This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns.
Stock market investments are subject to market risks.

"Celebrating 10 Years
of Safe Riches!"

Our StockSelect service, which has given triple-digit
returns from some of the best companies, has
completed 10 years of successful operation

Now here's your chance to join 15,442 subscribers
who benefit from StockSelect every week
...and grow your wealth with minimal risk!

Dear Reader,

On one fine day, many years ago, a small group of people set out to fulfill a special mission.

The road in front of them was long, and even they did not know how many obstacles they would have to face before they reached their goal.

But this mission was very close to their heart... and they knew that if they persevered, they would transform a LOT of lives going forward.

And that's exactly what happened.

Hi, I'm Rahul Goel, the CEO of Equitymaster.

And the story you read above is of none other than Equitymaster itself.

Yes! When we launched in 1996, our team consisted of merely 5 members. So if I just say we were all multi-tasking for a while, it would be an understatement.

And this was just one part of it!

You may know that Equitymaster was the first finance-related firm to go online in India.

People were a lot more skeptical about dealing with "websites" in those days.

Plus, you can only imagine the trouble we had to face in running our business with a dialup Internet connection. (There was no broadband then yet)

Anyway, we endured all that... and more... because we felt the objective with which we set up Equitymaster made all of it worth it.

And that objective was -

To save investors from commission-driven
opinions and help them build
long-term wealth safely!

You see, back then a majority of investors used to rely on stock brokers for investing inputs. And a stock broker only makes money when you buy stocks from him.

So even though I won't say ALL brokers were biased, quite a few of them were, and because of biased recommendations people were losing money in the market.

And then there was also the media, which just like today, would say different things at the same time and confuse investors even more.

So our objective was to change this scenario and help investors make well-informed investing decisions instead of blindly going by somebody's suggestions or their gut feeling.

And in addition, we also wanted to help them build long-term wealth SAFELY... with the help of our completely independent and unbiased long-term research... instead of going after hot short-term tips or risky intraday stuff.

So that's how Equitymaster was launched.

However, there was a problem...

Financial research requires constant travelling, meeting with companies, continuous monitoring and analysis, delivering the research to our subscribers, and a lot more.

How would we manage all these expenses?

That's when we came up with an idea...

An idea that would change the face of
equity research in India. . .

We decided that we would not accept ANY kind of commission or brokerage from companies (like stockbrokers do).

And instead, our company would be funded by our subscribers themselves... through the subscription fees they'd pay us for our premium services.

See, doing this would have 2 big benefits:
  • It would give us the right to fearlessly call a spade a spade and deliver completely unbiased research at all times, thus benefiting our subscribers greatly

  • It would also urge us to provide the BEST service to our subscribers at all times. Because if our recommendations don't give them good returns, they simply won't sign up for our services and we'll be out of business very quickly. Makes sense?
The idea worked!

Today, our team is 52-strong.

As of 8th April 2013, we have over 1,484,807 registered members in 71 countries worldwide.

And now, we have passed yet another milestone too...

10 years of successfully delivering
safe blue-chip opportunities

Like I said, our first research service StockSelect -- through which we notify subscribers of opportunities to get rich from blue-chips safely -- has completed a decade of successful operation.

That's right!

It was a little over 10 years ago, on 7th January 2002, that we launched StockSelect and released our first recommendation.

We had launched StockSelect after conducting thorough research and trying to understand what people really needed.

And now, it is our most popular and proven recommendation service.

Take a look at how well StockSelect has done over the years...

Year Success Rate (%)
2002 89.7
2003 94.6
2004 94.4
2005 84.6
2006 69.6
2007 76.9
2008 79.2
2009 90.7
Past performance does not guarantee future results.

To sum up, an average accuracy rate of 80.9% for all closed StockSelect positions between 2002-2010. And while investing in some of the SAFEST and BEST companies in the market!

It is this consistency that has earned StockSelect amazing testimonials like the one you see below from subscribers...

"Equitymaster has made me more and more richer every year since my association with them. It has given me more wealth than my professional career. Convey my best wishes to all 52 members at Equity Master."

-- Dr C V Ajmera, a StockSelect subscriber since 2011

And we're only just getting started...

Here are some more very important facts we absolutely want you to know about StockSelect...
  • We travel far and wide to personally meet companies before putting out reports on them. No company is ever recommended without a meeting with the management and a close look at the moat, long-term track record and valuations.

  • Because of the thorough scrutiny that we subject companies to, our recommendations made prior to the bull run in stocks markets have also earned returns like 3,311%, 1,276% and 6,407% over the subsequent years. (Full details later in the copy)

  • And once valuations turned expensive, we did not hesitate to caution subscribers about the impending risks. In 2004, 2005, 2007 and 2010 nearly 30% of StockSelect recommendations were SELLs. Our sell recommendations on Reliance Infra and Raymond along with many others have subsequently saved a lot of money for our subscribers.

  • Most importantly, when 'fear' was at its peak in the market in December 2008, Equitymaster took a bold call on Tata Motors which the market feared was 'about to go bankrupt'. And it went on to fetch 784% for investors until we recommended a SELL in 2012.
So clearly, StockSelect has not just made its subscribers money, it has also helped them avoid big losses and save a lot of money!

And the truth is... many times, Equitymaster had to go against the prevailing market sentiment and initially drew flak for it. But we still remained firm in our approach, and it rewarded our subscribers greatly by either helping them make money or avoid potential losses.

As one StockSelect subscriber, Mr. Gaurav Shrivastava, says:

"What pulled me towards is that there are not just "BUY " recommendations. The subscribers are also advised when to sell. It takes guts to advise readers to sell the stock for which buy was recommended, even if it means selling on loss. This speaks a lot about the commitment of towards financial well-being of its readers and always focused towards long term gain event at the cost short term pain."

-- Gaurav Shrivastava, a StockSelect subscriber since 2011

StockSelect has given returns of 162%, 218%, 268% and 321% in just around 3 years time.

And returns like 12%, 26% and 27% in 2 years or less. (By the way, 2 of these are still open positions).

Now I don't know about you, but if there was a service that could:

Help me profit from the BEST companies in the market...
Tell me when to buy, when to hold and even when to sell...
And hand me double-digit and triple-digit returns with good consistency...

... I would grab it with both hands.

And guess what?

You now have the chance to try StockSelect for a low fee of Rs 495 only!

Yes! This is an idea we've come up with to make it easy for people to get a first-hand view of StockSelect.

And I'll give you full details about this in just a while from now.

But before that...

How exactly does StockSelect work
and why is it so effective?

StockSelect is a unique service designed by Equitymaster specifically for investors who'd like to build wealth from stocks... but don't want to spend all their time worrying about market movements or wondering whether they chose the right stocks or not.

I believe you'll agree that blue-chip stocks are some of the safest stocks available on the market. They are very stable and far less likely to vanish with your money overnight.

Now what StockSelect does is, it helps you get rich without taking much risk, by investing in safe blue-chip stocks at the right moment.

Here's how...

See, there's a strong belief among investors that blue-chips are virtually immune to any and all kinds of problems. But that's not really the case.

The fact is that even blue-chip stocks go through hardships from time to time.

The reasons could be anything like:
  • Change in the company's top management
  • Some new initiatives started by the company turning out to be failures
  • Fall in demand for the company's product in the market
  • Bad economy
  • ...or anything else for that matter
When things like that happen, the demand for the blue-chip stock falls temporarily... bringing its price down and making it available to you at a discount!

This is when you need to act fast and grab the stock.

Good companies always when the storm passes. So if you buy good blue-chip stocks at the right time, you could easily make attractive returns from them in 2-3 years.

And our subscribers agree this approach works too...

"I have been following and investing in the markets for 9 years. I would follow all the hot "tips" coming out of the horses mouth only to see my capital erode. Ever since i have bought Equitymaster products, I BELIEVE I HAVE BOUGHT PEACE TO MYSELF. Trust me these days, I feel more happier when the stock market crashes, as i know i am buying into companies that are researched as "Fundamentally & Technically Strong".

To summarise " Sleeping pills are cheap.. but they come with a habit... whereas mediatation is difficult but it develops a positive attitude".... Equitymaster thou next name is Meditation."

-- Eisen Philip, a StockSelect subscriber since 2010

Also see these examples. . .

1) Tata Steel

Tata Steel
Past performance does not guarantee future results.

We recommended Tata Steel in December 2008, when the stock was trading a mammoth 80% lower than its 52-week highs!

The stock's underperformance then could be attributed to its balance sheet that had been loaded with debt on account of the leveraged buyout of Corus.

While we saw the concerns as being valid, we knew those were far too exaggerated. Our calculations showed that even if the company's earnings were to fall by 50%, there would still be enough cash flow for it to pay for its financial expenses on the debt.

So we remained confident that the company will come out of the downturn rather unscathed.

And the stock is up 109% now.

2) GSK Consumer

GSK Consumer
Past performance does not guarantee future results.

We recommended GSK Consumer in February 2009 when the Indian malted beverage market was seeing stiff competition from new entrants like Dabur and Hindustan Unilever.

In the midst of all this, GSK initiated a 7% price hike in its flagship brand 'Horlicks'. It also leveraged its brand power to launch new variants.

This firmed up our confidence in the company retaining its 70% market share. Plans to introduce products from its global parent's portfolio in oral care, energy drink and other segments over the next 3 to 4 years was the additional sweetener.

So we maintained that despite competition GSK Consumer would be able to leverage its brand power to emerge stronger and improve returns to shareholders.

The stock went up 302% till we recommended a sell on it.

And here are some more of our blue-chip recommendations from the last 3 years only and the returns they gave:

Company Details % Return
Asian Paints A company that controls 30% of India's paint market 132%
Bharat Forge The second largest forging company in the world 251%
Castrol India The second largest player in the Indian lubricant industry 221%
Dr Reddy's A leading pharmaceutical company in India 128%
TCS Asia's largest software services company 421%
Past performance does not guarantee future results.

I think you see how you could make significant returns from safe blue-chip stocks by subscribing to StockSelect.

And our approach is simply based on the time-tested investing principle of being greedy when others are fearful, and fearful when others are greedy.

So if done correctly, it is certain to produce profitable results... as has been proved in the examples presented to you.

"First of all I would like to appreciate the stock selection mechanism of Equitymaster. I am a subscriber of Equitymaster since 2009. Also enjoying handsome returns since then. I made this decision of joining Equitymaster in one of the tough phases in my life and fully got paid for the right decision. I am happy investor and proud to be associated with Equitymaster. I encourage the large community of retail investors to join such an advisory services to be active participants in Indian Stock Markets and NOT to run after quick money."

-- Pankaj Deshkar, a StockSelect subscriber since 2009

But that said, from time to time
we could make a mistake too. . .

Like I said before, StockSelect has an accuracy rate of 80.9%.

Which means 8 out of every 10 stocks we recommend hit their target.

So there are 2 stocks out of every 10 that DO NOT perform as expected.

Now, there's no doubt that we recommend a stock only when it meets all the required parameters.

But sometimes... despite having all those valid reasons for recommending the stocks... the assumptions we make turn out to be incorrect.

For eg: We recommended Voltas and BHEL in 2011, when the stocks seemed to be offering tremendous value given their industry leadership and strong long-term growth prospects.

However, their stock prices showed no signs of strengthening and in fact corrected further from the recommended levels.

Investors seemed to have lost interest in these sectors. Plus, the lack of near term growth visibility coupled with policy inaction resulted in lower valuations for the stocks.

  Reco. Date Reco. Price Price as on 30th Nov 2012 Change
Voltas 25-Feb-11 158 108 -32%
BHEL 15-Jul-11 385 233 -39%
*Prices adjusted for bonus and stock splits
Past performance does not guarantee future results.

Now, it is but natural for investors to be anxious about the correction.

But we find no reason to change our view on the stocks given that both the policy hiccups and near term growth uncertainties are temporary in nature. Both Voltas and BHEL are bound to keep their long term growth rates intact even if India's GDP grows at an average of 6.5% over the next 5 years.

The high margin of safety in their valuations could in fact help investors grab sound, good businesses at discounted prices.

So what I want to say is, despite making all the efforts to be as accurate as possible, there will always be factors that we can't control.

But all said and done, you can rest assured that when you receive a research note from us, it is our honest opinion about the stock -- based on certain time-tested criteria and assumptions.

"I would want to acknowledge the fact that Equitymaster is ACTUALLY REALLY GENUINE in its research, SELFLESS and not giving recommendations with a HERD mentality !! Like some magazines and news channels do..."

-- Nishank Mehta, a StockSelect subscriber since 2009

Sign up for StockSelect and get details on one safe,
high potential investment opportunity every week

StockSelect will send you 52 recommendations over the course of the entire year, or one recommendation every week.

Every Friday you'll receive a detailed report on one Buy/Sell/Hold blue-chip opportunity... giving you all the pros and cons of investing in the company at that point in time, along with Equitymaster's unbiased opinion.

So you'll have all the information you need to make a sound investment decision.

And the most important thing is, we don't just recommend some companies and forget about them.

At the end of each quarter, we review all the recommended stocks that have yet to meet the target price or are yet to complete the recommended tenure of investment i.e. all open positions.

We provide subscribers our latest analysis on all those recommendations... and whether we maintain our views on them or have changed the same.

So, you'll never be left to wonder how things turned bad all of a sudden.

"In 2007, Equitymaster was probably the only research house which will give most of HOLD or SELL recommendations rather than BUY reports and everyone knows what happened after that. I feel to be proud subscriber of equitymaster seeing again that you still are not afraid of giving the right opinion irrespective of market moods. Great Job!!!"

-- Deepak Aggarwal, a StockSelect subscriber since 2007

But wait, there's more...

Here's what else you get
when you sign up for StockSelect. . .

1) 5 Stocks you can invest in right away

When you sign up for StockSelect now, we'll also give you our latest special report titled "Equitymaster's Top 5 for 2015" for FREE.

You see, we know from experience that the money-making potential of investing with at least 2-3 years perspective far overrides the short term trading strategy.

With exactly this in mind, we have identified 5 stocks which we strongly believe could turn out to be the Star Performers of Your Portfolio by 2015. And provided the full details in this special report.

We believe each of these 5 stocks has potential to multiply your money over the next few years. So if you don't have them in your portfolio yet, you should.

2) S-Features

These are articles and reports that are available to our premium subscribers only. We release hundreds of them every year.

You might understand that there are a lot of factors influencing the stock price, most of which need to be monitored regularly.

And the S-Features comprise of excerpts of management meetings, extracts of conference calls, updates on the happenings in a company and our personal views on it, and so on.

As this is all "unadulterated" information, it will serve as a valuable input in your investing decisions.

3) Our New 'Intelligent' Portfolio Tracker worth Rs 330 per year FREE

The Portfolio Tracker is an online utility that helps you track all your equity and mutual fund investments in one place!

It lets you set up alerts, obtain performance updates, track your SIPs and mutual fund schemes, and do a lot more.

However, what makes the Portfolio Tracker the indispensable tool that it is are the intelligent analysis reports that it generates.

Portfolio Tracker costs Rs 330 per year normally. But it's free when you subscribe to StockSelect now.

4) "How to Plan Your Equity Portfolio": Our Hugely Popular Asset Allocation Guide

A majority of new investors take either too much or too little risk while investing, and are hence not able to get the maximum out of their investments.

Therefore our intention through this guide is to help you allocate your investments properly... to not just give you a chance of maximizing your stock market returns but also keep the risk involved to a minimum.

Our Asset Allocation guide is extremely popular. And you get it FREE when you subscribe to StockSelect now.

5) Free subscription to The Daily Reckoning

And last but not the least, we are delighted to bring you 'The Daily Reckoning', a daily financial e-column by Bill Bonner, Publisher and Editor, and three-time New York Times best-selling author.

The Daily Reckoning is published every day in 3 languages from offices in 6 countries. Now, it's India's turn... and your turn to get it for FREE!

When you subscribe to StockSelect, you automatically get a free subscription to the Daily Reckoning also.

You will find this extremely useful if you're interested in monitoring, or even investing in the global markets.

To summarize, here's what all you get with StockSelect...
  • 52 StockSelect Buy/Sell/Hold recommendations in all in a year

  • Special report - "Equitymaster's Top 5 for 2015"

  • Quarterly reviews of our StockSelect recommendations

  • S-Features

  • The New 'intelligent' Portfolio Tracker

  • Our Special guide - "How to Plan Your Equity Portfolio"

  • FREE subscription to 'The Daily Reckoning'

Try StockSelect now. . .
For a small fee of Rs 495 only!

You may already know that StockSelect normally costs Rs 5,000 for a year.

But now, through our new initiative, you can sign up and try StockSelect for 30 days by paying Rs 495 only!

Like I said, this is to enable more people to get a first-hand experience of StockSelect.

So during these 30 days, you'll get:

4 New issues of StockSelect.
Access to archives of all the previous StockSelect issues.
Access to all our special reports including Equitymaster's Top 5 for 2015.
Access to all our S-Feature notes, including result analysis, views, and reviews.
Access to any other reports that we may put out during this period.

In a nutshell, anything and everything that a regular subscriber would get from StockSelect!

After going through these, you should have a good idea of whether StockSelect is for you or not.

If you don't like what you see, just let us know before the 31st day and we will immediately cancel your subscription.

And you won't have to pay anything more.

However, if you wish to continue after 30 days, then do nothing and we'll automatically renew your StockSelect subscription for not 1, but 3 full years by charging an extra Rs 4,950 to your credit card.

Yes! Rs 4,950 for 3 years comes to just Rs 1,650 per year... which is a discount of 67% on the normal yearly price.

What's more, by renewing for 3 years at a go, you are freed from the hassles of renewing every year and also protected from any price increases that may happen in the next 3 years.

So clearly, you have everything to gain and nothing to lose from this.

When "Safe Stocks" gave 4-digit returns!

I've already showed you how safe blue-chips gave triple-digit returns on numerous occasions.

In just around 3 years, our StockSelect recommendations have returned:
  • 189% on Glenmark Pharma
  • 114% on Zee Entertainment
  • 102% on Novartis
...among many others.

But here's the thing -- on some occasions, blue-chips actually gave four-digit returns too!

Yes! We recommended L&T on 5th November, 2002 when it was selling at Rs 47.5*. And when we gave a SELL on it in March 2010, it had risen by an amazing 3,311%.

Then we recommended SBI on 23rd September, 2002 when it was selling at Rs 216.8*. By the time we recommended a SELL on it in September 2010, it had returned 1,276%.

And finally Titan, which we recommended on 21st July, 2003 gave a whopping 6,407% until we gave a SELL on it in October 2011.

(*Recommendation prices have been adjusted for bonuses and stock splits over the years)

So you shouldn't think that blue-chips are incapable of making you big returns... like a lot of investors unknowingly do.

The Risk Is Minimal,
So Don't Hesitate!

Look, by subscribing to StockSelect, you'll also be investing in stocks which in our opinion are among the market's safest.

8 out of every 10 stocks we've recommended through StockSelect have hit their target. So that gives you an idea of how accurate this service is.

And even if you don't like StockSelect or decide it's not for you, all you will lose is Rs 495.

Serious investors will know that Rs 495 is nothing compared to the prospect of finding a reliable source of solid, high-potential blue-chip recommendations.

So why think so much about this?

Just give StockSelect a try. If you don't like it, you can cancel before the 31st day and you won't have to pay even a rupee more than the Rs 495 you paid.

And you can also keep all the reports as a way of saying thank-you from us for trying StockSelect.

Sounds good?

So you have at least 3 good reasons to sign up for StockSelect NOW:

  • To invest in and profit from the market's safest stocks on a continual basis

  • To try StockSelect for 30 days for Rs 495 only... and then get 3 years of StockSelect for just an additional Rs 4,950 if you decide to continue (which is an amazing 67% discount)

  • To get our special report giving you 5 stocks to invest in right away for free
Don't delay any longer...

[Click here to subscribe]


Rahul Goel
CEO, Equitymaster

P.S.: StockSelect helps you grow your money safely while investing in some of the best stocks in the market. This is what a majority of investors crave for, isn't it? To grow their money safely?

P.P.S.: Try StockSelect for 30 days by paying just Rs 495. If you don't like it, you can cancel and you'll only end up losing the Rs 495 you paid. Otherwise if you decide to continue, you get 3 years of StockSelect for just an additional Rs 4,950... which is 67% off on the usual price. So don't hesitate. Act now!

P.P.P.S.: Here's what another subscriber has to say...

"I am a subscriber to StockSelect, MidcapSelect & Hidden Treasure. Equitymaster has really shown its skill in finding the PICKS much before others do.

I know that it is not so easy for an analyst to 'pick up' ahead of others always.


-- Satya Pal Gupta, a StockSelect subscriber since 2005

P.P.P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us. We will be delighted to assist you!

Try Our Best Performing Service
For Rs 495 Only!

Returns have been calculated as on 30th Nov 2012 or on the date of Sell Recommendation, whichever is applicable.
The number of StockSelect subscribers is taken as on 5th April, 2013
Past performance has no bearing on future performance

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: Website: CIN:U74999MH2007PTC175407