This PF will be playing a game of probability for the most part. Not all stocks out of chosen 20/30 may reach 10x.
Deep Industries has a decent chance because:
It has done it in the past.
Entry price is super conservative. Is a good defense and offense both.
It is part of Nifty 500 stocks.
Its fundamentals are not stellar, but its top-line and bottom-line are on an upward trajectory with no debt, hence it is consistent in giving dividends.
If crude prices were to sharply rise, which they have several times in the past, its stock prices just might catapult. There is a good chance.
It is going to be difficult times for overall economy and we are certainly getting great bargains but it would be extremely crucial to chose only those companies which fit following parameters IMHO.
Rather than discussing specific stocks it might be better to come up with a template to chose the stocks from.
Following is the rough template that I am following.
No Debt or DE < 0.2
Net current asset should be significant portion of the market cap
P/B<0.5 or so
Cash generated by the business annually should be significant portion of the market cap
Great historical ROE/ROCE
last year or TTM sales growth and PAT growth should be good.
Business should not be cyclical/commodity, industry should not be facing headwinds of any sort
Promoter holding should be good. If promoter is buying from the market then its even better.
Market leader or specialized businesses having some moat
This is just a statistical template to get preliminary list. Subjective analysis of business model/management etc has to follow as second step.
Would encourage others to add points to this template or debate on any of them about their importance.
I donāt agree with your view hereā¦ Holding it since last few years and there is nothing so exceptional about the company that can make it 10 baggerā¦
Moreover manipulative stock in natureā¦ All the news are known by insider first and then they trade in itā¦
My fellow boardersā¦
My request to the thread initiatorā¦
Please change the titleā¦ 10x is a tall askā¦ Nobody knows what is going to be a 10x in the futureā¦ So wish u will take this point in the right wayā¦
Also 10x without a time frame is of no useā¦ Would anyone be happy with 10x in 100yearsā¦
Also if 100ppl pitch in 100 ideas what is the useā¦
In that case are we not better buying an index fundā¦
Also anyone who is pitching an idea of the stock needs to give at least the followingā¦
What the business does?..
What the company has done for it to change the trajectory of its growthā¦ Becoming from good to excellent ( what ever adjective u want to use)ā¦
Also a proper light on financials must be thrownā¦
Also how the current scenario will impact the company positive or negative wayā¦ Management integrity etcā¦
Or else this thread will become a speculators havenā¦ And there wonāt be any difference between valuepickr and any tom dick and hardy forum where people tell a stock name and use symbols like ā¦ To falsely trap retailā¦
Hope everyone takes this on a positive noteā¦
Not trying to point fingers at anyoneā¦
Just making sure the thread will have some valueā¦
If moderators feel my message is not aptā¦ Feel free to take it outā¦
When I see debtor days going from under 10 to 80/90 in 3 years - it raises more questions in my mind than answers. Granted terms of trade are weakening in pharma but Honestly, I donāt know of any pharma company where there is such a drastic change. I understand that the company has always focused on Latin America. What has changed so quickly then? In my past experience, there have been several empirical cases where deterioration of terms has preceded underperformance and slow growth. It is a deep red flag for me. It very well might be a 10 bagger From here but if I miss it, I will not at all regret it.
