Where is next multibagger?
Well, it is not easy to find companies like Infosys which have actually changed lives of their shareholders but there are 10 parameters that can point out to next Infosys in the making:
1) Economy of scale
There should be huge opportunity size. Infosys was able to create so much wealth as IT was under penetrated in most of the big organisations.
2) Competitive Moat
Infosys had unique business model and had its own financial product Finacle which generated multi billion dollar revenues.
3) New Sector
Company should be in sector which has started growing only in recent past.
4) Relatively Low PE
If company is able to grow higher than its current PE , it means that PE is low and can be great investment opportunity.
5) High Revenue Growth
Company should have high revenue growth which indicates great demand for its products.
6) High margin than peers
High margin signifies superior quality of its products and strong moat.
7) Incremental profit growth
Higher EPS is due to incrementally growing profits.
8) Honest and Visionary management
Corporate governance is a big problem in our companies.Companies like Satyam and DLF spoilt the image of Indian companies.Honest management is one of the most important aspect which decides the fate of company.
9) High ROE and ROCE
High ROE( return on equity) and ROCE( return on capital employed) signifies that company is well managed and highly efficient in allocating funds.
10) Dividend Yield
High dividend show that profits are real and books are not fudged.
To get such ideas ,Please mail me at:
ankurjainraj@gmail.com
Thanks and Regards,
Stock Ideas Team
Well, it is not easy to find companies like Infosys which have actually changed lives of their shareholders but there are 10 parameters that can point out to next Infosys in the making:
1) Economy of scale
There should be huge opportunity size. Infosys was able to create so much wealth as IT was under penetrated in most of the big organisations.
2) Competitive Moat
Infosys had unique business model and had its own financial product Finacle which generated multi billion dollar revenues.
3) New Sector
Company should be in sector which has started growing only in recent past.
4) Relatively Low PE
If company is able to grow higher than its current PE , it means that PE is low and can be great investment opportunity.
5) High Revenue Growth
Company should have high revenue growth which indicates great demand for its products.
6) High margin than peers
High margin signifies superior quality of its products and strong moat.
7) Incremental profit growth
Higher EPS is due to incrementally growing profits.
8) Honest and Visionary management
Corporate governance is a big problem in our companies.Companies like Satyam and DLF spoilt the image of Indian companies.Honest management is one of the most important aspect which decides the fate of company.
9) High ROE and ROCE
High ROE( return on equity) and ROCE( return on capital employed) signifies that company is well managed and highly efficient in allocating funds.
10) Dividend Yield
High dividend show that profits are real and books are not fudged.
To get such ideas ,Please mail me at:
ankurjainraj@gmail.com
Thanks and Regards,
Stock Ideas Team
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