India’s 99% savings are being invested in fixed deposits and real estate. As you all know fixed deposits carrying an interest rate of 10% p.a and banks are advancing the same money at 13-14% to Corporate Companies. Nobody is investing in stock markets thinking that its a very risky investment. Now, if the savings will largely be invested in stock markets, the companies will perhaps reduce their product and services prices and hence, equity investment is in the interest of the nation to control inflation in a large way and encourage the entrepreneurship.
It is wrong to believe that stock market is risky and gives lesser rate of return. Let’s take an actual example of investment of Rs. 11 lacs simultaneously invested in a script, Real Estate and Fixed Deposit.
Stock Investment
The entire Rs 11 lacs was invested in 1984 in MRF @ Rs. 65 per share. The current price of MRF is Rs. 32,000 per share. Hence, 11 lacs becomes Rs 55 Crore in 2014 after a period of 30 years. So, the increase of 500 times in 30 yrs.
Real Estate:
Another investor is putting Rs. 11 lacs in buying a 500 sq. yard plot in New Friends Colony, South Delhi in the year 1984 @ Rs. 2200 per sq. yard. Now, it’s worth Rs. 30 Crore after 30 years. The rate of return comes out to be 280 times. It means there’s a wrong belief that real estate is a better investment than Equity.
Fixed Deposits:
Majority of the population of the country is relying on Fixed Deposits and if you take Rs. 11 Lacs in 1984 in Fixed Deposits, it comes out to be less than Rs. 7 Crore after 30 years. Though, we have assumed every 5 years doubling the fixed deposit values.
So, undoubtedly, equity investment can be 7-8 times more rewarding as compared to Fixed Deposits and 100% more than the Real estate in the longer period like 30 years. But Stock picking is extremely important, so that investors can get even more than the return which we have estimated and described above.
Thinking on the same line, we are recommending the following scripts which are capable of giving a return of more than 500% in the next 5 years.
| S No | Name Of Scripts | Current Market Cap (Cr) | Expected Market Cap( 2019) | Current Market Price (CMP) | Target price ( in 2019) | 5 year Rate of Return(%) |
| 1 | Wockhardt | 8,495 | 35,520 | 772 | 4,000 | 418 |
| 2 | Webco India | 7,213 | 30,722 | 3,803 | 20,000 | 426 |
| 3 | Dynamatic Technologies | 1,391 | 8,346 | 2,416 | 16,913 | 600 |
| 4 | Marico Kaya Enterprise | 742 | 5,061 | 576 | 4,500 | 682 |
| 5 | Gujarat Pipavav Port | 7,829 | 46,976 | 162 | 1,134 | 600 |
| 6 | Multi Commodity exchange ( India) | 3,929 | 7,858 | 770 | 2,311 | 200 |
| 7 | Ramco System | 1,125 | 5,062 | 464 | 2,550 | 450 |
| 8 | Aban Offshore | 4,204 | 25,225 | 622 | 4,351 | 600 |
| 9 | SML Isuzu | 1,224 | 7,343 | 846 | 5,920 | 600 |
| 10 | Rane Holdings | 877 | 3,945 | 614 | 3,377 | 450 |
| 11 | Madhucon Projects | 264 | 2,319 | 36 | 350 | 879 |
Basis of Stock Picking
1. Futuristic Stocks
2. One of the leader in expanded markets in future.
3. Innovative Stocks with innovative products.
4. MNC status exclusively or in JV with MNCs
5. Most of the scripts are practicing debt-free business model.
6. Reputed, splendid management with ethical business practices.
7. Most of the scripts are not affected or influenced by the political decisions.
Caveat
1. Equity investment is not for income generation but only for wealth creation and enhancement.
2. Investment in equity should be only with the money not required or affecting daily expenses.
3. Investors are kindly advised to investigate thoroughly for each script and its merits before taking the final decision.
