Do you want to invest in stocks and you don’t know where to invest then today we write this article for you.Today we have brought such a great learning and earning aticle which will act as a big eye opener.
Here we discuss 3 Stocks That Can Make You Rich and give multibagger return.
How, today we are going to give you a penny stock, 2 small cap shares are also going to tell The market has rally nonstop since the 2020-2021 covid, and if the investor is talked about, there are many new people in the market.
Those who made money as they took the position, but when come in 2022 and here when there was a decline, So people got upset, because every day new people were coming in the market, so many people were climbing up and buying.
And when there was a fall, they did not know that there is also a thing called decline in the market, which we have to handle.
And that’s where he got in the most trouble, reason because he didn’t take the stock with the thought that what the company does after all. How is the company, and if we buy something, it goes up, then it also comes down, our prospect should be clear.
So that means the biggest learning is that if you invest in anything, then first keep your vision clear. Maybe that stock also declines by 20-25%, so I shouldn’t be worried,The only condition is that there is that much potential in that stock.
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Because of the recent decline, the shares of small cap, mid cap fell by 60%-70%. And where people take more small caps, there is such a problem that it seems that my money has been cleared.
So this is the first learning, before giving the name of the stock, that when we take, then this thinking should be clear that do not invest full money.
Also Read : – Why Stock Market Falls During War Time
Do not fill the stuff till the neck, and if you are taking something then there may be a fall. And after that since we are talking about penny stocks and small caps, then all these businesses take time to grow.
There, these stocks also give return, but sometimes the management does not know how to do the same things as they think. Or something goes wrong inside the management, or the order book is not found, but these stocks, while running operations in the beginning, get messed up later.
So we also have to track this thing whether we are in the right direction,
Thirdly, we should never invest by taking loans. Because the biggest problem comes that we put emergency money in the stock market. Due to which when it falls, it comes to the thinking that we had taken it for that thing, now our money is lost, so don’t do this thing. If we have extra money then only we will invest that money wisely.
3 Stocks that Can Make You Rich
So I hope that you will know things keeping this thinking in mind, and make friends with the stock Why friendship? Friendship because if the stock goes down you won’t be worried And do your own research in whatever name I am giving, do analysis, take advice from an expert and then do it. Because my job is to make advice to friends, make you understand. So our fist company is
ESTER INDUSTRIES LTD.
Company corporate in 1985 in Gurgaon, Ester industries limited is a chemical company formerly known as Aster India Ltd.
Company manufacturer products like Polyester films, polyester chips , speciallity Polymers , engineering plastic compound.
Company is working in Food packaging, Processed food, Fresh food, Food on the go, Shelf-stable , ready to eat , Liquids, beverage packaging Beverage packaging, Home and personal care, Industrial packaging, Constructions, Automotive, Optical fibre cable food packaging.
The company has a total of 25 products in the spaciality polymers segment.
Apart from this company sells its Polyester films under the brand name Umapet.
The company has a large product range of more than 250 in the enginnering Plastics segment Here if talk about there install capacity so in specialty polymers 30,000 MTPA, in Polyester films 57,000 MTPA, in Metalised Polyester films 13,200 MTPA Or in Polyester chips manufacturing capacity- 67,000 MTPA as integrated player.
Here if talk about global presence so company has a strong client base in 75 countries. There if talk about revenue breakup so from Polyester films 64% revenue is coming and from Enginnering plastics 22.3%.
Means Polyester films is very good, and in India they are taking 72.9% of revenue and rest taking from rest of the world.
Here the reason for picking this stock was very interesting, very interesting very good What I said is learning and earning, focus will be found in every company
1.industry PE is 13 and there stock P/E is 7.93, means stock is not expensive.
2. see there ROCE & ROE in good companies doesn’t seem like this 32.4% and 30.4% , amazing Here see return on equity 30.4, debt of 224 Cr. And free cash flow of 105 Cr.,
Means you can count in almost most debt free type story. Here is a concern that if you see sale growth of 5 years so it’s only 5.24% , If it were awesome it would have been a better thing, but as I have always told you, there is a good and bad mix with small cap companies and company grows.
What’s good , as you see ROCE & ROE ,but a Missing thing you see sale Growth of 5 years is little lesser Here, if you look at their financials, then the net income is increasing continuously.
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If you look at the total revenue, then it was Increasing but fell in the financial year 2021, EBITDA is increasing continuously If see EPS so increasing continuously, Means things are good but don’t forget one thing there is that when you see the total promoter holding then company pledged 6% share
So these are the things that we need to keep in mind very much. So overall in this way you have seen how the company is doing, and what is good and what is bad there.So this was the first stock now let’s go on to Second stock whose name is
So first of all let me tell you whether you have any share or not, then it will be easier.
It’s a subsidiary company of Thirumalai ,which is working in Chemicals, Surfactants, pigment and education sector Major working is in Chemicals manufacturing like Phthalic anhydride, Diethyl Phthalate.
If talk about manufacturing facility so company produces 1,45,000 TPA primary hydraulics Apart from this company is running it’s presence, project in U.S.A., company produce 40,000 Tons Maleic Anhydride or Butane gas Every year.
With this a subsidiary of company is in Netherland ,which is doing marketing agent distributer , logistic services So there 80% revenue from Phthalic Anhydride or 20% from Moleic Anhydride, and there 93% business from India.
Here if you go again on this company then you see there ROCE & ROE is less in comparison of the first company, 19.6 and 16.3.
Here if you see sale growth then less than first company 2.92% If see stock PE so cheap from industry PE, and if you see debt 172cr. And free cash flow 160 ,means Debt free Means many things are good which is in front of you.
Here if you look at their net income, then in 2020 the net income had fallen a lot, due to covid But back in 2021, they made a very good hold and the increment has come in front of you.
Here if see total Promoter Holding so 41.98% Promoter has gradually increased his holding to 41.86 holding but it has increased to 41.98.
So in this way it was another company but I would like to remind again, my friend my brother, don’t invest just by listening to the name of the company.
Track things In the current environment, we are making friends with the company, especially with small caps. Because now when you are seeing the fall in the market, there was a slight decline and then there was a slight jump.
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I think there is going to be a lot of opportunities in the market, you are going to get a lot of opportunities in 2022. Meaning you can easily build a good portfolio in the fall, and I think the best way out there is stock SIP.
Where even our entire money is not used at once and we slowly go on picking up the stuff.
Now we will come on next stock whose name is penny stock, yes Will tell the name of penny stock in the last,
Shyam Century Ferrous Ltd.
Started in 2011, headoffice in Kolkata, manufacturing Ferro alloy, Ferro silicon Mostly use in giving strength to steel, to provide quality, use of ferron silicon is in birghtness inhancement of stainless steel.
If talk about company manufacturing facility so RK plant located in Meghalaya Whose capacity is 21,600 metric tones per year apart from this plant also generates 14 watts of power 100%.
Revenue comes from Ferro alloy, business is in India Now it is to be noted here that 79% of their sales have come from only 10 customers, which means if the customer run so there will be decline.
Why, because it’s a penny stock , same story of a penny stock Titan was penny at one time, but did it become a multibagger in a single day, this is the most important thing to understand.
Because many people say, sir take penny stock, you will take it but penny means take only as much as it sinks, then there is no problem. And secondly nothing changes overnight, it takes time Here comes on there return on equity so you can see it is of 17.2% ,
it is very good than other companies, there see sale growth of 5 years 2.35% See ROCE & ROE 16.1% and 17.2% , debt of 0.54Cr. & free cash flow of 17.7 Cr., Means a penny stock which is debt free This is the reason why I have taken it, industry PE is 12 stock P/E 9.11 , means cheap
Cheap means in penny stock, remember cheap means cheap as a parameter, But here many things also depend on the order book. But if you look at their financials, then you will be very disappointed as to what this is.
Net income fell in 2020, there has been a slight recovery in 2021 but it has not been able to reach its old level. And there if see there Total Promoter Holding so 54.49% of promoter holding .
So in this way we made this with this share whose name is Shyam Century Ferrous Ltd.
But as we have made you friends, now you should understand it in detail.
Here We Discuss 3 Stocks That Can Make You Rich If you Needs more comments us.