Screeners/Moneycontrol etc are not enough to analyze SME stocks. Not all data are available there. Where to look for?
Is there any tool to keep tab on Good SME stocks. Any tool which can highlight good upcoming SME IPOs or existing stocks?
What precaution should I take other than flat thinking that SME is risky. Anything that is different than regular stocks on BSE! Is there any clue that can tell me easily that this SME is going to gain in near future?
Today I saw that Veeram Ornaments has insider trading. It is a buy. But again, I could not go ahead on my analysis. Only parameter I could see that it is very small ~ 20 cr mCap. But don’t know if it is very cheap! Means sales is very high but market has not recognized it!
I got that I possibly need to read prospectus. But how to know current status of the company?
Dhabriya Polywood Ltd got listed in 2014 year end but no quarterly data on Screener. Few has suggested this stock. But I have no clue what to do!
So, please add whatever you know about analyzing SME. If you are an expert in analyzing SME then please give us full detail. I will feel lucky.
@satya61229 even I am having this same issue, right now I have invested only in one SME stock and it reports only every 6 months . Its very very hard to get information and most of the times I have to ask the management itself for a reply.
One more issue is buying is in lots say 600 shares in my case , it comes around 1.8 lakhs for one trade and you can buy in only that batches. main issue I faced is when they pay dividend we cant reinvest in the stock as it trades in Lots of 1-2 lakh values which according to me a big let down.
One benefit I saw is if we got a great deal of information from our research about the company we could get 1% holding of many companies with investment of 20 lakhs .
Veeram Ornaments is not available at “tofler”. Few others I have checked and those were available. At least entry was there. It is a paid website. Need to pay Rs 600 or more to check if desired data is available.
If need to pay then if other websites someone has tested then we can compare. Which is cheap and best for SME?
I bought my first SME stock. I am sitting at 25% gain in few days.
It is Yug Decor.
In general, we used to look for stocks ideas at known locations - News, Screeners, 52 Weeks High/low, etc.
But in case of SME stocks these are not useful. Generally no data is available there. This blinds us.
SME stocks listed on BSE and NSE are mostly new. You can use Prospectus to read about the company and its financials. I also Googled for the company information. Company website also gives lots of idea.
I also found that if you buy after 1-2 months of listing of SME stocks then security is high. See if price is stable over time then check about its fundamental from prospectus. Recent performance and past performance could be seen there. I got the data for Yug Decor from there. Also, if you check when it is fresh then all data in prospectus are useful and it is like updated data.
I am fresh in SME stock world. So, take your own precaution. SME world is riskier than biggies. I shared my own two cents with you.