Against my thought, none of the readers were able to find
the solution to the FFS 6 Question, also none were able to find a share which
multiplied near to the magnitude I mentioned in FFS 6.
The top one’s are listed below, from the one's I got in my mail are,
|
Sl No.
|
Company
|
Lowest Price in 2001 *
|
CMP
|
Multibagger factor
|
Current Value of Initial investment (5 K)
|
|
1
|
Lupin
|
0.8
|
1377
|
1721
|
86.05 Lakh
|
|
2
|
Eicher Motors
|
17
|
11656
|
685
|
34.28 Lakh
|
|
3
|
Shree Cement
|
23
|
8683
|
377
|
18.87 Lakh
|
* :
Adjusted to Bonus & Split
And the solution to the question is Kitex Garments
Its share price (FV = 10 ) on 18 – Oct – 2001 [Taken from
BSE website ] is
|
Date
|
Open
|
High
|
Low
|
Close
|
WAP
|
No. of
Shares |
No. of
Trades |
|
|
18/10/01
|
0.60
|
0.60
|
0.40
|
0.40
|
0.42
|
62,900
|
63
|
And Present price of the share is (FV = 1)
So giving 394*10 / 0.42 = 9380 Bagger !!
Rs 5000/- invested will be Rs 4.69 Crores today !!!
The 13 Year Price Chart
FFS discussed Stocks at a snapshot
|
Sl No.
|
FFS
|
Company
|
Link
|
Lowers Price since 2001 *
|
CMP
|
Multibagger factor
|
Current Value of Initial investment
( 5 K )
|
|
1
|
FFS 6
|
Kitex Garments
|
-
|
0.042
|
394
|
9380
|
469.1 Lakh
|
|
2
|
FFS 5
|
Mayur Uniqoutors
|
0.24
|
448
|
1866
|
93.3 Lakh
|
|
|
3
|
FFS 1
|
Symphony
|
0.82
|
1355
|
1652
|
82.6 Lakh
|
|
|
4
|
FFS 4
|
PI Industries
|
0.56
|
456
|
814
|
40.7 Lakh
|
|
|
5
|
FFS 2
|
TTK Prestige
|
6.9
|
4484
|
649
|
32.5 Lakh
|
|
|
6
|
FFS 3
|
Cera Sanitary
|
3.4
|
1630
|
479
|
23.9 Lakh
|
So I would like to conclude this series with this list. Once again, the
relevance of analyzing these type of investment and return is to find out
potential future multibaggers and learn to hold it long enough to make us
financially free. A couple or some time single a investment will do it for us on right companies at
decent valuations (ofcourse, only if we hold enough – if we start selling completely
from at 30% gain or at even at 100% gain- there will not be any multibaggers in our
portfolio. THEN ONLY LAGGARDS WILL BE THERE!).
Some interesting quotes
1. “Everyone
wants to find the next Multi-bagger, difficult part though is holding them.”
2. “Don’t
bother finding the next multi-bagger if you aren’t going to develop the
conviction to hold it.”
3. “If you are
in great companies, a lot of times your biggest risk is boredom.”
Happy Investing.
I saw some discussion around Kitex garments..but could not believe it to be such a huge wealth creator..but it is tough to find out companies like Kitex at such an early stage..Symphony, Cera, Prestige were all known companies even in 2004 and had better long-term prospects..
ReplyDeleteNevertheless, a good exercise.. i though Pidilite was the company :)
what book were you supposed to gift, if I may ask? :)
Beating The Street - by Peter Lynch
DeleteOk. Thanks..Great book..will read it again this week.
DeleteDear Sir,
ReplyDeleteHats of to your work and educating the small investor. Evry body says the entry time is very important to the stock market. At present markets are houvering with high levels, so is it the time to invest in to the scripts as per the MVP portfolio or wait for any correction?
Please guide how to accumulate the good stocks for better returns.
best regards
Answer to ur question is both yes and no.
DeleteValuation wise, some are fairly / bit over priced. An investment on all picks may not be a wise decision as a one step shoping.
But if you are planning to invest in SIP mode, the risk will be minimized and possible to make wealth in long term by creating a portfolio. Also it will make you disciplined in your investment [ that's the hardest part to practice!!]
Are you planning to add Arrow Coated in October too with your SIP money?
ReplyDeleteArrow Coated is more than 20% in purchase in my mvpp portfolio (restriction imposed on portfolio condition see http://myvaluepickportfolio.blogspot.in/p/my-port.html ).
Deletehi ,
ReplyDeletecan you please share how to identify such stocks at early stage