Value Investing is buying a good business at a bargain price. Not only do these companies trade at lower than their book value, they also demonstrate very strong financial strength and earnings stability, thus making it a great investment opportunity. We religiously follow the investment principles of Benjamin Graham - the father of value investing.
We have presented here a list of companies that are at present available at bargain prices, and a list of companies that are potential future bargain opportunities.
We have also included a list of companies in which we had invested in the past, and the returns obtained from each.
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2. Value investing is about buying good business at a bargain price. It also defines the
difference between investing and speculating.
The companies mentioned in the Stock Picks pages below have been shortlisted based
on the principles delineated by Benjamin Graham in his books – The Intelligent
Investor and Security Analysis. These shortlisted companies are not only selling at
lower than the book value per share, but they also demonstrate strong financial
position, earnings stability, dividend record, and earnings growth. We are very
particular about strictly following Benjamin Graham’s principles of value investing, and
not adding any of our own criteria while doing our research.
Even though we have presented only a selective list of companies in the Stock
Picks page that meet all the criteria and are real bargain opportunities, it is highly
recommended that you invest only in those companies in which you envision
tremendous future growth prospect. The higher the Discount (margin of safety), the
better are your chances for profit than for loss.
We hope that you have a great investing experience with us. We keep updating
the Stock Picks pages periodically, so please keep checking for new companies that
get included in the Current Picks page, and for improved discounts on existing picks.
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3. A stock does not become a sound investment
merely because it can be bought at close to its
asset value. The investor should demand, in
addition, a satisfactory ratio of earnings to price, a
sufficiently strong financial position, and the
prospect that its earnings will at least be maintained
over the years.
There is a close logical
connection between the
concept of a safety
margin and the
principle of
diversification. One is
correlative with the
other.
a sufficiently low price can turn a security of mediocre
quality into a sound investment opportunity— provided that
the buyer is informed and experienced and that he
practices adequate diversification.
The enterprising investor
may confine his choice
to industries and
companies about which
he holds an optimistic
view, but we counsel
strongly against paying
a high price for a stock
(in relation to earn-ings
and assets) because of
such enthusiasm.
We greatly doubt whether the man
who stakes money on his view that
the market is heading up or down can
ever be said to be protected by a
margin of safety in any useful sense
of the phrase.
5. Company Name
Value Per
Share*
Share
Price# Discount
*Value Per Share: Net Tangible Assets (NTA) Per Share
NTA Definition: http://www.investopedia.com/terms/n/nettangibleassets.asp
*Quality: One of the most persuasive tests of high quality is an uninterrupted record of dividend
payments going back over many years.
If you require full analysis reports relating to the Financial Strength and Earnings Stability of any of
the above mentioned companies, please contact us at:
http://vaultinvestment.wordpress.com/current-picks-2/
Quality*
(Out of
10)
52 Wk
Low
52 Wk
Discount
Sicagen India Ltd. 121.2 16.8 86% 4 9.6 92%
Ansal Housing & Construction Ltd. 68.3 30.5 55% 10 14.0 80%
Tyche Industries Ltd. 42.6 22.0 48% 10 15.5 64%
Zenith Fibres Ltd. 65.45 35.15 46% 10 26.0 60%
Austin Engineering Company Ltd. 153.4 85.1 45% 9 35.2 77%
Andhra Sugars Ltd. 246.7 136.0 45% 10 86.1 65%
# Share Price updated on 9th Oct, 2014
6. Purchase
Price Current Price Return
Purchase
NTA* NCA* Position
gulshan polyol 81 216.05 167% 50% 203% hold
jb chem 73.8 220.65 199% 67% 94% hold
midfield 31.64 -100% 35% 47% hold
nava bharat 176.75 217.45 23% 73% 428% hold
panama 146 297 103% 51% 75% hold
pochiraju 14.64 26.65 82% 24% 1345% hold
swelect 140.23 415.5 196% 50% 95% hold
polyplex 181 230 27% 23% 72% sold
manaksia 46.55 107 130% 28% 122% sold
NTA*: Net Tangible Assets Per Share
NTA Definition: http://www.investopedia.com/terms/n/nettangibleassets.asp
NCA*: Current Assets – All Liabilities
7. Company Name
Value Per
Share*
Share
Price# Discount
Quality*
(Out of
10)
52 Wk
Low
52 Wk
Discount
APM Industries Ltd. 77.6 36.0 54% 4 17.3 78%
OM Metals Infraprojects Ltd. 52.5 27.7 47% 10 11.3 79%
Sandesh Ltd. 528.9 365.0 31% 9 225.0 57%
PBM Polytex Ltd. 112.9 80.0 29% 5 35.4 69%
Prima Plastics Ltd. 48.2 35.1 27% 5 11.2 77%
South India Paper Mills Ltd. 66.5 57.1 14% 10 27.5 59%
VTM Ltd. 28.2 24.7 12% 10 13.6 52%
Technocraft Industries (India) Ltd. 180.8 175.4 3% 8 68.5 62%
Gulshan Polyols Ltd. 214.6 216.5 -1% 10 58.0 73%
Haldyn Glass Ltd. 20.7 21.7 -5% 10 10.5 49%
Manali Petrochemicals Ltd. 12.3 14.1 -14% 9 6.5 47%
Mazda Ltd. 194.8 230.0 -18% 10 89.3 54%
Take Solutions Ltd. 31.0 40.1 -29% 6 28.4 9%
Gujarat State Fertilizer & Chemicals Ltd. 105.0 117.4 -51% 10 43.7 58%
# Share Price updated on 5th Oct, 2014
If you require full analysis reports relating to the Financial Strength and Earnings Stability of any of the
above mentioned companies, please contact us at:
http://vaultinvestment.wordpress.com/potential-future-picks/
