Oct 21, 2014

Few Stocks for Diwali: Value and Growth Stocks

Few top quality stocks are coming again and again from different quarters of good investors and PE house. I am mentioning here so that you can pick any based on your liking and portfolio mix. These all are very good quality stocks and can be a multibagger. These stocks are coming to my mind from time to time because of its quality and recommendation from many quarters.

Meghmani Organics,
RS Software,
SKS Microfinance,
L & T,
L & T finance,
Capital First,
Caplin Labs,
Suven Life,
Kaveri Seeds,
Can Fin Home.
TV Today,
HDFC Bank,
SBI Bank.

If you are missing Automobile stocks then leave SBI and add HeroMoto or TVS Motors. Eicher Motors can also be a good pick.

There are many other quality stocks but this list is comprehensive enough and can be a good mix based on domestic play. These all are high quality and result oriented stocks. All can be left for few years based on Indian Economy recovery till uptrend last. Few stocks like Kaveri seeds, Caplin Labs, Suven Life and RS software are not very dependent on domestic play. So, if you are new to investment and just want to build your portfolio then you can choose a good mix from here.

Update: July 22, 2017

I reached here somehow and then question arised: How much gained could have accumulated here if one has bought it and hold it. It was for passive investor and it is mentioned that you could hold it for long so I thought to do the exercise.

I have calculated the gain in price term. I have ignored the dividend. If I had tool to easily calculated price gain with dividend then I would have done that. Few companies have given very high dividend but I have ignored that.
I used Google Finance and roughly put my mouse on Oct, 2014. Mostly that was Oct 10, 2014. But anyway in this longer time interval, few days ups and down will be sorted out.
For one-two stocks, where split was not clear in Google Finance, I used Moneycontrol. Google Fin has a habit of not adjusting split many times.

2038/13 =
156% gain.

If I remove SBI with either of Hero Moto/TVS Motor/Eicher Motor then percent gain would rise.

Hero Moto 28%
TVS M. 148%
Eicher 144%

-30 = Kaveri seeds but two times 120% + 125% dividend.
+16 = SBI. three dividend. 350%, 250% and 260%.

Overall, return is very good. I must mention here a point that I am not taking credit for the stock's research. It is all not my type of stocks but suggested to passive investors for long term after I read many article for Diwali pick. I made up my own mind based on so many articles not just written for Diwali but also based on stocks in my mind at that time. RS software is one such which was fashionable at that time. So, it is about selection from the sea of stocks that matter here for me.

Because I have not enjoyed writing the article for Diwali so I have not written about it later. I continuously search stocks and when we find it we find it. It can be any day. Whereas selecting stocks for Diwali is event based which does not suits me well.