Avoid this one mistake in Stock Market || Beginners Guide.

Most common mistake most investors do is that they buy price not business. If you ask some person that what stock you want to buy in 10000 INR, 1000 share at price of 10 or 10 share of Price 1000. Then most of the new investor prefer the first.Many still believe that 10 INR stock can go to 100 quickly and they can make huge but this is not the case.

Not all penny stocks become multibagger, 1 in 20 stock only sail through , rest all either depreciate or just remain at same level. Let’s have look at this with example.

Here Name of Stock A is Suzlon and Name of Stock B is Britannia.

In 2013 Suzlon and Britannia were same in size in term of m-cap only difference was the price of both.
After 5 years Suzlon is at same level while Britannia multiplied 7 times. Intelligent investor is one who pick a stock base on the Business model of company not the price of stock.

For any new investors , we highly recommend not to buy any penny stocks until they understand this market. Most of the new investors made mistakes initially and left the market with losses before they realize true potential of market. Comment your value destroyer stocks.

Be Smart. Invest Smartly.

Wealth Creation Idea : Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has 8 Plants- in Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. It offers more than 2,600 options in ceramic wall & floor tiles, vitrified tiles, designer tiles. Kajaria Ceramics exports to more than 30 countries round the Globe.

Financial Performance :

• M-cap:  INR 11633 cr
• CMP:  732 INR (27th Nov 2017)
• EPS: 15.13 INR
• PE: 48.3
• Debt equity ratio :0.17
• Book Value: 82 INR
• Promoter Share holding is 47.39 %.
• DII/FII/FPI Share  holding 29.14%

Why Kajaria Ceramics?

• Company has consistent profit growth of 27.25% over 5 years.
• Distribution Network of strong and loyal 1200 dealers all over the country.
• Company is going to Expand the ‘Prima Plus’ channel network from the current 41 showrooms to 100 showrooms by March 2019.
• Good return on equity track record: 3 Years ROE 27.33%.
• According to CLSA, India expects to build 60 million new homes to be built between 2018 and 2024.
• Smart Cities Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation, Urban Transformation (AMRUT) and Housing for all by 2022 is expected to provide significant impetus to the demand for tiles.
•  Biggest organized player in Ceramics business in India.
• 29 Year of Business Experience. 
• Due to GST implementation, Organize player like Kajaria get preference in consumers as Price difference between organize and unorganized player decrease.

For long term investment this stock best suited. Next 5-7 year Kajaria ceramics can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Power My Portfolio Value Pick: Tata Elxsi Ltd.

Tata Elxsi is part of Tata Group providing design and technology solutions. It servers broadcast, consumer electronics, healthcare, telecom and transportation, Infra industries. Company is Leading player in Big Data Analytics and IoT solution. Tata Elxsi’s Industrial Design division helps customers develop endearing brands and products by using design as a strategic tool for business success.
It won International iF Design Award 2017 for design excellence.
 

It’s Transport Design Portfolio includes Indian Multi-Role Helicopter (IMRH), Kochi Metro Rail, Light combat helicopter, Business jet interiors etc. Tata Elxsi's Visual Computing Labs (VCL) is one of the leading animation and visual effects studio in India.Company has good consistent profit growth of 38.35% over last 5 years


Finance Performance:

• M-cap: INR 5804cr
• CMP: 932 INR (21 th Nov 2017)
• PE: 28.4
• EPS:32.7 INR
• Book Value: 91 INR
• Share capital is 31.14 cr of FV 10.
• Promoter Share holding is 44.63 %
• FII/DII share holder include prominent name like Morgan Stanley, LIC, Motilal Oswal

Company is Smart Solution provider for Auto, Transport, Infra segment. And India’s Smart City project will generate huge demand in this segment. IoT, Big Data, Virtual Reality are emerging technology and Tata Elxsi  Market Leader in this technology in India. For Next 5 years , Tata Elxsi can outperform the market. It can deliver 3x-5x Return in next 5 year.


Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Power My Portfolio Value Pick : Nilkamal Ltd

Nilkamal is the world's largest manufacturer of molded furniture and Asia's largest processor of plastic molded product. 

 

Nilkamal Core Business  include:

•     Material Handling Solutions,
•     Moulded Furniture,
•     Nilkamal Mattrezzz,
•     Nilkamal Home Ideas,
•     @home, the Mega Home Store Retail Chain

Company has 8 large manufacturing plant across the Indian.Nilkamal products are available in as many as 30 countries. Mr VAMANRAI V PAREKH is the Chairman of the Nilkamal Board of Directors. With 60 years of experience in the plastics industry.Nilkamal Furniture sold on most of the store in India and also online shopping site like Amazon.


Current Price of Nilkamal is 1610 INR (21th Nov 2017).

Market cap: INR 2399 cr

EPS:79.38 INR
PE:19.9

Being dominant player in its sector, this stock has huge growth potential.
For next 3-5 years view, this stock can deliver multibagger returns.

Be Smart. Invest Smartly.

 

Disclaimer : Please take advice of your financial advisor before any investment.

3 Deadly Sins of Stock Market.

Have you ever think why new investors most of time failed in market.  ? Why only few make real money in stock market? What new person in stock market should do or should not do?  If yes I have answer to the root of this problem.

There 3 common mistakes that most investors do. I call them 3 Sins of Stock Market. 

1.Losing Money:

Most Investor knows this basic rule “Never Lose Money”. But still they end up losing money.  Because they keep holding the looser in hope of recovery. Simply say if you have purchased stock and it went down by 20%. And you wait as you not want to lose money. But this same stock has capability to go more 20% down. Not taking loses in market is biggest mistake most of investors do. Short term downside is normal, but if stock is going down for years or not moving for years then this is also one kind of loss as you are missing opportunity to allocate this money to some other good stock.  Remember there is no Successful investor who didn’t book loses. Taking lose is part of Journey and Investor must accept it.

      2. Buying Quantity then Quality:  

      Every new investor does this mistake.  They like buy 100 stocks of 10 over 1 stock of 1000.  Cost is same but he thinks he will get better chance with 100 stocks then 1. But in market price doesn’t matter.  In both case investment amount is 1000. And in both cases if stock goes up 10% you make 100 profits. So your buying decision should not be just on price factor. I have seen stock worth of 5000 in my career which I didn’t added because of price and same stock is now 22000 in 4 years and still going up. And I also seen stock which was 20 buck 4 years ago and still around 20 odd today also. Yes I am taking about Eicher Motors and Suzlon.

         3. Selling Winners:

       This is where successful investor standout form ordinary investor. Buy Right and Sit Tight. When you get stock which has shown potential to go up, you should not sell it for ordinary profit unless it’s really necessary. Stock which went up 50% has capability to go 100%. Smart Investor is one who adds stock on raise not on fall. Averaging should be done for stock which has shown its potential to go up not for stock which has shown its potential to go down.  Buy correct stock and let compounding do its magic.

     "To make money in stocks you must have the vision to see them, the courage to buy them   and         the patience to hold them. Patience is the rarest of the three." — Thomas Phelps

                                                            Be Smart. Invest Smartly.