India's Third Giant Leap: How to Select the Best Value for Money Stocks

Feb 10, 2023

Indias Third Giant Leap: How to Select the Best Value for Money Stocks

We are discussing India's third giant leap and how it can be the proverbial goldmine for those who get in at the right time.

In case you missed my first two pieces, you can read them here and here.

I recommend you read these pieces first if you want to have a firm grip on what I will be discussing next.

You see, India's third giant leap is all good. But as they say, it is all about the money, honey.

Indeed. The big change about to sweep the Indian economic landscape, will not mean much for us investors if it doesn't lead to huge investment opportunities.

Thankfully, it will. I strongly believe there's plenty of wealth to be made from this once in a generation shift.

In fact, it can be best capitalised through investing in a special category of stocks.

So, what exactly is this special category of stocks? Well, I can tell you from my nearly two decade experience in the stock market that finding such stocks is not easy.

The main reason being that investing in such stocks does not come naturally to us humans.

It is counterintuitive to the way we think.

Let me explain how.

Not so long ago, people queued up to buy shares in stocks like Adani Green, PayTm and IRCTC.

Why? Simply because they represented the future. These stocks are from some of the fastest growing industries in India. Therefore, investors thought that if they want to multiple their money fast, these stocks are their best bets.

But did they multiply their money? Did these stocks give multibaggers returns? Certainly not.

In fact, they have been huge wealth destroyers with no hope in sight for those who may have invested the top. Yes, that's right. These stocks have been a huge disappointment.

So, what happened? Why did the script go so horribly wrong?

Well, investors forgot that mere potential for growth does not translate into multibaggers stock returns.

The potential has to be converted into sales and profits and then into cash flows.

So, Adani Green may have a great future. But if it is in a massive capacity expansion phase where it has to borrow a lot of money, it will be years before it can see any sustainable profits.

Therefore, buying the stock for sales and profits that may come after 5-10 years, is not the most ideal thing to do in my view.

Then there is PayTm where the sale is immediate, but the competition is so intense that they are not even able to meet their expenses, is another reason why high potential does not necessarily translate into high profits.

I agree that the third company on the list, has none of these challenges.

It is highly profitable and is a near monopoly in the segment that it operates. And therefore, such stocks are a cinch to go up, isn't it?

Well, wrong.

Even IRCTC has seen its share price erode significantly over the past few months. It has been a big wealth destroyer for those who would have invested at the top.

These examples drive a big hole in the theory that in order to earn high returns, you have to either invest in high growth sectors or high-quality stocks. As we just saw, nothing could be further from the truth.

High growth or high quality is on guarantee of superior stock market returns. Which is why for you to profit from India's third giant leap, you need a special category of stocks.

These are stocks that I'd like to call as the 'Value for Money' stocks.

This is a category where the future is no doubt impressive but the profits are not many years out and neither are they non-existent.

Besides, they are quality companies where I have ensured that you don't end up investing at the top like investors did in the case of IRCTC.

With this category of companies, you get the best combination of safety and potential high returns.

This is the reason why this category of stocks is my favourite.

Yes. India's third giant lift leap could lift up stocks of many companies.

But some of the biggest potential wealth generators from this leap could be most likely from my favourite category of stocks.

At my special event on Monday, 13th February, I will tell you more about this lucrative category of stocks.

Not only that...

I will also share my stock selection framework with you.

A framework that consistently helps me identify some of the best stocks in the stock market.

Recently, I've identified 3 amazing stocks through this framework.

And my research says that these stocks are set for a potential massive rally during India's third giant leap.

I will share all the details with you on Monday, 13th February.

I'm sure you must have already blocked your calendar for my event. If not, then you can simply click here to do it right away.

See you then.

Warm regards,


Rahul Shah
Editor and Research Analyst, Profit Hunter

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1 Responses to "India's Third Giant Leap: How to Select the Best Value for Money Stocks"

Dr. B. S. JAYARAM

Feb 15, 2023

Dear Mr. Rahul shaw
I went through the details of three stocks in the inaugural Midcap Alert status. I was amazed to know just RS 1000/- invested in Sundaram finance in 1976 would be worth around 10800 shares at current market price of Rs 2300 +.
Also KPR mills. Although Laurus Labs. I have added more of Laurus Labs and invested in the other companies. I look forwards for your success rate translating into my wealth creation.
Regards
Dr. B. S. JAYARAM
Orthopaedic surgeon
Bangalore

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