Recently we released our new Investment idea for all our premium members (Alpha/Alpha +) and would like to share with you details on the same.
We like good businesses at decent valuations and if we notice promoters buying shares of their own company through open market purchases, then it becomes even more interesting and that’s precisely the case with our new recommendation.
What we like about the company is that there are strong tailwinds for the sector and being one of the most efficient players, the company is well placed to capitalize on the upcoming growth opportunities.Further, we like promoter’s focus on various aspects of the business such as water conservation, working capital management, power and fuel consumption efficiency, value addition, etc. In fact, the company that we have recommended probably has one of the lowest carbon footprints in the industry.
Lastly, as mentioned above, one of the most important aspects about the company is that promoters have been aggressively buying shares of their own company. Yes, it is important because Promoters are the ones running the company day in, day out and there can be no better judge of the prospects of the company than the promoters themselves. So, barring a few exceptions, promoter buying through secondary market is almost always a sign of better future of the company.
In case you missed out on several high quality and high yielding stocks of the past (check the performance HERE), you can get your hands on Latest stock pick and make the most of it by subscribing to either of Alpha or Alpha + before 15th Apr’17.
Few Important points about the latest Investment stock
Over the last 10 years the company has consistently reported more than 18% CAGR in sales and profits.
For the last 5 years the company has reported more than 25% CAGR in profits.
Since the last few years the management’s focus has been on improving the overall efficiency in the business operations and as a result they have been able to better mine their resources, reduce debt and generate strong cash flows from operations.
The company has been able to reduce its absolute debt by more than half while still expanding capacity in a nuanced manner.
The company pays out good dividends in excess of around 15%.
Lastly, the promoters have high holding in the company and have been continuously adding to their stake.
Note: This is not an investment advice. The performance data quoted at www.katalystwealth.com represents past performance and does not guarantee future results.