Transcription
August 2, 2019, I made one of the biggest investments of my life in the stock market and bought a stock. In the next six months alone, that stock crashed by 40%. I searched extensively on YouTube, watched the news, and read articles. Everywhere, there was negative news about that company. The Sensex, tumbling 2000 points, fell over 2000 points for the second consecutive day. 2100 points, 2200 points, 2300 points, 2250 points – this was the environment of decline. And this company was not a small-cap or a penny stock. It was a large-cap company that was the market leader in its sector. And I had only two options. Either I sell that stock and exit the stock market, hate it for my entire life, and never return, or the second option, I stay put. That one decision changed my entire life. But if that decision had been wrong, the loss would have been huge. But when such a situation arises and you have done your own research, you know the data, it gives you confidence. And this confidence helps you trust your investing when the market crashes. And in this video too, I am not going to give you any buying or selling recommendations. I will educate you on how to find good stocks. How to analyze them. After that, you have to do your own research, and only then decide whether to invest or not. That will be your decision because the stock market is risky. When the market crashes, it is important to have confidence in yourself. So, this video is for educational purposes only, and today I will share nine stocks with you that show potential in the next 10 to 15 years. In the chart you are seeing now, what do you think? Is there a buying opportunity, or is it already at an all-time high? I will show you the second part of it. Now, what do you think, is there a buying opportunity here, or is it at an all-time high? Now I will show you the third part of it. What do you think, is this a buying opportunity, or is it at its all-time high? Most people's answer for all three sections will be that this stock has already moved a lot. There is no buying opportunity in it now. And this is the mistake a retail investor makes. When they see a good company. It is growing. They only feel that it has now slipped out of their hands. They think they will buy if it falls. And when it falls, they don't have the courage to buy. And later they keep saying that this company has become very big. How big can it get? A big company can become even bigger because India is an emerging market. It is not a developed nation. Now, before analyzing companies, remember these three important factors so that you can find companies for yourself and do a deep analysis. The first factor is a monopoly or near-monopoly. The second important factor is consistent profit growth. The third important factor is low debt. If a company has less debt, it can survive any situation because debt is something that can sink both a person and a company. So, to find good stocks based on all these three parameters and analyze them deeply, we need a strong platform where we can create a screener. I can explain the strategy to you, and at the same time, you can find stocks for yourself according to this screener because the stocks will be quite different at different times. So, now we will go to the screener for strategies. I have already published a strategy, which you will find in the description box. What things have we considered in this strategy? The first thing, if I write it, it will take a lot of time, so I have written it beforehand. First is the PEG ratio. How does this come? Price divided by Earnings to Growth. Okay? What does it mean? It is a valuation metric that is an enhanced version of the PE ratio. We have kept it at 1.2 here. This means only a good company will fall into this category. The second thing, the market cap we have kept here is greater than 2000 crores. Because we don't want small-cap companies. We want better companies. The second thing we have kept is that sales should grow by more than 10% in 5 years. What will happen from this? A company that has been selling more than 10% for 5 consecutive years. This will not be a random company. Its fundamentals, its management, will be strong. The company's profit growth should be greater than 10%. You will find a company with consistent profits. Now, look, there is an "AND" option here. What does this "AND" option do? It means I need these parameters along with it. Right? For example, ROCE for the last five years should be above 15. Why? Because a company that consistently achieves an ROCE above 15 is able to grow by more than 50% using its capital. This is a good sign for the company. Our ROE should be more than 15. It is a good sign of how much return on equity we are getting. After this, these two are important parameters. PB, meaning Price to Book. Any company whose price to book is five or less is a good company. In this situation, we can find and filter out finance companies. The second is ROA, Return on Assets. Because for finance and NBFC companies, an ROA of more than two is better; that company is able to generate good returns on its assets. When you run this, you will get many stocks. The names of these stocks don't matter. Whichever stocks have successfully completed these parameters will be found here. What does it mean? We have removed emotion from here. We have removed everything from here. We will only get good companies. No emotion will be included here. If I show you the backtest, how this portfolio has performed and how our benchmark has performed in the last 5 years, it proves that our strategy is quite good according to backtested data. Now, this strategy has already been published by me. Its link will be in the description box. You can go and see all the companies. You can analyze them. But among all these companies, the ones I like, I will tell you further in this video. There are no buying or selling recommendations from an analysis perspective. So, the link to Sharply will be in the description box and the pinned comment. Now, the first stock that kept me awake at night and made me wonder if this stock would ever recover or not. It is the market leader in its sector, yet it fell by 40%. And the name of this stock is Bajaj Finance. And in India, credit penetration is only 17%, whereas in the US, it is 97%. This means the gap is quite large, and there is a lot of opportunity. And the new generation coming to India wants iPhones on EMI. They don't have money in their pockets, but credit penetration can increase due to the coming generation. Whenever we talk about Bajaj Finance or any NBFC company, the situation involves NPA, meaning Non-Performing Assets. This company has historically emerged as one of the best companies in managing NPAs. And that's why when my portfolio fell by more than 40%, there was devastation everywhere, criticism everywhere. Everyone was saying that a lockdown has been imposed, nothing can happen here. I had that gut feeling. I understood because I had done my research before investing, and that's why I held on to it, and in the last 7 years, it has made a significant place in my portfolio. People kept saying it's already big, how much bigger can it get? This was the story 7 years ago, it's the story today, and it will be the story 7 years from now. But remember what was said: India is an emerging nation. There is still a lot of market left to grow. Our next company doesn't even come to people's notice because people say it has become so big, how much bigger can it get? You will see one thing. This company only stays in an uptrend. Yes, it crashes by around 20-30% occasionally, but its balance sheet proves itself, and it completely dominates the SUV market. Thar, Scorpio, XUV 700 – every third SUV on Indian roads will be a Mahindra & Mahindra. Therefore, our next stock is Mahindra & Mahindra. Its top line is consistently growing. Its bottom line is consistently growing. Mutual funds have increased their shareholding here. FIIs have slightly reduced their holding here, but remember, it has gone from strong hands to strong hands. And this story is not just for today; it's a 10-year story. And in the Indian market, do you think any other car is selling besides SUVs these days? Hatchbacks and sedans have almost finished. Either mini-SUVs are selling, or SUVs are selling, and in which this is the market leader. Our next company is a bit controversial because people don't trust this sector. Secondly, when trust came into it, this company started running, but then when it fell, people thought it had become very expensive. That's the same answer everyone keeps giving you: it has become expensive. But let me tell you one thing: the requirement for copper in data centers is increasing, and mining copper is not that easy. It will take a lot of time to set up a mining setup to extract copper. "Copper is the new gold" was a keyword that was trending. But when the recent correction came, everyone forgot about this company. And the name of this company is Hindustan Copper. If you look at its statements, you will see the top line consistently growing. The bottom line also shows consistent growth. And the shareholding pattern is consistent. And who is the promoter? The President of India is its promoter. Mutual funds have reduced their holding in it, but who bought it? FIIs. Meaning, again, strong hands to strong hands, the holding has passed. For sure, the valuations have become a bit expensive. But if we consider the future perspective, where there is a shortage of copper, and a lot of copper will be used in data centers, it means the growth potential is very high, depending on whether the data center theme plays out. Our fourth company dominates the gold loan sector. More than 25,000 tons of gold are lying in Indian homes. And the customers of this company live in rural and semi-urban India. And when it comes to loans, jobs, a lot of paperwork, and credit history are checked. But here, the important factor is that those who have gold, meaning rural and urban people, don't have any of these three things. So, in this situation, gold loans fall into the safest loan category, and the company dominating this sector is Muthoot Finance. So, the top line is consistently growing, the bottom line is consistently growing. Recently, there was even a sentiment that would it be able to grow at this pace or not? Because of this, there was heavy selling in its stock. But recently, recovery is also being seen here. And in the shareholding pattern, DIIs, meaning mutual funds, have sold off here. FIIs have bought. This means things have been passed from strong hands to strong hands. When FIIs are selling the entire Indian market, think why they would be buying this stock. Its business model runs on secured loans. Our next company is a PSU bank, and whenever this name comes up, retail investors tend to run away because there is always something wrong you find in PSU banks. But Indian Bank has undergone some transformation. However, its NPAs have been seen decreasing quarter on quarter, and this is a positive sign for any PSU. If you talk about its top line, you will see a consistent top line here. And its bottom line is also consistently growing. Along with this, NPAs are also decreasing. And you will see some positives and negatives for this company. You can pause and read. And we have completed five stocks. Most people would have skipped them, heard the names, not understood the story, and then incurred losses. And some people might be saying, the same old large-cap stocks. But the real story begins after this. Because the stocks we have chosen so far are defensive. They will balance your portfolio. Remember when it fell, I lost sleep because I forgot to defend. The real story starts from here, and pay close attention to the seventh company and understand its strategy, which is most important, as I will explain further. Now, our next company operates in a market that is currently worth $5 billion. By 2030, this industry can become $46 billion. If I ask you to name some insurance companies, you will name HDFC, ICICI, or Star. And if you know this, and you pay premiums every year because of COVID, you have understood that hospital bills will become so high that they will be unmanageable, then why don't we keep an insurance company in our portfolio where Rekha Jhunjhunwala, the wife of a big bull, also has a stake? And that company is Star Health. If you look at Star's statements, you will see the top line consistently growing. The bottom line also shows consistent growth. And in its shareholding pattern, you can see that mutual funds have increased their holding, and along with this, FIIs have also recently increased their holding. You will see some positives and negatives in front of you now. Please pause and read them. But this insurance company is like a sticky product. Once someone takes insurance, they remain a customer of that company for the long term. This means recurring income comes in for the long term. And if someone crosses 3 years with an insurance policy, they don't change it because major diseases start getting covered. And Star Health is one of the market leaders in its industry and is continuously gaining market share. Now, let's talk about the seventh company. I said at the beginning that there is one stock I like a lot. It is on my radar. I have been thinking of taking a stake in it since 2019. But it seemed expensive to me even then, and it still seems expensive today. But it has proven itself repeatedly. You would have understood this by looking at its chart. This company is also going to play a significant role in data centers. And if you try to find a pulse in data centers or anywhere, what is that thing? It is electric wire. If you want to run anything, you will need wires and cables. And its demand is going to increase in the coming time. And the name of this company is Polycab India. If we talk about its top line, you will see the top line consistently growing. If we talk about its bottom line, you will see consistent growth in its bottom line. And if we talk about its shareholding pattern, mutual funds have continuously built their positions, and FIIs, after cutting their positions in 2025, have started building them again in Polycab India. But if I show you its chart for the last 3 years, you can see it is in an uptrend. For 5 years, you can see it is in an uptrend. You will see a correction of 30 to 40% in this stock from time to time. And the stock analysis of Polycab is in front of you, with positives and negatives. Now, the company we will talk about, its demand has increased significantly in recent times. Many people are talking about it, and it has become a favorite platform for Indian retail investors, and even traders, I would say. Because look at gold, gold goes up and down, up and down. People want to trade. Talk about oil, people are trading in oil. People are buying contracts in silver. But one platform is very happy about this. Which platform is that? Which is one of the biggest platforms in India? Multi Commodity Exchange. If we talk about its statements, you will see consistent growth in the top line here as well. Consistent growth in the bottom line. If we talk about its shareholding pattern, see, mutual funds have continuously built positions here. FIIs have continuously built positions. Now, why are there no promoters in this? Tell me in the comment section. Let's see how many people know, and I know most people won't know. Now, the company I am going to talk about, for that you need to understand the stock market. In India, there are about 16 crore Demat accounts. If we talk about active ones, there are about 8 crore. The accounts of those who actually trade are around 2 crore. Those who use a good platform are hardly around 2 lakh. But whether you trade, invest, or do anything, you indirectly use one platform every day if you are buying, selling, or doing anything in the stock market. And the name of that platform is CDSL. CDSL is a depository company where whenever you buy or sell, your stock gets deposited here. Whenever the stock market goes up, it will go up; whenever the stock market comes down, it will come down. And recently, you have seen exactly this. If you look at the last one year, there has been a significant correction of 40%. But in 5 years, when the market fell, this stock fell; when the market rose, this stock rose. Is there any issue at the revenue level? No, brother. If you look, the top line is consistently growing here. Is there any issue at the bottom line? No. There is no major issue as such. Perhaps there is an issue in the shareholding pattern because maybe people are selling it, right? FIIs are selling. This question comes first. Look, mutual fund investors are continuously buying it. FIIs sold in 2024, and now they are starting to build positions again. Big investors are seeing positivity. But the small investor wants to sell in a 40% crash. Most people, like me in 2019, would be thinking, the market has crashed, what should I do? I am not giving you any buying or selling recommendations here. I am explaining the strategy, the business, educating you. You are intelligent yourself. Now, I will tell you about a company where most people incur losses. And if you look at its trend line, it remains in an uptrend. And losses also occur because people don't know the strategies, how to build a portfolio correctly, and I am going to provide the solution to both these things here. Meaning, the next level of investing starts from here. Understand that just knowing the name of the stock is of no benefit. They will lose money again. And for those who want to know how to develop and design a portfolio, their class starts here. Now I am talking about BSE, Bombay Stock Exchange. If you look at the statements, its revenues are around all-time highs. Its net profits are also around all-time highs. If we talk about the shareholding pattern, you will see similar things in the shareholding pattern as well, where mutual fund investors are building their positions, and FIIs are building their positions. And if we talk about its overall valuations, you will see it is in a good uptrend, but people incur losses because they don't understand that if the market is falling, it will also recover. Take data from 5 or 10 years, and historically, this company will grow whenever the stock market runs. It will not grow when the stock market is not running. Now, these are the 10 stocks that have high potential. But now people will make the biggest mistake here. People will go and say, "Oh, I'll buy this, I'll sell that. This is high PE, this is low PE. This has more money, this has less money." God knows what else. I will tell you one strategy. When the market was falling, I was incurring losses, and I learned it then. I didn't find it on YouTube, nor was it told to me in any news. I am telling you from personal experience. It is hidden. It came after a lot of practice. Understand this formula well, remember it, don't forget it. Suppose I am going to invest ₹1,000. Then, 55% of ₹1,000 will go into Bucket 1, which we will call the foundation. 35% of the money will go into Bucket 2, which you can call anything. I have considered Financial Indian Growth because it's a financial company. Then comes Bucket 3, where I will make a high-conviction bet. This will be my risky part. So, when we keep these three things in our portfolio, our portfolio will be solid and ready for growth perspective. So, now you have understood the entire strategy very well: how we find good stocks and how we design a portfolio. Now, a very important thing, listen to this carefully. People know that the data center theme is running, but they don't know where to find the hidden gems. Which sectors have seen increased growth potential due to data centers? And if you want to know how to analyze those stocks, then definitely watch this video; it is very important. This video is for educational purposes only; there are no buying or selling recommendations.