Hello everyone, Instead of investing in only 1 or 2 stocks it's better to invest in many different companies from different sectors and having different market capitalisation, that's why today we are discussing Stock Investment Advice.
How does Stock Investment Advice works and List of Stocks?
Most of the time, with this approach 1 or 2 bad performances will be
outperformed by other stocks, thus
- Maximizing the returns, and
- Minimizing the risk.
That's the importance of building and managing a stock portfolio. In
this post, we'll explore 10 excellent stocks suitable for an Rs. 1 lakh
portfolio.
Most of the shortlisted stocks have overcome the decline due to the
effect of Coronavirus disease. These stocks have the potential to beat the
market returns and deliver extraordinary returns in the near future.
These 10 stocks portfolio has been built with a mix of mid-cap and large-cap stocks. It's a portfolio with a moderate risk that can offer good returns in
the near future. Mid-cap and large-cap stocks offer stable returns compared to
small-cap stocks.
All the 10 shortlisted stocks have a market cap of more than Rs. 10,000
crore. They are part of the Nifty500 index. These stocks have decent profit
& loss statements, balance sheets, and other financial reports.
Most companies have been giving very good dividend payouts for many
years. Our focus is to earn profits by capital appreciation or the gain in the
stock price. The dividend is a small additional income for us.
Now, let's explore all the 10 stocks one by one.
First Stock is Info Edge
The NSE stock symbol is NAUKRI.
| Type | Public |
| Traded as | NSE: Naukri BSE: 532777 |
| Industry | Internet |
| Founded | 1995 |
| Founders | Sanjeev Bikhchandani |
| Headquarters | Noida, Uttar Pradesh, India |
| Key People | Hitesh Oberoi (CEO) |
| Products | Naukri.com Jeevansathi.com 99Acres.com Shiksha.com |
| Website | www.infoedge.com |
This stock has delivered massive 1,115% returns in the past 10 years. It
has given good 210% returns in the past 5 years and 26% returns in the past 1
year. Please note that all financial data in this post are as on 20th June,
2020.
This stock is a great cap stock. 32,809 crore. It is in the field of
online services. The recent price was Rs. 2,678.
Info Edge is one of India's leading online advertising companies in
recruitment, matrimony, real estate, education and related services.
It owns popular brands like Naukri.com, Jeevansathi.com, 99Acres.com and
Shiksha.com.
It also holds a good stake in the food delivery company Zomato and the
insurance aggregator Policy Bazaar.
Second Stock is SRF Limited
The NSE stock symbol is SRF.
| Type | Public Company |
| Traded as | NSE: SRF BSE: 503806 |
| Industry | Nylon cord fibres |
| Founded | 1970 |
| Founders | |
| Headquarters | Gurgaon, Uttar Pradesh, India |
| Key People | Arun Bharat Ram (Chairman) |
| Products | Technical Textiles Engineering Plastics Fibres Chemicals Packaging films |
| Revenue | ₹29.86 billion approx US$420 million approx |
| Operating Income | ₹6.77 billion approx US$95 million approx |
| Net Income | ₹4.83 billion approx US$68 million approx |
| Website | www.srf.com |
Now let's get into the second stock number. This stock has delivered
1,388% returns in the past 10 years. It has given 224% returns in the past 5
years and 20% returns in the past 1 year.
It's a mid-cap stock in the Textiles sector with a market cap of
Rs. 20,774 crore. The recent price was Rs. 3,614.
The company manufactures a
wide range of high-performance reinforcements covering both nylon and polyester
yarns and fabrics for diverse non-consumer and lifestyle applications.
Third Stock is Balkrishna Industries
The NSE stock symbol is BALKRISIND
| Type | Public Company |
| Traded as | NSE: BALKRISIND BSE: 502355 |
| ISIN | INE787D01026 |
| Industry | Auto and Truck parts |
| Founded | 1987 |
| Founders | N/A |
| Area served | Worldwide |
| Headquarters | Mumbai, India |
| Key People | N/A |
| Products | Tiers |
| Revenue | ₹37.8 billion approx US$530 million approx |
| Operating Income | N/A |
| Net Income | ₹10.59 billion approx US$150 million approx |
| Number of Employees | 6000 |
| Website | www.bkt-tires.com |
Now let's move on to the third stock. This stock has given huge 1,962%
returns in the past 10 years. It has delivered 240% in the past 5 years and 63%
returns in the recent 1 year.
This stock is a mid-cap stock with a market cap of Rs. 23,504 crore.
It's in the Tires & Rubber sector. The recent price was Rs. 1,216.
Balkrishna Industries Limited or BKT is a tire manufacturing company. It
manufactures off-highway tires used in specialist segments such as
agricultural, construction and industrial as well as earthmoving, port and
mining, and gardening applications.
Fourth Stock is Relaxo Footwears.
The NSE stock symbol is RELAXO
| Type | Public Company |
| Traded as | NSE: RELAXO BSE: 530517 |
| ISIN | N/A |
| Industry | Footwear |
| Founded | 1976 |
| Founders | Mukund Lal Dua Ramesh Kumar Dua |
| Area served | Worldwide or Global |
| Headquarters | New Delhi, India |
| Key People | N/A |
| Products | Flite Sparx Bahamas Schoolmate |
| Website | relaxofootwear.com |
Now let's focus on the fourth stock. This stock has delivered good
3,389% returns in the past 10 years. It has given 185% returns in the past 5
years and 53% returns in the past 1 year.
This is a mid-cap stock of Rs. 15,764 crore. It's in the Footwear sector
with the recent price Rs. 635.
It is the largest footwear manufacturer in India in terms of volume. The company makes products under 10 brands including Flite, Sparx, Bahamas and
Schoolmate.
Fifth Stock name is Berger Paints India.
The NSE stock symbol is BERGEPAINT
| Type | Public Company |
| Traded as | NSE: BALKRISIND BSE: N/A |
| ISIN | N/A |
| Industry | Paints |
| Founded | December 17, 1923; 96 years ago |
| Founders | Lewis Berger |
| Area served | Worldwide |
| Headquarters | Kolkata, India |
| Key People | (chairman), (Vice-chairman), (MD & CEO) |
| Products | Paints Coatings Wallpaper Construction Chemicals and allied products |
| Revenue | ₹5,165.73 crores approx US$720 million approx (2018) |
| Operating Income | ₹718.55 crores approx US$100 million approx (2018) |
| Net Income | ₹460.83 billion approx US$490 million approx (2018) |
| Number of Employees | 35,500+ (2018) |
| Website | bergerpaints.com |
Now let's see the fifth stock. This stock has delivered good 1,678%
returns in the past 10 years. It gave 265% returns in the past 5 years and 58%
returns in the past 1 year.
This stock is a large-cap stock of Rs. 48,610 crore. It's in the Paints
sector. The recent price was Rs. 500.5. The stock name is Berger Paints India.
The NSE stock symbol is BERGEPAINT.
It's the second-largest paint company in India. It's headquartered at
Kolkata, with 16 manufacturing units across India. The company also has an
international presence in Nepal, Bangladesh, Poland and Russia.
Sixth Stock name is Atul
The NSE stock symbol is ATUL
| Type | |
| Traded as | NSE: BSE: |
| ISIN | |
| Industry | |
| Founded | |
| Founders | |
| Area served | Worldwide |
| Headquarters | India |
| Key People | |
| Products | |
| Revenue | ₹ |
| Operating Income | |
| Net Income | ₹ |
| Number of Employees | |
| Website |
Now let's get into the sixth stock. This stock has returned gigantic
4,454% gains in the past 10 years. It has delivered 283% returns in the past 5
years and 12% returns in the past 1 year.
This is a mid-cap stock of Rs. 13,254 crore. It's in the Diversified
Chemicals sector and the recent price was Rs. 4,469. The stock name is Atul and
has the NSE stock symbol ATUL.
Atul is the largest integrated chemical company in India. The company's
chemical production activities are at the core of its business; Aromatics, Bulk
Chemicals, Intermediates, Colors, Crop Protection Bulk Activities, crop protection bulk retail, etc.
Seventh Stock name is Trent
The NSE stock symbol is TRENT
| Type | |
| Traded as | NSE: BSE: |
| ISIN | |
| Industry | |
| Founded | |
| Founders | |
| Area served | Worldwide |
| Headquarters | India |
| Key People | |
| Products | |
| Revenue | ₹ |
| Operating Income | |
| Net Income | ₹ |
| Number of Employees | |
| Website |
Now let's move on to the seventh stock. This stock has delivered an impressive 526% returns in the past 10 years. It has 379% returns in the past 5
years and a decent 39% returns in the past 1 year.
This stock is a mid-cap stock with a market cap of Rs. 20,259 crore. The
recent price was Rs. 569.9. It's in the Retail - Apparel sector. The stock name
is Trent. The NSE stock symbol is TRENT.
Trent is a part of the Tata group. It's one of the leading players in
the branded retail industry in India. The company primarily operates stores
across four formats. They are Westside, Zudio, Star, and Landmark.
Eighth Stock is Biocon
The NSE stock symbol is BIOCON.
| Type | |
| Traded as | NSE: BSE: |
| ISIN | |
| Industry | |
| Founded | |
| Founders | |
| Area served | Worldwide |
| Headquarters | India |
| Key People | |
| Products | |
| Revenue | ₹ |
| Operating Income | |
| Net Income | ₹ |
| Number of Employees | |
| Website |
Now we have come to the eighth stock. This stock has delivered 611%
returns in the past 10 years. It has given extraordinary 387% returns in the
past 5 years and a good 53% returns in the past 1 year.
This is a large-cap stock of Rs. 45,750 crore. It's in the Biotechnology
sector. The recent price was Rs. 381.25. The stock is Biocon. The NSE stock
symbol is BIOCON.
Biopharmaceutical company Biocon, based in Bangalore, manufactures
simple and active cement ingredients.
A Ninth Stock company is Indraprastha Gas
The NSE stock symbol is IGL
| Type | |
| Traded as | NSE: BSE: |
| ISIN | |
| Industry | |
| Founded | |
| Founders | |
| Area served | Worldwide |
| Headquarters | India |
| Key People | |
| Products | |
| Revenue | ₹ |
| Operating Income | |
| Net Income | ₹ |
| Number of Employees | |
| Website |
Now the ninth stock. This stock has given a huge 777% returns in the past
10 years. It gave 467% returns in the past 5 years and 38% returns in the past
1 year.
This stock is a large-cap stock of Rs. 31,336 crore. It's in the Gas
Distribution sector with the recent price of Rs. 447.65. The company is
Indraprastha Gas. The NSE stock symbol is IGL.
It's one of India's leading natural gas distribution companies. IGL
supplies natural gas as a cooking and automotive fuel. The company operates
primarily in Delhi and surrounding areas.
The Tenth Stock company name is Aarti Industries
The NSE stock symbol is AARTIIND
| Type | |
| Traded as | NSE: BSE: |
| ISIN | |
| Industry | |
| Founded | |
| Founders | |
| Area served | Worldwide |
| Headquarters | India |
| Key People | |
| Products | |
| Revenue | ₹ |
| Operating Income | |
| Net Income | ₹ |
| Number of Employees | |
| Website |
It's time for the tenth stock. This stock has delivered excellent 3,861%
returns in the past 10 years. It gave 509% returns in the past 5 years and 12%
returns in the past 1 year.
This stock is a mid-cap stock with a market cap of Rs. 16,747 crore.
It's in the Specialty Chemicals sector. The recent price was Rs. 961.2. The company
name is Aarti Industries. The NSE stock symbol is AARTIIND.
Arati Industries is a leading Indian manufacturer of global foot
speciality chemicals and pharmaceuticals. Chemicals manufactured by Aarti are
used in the downstream manufacture of pharmaceuticals, agrochemicals, polymers,
additives, surfactants, pigments, dyes, etc.
Brief description of what we have spoken above is given. In the table below:
S. No.
|
NSE stock symbol (Stock Name)
|
1 Year CAGR
|
3 Year CAGR
|
5 Year CAGR
|
10 Year CAGR
|
1.
|
NAUKRI
(Info Edge)
|
26.32
|
40.03
|
25.39
|
28.37
|
2.
|
SRF (SRF)
|
19.63
|
30.33
|
26.50
|
31.00
|
3.
|
BALKRISIND
(Balkrishna Industries)
|
62.92
|
13.45
|
27.74
|
35.34
|
4.
|
RELAXO (Relaxo
Footwear)
|
52.49
|
37.37
|
23.26
|
42.65
|
5.
|
BERGEPAINT
(Berger Paints India)
|
57.54
|
25.82
|
29.55
|
33.35
|
6.
|
ATUL (Atul)
|
12.18
|
21.82
|
30.84
|
46.50
|
7.
|
TRENT (Trent)
|
39.39
|
32.81
|
36.78
|
20.14
|
8.
|
BIOCON (Biocon)
|
52.77
|
31.21
|
37.23
|
21.67
|
9.
|
IGL (Indraprastha
Gas)
|
38.18
|
26.96
|
41.47
|
24.25
|
10
|
AARTIIND
(Aarti Industries)
|
11.99
|
27.87
|
43.53
|
44.47
|
Nifty50
|
-13.39
|
2.02
|
4.40
|
6.88
|
|
*All data based date as on 20, June 2020
Here are the projected returns of Rs. 1 lakh portfolio for various time
frames. It's assumed equally invested in all 10 stocks.
S. No.
|
NSE stock symbol (Stock Name)
|
1 Year CAGR
|
3 Year CAGR
|
5 Year CAGR
|
10 Year CAGR
|
1.
|
NAUKRI
(Info Edge)
|
26.32
|
40.03
|
25.39
|
28.37
|
2.
|
SRF (SRF)
|
19.63
|
30.33
|
26.50
|
31.00
|
3.
|
BALKRISIND
(Balkrishna Industries)
|
62.92
|
13.45
|
27.74
|
35.34
|
4.
|
RELAXO (Relaxo
Footwear)
|
52.49
|
37.37
|
23.26
|
42.65
|
5.
|
BERGEPAINT
(Berger Paints India)
|
57.54
|
25.82
|
29.55
|
33.35
|
6.
|
ATUL (Atul)
|
12.18
|
21.82
|
30.84
|
46.50
|
7.
|
TRENT (Trent)
|
39.39
|
32.81
|
36.78
|
20.14
|
8.
|
BIOCON (Biocon)
|
52.77
|
31.21
|
37.23
|
21.67
|
9.
|
IGL (Indraprastha
Gas)
|
38.18
|
26.96
|
41.47
|
24.25
|
10
|
AARTIIND
(Aarti Industries)
|
11.99
|
27.87
|
43.53
|
44.47
|
Average
|
37.34
|
28.77
|
32.23
|
32.77
|
|
Projected Portfolio (Rs. 1 lakh)
|
137,340.00
|
213,522.72
|
404,249.96
|
1,702,156.75
|
|
When we consider long time frames the uncertainty increases and hence
the associated risk.
The stock market offers us the opportunity to generate great returns but
there's a chance of losing our capital as well. That's the risk we have to
manage for our rewards.
All the shortlisted stocks may do very well for long periods of time but
it's a good idea to review them periodically. Some investors review every 6
months or 1 year.
It's the predefined time to decide whether to continue investing in the
same stock or invest in a better opportunity. We should have a solid exit
strategy.
Investors can have a stop loss like 15%, 20%, 25%, or even more based on
their risk tolerance. It's better not to have price based targets as we plan to
capture big returns like 25%, 90%, 180%, etc.
All the 10 stocks have delivered great returns compared to Nifty50.
The returns would be really extraordinary if the momentum continues for
some more time. You can get extraordinary returns by learning to build a
profitable stock portfolio.
If you would like to start investing in the stock market then the first
and foremost thing to have is a Demat and a trading account. It's always better
to start with an online discount broker where the charges are the bare minimum.
One of the popular discount brokers is Zerodha. They have an amazing
trading platform. The brokerage is zero for long term equity investments.
I have given the link to their website in the description for your
reference. You can immediately open a trading and Demat account online and
start investing for free.
Friends thanks for reading me at the end. I will see you again in the
next post, until then, take care of yourself and your investments.
Please read the Disclaimer before investing.