Micro Cap Stocks

HI All,

Pls throw user view on below Micro cap stocks.

star paper
south india paper
ruchira paper

Want to invest in one or 2 of the above paper stocks and also interested in below stocks..

bambino
vadilal indusries
prima plastics

Time period : 3-5 years

 

bambino
vadilal indusries
prima plastics
are fundamentally good.microcap stocks are meant for very long term investment. each 5-10% of portfolio.

 

Prima plastic is super stock I am also buying in sip mode on dips. Vadilal is also good stock. Bambino I am not sure. How you bought it is there a research report? Pl give link. I will study the stock also.

 

Among paper stock star and ruchira are good stocks for investing on dips.

 

Dear w4wealth & Srouta Mukherjee

Glad that both of you responded to my posts that too on micro caps.
@Srouta : Dont have any reports on these but found most of stocks on this forum itself.

Mostly i am interested /Invested in Micro cap stocks with some good fundamentals only for long term investing 3-7 years.(Not even look at Mid caps ,not sure whether this is good or bad but i know its risky)

@Srouta : Some here i read you will be proving some small stocks which are top holding of Micro cap mutual funds.if possible pls share them.

today i have invested in below stocks.

ruchira paper
vadilal industries
prima plastics
pressman advertising.

comment on pressman advertising for long term investing.

 

+1 on pressman advertising. You may also look at Mukta Arts. It is adding movie theater screens at a fast clip and have reached 50. May become a multibagger like PVR, who knows!?

Disc: I am invested in both.

 

Dear Dinesh,
Thanx a Ton for your reply on my stocks.
When I want to invest in Micro caps ,Generally we can't get Much info about Management quality.So I take the help of Financial ratios like ROE/ROCE/ROIC/RONW to estimate the same to an extent.(Not sure whether this is correct or not,I read some where on the net .Other experienced Investors @w4wealth & @Srouta & @Dinesh ,Pls correct me if this assumption is wrong.).

If I see the these parameters for Mukta Arts along with some other parameters dividend yield etc they are no so great.(This is my view only ,it doesn't mean it will not perform well ).

And the reason why I am asking on this forum is ,we have many well experienced Investors Like @w4wealth & @Srouta & @Rama Murthy Sir ,Kharb Sir ,@Meenakshi Razdan,
etc. and some of the facts/info which they know and we/I may knot know .and its always good take openion/suggestion from the people on this forum .

With all of your best wishes,I have invested in following stocks.

Pressman Advertising
vadillal industries
Ruchira papers
Prima Plastics.

and One more stocks which I want to Invest in Akshar Chem.

Pls throw some light on this stock and its future.

 

I think FIRST CUSTODIAN at 12 may do well in the long term......cmp12.50
stoploss below 9 closing basis

 

Dear GKJ Sir ,
very good effort sir,
Pressman Advertising is not improving sales and NP last 5 years ,
vadillal industries is good stock , but accumulate in correction, accumulate 4 to 5 times step by step,
ruchira paper is good , try in corrections accumulate 4 to 5 times step by step
prima plastc also good try in corrections accumulate 4 to 5 times step by step

all above stocks are micro caps so invest small quantity , if you are a low risk apatite investor

 

Those parameters that you have mentioned are good for picking up stocks which have been performing well for a while, but then you will miss out on the turnaround stories or cyclical stocks like Autos, sugar etc. Also, there is no guarantee that if a stock has performed well previously due to its ROE, ROCE etc. it will do so in the future as well (however, these are pretty good indicators IMO). Mukta arts and Pressman are turnaround stories for me and if you ask me the price already has the negatives in it.

 

FIRST CUSTODIAN suggested around 12 in FEB 2017 is now 26

 

disclaimer. i am not at all as experienced as other well known members here.

microcap investing is highly risky. you may lose your entire money invested or you make make 3x-5x. and also to make multibagger returns one dont necessarily need to invest in microcaps.
the way you are trying to study microcaps through financial ratios is ok. but you must study the company business through their website and Annual Reports(atleast 2 years).
vadilal industries is icecream manufacturing and marketing company with around 15% market share in india. icecream industry is growing at 8 % cagr annually in india.

 

Could you help me by teaching how to set about identifying micro caps? Where does one begin in the ocean?

 

If I may intervene, to start with focus on well known mid cap and large cap whenever they are available at lower than current price. That is how I started my journey. Resist the temptation of multibagger return from micro cap in the initial phase. Just focus on compounding.

 

Ha ha! But to allocate a small amount for what could potentially be a huge lottery is very tempting, no? But thank you for your advise. I'm just entering after a long gap and couldn't help feeling a bit greedy