I was doing a level of analysis over consistent market performers from 2008. Below are the criteria which I considered.
1. 300% returns over the whole time period
2. 12% returns in the last one year
The returns expected are very modest, but will beat the FD rates in India.
I got a total of 32 companies in total(the only gap in analysis is share split) and below are the major inferences.
1. Only 3 are the largest companies in their segment and only 7 companies exist with more than 10% of the total market cap of the sector.
2. 12 companies exist with market cap share less than .1%
3. 6 companies exist with market cap less than 250 crore and of them, 2 are less than 100. It is surprising to see that companies that small, categorized as X are that consistent performers.
4. 25 out of 33 of these companies have P/E less than market P/E for that segment
5. 11 companies are literally debtless. They have a D/E ratio less than or equal to .01. The number shoots up to 25 companies if D/E ratio is less than .5. Only two companies have D/E ratio greater than one and one of the both - Can Fin Homes is a housing finance company.
6. 15 of the companies are chemicals related(Chemicals, Dyes, Pesticides etc) and 4 are Textile related.
7. 15 of the companies have daily share sales less than 15 lakhs - 1 less than 1 lakh, 4 less than 5 lakhs and 10 less than 10 lakhs. Again, it needs to be seen how these companies tick.
So, what do we infer, if we want a long term investment?
1. D/E ratio should be as less as possible.
2. P/E less than segment P/E
3. To be more safe, have a market cap limit of, say 500 or 1000 crore.
4. Look into segments like Finance, Auto, Chemicals and Textiles - they are ever growing
The data below.
1. 300% returns over the whole time period
2. 12% returns in the last one year
The returns expected are very modest, but will beat the FD rates in India.
I got a total of 32 companies in total(the only gap in analysis is share split) and below are the major inferences.
1. Only 3 are the largest companies in their segment and only 7 companies exist with more than 10% of the total market cap of the sector.
2. 12 companies exist with market cap share less than .1%
3. 6 companies exist with market cap less than 250 crore and of them, 2 are less than 100. It is surprising to see that companies that small, categorized as X are that consistent performers.
4. 25 out of 33 of these companies have P/E less than market P/E for that segment
5. 11 companies are literally debtless. They have a D/E ratio less than or equal to .01. The number shoots up to 25 companies if D/E ratio is less than .5. Only two companies have D/E ratio greater than one and one of the both - Can Fin Homes is a housing finance company.
6. 15 of the companies are chemicals related(Chemicals, Dyes, Pesticides etc) and 4 are Textile related.
7. 15 of the companies have daily share sales less than 15 lakhs - 1 less than 1 lakh, 4 less than 5 lakhs and 10 less than 10 lakhs. Again, it needs to be seen how these companies tick.
So, what do we infer, if we want a long term investment?
1. D/E ratio should be as less as possible.
2. P/E less than segment P/E
3. To be more safe, have a market cap limit of, say 500 or 1000 crore.
4. Look into segments like Finance, Auto, Chemicals and Textiles - they are ever growing
The data below.
| Row Labels | BSE Code | Name | Scrip Class | Market Cap | Sector | P/E | Industry P/E | BOOK VALUE (RS) | % of Segment | Daily Sale Volume(lakhs) | Debt Equity Ratio | Price | Margn | ||||||||||||
| 2008 | 2017 | 21/02/2008 | 21/02/2013 | 21/02/2014 | 20/02/2015 | 22/02/2016 | 21/02/2017 | 21/03/2017 | 9 Year | 4 Year | 3 Year | 2 Year | 1 Year | 1 Month | |||||||||||
| EICHER MOTOR | 505200 | Eicher Motors Limited | B1 | A | 69,467.77 | AUTO - LCVS & HCVS | 44.32 | 103.97 | 1273.17 | 26.72% | 400.923005 | 0.01 | 287.05 | 2783.65 | 4872.15 | 16373 | 18927.1 | 25234.45 | 24902.05 | 8575.16% | 794.58% | 411.11% | 52.09% | 31.57% | -1.32% |
| GODREJ CONS | 532424 | Godrej Consumer Products Limited | A | A | 57,338.44 | PERSONAL CARE | 46.84 | 54.04 | 149.67 | 12.35% | 192.241896 | 0.58 | 117.25 | 757.5 | 802.35 | 1104 | 1212.9 | 1701.85 | 1698.4 | 1348.53% | 124.21% | 111.68% | 53.84% | 40.03% | -0.20% |
| TUBE INV. | 504973 | Tube Investments of India | B1 | A | 12,962.02 | MISCELLANEOUS | 12.48 | 17.64 | 177.34 | 23.3449425 | 0.19 | 64.8 | 167.05 | 189.85 | 359.85 | 365.75 | 605.45 | 615.15 | 849.31% | 268.24% | 224.02% | 70.95% | 68.19% | 1.60% | |
| SRF LIMITED | 503806 | SRF Limited | B1 | A | 9,813.16 | TEXTILES - MANMADE | 20.58 | 27.2 | 457.26 | 59.37% | 241.322794 | 0.49 | 118.1 | 198 | 216 | 924 | 1091.85 | 1603.4 | 1603.9 | 1258.09% | 710.05% | 642.55% | 73.58% | 46.90% | 0.03% |
| VARDH TEXT | 502986 | Vardhman Textiles | B1 | B | 7,478.62 | TEXTILES - SPINNING - COTTON BLENDED | 7.61 | 16.62 | 669.33 | 29.35% | 15.23766 | 0.28 | 114.55 | 284.45 | 341.1 | 496.1 | 758.2 | 1371.4 | 1330.8 | 1061.76% | 367.85% | 290.15% | 168.25% | 75.52% | -2.96% |
| ATUL LTD. | 500027 | Atul Ltd. | B1 | A | 7,341.28 | DYES & PIGMENTS | 25.19 | 26.51 | 429.75 | 41.89% | 624.140785 | 0.2 | 71.55 | 334.05 | 436.55 | 1293.9 | 1400.95 | 2254.45 | 2243.9 | 3036.13% | 571.73% | 414.01% | 73.42% | 60.17% | -0.47% |
| PVR LTD | 532689 | PVR Ltd | T | A | 7,300.33 | MEDIA & ENTERTAINMENT | 85.31 | 45.78 | 186.04 | 4.37% | 144.622375 | 0.67 | 273.2 | 276.6 | 531.55 | 694.75 | 720.7 | 1269.1 | 1410.95 | 416.45% | 410.10% | 165.44% | 103.09% | 95.77% | 11.18% |
| FINOLEX IND. | 500940 | Finolex Industries | A | A | 6,907.15 | PETROCHEMICALS | 23.01 | 35.6 | 80.12 | 37.60% | 38.78805 | 0.23 | 74.75 | 88.05 | 182.9 | 278.95 | 306.85 | 522.3 | 543.25 | 626.76% | 516.98% | 197.02% | 94.75% | 77.04% | 4.01% |
| CANFIN HOMES | 511196 | Can Fin Homes Limited | T | B | 6,776.46 | FINANCE - HOUSING | 31.99 | 31.91 | 329.71 | 1.79% | 269.111439 | 7.93 | 75.95 | 154.65 | 174.9 | 619.25 | 965.95 | 1989.85 | 2100.3 | 2665.37% | 1258.10% | 1100.86% | 239.17% | 117.43% | 5.55% |
| AARTI INDUST | 524208 | Aarti Industries | B1 | B | 6,577.02 | CHEMICALS | 21.84 | 39.03 | 135.63 | 3.86% | 28.263771 | 0.49 | 37.15 | 86.5 | 90.8 | 283.15 | 429 | 786.95 | 789.05 | 2023.96% | 812.20% | 769.00% | 178.67% | 83.93% | 0.27% |
| ICRA | 532835 | ICRA Limited - Credit Ratings | B | A | 4,116.52 | MISCELLANEOUS | 57.54 | 56.28 | 480.03 | 0.5426135 | 0 | 790.5 | 1268.75 | 1594.2 | 3647.75 | 3704.15 | 4170.9 | 4173.95 | 428.01% | 228.98% | 161.82% | 14.43% | 12.68% | 0.07% | |
| TVS SRICHAKR | 509243 | TVS Srichakra | S | B | 2,909.68 | TYRES | 16.73 | 13.71 | 538.25 | 4.33% | 83.895236 | 0.07 | 140 | 222.1 | 265.75 | 1670.25 | 2281.35 | 3080.7 | 3323.9 | 2274.21% | 1396.58% | 1150.76% | 99.01% | 45.70% | 7.89% |
| J.B.CHEMICAL | 506943 | J. B. Chemicals and Pharmaceuticals Ltd | A | B | 2,844.44 | PHARMACEUTICALS | 17.53 | 28.1 | 128.95 | 0.37% | 20.937675 | 0.15 | 56.65 | 82 | 131.4 | 191.25 | 251.05 | 331.4 | 338.25 | 497.09% | 312.50% | 157.42% | 76.86% | 34.73% | 2.07% |
| EXCEL CROP. | 532511 | Excel Crop Care Limited | B1 | B | 1,899.57 | PESTICIDES & AGRO CHEMICALS | 26.18 | 43.68 | 353.78 | 3.66% | 8.219528 | 0 | 110.9 | 179.7 | 479.95 | 854 | 936.25 | 1740.7 | 1771.45 | 1497.34% | 885.78% | 269.09% | 107.43% | 89.21% | 1.77% |
| DFM FOODS | 519588 | DFM Foods | T | B | 1,648.28 | MISCELLANEOUS | 69.16 | 52.31 | 64.83 | 63.6132825 | 0.97 | 19.85 | 188 | 313 | 380 | 992 | 1829.15 | 1734.75 | 8639.29% | 822.74% | 454.23% | 356.51% | 74.87% | -5.16% | |
| SUTLEJ TEXT | 532782 | Sutlej Textiles and Industries | B1 | B | 1,503.95 | TEXTILES - GENERAL | 8.67 | 29.19 | 412.6 | 17.25% | 39.7302165 | 0.64 | 106.25 | 212 | 213.9 | 328.4 | 441.5 | 846.15 | 831.35 | 682.45% | 292.15% | 288.66% | 153.15% | 88.30% | -1.75% |
| HONDA SIEL | 522064 | Honda Siel Power Products | B1 | B | 1,478.86 | ELECTRIC EQUIPMENT | 24.91 | 41.05 | 361.4 | 2.96% | 10.54155 | 0 | 228.5 | 455.6 | 456.4 | 1089.5 | 1145 | 1389.6 | 1360.2 | 495.27% | 198.55% | 198.03% | 24.85% | 18.79% | -2.12% |
| TASTY BITE | 519091 | Tasty Bite | T | XC | 1,308.66 | FOOD PROCESSING | 63.75 | 52.31 | 234.79 | 0.74% | 101.7967885 | 0.34 | 54.45 | 145 | 265 | 720.5 | 1530 | 4774.8 | 4794.95 | 8706.15% | 3206.86% | 1709.42% | 565.50% | 213.40% | 0.42% |
| ARCOTECH LTD | 532914 | Arcotech Ltd | Z | B | 1,013.25 | MISCELLANEOUS | 28.82 | 20.95 | 94.98 | 65.27478 | 0.43 | 6.22 | 49.65 | 171.85 | 344.8 | 351.6 | 629.2 | 542.6 | 8623.47% | 992.85% | 215.74% | 57.37% | 54.32% | -13.76% | |
| AMBIKA COTTO | 531978 | Ambika Cotton Mills | B | B | 775.74 | TEXTILES - SPINNING - COTTON BLENDED | 14.85 | 16.62 | 584.97 | 3.04% | 9.272367 | 0.01 | 122.35 | 204.05 | 302.35 | 530 | 774.25 | 1205.05 | 1320.85 | 979.57% | 547.32% | 336.86% | 149.22% | 70.60% | 9.61% |
| LINCOLN PHAR | 531633 | Lincoln Pharmaceuticals Ltd | B | B | 452.3 | PHARMACEUTICALS | 15.04 | 28.1 | 67.95 | 0.06% | 28.639968 | 0.07 | 10.8 | 35.65 | 40.2 | 87.9 | 162.1 | 191.75 | 234.6 | 2072.22% | 558.06% | 483.58% | 166.89% | 44.73% | 22.35% |
| IFB AGRO | 507438 | IFB Agro Industries Limited | B | B | 423.3 | CHEMICALS | 12.55 | 35.11 | 267.91 | 0.25% | 7.2793035 | 0.17 | 74.95 | 176.4 | 197.85 | 280.8 | 399.9 | 454.6 | 451.85 | 502.87% | 156.15% | 128.38% | 60.92% | 12.99% | -0.60% |
| CAMPH.& ALL | 500078 | Camphor and Allied Products Ltd | TS | XC | 413.26 | CHEMICALS | 18.27 | 39.03 | 303.25 | 0.24% | 6.6967145 | 1.35 | 73.25 | 154.05 | 165.05 | 269.9 | 473.1 | 687.7 | 710.15 | 869.49% | 360.99% | 330.26% | 163.12% | 50.11% | 3.26% |
| DAI-ICHI KAR | 526821 | Dai-Ichi Karkaria | S | XC | 393.72 | CHEMICALS | 18.21 | 40.38 | 164.93 | 0.23% | 6.216 | 0.01 | 30.05 | 39.8 | 50.2 | 166.3 | 329.4 | 502.5 | 480 | 1497.34% | 1106.03% | 856.18% | 188.63% | 45.72% | -4.48% |
| TRANSPEK | 506687 | Transpek Industries Ltd | TS | XC | 340.72 | CHEMICALS | 15.2 | 40.38 | 161.95 | 0.20% | 5.26128 | 0.29 | 75 | 75.65 | 105 | 256.5 | 357.9 | 534.25 | 582 | 676.00% | 669.33% | 454.29% | 126.90% | 62.62% | 8.94% |
| PRIMA PLASTI | 530589 | Prima Plastics | T | XC | 298.61 | PLASTICS | 27.72 | 44.52 | 58.48 | 0.63% | 14.7476 | 0.01 | 9.41 | 13 | 13.1 | 50.3 | 116.5 | 227.6 | 230 | 2344.21% | 1669.23% | 1655.73% | 357.26% | 97.42% | 1.05% |
| NGL FINE CHM | 524774 | NGL Fine-Chem Ltd | B | XC | 242.8 | PHARMACEUTICALS | 17.01 | 28.1 | 71.57 | 0.03% | 10.50284 | 0.01 | 13.6 | 17.71 | 23.5 | 75.45 | 209.2 | 345.15 | 377.8 | 2677.94% | 2033.26% | 1507.66% | 400.73% | 80.59% | 9.46% |
| JENBURKT PH. | 524731 | Jenburkt Pharmaceuticals Ltd | B | XC | 223.17 | PHARMACEUTICALS | 19.88 | 28.1 | 86.44 | 0.03% | 22.548426 | 0.01 | 32.8 | 68.5 | 90.45 | 327.9 | 393.4 | 461.15 | 455.8 | 1289.63% | 565.40% | 403.92% | 39.01% | 15.86% | -1.16% |
| COMPETENT AU | 531041 | Competent Automobiles Co Ltd | S | XD | 143.39 | MISCELLANEOUS | 10.51 | 43.19 | 167.92 | 2.852379 | 0.01 | 42.25 | 50.5 | 61.7 | 107.7 | 130 | 175.15 | 175.1 | 314.44% | 246.73% | 183.79% | 62.58% | 34.69% | -0.03% | |
| BAID LEASING | 511724 | Baid Leasing & Finance Co | Z | XD | 69.99 | FINANCE - LEASING & HIRE PURCHASE | 15.26 | 36.4 | 20.52 | 0.04% | 11.080272 | 0.58 | 10.99 | 13.4 | 17.5 | 25.35 | 36.5 | 91.95 | 78.4 | 613.38% | 485.07% | 348.00% | 209.27% | 114.79% | -14.74% |
| JAYSN DYEST | 506910 | Jaysynth Dyestuff | B | B | 69.52 | DYES & PIGMENTS | 10.98 | 26.51 | 78.97 | 0.40% | 1.450008 | 0 | 10.84 | 23.85 | 26.9 | 41.05 | 46.6 | 82 | 82.2 | 658.30% | 244.65% | 205.58% | 100.24% | 76.39% | 0.24% |
| VIRAT INDUS. | 530521 | Virat Industries | B | XD | 67.65 | TEXTILES - HOSIERY & KNITWEAR | 22.16 | 23.34 | 30.08 | 1.30% | 1.2947 | 0.03 | 10.15 | 19 | 30 | 58 | 83.9 | 95.1 | 107 | 954.19% | 463.16% | 256.67% | 84.48% | 27.53% | 12.51% |
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