Dear Reader,
Hidden Gem - May'14 research report has already been released by our team. Hidden Gem stock selected for the month is a small cap stock with total market cap of less than 200 crores.
Its one the the BEST STOCK to BUY and KEEP in your PORTFOLIO - ALL Members of SOKHI Team shall 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.
Our Hidden Gem stock of May'14 belongs to auto ancillary industry. The automobile sector is cyclical and dependent on the growth of the economy and improvement in infrastructure. Factors like increased public spending, favorable interest rates and general improvement in per capita income point towards higher demand for automobiles in the future. Also, government's initiatives in the infrastructure sector such as the Golden Quadrilateral project and NHDP (National Highway Development Programme) are likely to give boost to four-wheeler sales especially CVs. Just to put things in perspective, we expect CV segment to grow by 7% to 8%, 2-wheeler demand to increase by around 12% to 15% and passenger car sales growth at 10% to 12% over the medium to long term.
Hidden Gem Stock of May 2014
While finalizing Hidden Gem stock of the month from auto ancillary industry, our team has followed Walter Schloss priniciple's. Walter J. Schloss (August 28, 1916 – February 19, 2012) was a well-regarded value investor, as well as a notable disciple of the Benjamin Graham school of investing.
The legendary Walter Schloss checked the stock on the following 4 criteria to determine if the stock merits a place in the portfolio:
• Zero or very low debt equity ratio
• High Promoter holding
• Dividend yield of at least 3%
• Stock purchase price lower than book value
This company satisfies 3 criteria's out of 4 and offer good upside potential with limited downside risk in near future.
Few facts which make this company a right investment candidate for long term:
1. Company is making investment of more than 100 crores in next 2 years on research and development to maintain its leadership position in domestic market and also to increase its export business.
2. Company offers high quality products and its facilities are certified with international standards to ensure product quality to meet international requirements and supplies its products to more than 15 countries.
3. Besides the domestic market, company is also focusing on increasing its exports (which offer huge growth opportunity) targeting 15% of its sales contribution by 2015-16.
4. Management has rewarded share holders by paying regular dividends consistently since last 6 years, dividend yield at current market price is above 3.
5. Promoters share holding is well above 60%. Moreover, promoters have increased their share holding significantly doing open market purchases during last one year.
6. In terms of valuation, company is trading at estimated PE ratio of 6.5 and considering increase in revenues and better operating margins, it offers good investment opportunity for medium to long term investors.
Grab our Hidden Gem - May'14 research report and invest small portion of your savings in it for long term.
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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