Dear Readers

As I have been sharing in my writeups, this is not the time to wait on the sidelines, but be highly selective about investments in the smallcap space.

Recently, we booked 134% gains in a smallcap textile stock, with a CAGR of 25.5% (excluding dividends) as in our view, the valuations have run ahead of fundamentals.

Further, I have recently released a recommendation on a smallcap company in the 'essential' Pharma segment. As a market leader in some niche products, this company has been able to withstand the multiple challenges, such as supply chain disruptions and inflation in key raw materials , that pharma industry has faced since pandemic. Its margins and return ratios are among the best in the in the industry. Our recommendation is at a discount of 39% to the 52 week high levels for the stock.

Over the last year, the NASDAQ 100 index is still down 16.8%.
Investor sentiments have taken a hit in the environment of tight liquidity. The same can be said for the sentiment towards tech companies back home.
While loss making companies are likely to struggle, the long term opportunity for profitable tech companies in India remains strong.
With product lifecycles are getting shorter, and the need to launch products fast in the market, India is at the forefront of huge outsourcing opportunity from the global companies with regards to product and process innovation. What makes India a favoured destination is availability of talent and scale at better cost. Be it 5G, AI, automation, semi autonomous transportation, or even a blue ocean opportunity like Metaverse, this single midcap company with diverse geographical presence across multiple verticals and capability of offering end to end solutions is all set to ride multiple disruptive technologies.
To find out more about this opportunity, refer to the latest Equitymaster Venture recommendation.

Dear Readers
Unless you are anchored to a process that works across market cycles, you are likely to be swept in the biases and make wrong investing decisions.
So is there an evergreen process you can count on?
I believe there is. It has worked fairly well for more than a decade for us.
Allow me to explain it through a real case study - Monte Carlo Fashions Ltd – a branded smallcap apparel company that we recommended in 2018 and closed recently with 134% gains (25.5% CAGR)

Indian markets have shown some correction this year after a spectacular post pandemic rally.

One of the reasons is for this correction is exit of FIIs, with the rise in the interest rates in the US.

The exit of FIIs that fall under the category of institutional investors is making all the headlines, ignoring select cases where the trend is opposite. In this video, I have shared the significance of institutional stake in stocks and names of some stocks where the overall institutional stake, including that of FIIs in some cases, has gone up. Hope you find it useful. If you do, let me know through your comments. Here's the link to the video:https://www.youtube.com/watch?v=q9BPpAAPLJk

The Amazing Story of a Small Villager Who Became Crorepati from a Single Stock

Today, let us tell you an amazing story of a small villager, Anwar who became rich just from owning a single stock.

Here goes…

One day, Anwar was sitting at a tea shop, where he met a stockbroker for the first time in his life.

The stockbroker told him about a new company, Western India Vegetable Products Ltd. The company's plant was set up in Anwar's village to manufacture ghee and Vanaspati.

Anwar invested Rs 10,000, half of all he had, and bought 100 shares of the company. He was wise enough not to sell a single stock.

The last time we checked his stake was worth Rs 500 crores…

The secret, of course, is buying the right stock at the right time – before anyone else hears about it.

So, how to find that one stock with crorepati potential?

Join our 'One Stock Crorepati' MEGA summit on 28th July for full details…

At this MEGA Summit, we will tell about 3 signs of a potential crorepati stock…

And we will also reveal details of one tiny stock showing these 3 signs today…

Plus, there is a lot more that we are going to reveal. You just cannot afford to miss this summit for anything.

You can click the link below for full details…

http://www.eqtm.in/y8G7A

India witnessed a solid capex revival in 2003-2007. During this phase, the Sensex was up 7 times. The smallcap index was up 16 times. We could be in the initial phases of the similar capex upcycle, that could lay the foundation of next bull run. Instead of picking front runners, I would prefer pick and shovel strategy to play this theme. In this video, I talk about some businesses that potentially stand to benefit from the capex upcycle. https://www.youtube.com/watch?v=BrE_jpZE30U&list=PLouEzv5yQrJyJLvjfy8gVHTqLRK6F7z3r&index=1

Going LIVE in 15 Minutes…

My One Stock Crorepati Mega Summit will go LIVE in just 15 minutes from now.

Join me now to get details of a smallcap stock that has all 3 traits of what I calls a potential crorepati stock.

Click the link below to join right away...

http://www.eqtm.in/Ty3g8

Dear Readers
Since inception in February 2008 to latest audited data until March 2022, Hidden Treasure has an internal rate of return (IRR) for Hidden Treasure since inception in February 2008 until March 2022 (latest audited data), is 26.8%.
We are proud of beating the benchmark indices by such a wide margin. But we could have done better. Much better!
The lost opportunity I’m talking about, for instance, is 652% versus a gain of 142% on Astral Ltd. We missed it because we could not recommend Astral at its seed stage.
But this has changed now.
Over the next few days, I’ll be sharing more insights about such opportunities on email. I’ll also be live at a Private Briefing on 22 August at 5 PM where I’ll reveal details of this ultra-niche segment, called SEED-Category Stocks. Be sure to book your spot now.

Dear ReadersWhen everything else suffers on the macro front, growth in profits, along with positive cash flows are comforting.

Please do not mistake high profitability with high profits. We are talking about operational profitability here. i.e., how much operating profits a company makes per unit of sales, i.e., operating profit margins.

In today's video, I'm going to talk three microcaps that have witnessed growth in profitability.

You could watch the video here: https://www.youtube.com/watch?v=JpH0EJBJ3jg

Dear Readers
'Winners don't do different things. They do things differently.'
This famous adage is often ignored in the world of investing. Investors want to follow what star fund managers and the smart money are chasing. There is a comfort in sticking to well-known stocks. Access to information and social media has made this worse. Everyone is watching, listening to, and investing in the same stocks, hoping in vain to beat the market. If you follow this 'me too' approach of investing, don't expect your investment returns to stand out. If you wish to beat the market by a wide margin, you need to shift your investing strategy from the red ocean to the blue ocean. Click here to know more about this opportunity.

The bulls roar on D-street as Nifty gains 7.3% in the July series; ends at 16,929.

The Fear & Greed indicator signalled the worst is over in June and I did a video highlighting an end to market correction; Sensex is up by 10+% since the video. Watch here https://www.youtube.com/watch?v=X8---OYYdvI&t=32s

Nifty and Bank Nifty have broken out of short-term trendlines; the bullish momentum may prolong tomorrow.

The hurdle for bulls will be the 200DMA (Daily Simple Moving Average) for Nifty50 and Nifty500 which is just above the today’s close.

Brijesh Bhatia
Research Analyst, Fast Profit Report

Dear Subscribers
Did you know that 90% of Warren Buffett's returns came from just ten investments?
Look at your own portfolio. Chances are 80% of your profits stem from 20% of the investments. Or 20% of your investments could account for 80% of the losses. That's why legendary investors suggest letting the winners run and cutting losses early.
I was a student when I first heard of Pareto Principle. It states that for many events, roughly 80% of the effects come from 20% of the causes.
You see, there are quite a few areas in investing where Pareto principle plays out.
But the one I want to emphasize most is the performance of seed category stocks - a unique niche in investing universe that I have been writing to you about for last few days. To know more, click here.

In 15 minutes, Richa Agarwal will be going live with her Private Briefing on ‘SEED-Category’ Stocks. Please don’t be late or you could miss out on some valuable points of insight.

Here’s your meeting link - http://www.eqtm.in/o5YXd

In this fast-changing world, where the cycles of boom and doom seem the constant, it helps to play by rulebook that has worked across cycles, than chasing the narratives that seems promising in a bull run, only to disappoint later.
The rulebook suggests that you must always find your edge and play accordingly.
In Seed category stocks, the edge we are looking for subscribers is an 'illiquidity premium'. This is out of bounds of seasoned and sophisticated investors. It could be a huge catalyst to wealth creation when the re-rating happens.
In case you missed attending my Private Briefing yesterday on Seed Category stocks, you can watch the video of the event here.

India’s semiconductor industry is still at a nascent stage, with a huge runway ahead of it. With the penetration of IOT,5G, electronics, automation, robotics, EVs and semi-autonomous vehicles, the demand for semiconductor chips is likely to rise exponentially. In this video, I have covered some companies one should be paying attention to if interested in semiconductor theme.

After a spectacular rally over two years, 2022 has been a rough year for the investors. This is especially true for unseasoned, first-time investors.
While the correction has caught the investors off guard, it's the highflying new age IPOs that have fallen the most. In less than a year of listing, some of these much hailed IPOs have crashed up to 60% or more. Here are a few questions to ask to minimize the chances of such corrections in the next tech IPO you invest in.

Hi,

I’m reaching out today to share an important update with you…

Because I think you will find this very useful.

Recently, my colleague and co-head of research here at Equitymaster, Rahul Shah, made an interesting announcement.

He announced that on 12th September, at 5PM IST, he will be revealing the most ambitious project of his entire life… the Tiny 100 Project.

Plus, he will also reveal his secret proprietary system that powers this project…

Just to get an idea of how powerful this system is have a look at these numbers.

This system has a success rate of 83% since inception, 29 consecutive winning trades, and not a single losing trade in the last 2 years.
(*Past performance does not guarantee future returns. Success rate since inception till June-2022)

I think this is a golden opportunity for you to get an inside scoop into Rahul Shah’s proprietary system and his investing secrets.

And I don’t think you should miss this.

Click this link to get the full details.

http://www.eqtm.in/j4T9S

-Richa

Investing is simple, but not easy. Yesterday was a stark reminder of this. Amid fears of recession in the US and a hawkish stance on interest rates by Fed, the markets ended deep in the red. The correction in the smallcaps was even more brutal. While the smallcap index is down 3.3%, some smallcaps have witnessed a single day correction of up to 10% even. If you have decent money invested in stocks, I believe you are keeping a tab on all headline news which is gloomy enough to make you panic.You might even be influenced to dump all your shares, thinking the bad news could become worse. To be honest, I have no idea about where the markets could be in the near term. However, from my past experience, here’s what I would recommend in the stock market bloodbath.

Amid this bloodbath, Granules India has come up with a buyback offer through tender route. Subscribers could click here to access my view.

The bulls protecting the 17,000 marks on Nifty; end at 17,007.

The heavyweight’s Reliance Industries, TCS and Infy came as the savior for bulls.

BankNifty fell for a straight fifth day; the 37,800 will be do-or-die for bulls.

The 17000PE witnessed unwinding in the
last hour of the day; the fall below 16,940-16,950 may trigger a sell-off towards 16,800 levels tomorrow.

The PCR for Nifty and BankNifty is below 0.6 signalling the pause to bearish momentum on expiry day.

Brijesh Bhatia
Research Analyst, Fast Profit Report