Dear Investors,
We always want to add more and more VALUE to the service which we offer to OUR SUBSCRIBERS of SOKHI TEAM, we have released a HIDDEN GEM STOCK - PXXX XXRX " We expect company will continue to deliver similar growth in top line and bottom line like that of last 3 years from its business "
Its one the the BEST STOCK to BUY and KEEP in your PORTFOLIO - ALL Members of SOKHI TEAM have take position in this SMALL CAP all set to be a LARGE CAP in years to come. SOKHI HIDDEN GEM is a Value Added Service which you get once become a Member of our SOKHI TEAM [ Included in Nifty Pack and FULL PACK ] to know more call us at 09239176426.
Power of Investing in Small Caps
On 2 January 2002, Crompton Greaves had a market cap of Rs 115 crore and its stock was at Rs 1.80. NOW, on 08th May'14 the stock price is at Rs 167-169 and the company's market cap is Rs 10,611 crore. Rs 1 lakh invested Crompton Greaves in Jan 2002 is worth Rs. 92 lakh today.
It has been one of the wealth creators in the Indian stock market which has given almost 50 percent annualized return to investors over the last 12 years.
Lets take another example of little known company Mayur Uniquoters which is our 5-Bagger stock. We recommended this stock 2 years back at price of Rs. 56 (adjusted price after 2 bonus issues and stock split in last 2 years, actual recommended price was Rs. 448) and today it's at Rs. 305. In fact, its a 100-Bagger stock for investors who invested in it 5 years back. Company has posted strong growth YoY and rewarded share holders in big way, Company was trading at Rs. 3 (bonus / split adjusted price) with market cap of merely 13 crores in 2009, today market cap of the company is 1,300 crores and company has paid total dividend of Rs. 9.25 during 2013 which is 3 times of its share price in 2009. Company is still a great value stock considering its consistent performance and leadership position in artificial leather industry and robust demand for its products by esteemed clients from auto and footwear industry.
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 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.
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.
JOIN SOKHI TEAM TODAY and GET this value added service of SOKHI HIDDEN GEM and also GRAB this STOCK available at our recommended price :-)
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