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

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Saturday, August 17, 2019

Worried About Bleeding Portfolio? Read This Immediately!

Dear Reader,

Staying invested may be easier said than done when the markets are in bear grip, but it is a necessity for long-term wealth creation. Patience will pay rich dividends to those investors who learn to weather the storm. In fact, investments made in right set of companies during bad market conditions rewards long term investors in much bigger way.

We strongly believe that this is a great time to buy good quality small and mid size companies that have been beaten down. No one is talking about small caps these days and that’s the strong reason why we should invest in this segment. It’s wise to be greedy when there is fear surrounding small and mid caps. This is not the first time small caps have fallen out of favour and then gone on to recover smartly.

Multibagger Small & Mid Caps - Long Term Investing ReportTo make our readers understand the benefits of staying invested for long term and continue investing in small caps and mid caps during bad times like we are experiencing now, we have released - Multibagger Small / Mid Caps and Long Term Investing Report recently on 10th July 2019.

This is a must read report for all those investors who started investing in equities over last 2 to 3 years and are worried now due to their bleeding portfolio, and do not have courage and conviction to invest further in small and mid caps.

The objective of this report is to understand why its utmost important to invest in equities (mainly small and mid caps) keeping a real long term view, becoming a discipline investor by investing in stocks during good as well as bad times to create wealth through equities. We are confident that this report will reinforce your believe to stay invested during these turbulent times in broader markets and build your conviction further encouraging you to invest in small and mid caps with good business fundamentals at cheap valuations.

Broadly, Multibagger Small / Mid Caps & Long Term Investing report covers:

1. 6 Major Reasons for Decline in Small & Mid Caps
2. Budget 2019 - Steps towards easing Liquidity Crisis
3. Benefits on Investing in Small & Mid Caps during Bear Phase
4. 2019 - A Year of Multibagger Opportunities
5. The Bulls, The Bears & The Farm
6. Long Term Charts of Small & Mid Caps

To receive our Multibagger Small / Mid Caps and Long Term Investing report, simply fill up the form below. Once submitted, you will receive the report directly in your inbox. 



If you are unable to view the form, click here to fill it online to receive our Multibagger Small / Mid Caps & Long Term Investing report directly in your inbox.

Under this report, while looking at long term charts of the companies with normal / good businesses, you will realise that investors who entered in market by investing in small and mid caps during last 2 to 3 years have pain in their portfolio however those who invested in bad phase of market in 2011 - 2013 like that of today are still holding plenty of multibaggers in their portfolio. That is why its important to invest in equities keeping a real long term view. In fact, during turbulent times, we must increase investments / equity allocation in small / mid size companies which have good business fundamentals to get rewarded in big way in long run.

BSE Small Cap Index went up by 69% in 2014 and during this year numerous small and mid cap stocks turned multibagger delivering mind boggling returns. Scenario was similar in 2017 when BSE Small Cap Index rallied by 58%, later broader market went into bear grip with significant sell off in many small and mid caps due to expensive valuations and series of negatives developments over last 18 months as covered later.

We are experiencing lot of hopelessness along with fear towards equities in 2019.  The reason is the carnage in stock prices of many well-known established companies over last 18 months. Retail investors have taken the back foot and lost their faith and conviction towards investing in small and mid caps. We understand that it is really frustrating to see the Sensex and Nifty near to its all time highs while the BSE Small Cap and Mid Cap indices hovering at much lower levels compared to last year.

Since Jan 2018, Nifty and Sensex delivered positive returns of around 5%, where as BSE small cap index slumped 38%, and BSE mid cap index dropped 27%. Though these numbers tell us what the overall index lost, individual small and mid cap stocks were touching 52-week lows every other day and individual damage to most of the stocks in this category was to the tune of 50-70%, some even more than that.

When overall market sentiments are negative like we are witnessing now, quality businesses also face the heat. As bad stocks go down, good stocks go down with them too. But good companies make a stronger come back once economy cycle starts its upturn. The severe correction in broader market over last 18 months has given investors an opportunity to sieve through and find good quality stocks which are backed by strong balance-sheet and robust cash flow. The broad underperformance of the small and mid-caps seems to be overdone and interesting bottom-up opportunities are now available in this space across sectors. Earnings revival could also set the ball rolling in terms of re-rating these categories of stocks.

Click here and enter your details to receive our Multibagger Small / Mid Caps & Long Term Investing report directly in your inbox.

Stay Invested & Keep Investing for Real Long Term. Bcoz "If you want your Money to Grow, Equities is the only Way to Go"

Also Read: Diwali Muhurat Picks 2019 - 10 Best Stocks of Saral Gyan

Regards,
Team - Saral Gyan

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Thursday, August 1, 2019

How Investing in Small Cap Stocks lead to Wealth Creation?

Dear Reader,

Do you know small investment of Rs. 10,000 a month over a period of 10 years can help you create a corpus of Rs. 25 lakhs. Total amount invested over period of 10 years by you will be Rs. 12 lakhs and you will have profit of Rs. 13 lakhs. Not Good? This might look less to you as we are assuming returns of 13.5% per annum. If we assume returns of 27% per annum, your corpus will be Rs. 50 lakh and your profits would be more than 3 times of your actual investments that too when you are investing a nominal amount of Rs. 10,000 on monthly basis. Impressive! Right?

Investing in Small Caps & Wealth Creation
You might think that investing in mutual funds could be one of the way to start SIP (Systematic Investment Plan). However, returns may not be that high which you can generate by directly investing into good quality small and mid cap stocks. Hence, we suggest our members to start SIP by directly investing in stocks every month. What you are suppose to do is to invest your savings in a particular stock once in a month instead of putting it into mutual fund. Next month, same amount would be invested in another stock which at that point of time gives you good medium to long term investment opportunity. This could be an ideal choice for salaried employees as well as businessmen / entrepreneurs, as it will help you to directly invest in fundamentally strong small and mid cap companies to build a diversified portfolio of high quality small and mid cap stocks over a period of time to achieve wealth creation.

Also Read: Techno-Funda Stock Pick 2019 Report - Free Download

Also Read: Facts of Investing in Small & Micro Cap Companies

Investing in small caps is a great way to build your diversified investment portfolio. It is a simple and time tested approach for accumulation of wealth in a disciplined manner. Simply get some savings from your monthly income and invest in stocks for long term. It not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.

Invest some portion of your monthly income in good companies without timing the stock market and you will definitely get rewarded in long run. In fact, post severe correction witnessed in small and mid caps during last 1.5 years, we are confident that small & mid cap companies backed by good fundamentals will deliver far superior returns compared to large cap stocks in coming years.

Just take care of Basic Principle of Investing in Equities:

1. Invest in stock market with a long term view (3 - 7 years or more).
2. Invest in companies which are fundamentally strong with scalable business.
3. Follow disciplined approach by Investing regularly in equities.
4. Build a diversified portfolio by investing in small & mid cap companies.
5. Avoid frequent buying / selling of stocks, Its trading not Investing!
6. Review performance of your holding companies at least once a year to decide whether to buy / sell or hold.

Hidden Gems - SIP Returns @ 112.7% Vs Small Cap Index Returns @ 44.9%

It gives us immense pleasure to share that average returns of Saral Gyan 87 Hidden Gems stocks (Our Unexplored Multibagger Small Caps) released since inception (from Sept 2010 to Dec 2018) during last 9 years is 112.7% compared to 44.9% returns of BSE Small Cap Index. Monthly investment of Rs. 10,000 in Hidden Gems till Dec'18 during last 9 years not only allowed you to save Rs. 8.7 lakh but also appreciated your investment by more than 100% making your total Hidden Gems stocks portfolio of Rs. 18.5 lakh with overall profit of Rs. 9.8 lakh. However, if you would have invested the same amount in Small Cap index, you would be sitting with overall gains of Rs. 3.9 lakh.

Below is our Multibagger Stocks - Hidden Gems performance scorecard since inception  (from Sept 2010 to Dec 2018) which illustrates value of Rs. 10,000 invested every month in Hidden Gem (Unexplored Multibagger Small Cap Stocks) stock of the month vis a vis value of Rs. 10,000 invested in BSE Small Cap Index during last 9 years as on 04th July'19.
Multibagger Small Cap Stocks SIP
Even after severe correction in small cap stocks during last 18 months, 31 Hidden Gems stocks out of 87 released on monthly basis from Sept 2010 are giving more than 100% returns to our members. Moreover, 23 stocks out of these 31 are giving returns in the range of 150% to 1800%. In fact, we advised to book partial or full profits / exits in many of these stocks at higher levels during last couple of years.

Note: Total 87 Hidden Gems stocks were released (from Sept 2010 to Dec 2018) during 100 months, we have not released Hidden Gems for the months not displayed in the table above. 

We also suggested our members, which earlier recommended Hidden Gems stocks can be added more in their portfolio based on company's strong fundamentals. Ex: Mayur Uniquoter, Cera Sanitaryware, Wim Plast, Camlin Fine Chemicals, Acrysil, Kovai Medical, Superhouse, De Nora, Atul Auto, Control Print and Stylam Industries were some of the stocks which we recommended to our members to accumulate later also at higher price from our initial recommended price. Also some of the stocks like Anil Ltd, Patels Airtemp, Zenith Fibre, PNB Gilts, Fiberweb etc which not performed up to our expectations have been suggested to exit at an early stage.

As we made most of these reports public, you can access read / download our research reports by clicking on the Read / Download link:

1. SAB TV NETWORK >>> Rec. Date: 05 Sep'10 >>> ROI: 890% >>> Read / Download

2. DE NORA >>> Rec. Date: 07 Nov'10 >>> ROI: 213% >>> Read / Download


3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 866% >>> Read / Download


4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 401% >>> Read / Download

5. KOVAI MEDICAL >>> Rec. Date: 27 Oct'11 >>> ROI: 592% >>> Read / Download


6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1782% >>> Read / Download

7. INDAG RUBBER >>> Rec. Date: 29 Jan'12 >>> ROI: 161% >>> Read / Download

8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 383% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 177% >>> Read / Download

10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 638% >>> Read / Download

11. TIDE WATER OIL >>> Rec. Date: 30 Oct'12 >>> ROI: 151% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 367% >>> Read / Download

13. BAMBINO AGRO >>> Rec. Date: 25 Dec'12 >>> ROI: 214% >>> Read / Download

14. TCPL PACKAGING >>> Rec. Date: 31 Jan'13 >>> ROI: 379% >>> Read / Download


15. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 101% >>> Read / Download


16. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 220% >>> Read / Download

17. DYNEMIC PROD. >>> Rec. Date: 29 Jul'14 >>> ROI: 149% >>> Read / Download

18. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 146% >>> Read / Download

19. CONTROL PRINT >>> Rec. Date: 30 Nov'14 >>> ROI: 46% >>> Read / Download

20. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 61% >>> Read / Download

21. MOLD-TEK PACK >>> Rec. Date: 22 Mar'15 >>> ROI: 150% >>> Read / Download

22. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 156% >>> Read / Download

23. ULTRAMARINE >>> Rec. Date: 11 Oct'15 >>> ROI: 134% >>> Read / Download

24. STYLAM IND. >>> Rec. Date: 08 May'16 >>> ROI: 199% >>> Read / Download

We are confident that we will continue to hunt best Hidden Gems from universe of small caps by doing authentic, in-depth and unbiased research work and support our members to make educated investment decision.

Through Hidden Gems and Value Picks, we are providing you opportunities to invest in such small / mid cap stocks today. Infosys, Dabur, Glenmark, Bajaj Finance 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 12 months or less, 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.

We suggest our members to consider current situation (post severe correction in small & mid caps over last 18 months) as a buying opportunity and invest in high quality small and mid cap stocks. You can start building your equity portfolio by making educated investment decisions, subscribe to our Hidden GemsValue PicksWealth-Builder annual subscription services. Avail attractive discounts by subscribing to our combo packs.

Also Read: BSE Small Cap Index & Sensex - Yearly Returns since 2003

Do write to us in case of any queries, we will be delighted to assist you!

Wish you happy & safe Investing!

Regards,
Team - Saral Gyan

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Sign Up for FREE Articles providing Insight to Equity Market

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Sunday, July 28, 2019

BSE Small Cap Index down by 35% - It's Time to be Greedy!

Dear Reader,

Since Jan 2018, broader markets i.e. small cap and mid cap indices are in bear phase. Over last few weeks, we have seen small & mid cap stocks getting butchered with fall in stock prices on almost daily basis. At current scenario, when Small & Mid Cap Index is down by 35% and 25% respectively from their peak made in January last year and significantly underperformed Sensex & Nifty, no body want to touch this space. Most of the liquidity in small & mid caps has dried up and found its way to large caps over last 18 months. At this juncture, large caps looks fairly valued or expensive in terms of valuations, however small & mid cap companies look attractive and can reward long term investors in big way. In fact, some of the worst times to get into the market turned out to be the best times for long term investors and same seems to be applicable now for small & mid caps.

Its always wise to be greedy when others are fearful. Fall in stock prices of small and mid cap companies by 50% to 60% from their peaks use to happen during panic times, if a particular company delivers 3x to 5x or even 10x type of returns on your investments in period of 3 to 7 years, it can easily fall by 40% to 60% or even more from its 52 week high during tough times which arises due to profit / loss booking, slowdown in economic growth across sectors, series of negative events / news flows and severe sell off due to panic across markets. Below are some of the major reasons of severe fall in stocks prices of small & mid cap stocks since beginning of 2018:

i) Rejig in Portfolio by Mutual Funds to meet guidelines defined by SEBI
ii) Introduction of Additional Surveillance Measures by SEBI to curb volatility
iii) Auditors exit from various companies on fear of stringent action from authorities
iv) Unfavourable macros with increasing crude oil prices and depreciating rupee
v) Trade war fears between US and China, rising interest rates, continuous selling by FIIs
vi) Panic in market due to liquidity concerns, IL&FS default on debt repayments
vii) Political uncertainty with setback of BJP in assembly elections in 3 key states
viii) Concerns in market due to severe sell off in large caps stocks like Zee, Tata Motors
ix) Panic arising due to stock prices of ADAG companies falling line nine pins
x) Defaults on payment by well known companies like DHFL, Cox & Kings etc
xi) Economic slowdown with automobiles sales hitting multi years lows in 2019
xii) Selling by foreign investors after introduction of super rich tax by FM in the Budget

Small Cap Index has not delivered negative returns for 2 consecutive years in past 16 years

We believe this is a blessing in disguise because for the first time in many years, several small companies having robust business fundamentals are available at attractive valuations. Do you know in last 16 years, small cap index have not given negative returns for 2 consecutive years. In 2018, BSE Small Cap Index has given negative returns of -23.4% and since beginning of this year, index is down by another -11.6%. Below is the table which indicates Small Cap Index returns YoY since 1st April 2003 (the data is available from April 2003 onwards only in BSE).
BSE Small Cap Index YoY Returns
Whenever, Small Cap Index delivered significantly high negative returns in a particular year during last 16 years, it has delivered double digit positive returns the very next year. While Nifty and Sensex which are hovering near their life time high and are down by roughly 6% from their peak, Small & Mid Cap Index have underperformed by wide margin and is down by 35% and 25respectively from their peak made in Jan 2018. The divergence between Sensex / Nifty and Small & Mid Cap Index will not last for long going forward considering valuations gap emerging between large caps in comparison to mid & small cap stocks.

Tide to turn favourable sooner than later for small cap stocks

If you analyse the bear phase of stock markets cycle since 1990, you will find that such bear phase has not lasted for more than 18 months. Small cap index which made high in Jan 2018 with end of its bull run has already corrected by -35% from its peak of 20,184 in last 18 months. Taking clues from history, we believe we are close to end of bear cycle in broader market after which stock prices of small and mid-caps will start recovering by going up and further up.

With fear of losing capital and dampened sentiments towards broader markets, small cap stocks are falling like nine pins these days. We have observed a lot of hopelessness towards broader market as Investors who started investing in equities during 2017 and 2018 are not willing to invest in this space due to pain of high negative returns in their portfolio and pessimism towards broader markets.

Series of negative developments have made Investors taking back seat in terms of investing in broader markets. Earlier, Yes Bank and DHFL were dumped by Investors due to default risks and liquidity concerns, followed by severe correction in Essel group stocks like Zee, Dish TV etc due to high debt and later ADAG group stocks spoiled market sentiments. Payment default by Cox and Kings is the recent episode of ongoing crisis in markets. Collapse in stock prices of such well known and bigger companies butchered investors faith and interest towards investing in small and mid cap companies.

Usually bottom is made during these panic times which we are witnessing currently with series of negative news flow. Once broader market start factoring all these negatives, the focus will shift towards individual company's earnings growth and current valuations which will drive stock prices up in coming quarters.

Greed which was seen in broader market (small & mid caps) in the year 2016 and 2017 has turned to fear these days. During last few weeks, we have received many mails from our members seeking advise in terms of which Hidden Gems / Value Picks stocks they continue to hold and which ones to exit. Are you also fearful? This is the time to do opposite of the herd, its time to be greedy when others are fearful. If you are not investing in equities during these opportune times and taking the back seat, you are making a bigger mistake. If you have invested in markets during 2016 and 2017 when valuations of companies were significantly higher compared to today’s valuation, why you have stopped investing now?

Remember, in the long run, you do not make decent returns on your investments by following the herd i.e. when everyone is buying stocks; instead you get handsome returns on our investments by investing in stocks at significantly low prices as no one else is buying, and by selling to them when they come back in herd due to greed in future.

If you are not a long-term investor and thinking to make quick bucks by timing the market, it could be risky. Hence, we advise to invest only keeping a longer time horizon, minimum 2 to years or more. In fact, to make enormous wealth from equities, you should have horizon of 10 to 20 years so that you can experience 2 to 3 market cycles and reap maximum reward during bull phase of equity markets. We do not believe in timing the market and hence advise our members to follow a discipline approach, but it’s wise to turn aggressive in terms of equity investing during panic times which we are experiencing now.

“The first rule of investment is ‘buy low and sell high’, but many people fear to buy low because of the fear of the stock dropping even lower. Then you may ask: ‘When is the time to buy low?’ The answer is: When there is maximum pessimism.”
Sir John Templeton

Its important to be a disciplined investor who keep on investing in systematic way irrespective of market conditions and not an emotional investor who usually buy stocks during bull phase when stock prices are moving higher because of greed and sell them in panic or stop investing during bear phase due to severe fall in stock prices, making mistake of buying high and selling low.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan

Friday, July 26, 2019

Small Caps - Biggest Wealth Creating Opportunity of 2019

Dear Reader,

There is lot of hopelessness along with fear towards small and mid caps in 2019.  The reason is the carnage in stock prices of many well-known companies. Retail investors have taken the back foot and lost their faith and conviction towards investing in small and mid caps due to existing pain in their portfolios.

Despite that we are quite excited about opportunities emerging in small and mid cap space. You may argue that most of small and mid caps have wiped out your hard earned gains over last couple of years. In fact those who invested in small caps over last 2 years are sitting on significantly higher losses and may be thinking to stay away from them.

However, we beg to differ. We firmly believe that these are the opportune times to invest in broader markets instead of large caps. During bear phase in broader markets, negative sentiments around small and mid caps have brought down excellent businesses down to historically low valuations. The fall in stock prices of many small and mid caps by more than 50% from their peaks has not happened for the first time. This has happened in past and companies with good business fundamentals have always bounced back strongly.  When overall market sentiments are negative like we are witnessing now, quality businesses also face the heat. As bad stocks go down, good stocks go down with them too. But good companies make a stronger come back with earning revival once economy cycle starts its upturn.

Let us share some valuable insights to make you understand why we believe buying the right set of small and mid caps now can be a massive wealth creating opportunity in the long run. To make our readers understand bull as well as bear phase of markets, we have covered long term monthly charts of some of our own small and mid cap stocks recommendations (released under Hidden Gems and Value Picks) over last 9 years which at one point of time were down by 50% to 70% from their peak but turned out to be multibagger stocks in longer run delivering 5x to 64x returns.

Below are the Monthly Chart (since Jan'10) of 8 Multibagger Small Cap Stocks released under Hidden Gems service. 

1. Camlin Fine Sciences (Hidden Gem released on 27th Mar'11) - Read Old Report

Multibagger Small Cap Stock 1 - Camlin Fine Sciences

Above is the monthly chart of Camlin Fine Sciences which we recommended as Hidden Gem on 27 Mar’11 at 6.05*. The stock made life time high of 155 in Jan 2018 and later crashed to lows of 36.70. At current price of around 60, it is still a 10-Bagger for investors who bought it during lows of 2011 or 2013 but those who invested later during 2015 – 2017 period are bearing losses as of now.

2. Kovai Medical (Hidden Gem released on 27th Oct'11) - Read Old Report

Above is the monthly chart of KMCH since Jan 2010, Kovai Medical stock price made a high of Rs. 176 in Feb 2010 and low of Rs. 89.50 in 2012 when overall market sentiments were negatives. Later in 2014, stock rallied more than 400% in matter of 12 months. Kovai Medical price fell by 56% from high of 1480 in Jan 2018, a 8-Bagger stock even after severe fall in stock price for those who invested in the company in 2012.

3. Roto Pumps (Hidden Gem released on 05th Aug'12) - Read Old Report

Multibagger Small Cap Stock 3 - Roto Pumps
Let us look at monthly chart of Roto Pumps since Jan 2010, stock which turned 10-Bagger in matter of 16 months. Roto Pumps which witnessed correction of 60% in stock price in 2011 from high of 2010, rallied by more than 900% later in 2014. At current levels, Roto Pumps is a 13-Bagger stock for investors who bought it at lows of 2011.

4. Acrysil (Hidden Gem released on 25th Nov'12) - Read Old Report

Multibagger Small Cap Stock 4 - Acrysil
Above is the monthly chart of Acrysil  from Jan 2010. Acrysil stock price fell by 48% over 2 years from its peak of 2010. With improvement in fundamentals and start of bull cycle, stock delivered 588% returns within one year. It is still a 9-Bagger stock for investors who bought it in 2012 or 2013 and a 4-Bagger for those who invested at high in Jan 2010 and later experienced negative returns for nearly 4 years.

5. TCPL Packaging (Hidden Gem released on 31st Jan'13) - Read Old Report

Above is the monthly chart of TCPL Packaging since Jan 2010. In 2014 with start of bull cycle in broader market, stock delivered 1100% returns in 2 years, turning 12-Bagger stock from initial high of Nov 2010 and 22-Bagger from lows of 2011. TCPL Packaging is down by 60% from its all time high but it is still a 5-Bagger stock for investors who bought it at highs of 2010 and still holding it.

6. Rane Brake Lining (Hidden Gem released on 31st May'14) - Read Old Report

Multibagger Small Cap Stock 6 - Rane Brake Lining
Rane Brake Lining is our Hidden Gem stock recommended on 31 May 2014. During recent melt down in broader markets, stock witnessed price correction of 67% over last 2 years. Even when stock is down from all time high of 1450 hitting recent lows of 505, it is a 4-Bagger stock from highs of Nov 2010. Those who invested at high of Nov’10 were sitting on losses in the same stock for more than 3 years.

7. Visaka Industries (Hidden Gem released on 05th Jul'15) - Read Old Report

Multibagger Small Cap Stock 7 - Visaka Industries


Above is the monthly chart of Visaka Industries since Jan 2010. Between Feb’16 to Jan’18, stock turned 9-Bagger delivering 853% returns in 2 years. Since then stock price has corrected by 68% making recent lows of 265 but is still a 5-Bagger stock for investors who invested in the same company 7 to 8 years back during 2011 – 2012 and a 2-Bagger for those who invested in 2015 - 2016.

8. Stylam Industries (Hidden Gem released on 08th May'16) - Read Old Report

Multibagger Small Cap Stock 8 - Stylam Industries
Stylam Industries has delivered maximum returns of 6304% in last 9 years. A mind boggling mega 64-Bagger stock which moved from lows of 13.35 (Nov 2011) to high of 855 (July 2017). We recommended Stylam Industries as Hidden Gem on 08 May 2016 and advised to book full profits around 800 levels  considering expensive valuations of the company. Its interesting to note that the stock which delivered maximum returns of 64 times over last 9 years was down by more than 70% by Nov 2011 from its peak of July 2010.

Below are the Monthly Chart (since Jan'10) of 5 Multibagger Mid Cap Stocks released under Value Picks service.

1. Aurobindo Pharma (Value Pick released on 27th Jan'13) - Read Old Report

Multibagger Mid Cap Stock 1 - Aurobindo Pharma


Aurobindo Pharma, a well known company from pharma sector, was recommended as our Value Pick stock on 27 Jan 2013. Stock which made low of 41.52* witnessing fall of 70% from its peak of Jan 2011 later delivered 1200% returns in matter of 2.5 years. Aurobindo Pharma is still a 15-Bagger stock for investors who invested in the company during lows of 2011.

2. Mindtree (Value Pick released on 23rd Mar'14) - Read Old Report

Multibagger Mid Cap Stock 2 - Mindtree

Let us look at monthly chart of our another Value Pick stock – Mindtree recommended on 23 Mar 2014. Mindtree also witnessed severe correction of 61% from its peak of Jan 2010 and tested patience of investors for nearly 4 years. Those who stay invested and sit patiently on the stock were rewarded over next 2 years as stock rallied from 195* to 795* delivering more than 300% returns.

3. Heritage Foods (Value Pick released on 03rd Jan'16)

Multibagger Mid Cap Stock 3 - Heritage Foods

Above is the monthly chart of Heritage Food of last 9 years. During bear phase of 2011 – 2012, stock price fell by 52% from its peak price of 2010. However,  the same company delivered 525% during bull phase in matter of 30 months. Stock made all time high of 884 in Oct 2017 turning mega 28-Bagger stock from lows of Jun 2012.

4. Can Fin Homes (Value Pick released on 29th Feb'16) - Read Old Report

Multibagger Mid Cap Stock 4 - Can Fin Homes
Can Fin Homes witnessed severe correction of 67% from its peak during last year. However, the same stock created significant wealth for investors who invested in the company during beginning of this decade. Even after severe correction in stock price over last 2 years, stock is a 12-Bagger for investors who invested in the company at high of 2010 and a 20-Bagger who invested at lows of 2012.

5. Sonata Software (Value Pick released on 10th Jul'16) - Read Old Report

Multibagger Mid Cap Stock 5 - Sonata Software
Above is the monthly chart of Sonata Software since Jan 2010. The stock price fell by 76% in 2 years from high of 69 made in April 2010. Investors who bought at highs of Apr 2010 were in losses for almost 5 years but those who held it tightly were rewarded handsomely over next 4 years. Sonata Software made all time high of 428.40 in Sept 2018 turning 7-Bagger for those who entered at highs of 2010.

Looking at long term charts of most of the companies with good businesses, you will realise that investors who entered in market by investing in small and mid caps during last 2 to 3 years have pain in their portfolio however those who invested in bad phase of market in 2011 - 2013 like that of today are still holding plenty of multibaggers in their portfolio. That is why its important to invest in equities keeping a real long term view. In fact, during turbulent times, we must increase investments / equity allocation in small / mid size companies which have good business fundamentals with better earning visibility and robust cash flows from their operations to get rewarded in big way in long run.

BSE Small Cap Index went up by 69% in 2014 and during the same year numerous small and mid cap stocks turned multi-bagger delivering mind boggling returns. Scenario was similar in 2017 when BSE Small Cap Index rallied by 58%, later broader market went into bear grip with significant sell off in many small and mid caps due to expensive valuations and series of negatives developments followed by slowdown in economy.
BSE Small Cap Index YoY Returns since 2003
If you analyse BSE Small Cap Index YoY returns, you will realise that small cap index not only recovered but also delivered astonishing returns in short span of time once tide turns favourable. In last 16 years, small cap index delivered significantly higher returns in single year every four years. In past, we experienced fierce rally in small caps in years like 2007, 2009, 2014 and 2017. We have seen in monthly charts of various stocks, how these stocks turned multibaggers in period of 12 to 24 months during bull phase of stock market.

Coming back to the current situation, the small cap index is down by 35% from its peak made in January 2018. The liquidity crisis in NBFCs, the DHFL and IL&FS defaults, series of rating downgrades by rating agencies, lenders dumping stocks of debt laden companies and recent slowdown in economic growth have taken the steam out of small caps. Fear and misinformation has shattered investor’s confidence and hence quality businesses are back to cheap valuations.

Do not stop investing in small caps looking at these turbulent times, its time to do the opposite, this phase has happened before and small and mid caps have always bounced back. Good sentiments as well as bad sentiments do not last forever.
ription of Hidden Gems, Value Picks, 15% @ 90 Days & Wealth-Builder) is the best selling subscription service at Saral Gyan, we have registered maximum subscription of Combo 1 since beginning of this year followed by Combo 2 subscription. We keep on updating our members on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.

Below are the details of our services:

1. Hidden Gems (Unexplored Multibagger Small Cap Stocks): Based on fundamental analysis, our equity analysts release one Hidden Gem research report every month with buy recommendation and share it with all Hidden Gems members. Stock finalized as Hidden Gem belongs to small / micro caps space with market cap of less than 500 Crores, expected returns from Hidden Gems is above 100% in period of 12 - 24 months. Once target is achieved, we inform our members whether they should continue to hold the stock or need to do partial / full profit booking. If fundamentals are intact and valuations are reasonable, we suggest to continue to hold the stock for long term for multibagger returns. Annual subscription charge of Hidden Gems is INR 10,000 9,000 under which you will receive total 12 Hidden Gems research reports (one on monthly basis). Click here to read more about Hidden Gems.

2. Value Picks (Mid Caps with Plenty of Upside Potential): Our equity analysts team consider Warren Buffet approach to short list stocks from mid cap segment as Value Picks. Market cap of Value Pick will range from 1000 crores to 10,000 crores. Holding period of Value Picks is 12 - 24 months and one can expect returns of 40-50%. Annual subscription charge of Value Picks is INR 6,000 5,400 under which you will receive total 12 Value Picks research reports (one on monthly basis). Click here to read more about Value Picks.

3. 15% @ 90 Days (Buy to Sell Stocks for Short Term Gain): Based on technical analysis, our team recommends one stock every month to our members. It’s a short term call under which you can expect returns of 15% within period of 90 Days. Annual subscription charge of 15% @ 90 Days is INR 4,000 under which you will receive 12 stock recommendations. We suggest lower allocation in 15% @ 90 Days stocks and higher allocation in Hidden Gems and Value Picks which are our portfolio stocks based on fundamental analysis.​ 15% @ 90 Days stocks recommendations are based on buy to sell and gain strategy, hence we suggest our members to book complete profits once target is achieved and exit in case target is not achieved or stock has broken its 2nd support level as per report. Click here to read more about 15% @ 90 Days.

4. Wealth-Builder (An Offline Portfolio Management Service): Wealth-Builder is our model portfolio of Rs. 10 lakhs and currently we are holding 16 stocks in our portfolio. We suggest higher allocation in our Wealth-Builder stocks which includes best of our Hidden Gems and Value Picks released during last couple of years. Our team suggest all our Wealth-Builder members to invest in the stocks which are part of our Wealth-Builder portfolio. Every month our team updates our Wealth-Builder members which stocks they need to buy / sell / hold with % allocation of these stocks in their portfolio, the suggested changes need to be replicated in the same proportion. Annual subscription charge of Wealth-Builder is INR 20,000 18,000 under which you will receive total 12-18 portfolio updates. We also review existing equity portfolio of our members and advise them which stocks to hold and which to exit based of fundamental analysis. Moreover, we do look at sector wise / stock wise allocation in the portfolio and advise in case of any corrective measure needs to be taken by increasing or decreasing the stock specific allocation. Our Wealth-Builder service is suitable for those investors who have an existing portfolio of at least 2 to 3 lakhs or planning to invest similar amount or more in equity market. Click here to read more about Wealth-Builder.

Do contact us in case of any queries, we will be delighted to assist you.

Wish you happy & safe Investing. 

Regards, 
Team - Saral Gyan