Our selection process includes lot of research and data analysis. We first identify the sectors that are likely to do well in next 12 months. Having that done, we further refine our search to select companies from that sector. We create a portfolio worth Rs. 1 Lakh comprising 10 stocks so that it can help investors to create a model portfolio with lump sum investment up to 1 Lakh.
We will give different allocation to each of the scrips keeping in mind the risk versus returns ratio. We will also fine tuned the portfolio with large cap, mid-cap and small cap scrips from different sectors so that the investors can invest in a complete mix of stocks to balance their portfolio. Saral Gyan
Diwali Muhurat Portfolio of 10 Stocks for
2024 will also include best of
Hidden Gems and
Value Picks recommended by our equity analyst’s team during last couple of years.
Its time to also review Rs. 1 Lakh Diwali Muhurat Portfolio of 10 stocks of 2023 released by us on 12th Nov 2023. We are pleased to share that our portfolio has outperformed major indices Sensex and Nifty by 4.2% and 2.2% respectively. Sensex has delivered returns of 23.3% (64,905 on 12th Nov'23 to 80,005 as on date) and Nifty has given 25.3% returns (19,425 on 12th Nov'23 to 24,341 as on date) during the year where as Saral Gyan Diwali Muhurat Portfolio of 10 stocks have outperformed both indices giving absolute returns of 27.5% in the same period.
Performance update of our Best 10 Diwali Muhurat Stock Picks - 2023
As on date, seven stocks out of ten of our Diwali Muhurat Portfolio of last year are giving positive returns in the range of 5% to 73% while three stocks have given negative returns in the range of -6% to -20%.
The maximum returns were delivered by our Value Pick stocks, Natco Pharma has delivered returns of 72.6% followed by large cap Sun Pharma which is giving as on date returns of 61.4%. However, our Hidden Gems stocks like Aimco Pesticides, KIC Metaliks and Superhouse underperformed delivering negative returns over last one year.
Note: We will review these stocks and guide our members with buy / sell / hold updates in Diwali Muhurat Portfolio 2024. Our Diwali Muhurat Portfolio 2024 of 10 Stocks will be released on the auspicious day of Diwali i.e. 1st Nov 2024, it will be shared under Hidden Gems / Value Picks / Wealth-Builder service.
We continue to follow our simple but effective approach by evaluating each stock on the basis of below mentioned criteria’s.
(i) Top Quality management with high integrity:
This is an absolutely non-negotiable condition. If the management is not honest, will they want to share the goodies with you? No, they will look for the first opportunity to siphon off the profits and pull the wool over your eyes.
(ii) The scale of opportunity must be big:
Multi-bagger stocks are created because they are able to scale the opportunity rapidly. Titan Industries is a great example. In 2003-04, Titan‘s market cap was 500 crores. In 2024, it is more than 2,90,000 crores. The fact that India is a booming marketplace of 140 crores consumers means that most products and services have a head start at trying to scale up their activities.
(iii) Low debt; free cash flows:
We learnt from the great crisis of 2011 and 2019 that companies with high debt on their books simply get slaughtered. While debt per se is not bad (if the company is able to borrow at a lower rate and deploy it in its business at a higher rate, the operating leverage works in its favour), excessive debt with high interest and repayment obligations can crunch the stock in times of downturn. So, as a long-term investment philosophy, it is best to steer clear of high-debt companies.
(iv) High ROE – Efficient users of capital:
Some company’s management is able to squeeze that little extra of every buck. A ROE of at least 15-20% is necessary to make into the hallowed list of model portfolio.
(v) No High Capex Requirements – No Serial Diluters of Equity:
We know from past experience the demerits of investing in stocks like Suzlon & GMR which have an insatiable appetite for more and more capital. To feed their perennial hunger, these companies dilute their equity by making FPOs, GDRs & FCCBs resulting in total destruction of shareholder's wealth. Companies should be lean and mean requiring minimal capital but generating huge returns there from.
(vi) Reasonable growth expectations:
“If you get a tax-free return of 18% for your portfolio, you must be very happy”. So, stop craving for that overnight multi-bagger. You’ll only end up losing your precious capital that way. Instead, look for well established small, mid and blue chips companies that are growing at a reasonable rate of return (15 – 25%). With time and the magic of compounding, you will have your muti-bagger in your portfolio.
(vii) Valuations:
Most investors are obsessed about valuations, refusing to buy any stock that is “expensive”. However, one must remember that “expensive” is a relative term. If a stock is compounding at 25% on an annual basis, paying a price of 30 times earnings may be very reasonable. A stock like Nestle, for instance, has always been “expensive”. However, if an investor had gone ahead and bought the stock, he would have had an incredible multi-bagger on his hands. On the other hand, in trying to buy a “cheap” stock, one may get saddled with unsavory companies. After all, there is a reason why such stocks are “cheap”.
Of course, one should be careful not to buy in euphoric or bubble times when the pricing may be extravagant and not at all reasonable.
(viii) Concentrated Portfolio:
We like Warren Buffett approach, a believer in the concept of a concentrated portfolio. If you believe in the prospects of a stock you should be prepared to put a substantial chunk of money in it – or nothing at all. There is no point in buying a bit of this and a bit of that because that dilutes your returns.
Of course, we are no match for Warren Buffett and we do not have his conviction levels. So, we’ll stick to 10 stocks to begin with, which means that from 5% to 12% of the wealth will be invested in each stock.
(ix) Diversification:
Last but not the least; a proper portfolio must be diversified across sectors. A bit of Finance, a bit of consumption, some autos, some IT with a pinch of chemical, pharma etc will make a balanced portfolio.
Saral Gyan
Diwali Muhurat Portfolio of 10 Stocks will be emailed to all our
Hidden Gems,
Value Picks and
Wealth-Builder members on 01st Nov'24. Portfolio stocks holding period is minimum of one year, same will be evaluated by our analysts next year before
Diwali festival.
We are pleased to inform that we are celebrating this festive season by offering maximum benefit to our members. You can avail discounts up to 30% and valuable freebies on our subscription services under Saral Gyan Dussehra Diwali Offer. Subscribe to our services and get rewarded by making smart investment decision in equities.
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 10 Nov'24 only)
Discount of 10% on individual services, and up to 30% on Combo packs
2. Rs. 1 Lakh Diwali Muhurat Portfolio of 10 Stocks (To be released on 01 Nov'24)
Applicable under Hidden Gems / Value Picks / Wealth-Builder subscription
3. Special Report - 5 Stocks - Potential 5-Bagger in 5 Yrs (To be Released in Jan'25)
Applicable under Hidden Gems / Value Picks / Wealth-Builder subscription
4. Existing Portfolio Health Check Up (Review of existing stocks)
Applicable under Wealth-Builder subscription only
5. Three Hidden Gems Reports released in Past (Good to Buy / Accumulate at CMP)
Applicable under Hidden Gems subscription only
6. Three Value Picks Reports released in Past (Good to Buy / Accumulate at CMP)
Applicable under Value Picks subscription only
Below table indicates subscription services and discounted prices valid up to 10 Nov 2024.
SARAL GYAN SUBSCRIPTION SERVICE | DUSSEHRA DIWALI OFFER ANNUAL SUBSCRIPTION PRICE | PAY VIA CARD (3% CHARGES EXTRA) |
---|
Hidden Gems | Rs. 16,000 14,400 (10% OFF) | |
Value Picks | Rs. 11,000 9,900 (10% OFF) | |
15% @ 90 Days | Rs. 6,000 (No Discount) | |
Wealth-Builder | Rs. 32,000 28,800 (10% OFF) | |
Combo 1: HG + VP + WB + 15% | Rs. 65,000 45,500 (30% OFF) | |
Combo 2: HG + VP + 15% | Rs. 33,000 26,400 (20% OFF) | |
Combo 3: HG + VP | Rs. 27,000 22,680 (16% OFF) | |
Combo 4: HG + 15% | Rs. 22,000 19,360 (12% OFF) | |
Combo 5: VP + 15% | Rs. 17,000 15,130 (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 14,000 12,600 (-10%) | SUBSCRIBE |
Nano Champs– 3 Year - Rs. 42,000 35,700 (-15%) | 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.
If you wish to invest in fundamentally strong micro, small and mid cap companies which can give you far superior returns compared to major indices like Sensex or Nifty in long term and help you creating wealth, you can join our services like Nano Champs, Hidden Gems, Value Picks & Wealth-Builder. Wish you happy & safe Investing.
Regards,
Team - Saral Gyan