SmallCap Hunter : Trying to find the dark horses with triggers

Lykis main office is in Mumbai with more than 200+.
i think promoter selling is done for time, now they are at no trade period due to quarterly result.
my sense is he must have sold for personal reason, as he was having his 50th Birthday this week . His bday was celebrated in grand way with his employees and family.
Best option is to stay invested till result and then take a call.


Well, I fail to understand for selling, even assuming it was for personal reasons. Promoter could have easily pre-planned and sold to some qualified institutions instead of open market. Since the financials are in good shape, he could have easily made a deal. On the other hand, due to his stupidity, the co lost significant market cap in the last few trading sessions. Any thoughts?


There is no one answer to this question and it is a very difficult question.

For most of micro-cap counters, financials will not be in place, if they had been then it would not be a micro-cap in the first place.

So, different counters have different interesting observations.

But most important of these is the promoter integrity. Sooner or later this comes into play.
Also at some point, either 3/5/6 years down the line financials also have to come into picture, market will only recognize once financials start falling into place.

So my thought process is to buy the scrip to keep it in satellite portfolio, atleast give it a 0.1% allocation.
Because companies out of sight are out of mind and there are hundreds to watch in this space.

So I can give 0.1% to a micro cap based on several parameters →
AGM sends out a positive note on promoter, the way promoter speaks his body language depth of his answers, how he answers to questions from his shareholders, promoter buying continuously from market from several years, some JV, good set of quarterly results, induction of a reputed person as director as board member, niche sector, leadership position in very small sector, open offer where net worth of promoter is big, open offer from new promoter who has existing set of decent business, change of business setup, big land bank, significant assets in books, an existing nano/micro cap investor having position, players extremely beaten down sector.

Above are only very few parameters to look at that I can think of right now.
But there are many.

Once the company is in portfolio, then real research starts, with competitive advantage, checking promoter integrity, scuttlebutt with employees/dealers, attending AGMs.

All this is is a multi year process and based on conviction, either I increase my position or decrease my position.

And then comes the toughest part of holding these micro-caps with a timeline of 5/7/10 years and continuously monitoring the events in the company.

Even after such a process, if I am able to make money on 50% of my scrips, I will lend up making huge sum of money. And most of time many are failures.

So this is the process, but it is worth the pain as most money is made in market in scrips where no-one is looking at them.


Can we wait for these microcaps to make it to midcap level…coz if company is good, it will graduate even from midcap to large cap and thus become atleast 10 bagger?

I feel comfortable when it’s surpasses 300cr+ & other criteria’s

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I have started tracking position. Company appears to be proxy for FMCG sector. But valuations are at higher level.

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Anyone tracking SG Finserve?

I do hold position in this stock, albeit a small one since 2019.
One of the finest company when it comes to paint and other similar containers. Uses technologically advanced processes for near perfect product everytime.
Had diversified into making containers for various other industries like food industry.
Looks overvalued to me right now.
Can enter at dips

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Holding since last year from 90-100 levels, allocated 10% of portfolio at that time, did not sell single quantity till now, I think it has to be somewhere close to 10,000 crore market cap given the pedigree of the promoter in next 4-5 years.


A genuine question, how and why this company came to your radar? was it based on ROCE/ROE scans or anything else?

How and where can we find the data of delivery taken by ace investors like Vijay Kedia , Ashish Kacholia
If myself do not want to wait till Q ending SHP

What was your rational of buying this company , as Ashish Kacholia is also invested in this

The CRISIL report says that the promoter holding will continue at least 60% stake, whereas the promoter holing as of today is at 49.3%. Any specific reason for this or am i missing something?

The concept of buying moonipa was because I had earlier played best steel logistics with same promoter and saw how the Gupta’s took over and transformed the company.
It is with that intent that I entered moongipa at 90 levels. Nothing was clear that time, what business is going to come, what will be the equity of the company, what are the future plans.

But all I knew that this is a very strong promoter who has the proven capability to turn around small companies into big ones. And on that conviction I took a 10% bet.

One can only take such bets at such early stage only on the pedigree of promoter and nothing else.


Which company is this, the previous post looks to be deleted.

any view on Sangal paper , I see the same promoter holding over 1% !!

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Could not find anything on Pondy Oxide, worth a Look?


  1. Push for a circular economy around the world
  2. Non-Ferrous metals are entangled in concentrated supply chains, recycling them is very essential for countries to secure their interests
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any thoughts on ACGL? Tata motors holds 49% stake in this company. manufactures buses

Any idea about Zim Lab?

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