR of 45.2% with ROE of 12.9% over last 5 years. The company has reduced its debt significantly over last couple of years with increase in operating margins.
Rajratan Global Wire Key Financial Ratio

vi) Rajratan Global has experienced core management team with strong Industry connect. Mr. Sunil Chordia is the Founder and MD of the company. He steered Rajratan Global towards significant growth in the tyre bead wire business and helped the company receive international approvals in short span of time. He possess over 27 years of experience and holds BSc, DCMA and MBA (finance) degrees. Mr. Yashovardhan Chordia looks after Thailand operations. He has worked as consultant for 3 years at Levers for change, he has experience in working on turn around projects for various sectors like Steel, Refinery, Refractory and Plastic.

vii) As of Sept’17, promoter’s shareholding in the company is at 63% out of which 16.41% shares is pledged. Promoters increased their shareholding by 0.72% in Sept’17 quarter, promoter’s shareholding in Jun’17 quarter was at 62.28%. Institution shareholding in the company is at 7.86%.

viii) The company is paying regular dividend since 2007. The company has paid dividend even during the years when it was in losses. The dividend yield is at 0.23%. 

ix) As per our estimates, Rajratan Global can deliver PAT of 21.71 crores in FY17-18 and Rs. 27.98 crores in FY18-19 with annualized EPS of Rs 49.89 and Rs. 64.32 respectively. At current price of 639, stock is available at forward P/E multiple of 9.9X based on FY18-19 earnings. Company’s valuation looks attractive considering strong earning visibility on account of planned expansion & robust growth outlook for tyre industry.

x) On equity of Rs. 4.35 crore, the estimated annualized EPS for FY18-19 works out to Rs. 64.32 and the Book Value per share is Rs. 244. At current market price of Rs. 639, stock price to book value is 2.62. 

Imposition of anti-dumping duty for 5 years and robust growth outlook of automobiles is expected to augur well for Indian tyre manufacturers in medium to long term. Considering company’s leadership position in domestic tyre bead wire market, continuity in growth momentum in its Thailand business with addition of new clients, planned expansion over 3 years to meet growing demand and attractive valuations of the company with comfortable debt level, Saral Gyan team recommends “Buy” on Rajratan Global Wire Ltd at current market price of Rs. 639 for target of Rs. 1250 over a period of 12 to 24 months. 

Buying Strategy:
  • 70% at current market price of 639 
  • 30% at price range of 520 - 550 (in case of correction in stock price in near term) 
Portfolio Allocation: 3% of your equity portfolio.

To Read / Download Saral Gyan Hidden Gem - Oct'17 Research Report - Click Here

Rajratan Global Wire Ltd is 1 out of those 65 multibagger stocks which have given returns in the range of more 200% to 9900% returns to our subscribers in period of 3 to 10 years. Team of equity analysts at Saral Gyan put lot of efforts & smart work to identify Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) which not only grow your capital at a healthy rate but also ensures protection of your capital during market downturn.

Also Read : Hidden Gems SIP Returns of 395% Vs Small Cap Index returns of 181%

Through Hidden Gems and Value Picks, we are providing you opportunities to invest in such small / mid cap stocks today. Infosys, Pantaloon, Dabur, Glenmark were the small cap stocks in past and today are the well known companies falling under mid and large cap space.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other brokers and research firms. We keep on updating our subscribers on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future growth outlook.

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 with medium to long term perspective. If you think to invest in stocks for period of 6 to 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. Subscribe to Hidden Gems & Value Picks and start investing systematically keeping a real long term view.

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

Team - Saral Gyan

Saturday, October 22, 2022

TCPL Packaging - 18-Bagger Stock - CAGR of 33.7% in 10 Yrs

Dear Reader,

We are pleased to inform you that our Hidden Gem stock of Jan'13 - TCPL Packaging Ltd (BSE Code: 523301, NSE Code: TCPLPACK) is a 18-Bagger stock for our Hidden Gems members within 10 years. Our team suggested Buy on TCPL Packaging Ltd at average price of 70.50 on 31st Jan'13 with a target price of Rs. 160. We suggested our members to book partial profits around 700 - 750 levels in 2018 considering expensive valuations and later suggested to add the stock again around 350 - 450 levels. TCPL Packaging stock price made all time high of Rs. 1541.80 (maximum returns of 2086%) and closed at Rs. 1293.85 this week, giving CAGR returns of 33.7% and absolute returns of 1735% returns to our Hidden Gems members within period of 10 years.

Net profit of TCPL Packaging rose 282% to Rs. 22.73 crore in June 2022 quarter as against Rs. 5.95 crore during the previous quarter ended June 2021. Sales rose 49.93% to Rs. 334.19 crore in June 2022 quarter as against Rs. 222.89 crore during the previous quarter ended June 2021.

Below is the summary of TCPL Packaging Ltd shared by our team under Hidden Gem stock recommendation - Jan'13

1. Company Background

TCPL Packaging Ltd., (formerly known as Twenty-First Century Printers Ltd) was promoted by the Kanoria family, and began commercial production in April 1990. It is one of India's largest manufacturers of printed folding cartons, and one of the few listed packaging companies in India. 

Today, TCPL Packaging Ltd. operates out of its six manufacturing units ; three in Silvassa, 180 kms from Mumbai in Western India ; two in Haridwar, 200 kms from Delhi in Northern India ; and one in Goa, 600 kms from Mumbai in Western India. All the plants are ISO 9001: 2008, ISO 22000: 2005 certified and are also compliant with BRC/IoP Global Standard-Packaging Issue 3, which is suitable for direct food contact. In addition, plants at Silvassa and Haridwar are also FSC certified & SEDEX Compliant. 

TCPL is one of the largest exporters of printed cartons from India. It regularly caters to consumers in countries like UK, The Netherlands, UAE, Bangladesh etc. Exports constitute about 17% of TCPL's annual revenues.

TCPL is the country's second largest carton manufacturer after ITC. While ITC manufactures carton for captive consumption, TCPL biggest clients are Godfrey Philips India, Nestle India, Colgate, Godrej, HLL, Seagram and Jagatjit Industries. TCPL prints Shells and Hinge Lid Blanks required by cigarette manufacturing companies and Cartons, Boxes & other packaging material for various companies in the booming liquor, FMCG, Food & Beverages segment and others.

TCPL won several awards for excellence in printing from Paper, Film & Foil Converters Association for cartons manufactured for various customers. TCPL has core manufacturing business and enjoys reputation of a reliable packaging company for supply of various types of packaging materials to large foreign and domestic companies. It is presently consolidating its operations and working on new product offerings.

As part of its expansion plans, TCPL recently purchased an additional plot of land in the vicinity Haridwar plant to set up a corrugation unit that will mainly produce E-flute corrugated cartons. The unit commenced operation by Q1FY13.

For the financial year ended 31st March 2012, TCPL's revenues were Rs.295.68 crores (US$ 59 million) registering a CAGR in excess of 20% over the past five years. TCPL is currently converting approx. 3500 tons of paperboard every month, making TCPL one of India’s largest converters of paperboard. 

Production Facilities 

1. The Silvassa Factory
TCPL Packaging is now operating three plants at Silvassa. Of the three plants, one houses the web fed gravure machines, the second houses sheet fed offset machines and the third is a dedicated facility for corrugated cartons. As a result the Silvassa operations are extremely versatile allowing TCPL to offer printing on a variety of substrates and combinations thereof, as also capability to cater to a variety of requirements depending on the nature of the job in terms of volume and print appearance 

Gravure Packaging Unit: This exclusive gravure printing facility was set-up in January 2010 and houses three 10 colour gravure presses all with inline die cutting facilities. Of the three presses, two have been imported earlier from Komori Chambon and the third and latest one is imported from ATN Industrie, France. Two of the above three presses have the capability to rotary die cut and emboss inline besides printing in one operation. The plant is also equipped with a specialised Bobst offline die cutting and foil stamping machinery besides facilities for lamination of film to board. The printing machines are also equipped with online defect detection camera to guarantee 100% defect free supplies. 

Offset Packaging Unit: This unit houses three MAN Roland 700 offset presses all of which are six colour with inline coaters. The plant is also equipped with multiple line Bobst folder-gluers and die-cutters as well as window patching machines. Besides, the facility also has equipments for hot foil stamping, automatic film lamination and every other conceivable finishing capability. Of the three offset machines, one is equipped with interdeck UV driers capable of printing on plastic and non-absorbent substrates. The die-cutter and folder gluers are also similarly equipped to handle plastic substrates. In addition, a sheet fed gravure printing machine has also been recently commissioned, enabling the plant to print by both offset and gravure or in combination thereof. 

Fluted Carton Unit: This unit set-up in March 2010 is a dedicated facility for production of E / F fluted cartons. It houses 2 lines of E/F fluting corrugation single facers, Litho Laminator, three special die cutting equipment designed for fluted cartons and specialised folder gluers from Bobst equipped for gluing/folding of fluted cartons. The plant is also equipped with a hot room for control of moisture and is fully equipped to handle sophisticated requirements of E / F fluted cartons. 

2. The Haridwar Factory 

TCPL Packaging is now operating two plants at Haridwar. Of the two plants, one houses the sheet fed offset machines, and the second one is a dedicated facility for corrugated cartons. 

Offset Packaging Unit 

Printing: Haridwar plant is equipped with two Mitsubishi LX six color sheet fed offset printing machines, one KBA 106 six color sheet fed offset printing machine equipped with in-line coaters besides a sheet-fed gravure printing machine to enable it to print offset-gravure combination jobs. 

Die-cutting: Multiple number of state-of-art die cutters from Bobst with in-line stripping facility. 

Folding & Glueing: Multiple lines of high speed folding and glueing facilities from Bobst equipped with crash lock bottom devices. Folding & Glueing equipment at Haridwar plant is equipped with a Code Reader Xtend Series from Baumer HHS in combination with lower glue line detection. 

Window Patching / Liner Capability: Three Heiber & Schroder Window Patching machines with liner capability. 

Fluted Carton Unit 

This unit set-up in March 2012 is a dedicated facility with state-of-the art technology for production of E / F fluted cartons. It houses one line of E / F fluting corrugation single facer, Litho Laminator with all latest and automated features, special die cutting equipment designed for fluted cartons and specialised and renowned folder gluer equipped for gluing/folding of fluted cartons. The plant is also equipped with latest testing equipments for quality assurance and a hot room for control of moisture and is fully equipped to handle sophisticated requirements of E / F fluted cartons. 

3. The Goa Factory 

TCPL operates one plant at Goa. This unit set-up in July 2012 is a dedicated facility for production of E/F/N fluted cartons. It houses 2 lines of E/F/N fluting corrugation single facers, Litho Laminator, three special die cutting equipment designed for fluted cartons and specialized folder gluers from Bobst equipped for gluing E/F/N and straight line glued cartons at high speed. The plant is also equipped with a hot room (de- humidifier) for control of moisture and is fully equipped to handle sophisticated requirements of E/F/N fluted cartons. 

The Prepress Centre 
TCPL always put best of its efforts to exceed customer expectations. It is with this objective that TCPL has promoted a company viz. Accura Reprotech Pvt. Ltd., (ART) based out of Mumbai which is responsible for prepress and repro activities of the company. ART has been set-up to focus on areas such as structural and graphic design, use of varied raw material and suggesting to customers, different types of finishes to be incorporated in their packaging

This centre is located in heart of Mumbai making it easy for customers to visit the centre and experiment with different possibilities. ART is equipped with Esko Graphics Suite 10 PDF enabled workflow and has all facilities under one roof geared up for designing, editing and processing of jobs. The facility is also equipped with the latest Kongsberg Sample Table for the production of printed / unprinted cartons including complete proofing facility. ART is connected to both manufacturing plants by dedicated leased lines and to customers via FTP (File transfer protocol). 

Product Portfolio 

1. CIGARETTES: TCPL Packaging Ltd. is currently catering to the Phillip Morris and BAT associate companies in India and other leading cigarette manufacturers in the region. TCPL can undertake both long and short run jobs either by gravure or offset process. The packs are subject to stringent quality checks such as GC tester and crease stiffness tester which are available at its laboratories. 

In the financial year ended 31st March 2012, TCPL produced in excess of 2.2 billion packs for the tobacco industry. The significant benefit that TCPL can offer its customers in the cigarette industry is its capability to offer value additions by way of UV varnishing, offset gravure combination, matt/gloss varnishes etc. 

2. LIQUOR: TCPL is currently one of the largest manufacturers of liquor cartons in India, catering to all liquor majors in the industry. With its versatile printing facility, it can manufacture liquor cartons with inline UV varnish as well as die cutting in a single operation. 

A significant amount of its revenues comes from sales to liquor majors such as Pernod Ricard, Diageo, United Spirits, Radico Khaitan, Jagatjit Industries, Allied Blenders, Bacardi and other liquor producers. TCPL possesses the unique capability of printing by a combination of offset and gravure thereby enhancing the look of the pack in a very cost effective manner. 

3. FOOD: TCPL is a regular and approved vendor to leading food and beverage manufacturing companies in India such as Nestle, General Mills, Ferrero, GSK, Kellogg India, Heinz, Amul, Hindustan Unilever, Tata Global Beverages, Cadbury/Mondelez International and many other smaller Indian companies. Besides, TCPL is a regular exporter to the food and bakery industry in UAE, Netherlands and UK. Amongst TCPL's capabilities include conversion of 4 and 6 corner glued cartons and liner cartons. It is one of the few Indian packaging companies to have achieved BRC and SEDEX certification. 

4. FMCG: Having online coating and expertise in surface printing on metallised polyester laminated board and plastic substrates. TCPL caters to a large number of clients in the FMCG sector. Besides, TCPL also assists its customers in product innovation and design. Its extensive expertise in providing customers with both structural & graphic design is a big advantage for its customers to offer value added and unique packaging for the market place. 

TCPL has been increasing its customer base in this arena and catering to a wide variety of companies. Amongst its many customers are Hindustan Unilever, Emami, Anchor, Colgate, Godrej Sara Lee, Godrej Consumer Products, Cavin Kare, Marico, Johnson & Johnson, S.C.Johnson, Cholayil, Hygeinic Research, etc. Both offset plants are equipped to print on met pet substrates besides having hot foil stamping capabilities and capability to glue with hot melt as well as PUR based adhesives. 

5. OTHERS: TCPL's clients include host of other customers in segments such as automobile, stationery, pharmaceuticals and the airline industry. TCPL is already supplying to highly reputed international airline companies such as Gulf Air, KLM and Indian airline companies such as Kingfisher and Jet Airways. In the stationery segment, TCPL caters to one of the largest stationery products manufacturer in the country, Hindustan Pencils Ltd. In the automobile industry, TCPL is an established supplier to industry leaders, Mico Bosch & Tata Motors. 

2. Recent Development (31st Jan'13)

1. TCPL Packaging inks technical collaboration agreement with AR Packaging Group 

TCPL Packaging has signed a technical collaboration agreement with AR Packaging Group AB, Lund Sweden. The objective of the agreement is a strategically partnership mainly in the manufacturing, sourcing and sales and marketing in India for solid folding cartons. The board at its meeting held on November 10, 2012 has taken the note of it. 

AR Packaging Group AB, offers packaging and packaging machinery solutions, cardboard packaging and folding cartons to various market segments. The company also offers solid board solutions as secondary packaging for brewery products, and solutions for various consumer products, including confectionery, cereals, fast food, frozen food, tobacco, pet food, and non food. The manufacturing activities are carried through 14 production plants in eight European countries alongside operating sales offices in Asia, Europe, Africa and the US. It is headquartered at Malmo, Sweden. 

2. Capacity Expansion to meet customer needs and to offer Innotive packaging solutions 

During the FY12, TCPL added a third printing machine at Haridwar. During the last 5 years, TCPL has spent about 150 crore and enhanced its capacity to 50,400 TPA from 21,000 TPA in FY07. TCPL's corrugated cartons plant at Haridwar commenced production from March 2012. Besides, TCPL is also adding a new facility for manufacturing of corrugated cartons at Goa. The total Capex incurred at various locations was to the tune of 33 crore for the year 2011-12. 

TCPL Packaging Ltd, one of the largest manufacturers and leading exporter of printed cartons in India. TCPL has three manufacturing units in Silvassa and two in Haridwar, Uttarakhand and one in Goa. TCPL is an ISO 9001:2008, ISO 22000:2005, BRC/IoP certified and SEDEX Compliant packaging company. TCPL also produces a wide range of products such as printed blanks & others, Folding Cartons, Litho Lamination, Plastic cartons, Blister paper, Shelf ready packaging. It caters to the segments like Cigarette, Liquor, Food, FMCG etc. 

3. Key Concerns / Risks

i) The company’s customers are large and price setters and may have limited pricing power in times of high cost pressures. This may result in shrinking margins which can adversely affect the bottomline of the company. 

ii) The Company being a manufacturer of the packaging material required for cigarette and liquor is always exposed to the general risks such as government regulations and policies, statutory compliances, economy related, market related. 

iii) New projects at Haridwar and Goa and increase in customer demand simultaneously leads to pressure on the profit margins as the Company has to face competition from various manufacturers in the domestic market. 

4. Saral Gyan Recommendation (31st Jan'13)

i) Packaging industry in India is one of the fastest growing Industries, which has its influence on all industries directly or indirectly. The Indian packaging industry is above $ 20 billion with a growth rate of above 15% per annum which is expected to increase further and offers great business opportunity for TCPL Packaging Ltd. 

ii) Packaging of essential products like food, beverage and pharmaceuticals are the key driving segments because of the huge domestic consumption. India is ranked 15th in the world for its paper and paperboard consumption and is expected to improve its rank in the future. In India, per capita paper consumption is still only 10 kg as compared to 42 kg in China and world average of 57 kg. 

iii) Growth in use of packaged goods as life style changes (urbanization) and manufacturing off-shoring from developed countries increase need for packaging Materials. Other factors affecting growth of packaging industry in India are urbanisation, increasing health consciousness, changing food habits, global trends for plastic substitution in many end use applications and cost advantage. 

iv) Company’s debt to equity is high and interest coverage ratio is also low. This combination is generally not a good signal and doesn’t warrant a value investment. But we expect higher interest coverage ratio and lower debt over next 1/2 years which will strengthen balance sheet and support higher valuations for the stock. 

v) Considering recent expansion and growth opportunities in the industry, we expect TCPL to deliver bottom line of 141 million for FY’12–13 and 216 million for FY’13–14 with estimated annualized EPS of Rs. 16.2 & 24.9 respectively. Company has paid consistent dividend year after year and dividend yield at CMP is 2.7%. 

vi) On equity of Rs. 87 million, the estimated annualized EPS for FY 12-13 works out to Rs. 16.20. Book value per share is Rs. 87.43 and stock price to book value is 0.86. At current market price of Rs. 74.85, share is trading at a P/E of 4.6X on FY 12–13 and 3.0X on FY 13–14 which makes stock valuations attractive with a medium to long term view of 18-24 months.

Considering attractive valuations and long term growth potential, Saral Gyan Team recommends “BUY” on TCPL Packaging Ltd for a target of Rs. 160 over a period of 18-24 months.

Buying Strategy:

70% at current market price of Rs. 74.85
30% at price range of Rs. 50 – 60

To Read / Download Saral Gyan Hidden Gem - Jan'13 Research Report - Click Here

TPCL Packaging Ltd is 1 out of those 65 multibagger stocks which have given returns in the range of more 200% to 9900% returns to our subscribers in period of 3 to 10 years. Team of equity analysts at Saral Gyan put lot of efforts & smart work to identify Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Caps with Plenty of Upside Potential) which not only grow your capital at a healthy rate but also ensures protection of your capital during market downturn.

Also Read : Hidden Gems SIP Returns of 395% Vs Small Cap Index returns of 181%

Through Hidden Gems and Value Picks, we are providing you opportunities to invest in such small / mid cap stocks today. Infosys, Pantaloon, Dabur, Glenmark were the small cap stocks in past and today are the well known companies falling under mid and large cap space.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other brokers and research firms. We keep on updating our subscribers on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future growth outlook.

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 with medium to long term perspective. If you think to invest in stocks for period of 6 to 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. Subscribe to Hidden Gems & Value Picks and start investing systematically keeping a real long term view.

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

Team - Saral Gyan

Sunday, October 16, 2022

10 Basic Principles of Stock Market Investing!

10 Basic Principles Every Investor Should Know

Dear Reader,

In the stock market there is no rule without an exception, there are some principles that are tough to dispute. Here are 10 general principles to help investors get a better grasp of how to approach the market from a long-term view. Every point embodies some fundamental concept every investor should know.

1. Ride the winners not the losers

Time and time again, investors take profits by selling their appreciated investments, but they hold onto stocks that have declined in the hope of a rebound. If an investor doesn't know when it's time to let go of hopeless stocks, he or she can, in the worst-case scenario, see the stock sink to the point where it is almost worthless. Of course, the idea of holding onto high-quality investments while selling the poor ones is great in theory, but hard to put into practice. The following information might help:

Riding a Winner - The theory is that much of your overall success will be due to a small number of stocks in your portfolio that returned big. If you have a personal policy to sell after a stock has increased by a certain multiple - say three, for instance - you may never fully ride out a winner. No one in the history of investing with a "sell-after-I-have-tripled-my-money" mentality has ever had a tenbagger. Don't underestimate a stock that is performing well by sticking to some rigid personal rule - if you don't have a good understanding of the potential of your investments, your personal rules may end up being arbitrary and too limiting.

Selling a Loser - There is no guarantee that a stock will bounce back after a decline. While it's important not to underestimate good stocks, it's equally important to be realistic about investments that are performing badly. Recognizing your losers is hard because it's also an acknowledgment of your mistake. But it's important to be honest when you realize that a stock is not performing as well, as you expected it to. Don't be afraid to swallow your pride and move on before your losses become even greater.

In both cases, the point is to judge companies on their merits according to your research. In each situation, you still have to decide whether a price justifies future potential. Just remember not to let your fears limit your returns or inflate your losses.

2. Avoid chasing hot tips

Whether the tip comes from your brother, your cousin, your neighbour or even your broker, you shouldn't accept it as law. When you make an investment, it's important you know the reasons for doing so; get into the basics by doing research and analysis of any company before you even consider investing your hard-earned money. Relying on a tidbit of information from someone else is not only an attempt at taking the easy way out, it's also a type of gambling. Sure, with some luck, tips sometimes pan out but they will never make you an informed investor, which is what you need to be to be successful in the long run. Find out what you should pay attention to - and what you should ignore.

3. Don't sweat on the small stuff

As a long-term investor, you shouldn't panic when your investments experience short-term movements. When tracking the activities of your investments, you should look at the big picture. Remember to be confident in the quality of your investments rather than nervous about the inevitable volatility of the short term. Also, don't overemphasize the few bucks difference you might save from using a limit versus market order.

Active traders will use these day-to-day and even minute-to-minute fluctuations as a way to make gains. But the gains of a long-term investor come from a completely different market movement - the one that occurs over many years - so keep your focus on developing your overall investment philosophy by educating yourself.

4. Don't overemphasize the P/E ratio

Investors often place too much importance on the price-earnings ratio (P/E ratio). Because it is one key tool among many, using only this ratio to make buy or sell decisions is dangerous and ill-advised. The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes. So, a low P/E ratio doesn't necessarily mean a security is undervalued, nor does a high P/E ratio necessarily mean a company is overvalued.  

5. Resist the lure of penny stocks

A common misconception is that there is less to lose in buying a low-priced stock. But whether you buy a Rs. 5 stock that plunges to Rs. 0 or a Rs. 75 stock that does the same, either way you've lost 100% of your initial investment. A lousy Rs. 5 company has just as much downside risk as a lousy Rs. 75 company. In fact, a penny stock is probably riskier than a company with a higher share price, which would have more regulations placed on it.

6. Pick a strategy and stick with it

Different people use different methods to pick stocks and fulfill investing goals. There are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it. An investor who flounders between different stock-picking strategies will probably experience the worst, rather than the best, of each. Constantly switching strategies effectively makes you a market timer, and this is definitely most investors should avoid. Take Warren Buffett's actions during the dotcom boom of the late '90s as an example. Buffett's value-oriented strategy had worked for him for decades, and - despite criticism from the media - it prevented him from getting sucked into tech startups that had no earnings and eventually crashed.

7. Focus on the future

The tough part about investing is that we are trying to make informed decisions based on things that have yet to happen. It's important to keep in mind that even though we use past data as an indication of things to come, it's what happens in the future that matters most.

A quote from Peter Lynch's book "One Up on Wall Street" (1990) about his experience with one of the stock he bought demonstrates this: "If I'd bothered to ask myself, 'How can this stock go any higher?' I would have never bought it as stock price already went up twenty fold. But I checked the fundamentals, realized that company was still cheap, bought the stock, and made seven fold after that." The point is to base a decision on future potential rather than on what has already happened in the past.

8. Adopt a long-term perspective.

Large short-term profits can often entice those who are new to the market. But adopting a long-term horizon and dismissing the "get in, get out and make a killing" mentality is a must for any investor. This doesn't mean that it's impossible to make money by actively trading in the short term. But, as we already mentioned, investing and trading are very different ways of making gains from the market. Trading involves very different risks that buy-and-hold investors don't experience. As such, active trading requires certain specialized skills.

Neither investing style is necessarily better than the other - both have their pros and cons. But active trading can be wrong for someone without the appropriate time, financial resources, education and desire.

9. Be open-minded

Many great companies are household names, but many good investments are not household names. Thousands of smaller companies have the potential to turn into the large blue chips of tomorrow. In fact, historically, small-caps have had greater returns than large-caps; over the decades.

This is not to suggest that you should devote your entire portfolio to small-cap stocks. Rather, understand that there are many great companies beyond those in the Small Cap Index, and that by neglecting all these lesser-known companies, you could also be neglecting some of the biggest gains. We have already experienced the multibagger returns from lesser known companies recommended under Hidden Gems service in past, our stock picks like Camlin Fine Sciences, TCPL Packaging, Kovai Medical, Wim Plast, Acrysil, Mayur Uniquoters, Balaji Amines, Rane Brake Linings etc have delivered returns in the range of 500% to 1800% over period of 2 to 5 years.

10. Don't miss to diversify your equity portfolio

Its always wise to have stocks from different sectors and Industries. Do not expose your self to many stocks from the same sector. Be it IT, Consumers, Finance, Infrastructure, Pharmaceutical or any other sector, you must have a proper mix of all with suitable allocation based on future outlook of that sector and industry. Most of the companies from capital goods and Infrastructure sector have not performed since last 6 to 7 years but private banking stocks, NBFCs, consumers and automobile companies stocks are making new all time highs. Hence, its important to stay diversified with your stock investments.

Wish you happy & safe Investing!

Regards,
Team - Saral Gyan.

Tuesday, September 20, 2022

Saral Gyan Nano Champs



We are glad to introduce our new service – Nano Champs (deeply undervalued & undiscovered micro caps) with an objective to achieve 10X returns in a period of 6 years (6Y-10X). Under this service, we will research on micro-sized companies with market capital of less than 100 crores and put our efforts to identify the companies which are not only deeply undervalued (available well below their intrinsic value) but also have potential to grow at a faster pace. 

As there is always a higher risk involved while investing in micro caps, we will have a well diversified basket of 10 stocks from different sectors / industries under this service. Based on our past experience, we realized that micro caps have the potential to deliver maximum returns (higher than small caps and much higher compared to mid and large caps). However, as the universe of micro caps is large enough, picking the right companies requires extensive research. Another very important aspect of investing in micro caps is patience, stock prices of micro caps consolidate for longer time period and deliver maximum returns in shortest span of time. Some of our micro caps which we picked when market capital was less than 100 crores have created enormous wealth for our members over last decade. 

You will agree that Investment decisions for the long term can’t be taken by timing the market movement. It is important to understand the Industry potential, company’s fundamentals and valuations with a real long term perspective. This service is suitable for those investors who have an investment horizon of more than 5 years, want to see some of their stocks turning out to 5X, 10X, 20X or even 50X to 100X over next 5 to 10 years, and have the courage to digest the negative returns of 40 to 70 percent from top during market crash / bear phase of the market.

NANO CHAMPS SUBSCRIPTION DETAILS:

SUBSCRIPTION:

1 YEAR & 3 YEARS

SUBSCRIPTION PRICE (1 YEAR):

INR 12,000

SUBSCRIPTION PRICE (3 YEARS):

INR 30,000

NO. OF REPORTS:

BI-ANNUALLY (2 PER YEAR)

EACH REPORT CONTAINS:

10 NANO CHAMPS STOCKS UPDATE

ENTRY / EXIT UPDATE:

AD HOC (AS & WHEN THE NEED ARISE)

PROFIT BOOKING:

AS PER THE PROFIT BOOKING STRATEGY

ACCESS TO REPORT & UPDATES:

WILL BE SENT TO REGISTERED EMAIL ID

1ST REPORT SCHEDULE RELEASE

 MID OCT 2022



NANO CHAMPS - INVESTMENT HORIZON: 5 YEARS & ABOVE

The time frame over which investors stay invested in a particular asset class is referred to as an investment horizon. Determining the investment horizon is one key decision an investor must take in the investing journey. 

Since the equity market is volatile, it is advisable to invest for the medium to long term. In a time frame of 5 years and beyond, even despite the volatility, markets tend to give an above average return. For example, Sensex has given a CAGR of 17% over the past 5 years which means investing for the long term is a gainful strategy. 

BSE SMALL CAP INDEX - YEARLY RETURNS

YEAR

1ST JAN 

START YEAR

1ST JAN 

NEXT YEAR

RETURN %

  2003*

834.59

2481.95

197.4%

2004

2481.95

3505.83

41.3%

2005

3505.83

6027.56

71.9%

2006

6027.56

7004.1

16.2%

2007

7004.1

13703.07

95.6%

2008

13703.07

3810.41

-72.2%

2009

3810.41

8491.73

122.9%

2010

8491.73

9845.05

15.9%

2011

9845.05

5556.48

-43.6%

2012

5556.48

7452.88

34.1%

2013

7452.88

6649.16

-10.8%

2014

6649.16

11225.22

68.8%

2015

11225.22

11940.75

6.4%

2016

11940.75

12190.15

2.1%

2017

12190.15

19279.96

58.2%

2018

19279.96

14766.86

-23.4%

2019

14766.86

13786.69

-6.6%

2020

13786.69

18261.03

32.5%

2021

18261.03

29807.95

63.2%

2022

29807.95

(01 Sep'22) 28789.30

-3.2%

* starting 1st April 2003

Source: BSE


It is often said that a consistent patient investor always wins in the long term. Warren Buffet rightly said that “The stock market is a device for transferring money from the impatient to the patient.”

NANO CHAMPS - EXPECTED RETURNS:

NANO CHAMPS – EXPECTED RETURNS:

BEST CASE SCENARIO

COMPANY NAME

MARKET CAPITAL

INV. AMOUNT

PERIOD

(IN YRS)

X

TIMES

EST. CAGR

NET

RETURNS

XXX1

< 100 CR

10,000

6

10X

 47%

 100000

XXX2

< 100 CR

10,000

6

10X

 47%

  100000

XXX3

< 100 CR

10,000

6

10X

 47%

 100000

XXX4

< 100 CR

10,000

6

10X

 47%

 100000

XXX5

< 100 CR

10,000

6

10X

 47%

 100000

XXX6

< 100 CR

10,000

6

10X

 47%

 100000

XXX7

< 100 CR

10,000

6

10X

 47%

 100000

XXX8

< 100 CR

10,000

6

10X

 47%

 100000

XXX9

< 100 CR

10,000

6

10X

 47%

 100000

XX10

< 100 CR

10,000

6

10X

 47%

 100000

INV. AMOUNT

1,00,000

 ROI:

10X

47%

1000000


As illustrated in the table above, if all 10 Nano Champs stocks deliver 10X returns over period of 6 years (best case scenario), the investment capital will grow by 47% CAGR. If only 4 stocks out of 10 deliver 10X returns, other 3 stocks deliver half of expected returns and remaining 3 stocks deliver 0 returns, investment capital with grow at CAGR of 35% delivering 6X returns. 

NANO CHAMPS – EXPECTED RETURNS:

BULL CASE SCENARIO

COMPANY NAME

MARKET CAPITAL

INV. AMOUNT

PERIOD

(IN YRS)

X

TIMES

EST. CAGR

NET RETURNS

XXX1

< 100 CR

10,000

6

10X

47%

 100000

XXX2

< 100 CR

10,000

6

10X

47%

  100000

XXX3

< 100 CR

10,000

6

10X

47%

 100000

XXX4

< 100 CR

10,000

6

10X

47%

 100000

XXX5

< 100 CR

10,000

6

7X

 38%

 70000

XXX6

< 100 CR

10,000

6

5X

 31%

 50000

XXX7

< 100 CR

10,000

6

5X

 31%

 50000

XXX8

< 100 CR

10,000

6

X

 0%

 10000

XXX9

< 100 CR

10,000

6

X

 0%

 10000

XX10

< 100 CR

10,000

6

X

 0%

 10000

INV. AMOUNT

1,00,000

ROI:

6X

35%

600000


Even if we take bear case scenario considering that only 2 out of 10 stocks deliver 10X returns and another 3 stocks deliver half of expected returns and remaining 5 stocks deliver 0 returns, investment capital will be quadrupled (4 times) in period of 6 years achieving CAGR of 26% which is also significantly higher compared to any other asset classes or major indices - Sensex and Nifty

NANO CHAMPS – EXPECTED RETURNS:

BEAR CASE SCENARIO

COMPANY NAME

MARKET CAPITAL

INV. AMOUNT

PERIOD

(IN YRS)

X

TIMES

EST. CAGR

NET RETURNS

XXX1

< 100 CR

10,000

6

10X

 47%

 100000

XXX2

< 100 CR

10,000

6

10X

 47%

  100000

XXX3

< 100 CR

10,000

6

5X

 38%

 50000

XXX4

< 100 CR

10,000

6

5X

 38%

 50000

XXX5

< 100 CR

10,000

6

5X

 38%

 50000

XXX6

< 100 CR

10,000

6

X

 0%

 10000

XXX7

< 100 CR

10,000

6

X

 0%

 10000

XXX8

< 100 CR

10,000

6

X

 0%

 10000

XXX9

< 100 CR

10,000

6

X

 0%

 10000

XX10

< 100 CR

10,000

6

X

 0%

 10000

INV. AMOUNT

1,00,000

ROI:

4X

26%

400000


However, we are confident to achieve CAGR returns of 35% to 45% over a period of 6 years by monitoring performance of these companies and taking corrective measures through entry in new stocks / exit in existing stock and following profit booking strategy.

NANO CHAMPS - PROFIT BOOKING STRATEGY:

PROFIT BOOKING STRATEGY  ILLUSTRATION:

NANO

CHAMPS

PORTFOLIO 

ALLOCATN

INITIAL / POST 

INV. VALUE

ROI

CURRENT

VALUE

PROFIT BOOKING

PROFIT BOOKING AMOUNT

STK-01

1.00%

10,000

3X

30,000

 30%

 9,000

STK-01

0.70%

7,000

5X

35,000

 30%

  10,500

STK-01

0.40%

4,000

10X

40,000

 100%

 40,000


As per profit booking strategy, 30% profit has to be booked once a particular Nano Champ stock delivers 3X returns, another 30% profit will be booked once stock turns 5-Bagger and full profit booking can be done once Nano Champ stock delivers 10X returns.

Q: Why profit booking before 10X returns?

A: Mostly, once a stock delivers 3X or say 5X returns over a period of time during market upturn, it also falls by 30 – 60 percent during market downturn. Profit booking strategy not only ensure that you take out your initial investment capital but also give you a cushion to invest in same stock later at lower levels during market / sector down cycle.

Q: Why initial investment allocation is just one percent?

A: As Nano Champs are micro cap companies having less liquidity and high volatility, we suggested 1% allocation in each stock. In fact, just 1% allocation can do wonders in long term. Assuming that your portfolio value is of 10 lakh, you invest 10,000 each (1% of 10 lakh) in all 10 Nano Champs (1 lakh allocation in total 10 stocks) and continue to hold them, now If only 2 Nano Champs stocks turn out to be 50-Bagger stocks in period of 6 to 12 years, it will make up your entire portfolio value (10 lakhs).


NANO CHAMPS - STOCK SELECTION PARAMETERS:

QUALITATIVE PARAMETERS

Quality of Management – able & honest with good integrity

Promoters 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

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 

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. Please note that Nano Champs will not cover the stocks which were already covered under Hidden Gems service, so there will not be any over-lapping of stocks. However, there is a possibility that Nano Champs of today may get recommended after couple of years under Hidden Gem service so that our members can either continue holding the stock or may increase the investment allocation from 1 percent to 2-3 percent of portfolio

NANO CHAMPS - FAQS:

FREQUENTLY ASKED QUESTIONS

Q: What is the subscription period of Nano Champs?

A: We offer 1 year and 3 years subscription for Nano Champs service. You need to renew your subscription every year / every 3 years to continue receiving the Nano Champs update.

Q: How many reports will I get under Nano Champs service?

A: You will get 2 detailed reports with coverage of 10 Nano Champs every year. Moreover, you will also receive individual stock specific update in case of any entry of new stock / exit of existing stock or profit booking update as per defined profit booking strategy.

Q: Shall the report covers 10 new stocks in every detailed report?

A: This report will cover 10 Nano Champs stocks and update about these stocks only in next issue. As this report will be released on 6 monthly basis, there may be changes (entry / exit) based on covered companies business developments / change in govt policies / sector tailwinds or headwinds etc

Q: What if a particular stock rice goes down by 30% to 40%?

A: Nano Champs are less liquid stocks, hence we will advise a price range to accumulate them slowly over a period of time. There is a high possibility that a particular stock price rises or fall by 30 to 40 percent in short term, however being a long term investor, you need to simply hold the stock. 

Q: What is suggested investment allocation in Nano Champs?

A: As Nano Champs are micro caps, we suggest maximum portfolio allocation of 10 percent in Nano Champs, 1 percent allocation to each Nano Champ stock.

Please write to us at info@saralgyan.in or sales@saralgyan.in in case of any queries.

Regards,
Team - Saral Gyan