Recently we released our latest Investment Stock pick for all our premium members and would like to share with you details on the same.
Our latest pick is basically a consumer product company that has witnessed sweeping positive changes over the last few years. We like the company on several fronts including its product profile, the customers it serves, operational changes brought over the last few years, expansion and modernization of production facilities, strong operating performance with decent cash flows and good balance sheet and lastly the valuations.
Yes, we find the valuations of the company very reasonable and if the company is able to sustain its good performance, there’s good scope for re-rating.
The more you delay, more you lose out on the crucial period of compounding your wealth. You may have missed out on several high quality and high yielding stocks of the past, but you can get your hands on latest stock pick by subscribing to either of Alpha or Alpha +.
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Few Important points about the Latest Investment stock
As mentioned above, it’s a consumer product company with immense potential for growth in per-capita consumption in India.
The company is promoted by entrepreneurs with their interests directly aligned with those of minority shareholders. In fact over the last few years they made creeping acquisition through open market purchases and hold substantial stake in the company.
During the last few years the company carried out a very well managed and well spread out CAPEX both through internal accruals and external debt and the same has resulted in substantial increase in operations of the company.
Over the last few years the company has grown at ~25% + CAGR and has grown its sales by ~ 3 times and profits by more than 6 times.
Besides the reported profits the company’s cash flows have also improved substantially and with the same it has reduced its debt by half and has a very strong balance sheet.
The stock is available at less than 10 times pre-tax earnings.
Our objective is to look for small/micro/mid cap companies with clean balance sheets (or balance sheets which are gradually improving), relatively easy to understand businesses, high promoter holding and good growth prospects and we believe that our recently selected stock has similar attributes and can deliver good returns over the next 3 years or so.
You may have missed out on several high quality and high yielding stocks of the past, but you can get your hands on latest Investment stock by subscribing to either of Alpha or Alpha +. Register yourself HERE
Note: This is not an investment advice. The performance data quoted at www.katalystwealth.com represents past performance and does not guarantee future results.