INSUBCONTINENT EXCLUSIVE:
A 26 per cent annual compounded return can grow your portfolio 10 times in 10 years! Sounds mouth-watering
Ambit Capital on Tuesday listed
WABCO India, Heidelberg Cements, Dr Lal Pathlabs, Advanced Enzymes, Johnson Control, CCL Products, Natco Pharma and Jyothy Lab
Seven other stocks on the list were Timken India, Atul, Whirlpool India, Britannia Industries, Sundram Fasteners, 3M India, Kajaria
capital employed, pricing discipline, steady cash generation, PAT improvement, solid balance sheet and steady improvement and above-median
sales.
The greatness framework includes companies that invest capital, turn investment into sales, turn sales into profit, turn profit into
balance sheet strength, turn all of that into free cash flow and invest free cash flow again.
Back-tested data showed such stocks have
delivered superior returns in the longer run
During 2004-19, such companies outperformed the entire stock universe by 3.5 per cent per annum (on an average) and the BSE500 index by 5.7
per cent, Ambit said.
Source: Ambit CapitalTo determine whether a particular stock is cheap or not, Ambit categorises these stocks into
stocks inexpensive, but said from a long-term perspective, all 30 remain potential ten-bagger candidates
15, 2018 slipped 9 per cent in last one year
Ambit also released a list of 15 smallcaps than can become ten-baggers over time
The list included Bhansali Engineering, Menon Bearings, Kennametal India, Lumax Industries, Matrimony.com, Foseco India, NR Agarwal
As a rider, the brokerage said it is not necessary all the stocks highlighted through this process are going to be individually ten-baggers
Here we churn this equally-weighted portfolio annually
The objective behind this process is to try and generate 26 per cent CAGR over a 10-year holding period by buying companies that are
