Dear Reader,
Since Oct 2024, we have seen significant correction in major indices as well as broader markets. While Sensex & Nifty are down by around 15% from their all time high, BSE Small Cap Index is down by more than 25% now. Most of the small and mid caps (which turned expensive last year) have witnessed a fall of 30% to 50% from their 52-week high price over the last couple of months.
FII selling in Indian markets has been relentless over the past few months. Foreign institutional investors (FIIs) have sold Rs. ~3.3 lakh crore worth of equities in Indian markets since Oct 2024. Weaker than expected corporate earnings, rupee’s weakness, higher valuations of the Indian markets and US trade war have been some of the reasons why the FII outflow continues. Due to this, Indian equity markets continued their underperformance versus most global markets. Selling pressure in the large caps is having a domino effect in the mid and small cap space impacting sentiment across the broader market. Subdued earnings by the companies are expected to continue for a couple of quarters, this raised investors concerns, hence negative sentiments are weighing on the market.
Post severe correction over the last 5 months, the companies are in oversold zones and are looking attractive considering long term average valuations and dividend yields. While the BSE Small Cap Index is down by ~25% from all-time high, most of the small and micro caps are down by 40% to 60% from their peak without any major change in business fundamentals. Usually these types of sharp corrections are short-lived and give a good opportunity to long term investors to add fundamentally sound companies at discounted valuations.
Hence, we decided to release the next issue of our Special Report - 5 Stocks - Potential 5-Baggers in 5 Years so that our members can make some lump sum investment during this opportune time. Do consider giving higher allocation to equities over next few weeks / months as this seems to be the best opportunity to add stocks at steep discounts compared to historic averages. However, we need to be very selective while buying stocks, buying a company at a higher valuation can increase the holding period and decrease overall returns. The objective of picking 5 Small Caps is to achieve average annualized returns of 38% per year to achieve 5x returns in the period of next 5 years by investing in 5 small caps.
As illustrated in the table below, if these 5 companies generate returns on your investment @ 38% annually, your investment will be 5 fold in a period of 5 years. Even if we take conservative scenario considering that only one out of five achieve CAGR of 38% and remaining four delivers CAGR of 20%, your investment will be trebled (3 times) in period of 5 years which is also good compared to returns from any other asset classes like Fixed Deposits, Real Estate, Metals – Gold / Silver or even major indices - Sensex and Nifty.
Around 3 Years back on 29 May 2022, our equity analysts finalized the best investment opportunities from the small cap segment which have the potential to deliver excellent returns during the next 5 years. We released our Special Report - 5 Stocks - Potential 5-Baggers in 5 Years on 29th May 2022 and shared the report with our Hidden Gems and Wealth-Builder members. The objective of this report is to achieve average annualized returns of 38% each year to achieve 5X returns in a period of next 5 years by investing in 5 small caps. We are glad to inform you that our 5 potential 5-Bagger stocks (released on 29 May 2022), Som Distilleries and Cupid have already delivered more than 5X returns within a period of 2 years, Ador Fontech delivered more than 100% returns while remaining 2 stocks i.e. Asian Granito and Emmbi Industries delivered marginally positive to negative returns over the last 3 years.
Special Report - 5 Stocks - Potential 5-Baggers in 5 Years
Post recent market correction, we have identified a new set of companies (market capital less than 1,000 crores) available at attractive valuations having potential to deliver 5X returns over a period of 5 years. We are pleased to inform you that we will release our next issue of Special Report - 5 Stocks - Potential 5-Baggers in 5 Years on 30th March 2025. Under this report, we will cover 5 companies sharing each Company's Background, Recent Updates & Developments, Investment Rationale guiding our members to make informed investment decisions. If we find any major change in fundamentals in any of these 5 stocks which can impact their performance going forward, we will inform our members to take corrective measures.
Note: If you wish to receive our Special Report 5 Stocks : Potential 5-Baggers in 5 Years Update (to be released on 30 March 2025), simply subscribe to Hidden Gems or Wealth-Builder service, or any of our Hidden Gems combo packs and we will send you the report without any extra charges! We will share this report with all our existing subscribers of Hidden Gems and Wealth-Builder service. Simply subscribe to our services and grab our Special Report - 5 Stocks - Potential 5-Baggers in 5 Years for Free!
Few important parameters which have been looked by our equity analysts while finalizing the stock selection are as under:
- Market leader in the business / any one segment in which the company is operating.
- Scalable business with significant moat (sustainable competitive advantage)
- Prudent Management with promoters increasing their shares holding in the company
- Low / manageable debt on books with healthy cash flows.
- CAGR of above 15% with an increase in operating and net profit margins in the last 3 / 5 years.
- Consistent dividend payment with expected increase in dividend payouts in coming years.
- Growing EPS, low PB ratio with increasing ROE and ROCE over the last 5 years.
- Low share holdings of Institutions (FIIs & DIIs) to get first mover advantage.
Each parameter is equally important and plays a vital role to ensure that you get healthy returns on your investment with limited downside risk in the long term. One of the important keys to successful investing is to pick the right business at decent valuations. Once you buy shares, you own a part of the company's business.
While determining which stocks to consider as a long term investment opportunity for generating 5-Bagger returns, we looked into below 5 value drivers:
i) Does the company offer a product or service that has broad acceptability in a large, growing market?
ii) Does the company have healthy margins, and are they sustainable over a longer period of time?
iii) Can a company generate significant amounts of cash without resorting to expensive debt?
iv) Can a company return the cash generated to its shareholders by declaring generous dividends?
v) Is the company’s management honest and competent, with hunger to grow business at a faster pace?
We at Saral Gyan recommend good businesses to buy with a long term view and any change in our stock views will be based on strong structural trend and not on any short term movement.
If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong micro, small and mid cap companies - Nano Champs, Hidden Gems and Value Picks. Moreover, if you have invested in stocks and believe that your investments are not performing well, subscribe to our Wealth-Builder service and get your portfolio reviewed by us. We will review fundamentals of the companies you are holding and guide you which stocks to hold and which to exit. We will also review your equity investments across sectors and companies to ensure that your portfolio allocation is right and outperforms major indices giving you better returns in the medium to long term.
The recent correction in broader markets since the last 3 months is giving a good opportunity to long term investors to add good quality small and mid caps at discounted price. The BSE Small Cap Index which made an all time high of 57827 in Dec 2024 is now hovering at 43845 witnessing correction of ~24 percent, steep fall in stock prices of small and mid caps over the last couple of months has turned many stocks valuations reasonable to attractive.
Hence, we decided to pass on the maximum benefits by offering great savings and valuable freebies under Saral Gyan Holi Dhamaka Offer 2025. 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 20 Mar'25 only)
Discount of 10% on individual services, and up to 30% on Combo packs
2. Special Report - 5 Stocks - Potential 5-Bagger in 5 Years (To be released on 30 Mar'25)
Applicable under Hidden Gems / Wealth-Builder subscription
3. Special Report - 5 Hidden Gems to Buy / Accumulate (Released on 23 Feb'25)
Applicable under Hidden Gems subscription only
4. Special Report - 5 Value Picks to Buy / Accumulate (Released on 02 Feb'25)
Applicable under Value Picks subscription only
5. Portfolio of 10 Small & Mid Cap Stocks for FY25-26 (To be released on 30 Mar'25)
Applicable under Hidden Gems / Value Picks / Wealth-Builder subscription
6. Existing Portfolio Health Check Up (Review of existing stocks)
Applicable under Wealth-Builder subscription only
Below table indicates subscription services and discounted prices valid up to 20 March 2025.
SARAL GYAN SUBSCRIPTION SERVICE | HOLI DHAMAKA 2025 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.
Through Nano Champs, Hidden Gems and Value Picks, we are providing you opportunities to invest in such micro, small and 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.
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.
The stocks we reveal through Nano Champs, Hidden Gems & Value Picks are companies that either under-researched or not covered by other stock brokers and research firms. We keep on updating our members on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.
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.
Grow your Wealth by Investing in Potential Multibagger Small Caps
It's a fact that 92 Hidden Gems stocks out of 130 released during the last 14 years have given more than 100% returns to our members. Moreover, 49 stocks out of these 92 turned 5X to 70X delivering returns in the range of 400% to 6900%. 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 etc are some of our multibagger stocks which have given whopping returns in the range of 900% to 7000%.
We do update our members in terms of profit booking / exits depending upon various factors like overall Industry / Sector outlook, fundamentals of the company, management action plan and annual performance in terms of top line, bottom line, operating margins and other important parameters.
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.
Enjoy great savings and receive valuable freebies under Holi Dhamaka offer. Hurry! This is a limited period offer, closes on 20th March 2025.
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
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