Emerging CAPS

About the Service

This service recommends SME stocks listed on NSE Emerge & BSE SME platforms. SME stocks are smaller companies with a market capital of less than 100 crores. These stocks have tremendous potential to create wealth but often unknown to many investor due lack of knowledge. With this service, we aim to fill this gap by providing high quality recommendations using our rigorous filters designed from SME point of view. Please note that the minimum investment amount for buying an SME stock is typically more than ₹1 Lakh (As per SEBI rule). This amount varies for each stock but usually within a range of ₹1-1.6 lakhs. These are larwa stage companies with 2-3 times more return potential than traditional small cap stocks. Even in a bad year like 2018, many SME stocks have given returns like 2x-4x within 12 months. The keys is invest in right SME stock to make most of this opportunity. Click here to read our article on SME investment. It should clarify most of your doubts.

How This Service Works?

  • Upon subscription, we will send recommendation report on your registered email.
  • Recommendation report will have your key information like maximum buying price, target price, investment theory and stock valuation details etc.
  • Frequency of recommendation will be 3-5 stocks in a year. We are extremely selective before recommending a stock from SME space, hence low number of recommendations.
  • There will be a regular review (twice a year) of all past recommendations via review reports.
  • We will keep an eye on all recommendation and any urgent updates will be sent via flash updates as and when needed.

Investment Requirements

  • Sufficient Capital: Minimum investment per stock will be upward of ₹1 Lakh (as per SEBI). In SME segment all stocks are traded in number of lots. One lot consists of some number of shares bundles together. For example, if a stock is trading at ₹130 and each lot has 1000 shares. Then minimum investment size becomes ₹1.3 Lakhs (130*1000). If we recommend 4 stocks in a year, then you will need to invest around ₹5 Lakhs in this service.
  • Long term mindset: This service is not suitable for quick gains. Since these are small businesses, it takes some time before we reap full benefits.

Return Expectations

We expect a smartly selected SME stocks to give multibagger returns (10-15 times) in due coarse of time (4-8 years). In general, we can expect SME stocks to return 2-3 times more than small caps (18-22%). Some past returns from SME stocks have been phenomenal. There were many multibaggers even in a bad year like 2018. Within calendar year 2018, stocks like Mittal Lifestyle gave 478%, Mac hotels gave 283% & Gautam Gems returned 247% just to name a few. If we extend our horizon up to 5 years time-frame (2013-18), we have more than 25 multibagger stocks emerging from this segment. Now consider this – Till 2017, there were hardly 100 odd stocks listed on BSE SME platform. This implies a very high strike-rate of finding a multibagger from this segment. Theorically, 1 out of 4. Since 2014, Suyog Telematics gave 1700%, Kushal Tradelink gave 1740% & SRG Housing Finance 1553% returns to quote a few.

Since many of them are still smaller companies, they can continue to expand and become future mid-caps and in the process give investor more returns (25-100 times). On few occasions, some of them can potentially become a future large cap in next decade or so. If that happens and one is holding the shares, it will possibly be the best investment of entire life.

Having said that, there are many emotional biases (selling too early or holding on too much) & lack of experience (buying dud stocks etc) which can hinder us from getting these life changing returns. Therefore, it is imperative to subscribe with a research house focused on SME segment. Our subscription fee is nothing in comparison to the amount of money once can make from SME stocks. Now, taking a pessimistic case. Even if we achieve half of it, the wealth created will still be big enough to transform investor’s wealth profile.

Price

  • Suitable for aggressive investors. High risk & very high return profile.
  • Introductory offer: ₹20000 for two years. Minimum tenure is two years. Service runs under blocks of two years each.
  • This is a standalone service which can not be clubbed into combo plans.
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