Value Investing India!

In this article you will Learn about the Life-changing Strategies of Value Investing in Indian Stock Market. I hope you will really enjoy the content as it is created by Real Stock Market Investors with 10000% Multibagger Creation experience.

VALUE INVESTING

Value Investing is an Investment Method where You will Evaluate the Value of an Asset using Fundamental Analysis.

If you are a Car Dealer you should be knowing the Value of a BMW X3 with Full Options!

If you are a Gold Merchant you should be knowing about the Current Value of 1 Gram of Gold!

In stock market the Value is identified with one or more of the following methods.

  • FUNDAMENTAL ANALYSIS here the book value, debts, sales, profits, cash flows etc. are analyzed to arrive at the Value of the Company.
  • GROWTH ANALYSIS here the sales growth, profit growth, projected growth are calculated to arrive at the Value of the Company

VALUE vs PRICE

Now coming to the Point of value investing actions:

if the market price is lower than value then the value investor will buy it.

If the market price continues to be lower than the value the value investor will hold it. May even buy it more.

If the market price reaches higher than the value the value investor will sell it.

Thus through Value Investing the Value Investor makes Profit!

WHO ARE THE VALUE INVESTORS?

WE Futurecaps is a Value Investor.

Warren Buffet is a Value Investor.

Ramesh Damani is a Value Investor.

HOW VALUE INVESTOR MAKES YOU RICH?

If you make Value Investing a Life-style OR Mantra, then your Wealth & Income will grow higher each day. You will really become Super-rich like the Celebrity Investors. All the Rich People are VALUE Conscious!

You can apply Value Investing in your Day-to-Day life. For example, Rs. 10 Thousand Course will give you Rs. 20 Thousand Increase in Income. 100% Gain! You give 1X price & you got 2X value! It is Value Investing.

In the world of stock market, the Value Investing is not about 2X gains.. It is about 10X, 100X, 1000X & even 10000X gains. So Learn Value Investing!

HOW YOU CAN BE A VALUE INVESTOR?

Futurecaps is a Value Investor! We made Millions of Profits through Value Investing.

You can be a VALUE INVESTOR by following the path below.

  • Master the Skill of Stock Valuation using Intrinsic Value
  • BUY a Stock if the Value is higher than Price
  • SELL a Stock if the Value is lower than Price
  • Keep a Portfolio of 10-14 Stocks
  • Shuffle the Portfolio yearly

PAID TRAINING LEARN FROM REAL INVESTORS!

HOW YOU CAN SURVIVE BEAR MARKET THROUGH VALUE INVESTING?

Value Investing can be applied to All Market Types – Bull Market, Dull Market & Bear Market.

During the Bear Market, the Value Investor can Re-Calculate the Intrinsic Value on their Portfolio to take actions:

  • BUY the stocks whose Value > Price
  • SELL the stocks whose Price > Value
buy sell value investing

Real World Example As you know Warren Buffet during the 2020 Peak of US Stock Market did not made any big purchases. He found that the Value of stocks are in over-valued segment.

At the same time the same Warren Buffet during 2010 Market Crash bought truck loads of Bank of America stocks as they were under-valued during the time.

INTRINSIC VALUE FORMULA

If you wanted to be a VALUE INVESTOR in stock market, You MUST learn INTRINSIC VALUE FORMULA. This method was created by Benjamin Grahim the Mentor of Warren Buffett. The formula is bit complicated but worth learning it if you wanted to be Rich!

Futurecaps has modified the formula for Indian Stock Market. You can watch the Video below on How to Calculate the Intrinsic Value.

You can Access the >> INTRINSIC VALUE CALCULATOR

VALUE INVESTING RATIOS

Value Investors uses the following Ratios in additional to the Intrinsic Value Formula.

PE Ratio Price to Earnings Ratio. Lower the Better.

PEG Ratio Price to Earnings Growth Ratio. Lower the Better.

PB Ratio Price to Book Value Ratio. Lower the Better.

DE Ratio Debt to Equity Ratio. Lower the Better.

CURRENT RATIO Current Assets divided by Current Liabilities. Higher the Better.

Futurecaps uses 20 Point Checklist contains above Value Investing Ratios.

value investing checklist

VALUE INVESTING MULTIBAGGERS

Following are the Multibaggers based on Value Investing Analysis.

Manappuram Finance We recommended Manappuram Finance in the Midst of Corona Troubles. During the time the Price crashed 50% & most of the Investors were selling the stock.

Futurecaps found a Value Jump of 100% as the Price crashed 50%. Remember, the company was having Growth in EPS for the past 2 years through Increased Business spaces from Gold Loan, Auto Loan, Housing Loan etc.

Thus we recommended Manappuram Finance below Rs. 100 & it gained 100% growth in just 3 months!

IOL Chemicals Futurecaps recommended IOL Chemicals on the same basis of Value Investing. The Intrinsic Value was growing due to the EPS Growth of the company. However the Price was crashing due to Corona sentiments.

In just 3 months of time the Price got increased 100%. LINK

MORE VALUE INVESTING EXAMPLES

VALUE INVESTING FAQs

How is Value Investing compare with Growth Investing?

Value Investing invests in Undervalued stocks based on Value & Price mismatch.

Growth Investing invests in stocks with High Growth in EPS.

Which method I should choose?

Futurecaps recommends Intrinsic Value method which includes both Value Investing & Growth Investing as well.

Is Investing in a Loss-making Company considered Value Investing?

No. It is called Theme based Investing.

However, Advanced Value Investors like Porinju Veliyath performs Value Analysis on them too which requires high skill & experience

CLASSIC BOOKS ON VALUE INVESTING

If you wanted to Learn Value Investing to the Core >> Here are the Top Books on Value Investing.

the intelligent investor
security analysis value investing

SUMMARY

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