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We thank you for your appreciation and support for making Hidden Gems as one of our most admired services. Hidden Gems ranks on top not only in performance but also on Google search engine. You can try it yourself by searching "Hidden Gems SIP" or "Unexplored Multibagger Small Caps" or "Best Hidden Gems Micro Caps" on Google, you will find our website www.saralgyan.in
It's a fact that 78 Hidden Gems stocks out of 120 released during the last 12 years have given more than 100% returns to our members. Moreover, 42 stocks out of these 78 are giving returns in the range of 400% to 7000% (i.e. 5-Baggers to 70-Bagger stocks). Stocks like Cera Sanitaryware, Camlin Fine Sciences, Acrysil, Balaji Amines, Kovai Medical, Wim Plast, Mayur Uniquoter, Dynemic Products, Roto Pumps, TCPL Packaging, Globus Spirits, Rajratan Global Wires, Stylam Industries, Control Print, Mold-Tek Packaging etc are some of our multi-bagger stocks which have given whopping returns in the range of 900% to 7000%.
Investing in stocks 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 equities for the long term. It not only allows you to save every month in a disciplined way but also helps you ride through ups and downs of the stock market.
Invest some portion of your monthly income in good companies without timing the stock market and you will definitely get rewarded in the long run. Just take care of Basic Principle of Investing in Equities:
1. Invest in the 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 a 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, It's 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 Stocks - Average Returns of 126.4% in 3 Years
Hidden Gems continue to shine giving higher returns compared to all major indices. As on date, average returns of the last 26 Hidden Gems stocks released over the last 3 years is 126.4%. Below is the performance update of Hidden Gems stocks released over the last 3 years.
13 Hidden Gems stocks i.e. Lincoln Pharma, Pix Transmission, GEE, Ador Fontech, Uni Abex Alloy Products, Bhagyanagar India, Cupid, Som Distilleries, Patels Airtemp, Dynamic Cables, Indag Rubber, Pakka and V2 Retail turned multibagger delivering returns in the range of 90% to 730%.
Time has shown that smart investors have made their fortune by investing in equities in the long term. None other asset class can match giving you such extraordinary returns. Yes, it's important for you to invest in the right set of companies at the right price.
Multibagger Stocks which can multiply Investments in Future
The number of small-cap stocks is large and finding a quality stock that can give high returns over a long period is tough even for equity analysts. One reason is that such stocks usually have a short history and are not tracked by many analysts and brokerage houses. Then there are risks such as low liquidity, governance concerns and competition from larger players.
Scores of once small companies have over the years grown big, giving investors a 30-50 percent annual return over 10-15 years and creating fortunes for investors. However, more often than not, we find ourselves at the wrong side of the fence and regret our inability to spot such stocks on time.
Benefits of Investing in Small Caps
1. Huge growth potential: The first and the most important advantage that a small cap stock gives you is their high growth potential. Since these are small companies they have great scope to rise as opposed to already large companies.
2. Low Valuations: Usually small cap stocks are available at lower valuations compared to mid & large caps. Hence, if you invest in good small cap companies at initial stage and wait for couple of years, you will see price appreciation not only because of growth in top line and bottom line but also due to rerating which happens with increase in market capital of the company.
3. Early Entrance Advantage: Most of the fund house and institutions do not own small caps with low market cap due to less liquidity which make it difficult for them to own sufficient no. of shares. This gives retail investors an opportunity to be an early entrant to accumulate such companies shares. When company grows in market cap by delivering consistent growth and becomes more liquid, entry of fund houses and institutions push the share prices up with re-rating of stock giving maximum gains to early entrants.
4. Under–Researched: Small cap stocks are often given the least attention by the analysts who are more interested in the large companies. Hence, they are often under - recognized and could be under-priced thus giving the investor the opportunity to benefit from these low prices.
5. Emerging Sectors: In a developing economy where there are several new business models and sectors emerging, the opportunity to pick new leaders can be hugely beneficial. Also the disruptive models in the new age is leading to more churn and faster growth amongst the nimble footed smaller companies.
Buying Strategy for Small Caps
1. Go for companies with low debt ratio (preferably less than one)
2. A high interest coverage ratio (above 3x) and a high return on equity are big advantages
3. Avoid companies with huge liabilities in the form of foreign currency convertible bonds / external commercial borrowings
4. Look at the quality of the management, its governance standards and how investor-friendly the company is.
5. Mid-cap and small-cap companies can be future market leaders, so be patient with your investments
Those who wish to invest in small-cap stocks should do so only if they have a long investment horizon and tolerance for volatility. Small-cap stocks suffer the steepest falls in a bear market and rise the most in a bull market. An investor should stay invested for at least three-five years to allow their portfolio to gain from at least one bull run. If you are looking for multibaggers, stock must have high growth rates along with expanding PE ratios. The price we pay for the stock is important as it will determine whether there is enough scope left for a PE expansion to take place.
Concerns while Investing in Small Caps
1. Risk: The first and the most important disadvantage a small cap stock is the high level of risk it exposes an investor to. If a small cap company has the potential to rise quickly, it even has the potential to fall. Owing to its small size, it may not be able to sustain itself thereby leading the investor into great loses. After all, the bigger the company, the harder it is for it to fall.
2. Volatility: Small cap stocks are also more volatile as compared to large cap stocks. This is mainly because they have limited reserves against hard times. Also, it in the event of an economic crisis or any change in the company administration could lead to investors dis-investing thereby leading to a fall in prices.
3. Liquidity: Since investing in small cap stocks is mainly a decision depending upon one’s ability to undertake risk, a small cap stock can often become illiquid. Hence, one should not depend upon them for an important life goal.
4. Lack of information: As opposed to a large cap company, the analysts do not spend enough time studying the small cap companies. Hence, there isn’t enough information available to the investor so that he can study the company and decide about it future prospects.
If these factors scare you but you still want to gain from the upside potential of such stocks, Saral Gyan Nano Champs, Hidden Gems & Value Picks is a great choice for you. At Saral Gyan, team of equity analysts keep on evaluating micro, small and mid cap stocks to explore the best Nano Champs and Hidden Gems of stock market. Saral Gyan - Nano Champs, Hidden Gems and Value Picks are the micro, small and mid cap stocks with high probability to become multi-bagger stocks in future and a path for our investors to create wealth through equity investments in a long run. Multibaggers evolve over time, many successful investors follow plenty of processes to identify these stocks early and continue to ride them till they evolve as multibaggers.
Grow your Wealth by Investing in Potential Multibagger Small Caps
Moreover, under our Wealth-Builder service, we encourage our members to replicate our Wealth-Builder portfolio by investing in selective high quality small and mid cap companies. We believe, investing in Wealth-Builder portfolio with regular portfolio review from our end can help you achieve market beating, very good returns over a longer team and help you take care of yourself and your family needs, which ultimately lead to a healthy and wealthy life after retirement.
Do write to us in case of any queries, we will be delighted to assist you.
Wishing you Happy & Safe Investing!
Regards,
Team - Saral Gyan.
