Are you looking for a long-term winner — a multibagger? It's simple! Buy shares of a company with strong fundamentals and consistently high financial performance.
This clearly shows the merit in backing fundamentals over trying to time the market. Fundamentals are the most important; one has to analyse management credibility and capability, quality of the product, financial health and competitors’ position and then decide on whether to buy a stock. At the same time, when markets are not doing well, choice of high dividend paying companies and those with healthy cash balance helps. Hence, there is an element of market environment which needs to be considered.
Not everyone has the time and inclination to analyse stocks and be able to identify potential wealth creators. If that’s the case for you as well, don’t fret. Either identify above average funds or choose services of independent equity research firm and invest in good quality stocks yourself, that outperform the benchmark consistently over a period of 5-10 years and put your money at work. The strategy remains the same — identifying wealth creators and investing in them for long term.
1. Camlin Fine Sciences Ltd: Camlin Fine Sciences Ltd is one of the
Investment Returns: We recommended Camlin Fine Sciences on 27th Mar'11 at Rs 6 (2 stock split adjusted price, actual recommended price was Rs. 60), stock price touched its all time high of Rs. 129 in 2015 and yesterday closed at Rs. 78.85 giving as on date returns of 1214% to our members. It's a 13-Bagger stock as on date in 6 years, we recommended partial profit booking to our members by selling 50% of their holdings and keeping remaining quantity in their portfolio for long term.
Investment Returns: Stock of Cera Sanitaryware has made all time high of Rs. 3315 recently and closed at Rs. 2775 yesterday giving absolute returns of 1668% to our members since Dec 2011. As on date, Cera is almost a 18-Bagger stock and no profit booking suggested by our team and we suggest our member to continue to hold this stock for long term. Moreover, we reiterated buy on Cera at price range of 400-450 and added it in our Wealth-Builder portfolio 4 years back.
Investment Returns: Mayur Uniquoter stock price has made all time high of Rs. 515 in April 2015 and yesterday closed at Rs. 340.15, giving as on date returns of 507% to our members since March 2012, recommended at price of Rs. 56 (2 bonus issues and 1 stock split adjusted price), As on date, Mayur Uniquoter is a 6-Bagger stock for our members. No profit booking suggested by our team yet and we suggest our members to continue to hold this stock.
Investment Returns: Aurobindo Pharma was recommended in Jan'2013 at price of 93.5 (bonus issue adjusted price) for target of Rs 137 which was achieved within 12 months and we informed our members to continue holding Aurobindo for long term. We suggested complete profit booking in the stock last year to our Wealth-Builder members around 750 levels, stock has delivered returns of 700% within 4 years.
Investment Returns: KKCL was recommended during Diwali in 2012 at price of 729 for target of Rs 990 and later again reiterated buy at Rs. 1050 for long term. Stock price touched its all time high of Rs. 2380 in 2015 and yesterday closed at Rs. 1660 giving as on date returns of 128% to our members in period of 5 years. Fundamentals are intact, valuations are reasonable and company has strong brand building expertise in apparel industry, hence we suggested our members to stay invested in this stock for better returns in future.
Investment Returns: TCPL Packaging was recommended in Jan 2013 at average price of 70.50 for target of Rs 160. We suggested to hold the stock once target was achieved considering improved fundamentals and reasonable valuations. TCPL stock price made all time high of Rs. 780 in the month of June last year and yesterday closed at Rs. 614.80 giving returns of 772% to our members, almost our 9-Bagger stock in period of 4.5 years.
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 your 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 3 months to 6 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.
Regards,