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Feast Recommendations - Investment Year 2023-24

Recommendations

All the Disclosures & Disclaimers apply to these recommendations.

Please click here for stock specific disclosures as on BUY & SELL DATE.
Rating Rationale
COMPANY NAMENSE SYMBOLBSE CODEMARKET CAP CLASSRECOMMENDED BUY DATECLOSE PRICE ON BUY DATERECOMMENDED SELL DATECLOSE PRICE ON SELL DATENOTESBUY DATE DISCLAIMERSELL DATE DISCLAIMER
1Finolex Cables LtdFINCABLES500144LARGE & MID31-May-2023800.9531-May-20241435.4Ownership (Self/ Family) : NO
2UNO Minda LtdUNOMINDA532539LARGE & MID31-May-2023555.7031-May-2024850.25Ownership (Self/ Family) : NO
3Cholamandalam Investment and Fin Co LtdCHOLAFIN511243LARGE & MID31-May-20231,050.9031-May-20241241.1Ownership (Self/ Family) : YES
4SRF LtdSRF503806LARGE & MID31-May-20232,519.7531-May-20242211.35Ownership (Self/ Family) : YESOwnership (Self/ Family) : YES
5ITC LtdITC500875LARGE & MID31-May-2023445.5031-May-2024426.45Ownership (Self/ Family) : YESOwnership (Self/ Family) : YES
6Cummins India LtdCUMMINSIND500480LARGE & MID31-May-20231,759.9031-May-20243551.3Ownership (Self/ Family) : YES
7Ratnamani Metals and Tubes LtdRATNAMANI520111SMALL & MICRO31-May-20232,313.0031-May-20243404.1Ownership (Self/ Family) : YES
8J B Chemicals and Pharmaceuticals LtdJBCHEPHARM506943SMALL & MICRO31-May-20231,052.2531-May-20241771.9Ownership (Self/ Family) : NO
9Stylam Industries LtdSTYLAMIND526951SMALL & MICRO31-May-20231,603.3031-May-20241585.6Ownership (Self/ Family) : YES
10JTL Industries LtdJTLIND534600SMALL & MICRO31-May-2023164.5331-May-2024209.15Ownership (Self/ Family) : YES
11Ion Exchange (India) LtdIONEXCHANG500214SMALL & MICRO31-May-2023381.5531-May-2024510.1Ownership (Self/ Family) : YES
12Gujarat Themis Biosyn Ltd506879SMALL & MICRO31-May-2023150.7731-May-2024378.85Ownership (Self/ Family) : YES
 
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Understanding Performance Metrics

1. All performance/returns data on this website depicts the actual and verifiable returns generated by our recommendations from 2021. These calculations are not audited or approved by SEBI or any of its authorised entities.

2.Such performance metrics do not include any back tested data or claim and does not guarantee future returns.

3. By proceeding, you understand and agree that returns shown on the website are not used as an advertisement or promotion to influence your investment decisions.

4. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

5. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

6. The securities quoted are for illustration only and are not recommendatory.

7. By continuing, you agree to our Disclosures & Disclaimers and Terms & Conditions.

Research Analyst Role

We are SEBI registered Research Analyst and not Investment Advisors. This means our expertise lies in researching and analysing stocks and giving our views/recommendations on those stocks. In our case, we publish them as recommendations.

 

An Investment Adviser on the other hand, works with you to plan your overall finances after understanding your financial goals. The advice offered by an Investment Adviser is personalised as against our recommendations which do not change based on individual financial situation/goals. Simply put, our recommendations are not personalised advice; it is the output of our research.

Unlike a PMS or a Mutual Fund, we are not involved in the actual trading of stocks. The actual buying and selling of the portfolio stocks is done by the subscriber himself/herself using their own trading and demat accounts.

Our service to subscribers is limited to giving access to the recommendations.

DisclosureFinolex Cables LtdUNO Minda LtdCholamandalam Investment and Fin Co LtdSRF LtdITC LtdCummins India LtdRatnamani Metals and Tubes LtdJ B Chemicals and Pharmaceuticals LtdStylam Industries LtdJTL Industries LtdIon Exchange (India) LtdGujarat Themis Biosyn Ltd
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company and the nature of such financial interest;NONONOYESYESNONONONONONONO
Whether the research analyst or research entity or its associates or relatives, have actual/beneficial ownership of one per cent. or more ecurities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;NONONONONONONONONONONONO
Whether the research analyst or research entity or his associate or his relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance;NONONONONONONONONONONONO
Whether it or its associates have received any compensation from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation or other benefits from the subject company or third party in connection with the research report.NONONONONONONONONONONONO
Whether it or its associates have received any compensation from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided:NONONONONONONONONONONONO
Whether the research analyst has served as an officer, director or employee of the subject company;NONONONONONONONONONONONO
Whether the research analyst or research entity has been engaged in market making activity for the subject company;NONONONONONONONONONONONO
DisclosureFinolex Cables LtdUNO Minda LtdCholamandalam Investment and Fin Co LtdSRF LtdITC LtdCummins India LtdRatnamani Metals and Tubes LtdJ B Chemicals and Pharmaceuticals LtdStylam Industries LtdJTL Industries LtdIon Exchange (India) LtdGujarat Themis Biosyn Ltd
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company and the nature of such financial interest.NONOYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of sharesYES Ownership of shares
Whether the research analyst or research entity or its associates or relatives, have actual/beneficial ownership of one per cent. or more ecurities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;NONONONONONONONONONONONO
Whether the research analyst or research entity or his associate or his relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance;NONONONONONONONONONONONO
Whether it or its associates have received any compensation from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether it or its associates have received any compensation or other benefits from the subject company or third party in connection with the research report.NONONONONONONONONONONONO
Whether it or its associates have received any compensation from the subject company in the past twelve months;NONONONONONONONONONONONO
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided:NONONONONONONONONONONONO
Whether the research analyst has served as an officer, director or employee of the subject company;NONONONONONONONONONONONO
Whether the research analyst or research entity has been engaged in market making activity for the subject company;NONONONONONONONONONONONO

Value Investing

Investing is simple, buy low, sell high & make profit.  The core focus of investing, hence, has always been to identify stocks valued lower than their intrinsic value.

Any financial asset can be valued based on the expected returns (earnings, cash flow, dividends, etc.) in the future. These future returns when discounted at the expected rate of return (also called as discount rate)  yield us present value (or the intrinsic value) of the asset. Consider every company as a returns yielding machine. If you can forecast the expected returns, you can determine the present value. If the present value is higher than the market value, it is valued low and is a candidate for buying.

Value Investing is always a contrarian approach. Many great investors including Warren Buffett, Charlie Munger, Benjamín Graham, Peter Lynch, have their own interpretations of value investing but all of them have this trait in common. Value Investing is a game of patience, once you make your move, you have to trust the market to correct its mistake and re-value the stock to its appropriate level.

Even when the company maintains or betters it performance subsequently, it might take a few weeks to few years for the market to revalue the company. However, once you find such a company, which you bought at a relatively low price and which continues to deliver on its operational performance, you probably never need to sell such a wonderful asset! While value investing is perfectly correct in theory, its implementation in practice is much more complicated.

Predicting the future is no mean game. Even the people managing and running the business won’t be able to make correct predictions. The solution is Margin Of Safety.  Margin of Safety gives you the leeway to be wrong on the predictions but yet be right on making gains.

Rating Rationale

  • Our BUY Recommendations are the output of our proprietary quantitative model, Expectations Value Model (EVM). EVM combines financial performance, market expectations, and quantitative assessments to determine stock recommendations. To know more about the model, please visit: https://equitymidas.com/philosophy/
  • We divide the stocks in two sets viz. Large & Mid Caps and Small Caps. Top 6 companies as determined by EVM,from each sets, are given as our recommendations.
  • EVM can only be run after the annual results are declared i.e. on last day of May every year. Our BUY recommendations are hence released typically on 31st May (except when 31st May is a weekend/holiday)
  • When the next set of BUY recommendations are available, we simultaneously give SELL recommendations for the previous year’s BUY recommendations. In other words, we re-balance the recommendations once a year. Essentially, SELL recommendations only mean that the next set of BUY recommendations have been identified.
  • These are key tenets of EVM:
    1. Operational performance of the companies should be rewarded by the market, historically.
    2.  Market expectations are within the reach of the company for the next year.
    3. Company is fundamentally sound with good interest coverage.
    4. Rank the company based on valuations and probability of meeting the expectations.
  • Since EVM is run every year, the typical holding period for our recommendations is 1 year but few stocks may re-appear in our next year’s BUY recommendations.
  • We do not have any price targets.
Rating/Recommendation
Interpretation
BUYStocks identified by EVM with potential to deliver good returns (as a group) over the next twelve months. Total expected return includes dividend yields.

DO NOTE:
EVM being a quantitaitve model, has been backtested for the set of recommendations it genrates and not for performance of individual stock. Potentially, the variation in returns of individual stocks can be very high. We do not have target prices of target returns for our recommendations.
SELLHolding period of 1 year has been completed and new set of opportunities have been identified by EVM.

EVM Guidelines for Operating Performance Classification

EVM states that the market performance of any stock is closely correlated to the underlying company’s expected operating performance. Every quarter we analyse the operating performance of the recommended stocks against the expectations calculated by EVM.

 

We rank the recommendations based on the operating performance and group them in 4 quadrants based on expectations achieved in that quarter. Here is how we group them:

 

 

QUADRANT CLASSIFICATION PER EXPECTATIONS ACHIEVED (%) EVERY QUARTER
Quarter 1Quarter 2Quarter 3Quarter 4
Quadrant 1<=20<=40<=60<=80
Quadrant 2>20 & <22.5>40 & <45>60 & <67.5>80 & <90
Quadrant 3>22.5 & < 25>45 & < 50>67.5 & < 75>90 & < 100
Quadrant 4>25>50>75>100

According to EVM, the group meeting the expectations for that quarter should deliver better than market returns.