0.1% stake of a company - which one is best

Mr X has lots of diversification in stocks, FD and mutual funds already. He has complete and utter financial security and independence. Now he wants to invest a meaningful minority stake of 0.1% in a company. His budget is < 75 lacs. He is looking to sip it in 6 monthly installments.

What should his choice of stocks be?

Mcap below 800 cr only due to budget concerns .

The following come to mind

1. TCPL Packaging
Cost would be around 60 lacs for 0.1%. All prospects looks good, buit the stock is thinly traded. Just around 2,000-3,000 shares traded per day.

2. Apcotex Industries
Great management. Cost of 0.1% around 75 lacs

3. Indian Terrain Fashions
Good growing brand, but it doesnt really give a sense of ownership.. The company is just a brand holder - doesn't manufacture, doesnt even own the stores (franchises). 55lacs for 0.1%

4. Lincoln Pharma
Good prospects, but the recent Tanzania scare still fresh and one wonders if they have the QC required. 38 lac 0.1%

5. Arman Financial Services
Nice business prospects but its a NBFC with all its dangers. However currently 0.1% is available at just 20lac.

6. Veto Switch Gears
Good regional brand but can it grow nationally? 28 lacs 0.1%


Rule of discussion: No talk about why diversification is better strategy please. Kindly stick to the topic

 

I think TCPL, Apcotex, Veto and Indian Terrian is good stocks with good management, track record of growth and profitability, low debt, high return rations, are there. Veto is looking good with good expansion plans for all India market of switchgears and electronics. Valuation is also reasonable.

 

Are these the best stocks under 800cr Mcap?

 

Recommendations welcome

 

if you are a big risk taker i think you can go with 1)arman fin and 2) veto ie; 20+28 lacs=48 lacs . Balance 27 lacs you can distribute over other ideas.only my suggestion.

 

My thoughts are similar.

 

I have adopted a similar approach in the past, not through a fictional Mr X wanting a 0.1% stake in a good small cap, but try and identify some good small cap cos. FIEM was invested into last year using this methodology and have no regrets on this one. Three names identified a couple of months ago but yet to be analysed include (i) Arrow Greentech (2) Akshar Chem (hate this one for it now reminds of mark twain for have seen this one double when on my watch list) (3) NGL Fine Chem (this one appears in the Forbes Asia's Best under A Billion list 2016 and 2015)

 

Check out the research report of it.

 

I considered NGL Finechem. But the stock is thinly traded, some days not even 1000 volume. Even TCPL is thinly traded. Are such sparsely traded stocks ok?

 

It is said that thinly traded stocks are usully more risky than liquid stocks but they tend to go unnoticed by most investors. Anyways, in my case any such investment is out of an earmarked corpus and which is churned regularly. Wish I were a FII with easy money to loose.