Mazagon Dock rendered 400% returns from our buy-price in less than 2 years of holding. The current valuation is moderate at Book Value Ratio at 5X and PE Ratio around 23. But the Intrinsic Value Discount is still around 60% plus denoting there is growth left.
One can sell 20% or 40% now to get back your original capital & hold remaining for long-term. 5 Year 500% above is our real observation on performance through sales & profit expansions.
Following actions are advised in below multibagger stocks.
Nahar Poly Films The latest QR result displayed 90% reduction in Net Profits which is the primary reason the stock price is down. Tha promoters are increasing the holdings & long term 5 year view looks good on the stock for growth & recovery in price. Investor can add remaining 30% in current levels.
Carysil The current economic situation impacted the latest QR results by decrease of 40% in profits. The expansion plans are intact & the company have a strong brand. Investor can add remaining 30% in current levels.
Borosil Renewables The latest QR displayed 50% reduction in net profits. The future of solar photovoltaic panels looks good as the entire world is moving towards renewable energy solutions. Investor can add remaining 30% in current levels.
Shard Cropchem The previous QR displayed 80% reduction in net profits due to Forex-Explort related issues & the current quarter shows improvement. The company is into expansions with zero-debt strategy. Promoter holdings are increasing & Peak at 74% levels. Investor can add remaining 30% in current levels.
Market Updates As per the previous update – the current market entered a moderate bear phase. The current allocation level for equity:bond is 70:30 – one can invest 70% in new stocks & 30% on bonds/FDs. Once more correction are there we will change to 100:0 levels.
Note: The more we invest good stocks in bear times – the higher will be returns during bull times. Portfolio performance matters!
Market Updates As of today market restored the old peaks & positioned to go higher. The current investment to idle capital mix is 70:30 allocation. The 30% cash allocation allows to gain from any bear market opportunities.
Cochin Shipyard The stock run up giving 100% returns on the recommended price levels. The key factor is Quarterly Result boosing. The stock was promising duing pre-covid times & the last 2 years it has shown only a flat performance. Current Intrinsic Value Discount turned zero. One can sell 50% of holdings to free up your capital for new investment opportunities. Long-term investors can hold for 5+ years for more returns + as it is a high dividend yield one.
Nahar Poly Films witnessed 10% crash from the recommended price & recovered 5% from it. As informed in the report there could be up to 30% crash as we are aiming 300% above returns. So one should be using these as opportunities. There is NO linear upmove in stock prices without pullbacks.
Shard Cropchem witnessed 30% crash from the recommended price levels. This is a point of re-investing as the Intrinsic Value Discount is still 70% above. In the long run the stock should give higher returns & growth portfolio should cover the risk too.
MazagonDock gave quick returns in few months. Medium-term investros can sell 50% holdings to gain the capital back & allocate in new opportunities. Long-term investors can hold 5+ years for more returns.
US Stock market crashed 5% decisively yesterday over on Fed Rate & Inflation concerns. Chances are high that Indian Market to follow the same as NIFTY is in multi-year peaks. What we should be doing?
CLEAR OVER-VALUED STOCKS you can sell those over-valued High PE/No Intrinsic Value scrips. IV Calculator
KEEP ASIDE CASH it is a good idea to keep aside 30-50% cash for bottom value purchases.
TYPE OF INVESTOR if you are long-term minded then you would be given opportunities to buy more during bottom. On the contrary if you are short-term minded you will suffer losses & lack of peace of mind – upgrade yourself through Learning.
I was going through a Top Trader in India who was boasting 50% Profits. It is really impressive gain that Most Traders will not be able to Achieve 50% Profits. BUT Still he is at Loss!
Most Traders do not realize that Trading is an Active Income – It is comparable to your Job or Business where your Time, Energy & Infrastructure costs a lot to do trading. You need to Consider the Tax Implications, Expenses, Opportunity Cost of Time to come to the Real Profits.
In the following example, we are Calculating the Actual Trade Profit on Rs. 10 Lakh Capital. Although he made 50% Profits in current year – the Actual Profit is only 22% after considering all expenses.
As you can see from the above Calcuations, Instead of Trading he could have went with Passive Long-term Investing & Made 30% Easy Returns without all these hard works. In the past 2 years we had 100-150% returns also – but considering the long term we take only 30% as Long-term Investing Returns.
This is the reason why Warren Buffett do not trade.. why Ramesh Damani do not trade.. But Do Investing!
As of today the Bear Market corrections are happening in Indian Stock Market. This is a Reflection of the FED Interest Rate hike & Global cues. The corrections in Indian Stock market are mostly in Largecaps & the wave can enter Midcap/Smallcap space too within few weeks if the correction continues. The bottom will be deeper if the correction leads to a global recession.
Amateurs will be Fearful!
Those who have not undergone stock market training will fear bear market & do wrong thing like selling the growth stocks. These are the times where a Bad Investors & Traders will be wiped away from stock market.
Bear Market is Opportunity
In fact bear market is an opportunity to buy your favorite growth stocks at discount. Out investment term is minimum 5 years hence selling after few months is not advisable. This is what Celebrity Investors are doing.
As informed in the multibagger reports you can do 30% remaining buying on 30% corrections.
If you need to free up capital for bottom investment, you can sell partial of the following:
Share India Securities – Sell 50% as it gained 100% above from the investment amount – now your capital is free.
You can repeat the same for other 100% above earners like Shree Pushkar, H G Infra etc.
NCL Industries – You can Exit Full/Partial now as the Annual Results are slashy.
Bajaj Steel – You can Exit Full/Partial now for Annual Results are slashy.
Other Stocks – Shyam Metaliks, ICICI Lombard – You can add 30% on 30% corrections
Note: The above selling is advised only for investors who are fearful of bear market. Other experienced investors no need to sell – but add more on corrections.
Please do not sent Whatsapp queries on same. Our Vision is 5+ year investment – during the time multiple bear markets will come – we need to learn to thrive on bear market times. Master Mind Training
How Russia-Ukraine Issue will affect Indian stock market?
Is this a start for World War 3?
Russia-Ukraine Issue if worsens will affect the Crude Prices & Crude-sensitive stocks. Russia converting Reserves from US-Dollar to Gold will affect the Foreign Currency prices.
World War 3 Formation we cannot comment on – it depends on other country participation – but you should be prepared for all cases.
Note: One should be backing up with cash, gold, food for few months in case the situation reaches much worse.
As iterated in the multibagger reports & master mind training:
You should divide your Assets into multiple classes like Real Estate, Gold, Bond, Stocks.
Keep Stock Capital 70% in Stocks & 30% in Cash
Stocks can undergo 30-50% portfolio correction depending on economic situations
Stock market reacts 6 months ahead of economy
On 30% corrections use the 30% Cash to buy stocks more
Do not check the Prices daily – Keep a 5 year Vision Period
Think Long-term – once market bounds you will get more profits out of the Bottom-investments
During 2020 market crashes we had Caplin Point reaching Rs. 200 levels. It was a fundamentally good & growth company & we iterated buying again at bottom. In just 2 years the price reached Rs. 1000 levels. 500% peak returns!!
So if the stock is fundamentally good & growth one, then you can buy more in the bottom. More the price is down, Higher will be your Returns Percentage.
We may be delaying multibagger releases every month to observe the situations, you can allocate the per-month capital also in bottomed stocks, once market is stable we will release multiple multibaggers & bonus stocks together.
This is a broadcast message. Please DO NOT send chat requests on this matter.
As we are getting multiple queries on Olectra Greentech, thought of giving updates on same.
Olectra Greentech was our Hidden Gem in Feb 2021 – It gained almost 600% till now!
It was picked on the theme of EV Boom in India. During the time nobody was talking about EV and nowadays all are.
The stock was not a Value Pick – hence we cannot apply the usual Intrinsic Value Calculation on above.
Olectra is setting up India’s biggest Factory in Hyderbad with 10000 bus production capacity. It is setting up 600 Crore investment & got the Green Energy Incentives from the state government. We will see this as a positive sign in the future sales of the EV products by Olectra.
The stock have heavy growth ahead – since the actual shifting of economy to EV is just started. Hold for next 5-10 years for super profits may be in 5000-10000% returns level.
Buy, Hold or Sell?
Investors are constantly asking this question – whether to buy it now, hold Or sell it?
Not to buy now!
Not to enter at the current price as it is Over-valued.
What to do – Long Term Investors & Short-Term Investors?
You can sell 20% to get your capital back & allow the remaining to grow which is free of cost now. In future if it crashes also No Problem – as you got your capital back. Hold for next 5-10 years to see the real Power of Compounding!