We like companies which are:
Moreover, if we find Promoters/Management themselves buying the shares of the company through open market purcahse, it further bolsters our confidence and comes across as an icing on cake.
The good thing about such companies is their consistency and their ability to deliver market beating returns at all times. They also lend the much required stability to our portfolios during bad market conditions.
We are glad to share with you the details on our latest Alpha stock recommendation for the month of Nov’11, where we luckily could find all the above mentioned traits.
Some key highlights
Given the consistency and trajectory of growth for the last 7-8 years, the above valuation does not capture expected future growth in earnings and rather making the business available almost free of cost.
We would suggest initial portfolio allocation of 3% at around CMP. We expect a decent return of 80%+ over the next 1 year and more.
Also we don’t rule out a possibility of 10% correction, which could be market driven, though the same seems highly unlikely in the wake of the fact that everytime stock comes down to current levels, Promoters start buying aggressively. In that case, the stock would become cheaper and we may consider increasing the allocation to 5% (follow Alpha/Alpha + Weekly for subsequent updates).
For complete details on the stock, refer the attached report at the below link:
For any further details, please drop a mail at firstname.lastname@example.org