ValuePickr Forum

Equity Advisory Services in India

Hello Everyone.

I’m looking for good Equity Advisory services. My focus is mostly on small and micro caps [≤ 1000 Cr mcap].

If you have used any of the paid Equity advisory services or have had a great experience [in terms of learning + gains], please do post it here.

Katalyst is good and a bargain too in my humble opinion.

Try Purnartha Rahul Rathi Poona

Would second that. Both the parts of the advisory services- investment and special situations- throw up some pretty unique opportunities. Most investment picks have a value orientation rather than growth orientation, in an industry which need not necessarily be the fad at the moment. Hence most of them might take a significantly greater time to realise the full intrinsic value.
Of course, goes without saying, you will have to do your own research - what the service gives you is essentially a name, story and and opinion, which has to be validated.

There are many service providers but keep in mind that it is your conviction that matters. My two cents on this - if you have spare time and sustainable wealth creation interests you then it is better to do it yourself. If you still want to select one please keep in mind the following -

  • Investing style must match your temperament : have seen some buy and hold types under perming for sometime and folks losing patience.
  • Two way communication - make sure you have enough communication and feedback on the stocks like quarterly nos etc. It is sexy to say that quarterly nos do not matter but most of buy and sell decisions typically happen after quarterly numbers.
  • Complimentary service - like if you can’t meet managements, make sure your advisor does it atleast. Plain vanilla research can be copied and loses edge over time.
  • Make sure you have a reasonably concentrated portfolio suggested by advisors. Run away from advisories pushing you into mindlessly diversified portfolios. If the advisor can’t have 5-10 high performing stock with proper allocation, he/she should shut the biz and start a PMS or MF instead.

Please keep in mind that no advisor will keep his/her service open forever so remain prepared for going alone at some point of time or give it to a good PMS that’s where everyone is heading to. Every successful advisory would love to take larger share of your success and will pull you into a PMS. I was a subscriber of Basant’s Corner and made good money but my own stocks before joining would have beaten the returns eventually. And I under performed for 12-18 months when I had to reorient my PF after its abrupt end. I really had to devote extra time to rebuild everything.

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I completely identify with your perspective, so much in fact, with each of the points you’ve so meticulously detailed out.

The biggest reason why I am looking for these is to broaden my exposure across different industrial sectors.

Until now I’ve been investing while being on the lookout for small and micro caps purely on the basis of Block Deals, Quarterly Results, attention from some not-so-well-known-but-still-marquee investors, paying attention to management guidance, and news channels.
If you look at the overarching perspective here, it can be summed up as first getting stocks on my radar - only those that are receiving limelight, and building up conviction on them; but this almost always means that such stocks have already seen a run-up of 2-3x.

So basically, by subscribing to these services, I wish to increase my exposure and catch them young OR fail anyway and learn the lessons the harder way. :smile:

Hello,

Is there a stock advisory service in India focussed on special situations.

Thanks

Which are some of the really good equity advisory services (mid/small/large caps) which are run by investors who themselves have a proven track record or who are well known.

I’ve used quite a few advisory services. I don’t want to give any recommendations here, but please avoid subscribing to Paul Asset (www.PaulAsset.com). They are a bunch of over-confident and arrogant analysts who have destroyed nearly 60% of investor wealth in the last one year. Recently they gave sell calls on almost their entire portfolio - at what turned out to be the bottom point in the last 6 months.

The list of recommendations which was visible publicly on the ‘service’ page of their website, has now been removed and put in backpages which are difficult to access. As long as they were performing well, it was highlighted, now that their last 6-7 recommendations turned out to be blunders… the entire list has been removed.

To add to it, the owner of the advisory has always been rude to his subscribers. Very unpleasant and unsatisfactory experience.

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@ashok818 - We have seen a bit of that first hand here on one of the threads - KP Energy - Lotus in muddy water. The author was associated with paul asset as a research analyst. Do go through it if you haven’t yet.

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‘Panther’ stock-letter from Moneylife though not necessarily all stocks are below 1000 cr mcap. Well researched, and folks with highest integrity.

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Here I am, another victim of this so called genuine-Honest adviser paulasset.com. I had a the same experience and now stuck with at least 5 stocks where he gave sell calls at lowest ebb. I lost close to 1lakh with his advisory and vowed to never recommend this to any one.
The stocks which I picked on my own have saved some of my money. Had I blindly followed him, my losses would be even more. I have subscribed 2 years ending this year.
We have truly confused bull market with genius. I am very cautious in subscribing to any adviser.

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I was having some hope on stallionasset.com as Amit Jeswani appears on business channels and confidently gives his investment views but in the end, I got highly disappointed. It appears he can only speak fluent English on TV because he suggested most of the stocks at peak. He was bullish on road sector sometime back when the whole sector was at peak and now when his stocks crashed by 30-40% he sold them all. He also was shouting on NBFC sector when it was again at peak and now when price has crashed he is clueless about what to do. I lost around 5 Lakh in no time by just following him obediently. He simply runs behind momentum and then gets trapped at the top. He can only buy high and sell low.

It is dangerous that he is launching PMS with such a skill set that I believe would be another disaster for investors.

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I want to share another bad experience with https://prudentequity.com/ (Siddharth Oberoi). In the last 3 years, I took advisory from prudentequity and then stallion asset and then decided to never ever follow these advisories rather try to learn on my own.

Unlike stallion asset who at least tried, prudent equity is a manipulator. He picks illiquid unknown names and jacks the stock price up using social media. He uses another forum to create many fake identities to do false self-promotion there. Then after sharing such illiquid names to his clients, he uses his fake twitter id to promote the same stock. As those shares are illiquid so price moves up for few days and then he gets rid of the companies. You can see the twitter id of sapnareddy889 to understand their modus operandi.

My advice to all readers interested in advisory is that stop following all so called “research analyst”. It is far better to follow this forum and learn through internet.

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I am member of prudent and Paul asset. Both are doing very bad. But prudent is doing much worse.
Paul asset charge you 5k but prudent is 40k.
I feel all most all advisory services are not doing well.

Better is to invest in good small cap funds.

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Counter question : which equity advisory is doing very well?

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I guess no one is doing good but one should not be a manipulator.

Equitymaster, Research and Ranking, many Indore based operators are well known for their gimmicks.Their main aim is to spam your mailbox and and do irritating phone calls. Then you have prudentequity who recommend their own illiquid stocks on many social platforms to jack up the stock price. He even does self-praising by creating several fake accounts on few popular forum and twitter. I got trapped and learnt lessons the hard way.

Your stock may not perform well, that’s different but doing all unethical practice for making money while trapping innocent retailers is something which is unforgivable . I was new in the market and paid a huge fee to learn the lesson. Many gullible new investors fall in this trap, lose money and then leave the market forever.

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I really hate their spamming policy. Their self-promoting emails are so big that it could be printed into a book.

Their calls are like buy a stock when it falls 30% from current price and target is like Rs 31 (4%) above the current price… (read their latest India letter report - Natco Pharma)… Their 95% calls even after such non-sense is about 13-14% expected CAGR return.

Its really stupid.

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please check StalwartAdvisors by Jatin khemani… they are very conservative on their call and i think return of capital is more important for them rather than return on capital… they are very cautious about balance sheet of their recommend companies…their research report shows how hard work they do…give it a try…

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I wanted to genuinely understand those who have done well. There are three levels of competency in equity advisory

  • The first level is to find good stocks with earnings potential for the next few years. – Any guy working in an equity research biz with half decent sincerity will pick this skill. Important is to find them before the market finds out or be little early to get valuation right.

  • The second level of competency is find out the sustainability of earnings – basically removing excel lovers who love doing DCF for their base valuation. This might involve understanding consumer behaviour, doing field work and be alert all the time e.g. auto slowdown currently.

  • The third level is be to be sure that Mr. Market agrees with analyst’s hypothesis and responds accordingly. Like most options end up being worthless, lots of equity research goes into the dustbin including from some well known advisories. This is an art and comes with skill and experience. It also involves market sentiment and understanding biz and market cycles. Most of advisories fail in this aspect and end up making lot of clients unhappy when the tide turns. It is not that their research is faulty or the stock is bad but they get caught in the wrong market cycle.

I was subscriber of BM top ten and he had all three capabilities. I do not follow his style nor I am subscriber anymore. I don’t see too many who can mix skill and art of playing Mr market very nicely.

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