As most of you know, I watch the market closely and have a list of appx. 150 good companies that I want to enter when their stock price is low. I have been able to find an entry price for 37 of these companies and I believe that these companies will do well when the Indian markets start going up in the next 2/3 years.
My expectations from these investments is 15% per annum plus (as it is tax free if you hold it for more than 1 year) - but I do not enter the stock till I see a 20% per annum potential - I also know that not all recommendations will make the 15% grade - overall I want to be ahead of the sensex by 3-4% annually. So if sensex is -10% and if I am -6%, I am fine. After all when it rains, everyone gets wet – I aim at getting wet a little less.
I normally get an investment opportunity once or twice a month. As I invest, I will share it through my blog. If you want to follow me, you can just mirror my portfolio and buy the stocks in the same price range.
I normally recommend companies that are large caps - in these companies, I invest 50K or more. Sometimes, I recommend mid caps (which are higher risk profile) - here I put only 10-20K. So you too need to pre decide some investment levels based on your ability to invest – but surely invest more in large caps and less in mid caps.
Here are some stocks that I have invested recently that are still hovering at a BUY range:
· Infosys - the current price range of 2360 is a good price to enter. I entered at 2400 some 10 days back. They are going through a rough patch due to weak management and will hopefully resolve itself in a few quarters with Mr. Kamath, their new chairman, becoming more visible and taking more control.
· Gruh Finance - this is a HDFC kind of story of home financing in rural areas - has Deepak Parekh on the board and is a good future story as India's rural areas are slowly getting lesser poorer and the company is well poised to benefit from this - I bought it at Rs. 680 two months back -it is currently at 670 - you can buy it at the current price. This surely is a long term solid investment opportunity.
· Another mid cap that I recommend is LMW -the company is a cash generator - supplies to the textile industry in India and has an export market as well - it's stock is down right now - I bought it last fortnight at 1673 - it is quoting now at 1642 - highly recommended - but invest 10-20K as it is a mid cap.
· my last recommendation is Cox and Kings - I am investing in it right now – this company is growing and is cash rich as they have not yet utilised all the money that they generated through an IPO few years back. Currently the price is below 150 and it will grow well over the next few quarters.
So here were my current recommendations.
If you want, please write to me and I will share my calculations (one on one) for projecting the share price of the stock, based on the last 10 year financial data.