In a volatile market, it is difficult to select stocks with minimum risk to the capital. Yet, Vikas Gupta of Arthveda has accomplished this difficult task applying the principles laid down by Benjamin and Warren Buffett.
In his article in moneycontrol.com, Vikas Gupta explains that the stocks that he has chosen are virtual monopolies/ dominant players, with high ROE, large cash in the books, free cash flows, low debt, quoting at low P/Es etc.
The seven stocks that have been given the coveted title of “Safe Haven Stock” are Coal India, NMDC, BHEL, Engineers India, Gujarat Gas Company, Balmer Lawrie Investment and Maharashtra Scooters. There is a detailed explanation on each stock that you can read at MC.
Incidentally, two of the stocks, Gujarat Gas Co and Maharashtra Scooters, have pride of place in the portfolio of Parag Parikh’s PPFAS Mutual Fund. So, you know you are in safe hands when you follow Vikas Gupta’s recommendations.
NON PERFORMING ASSETS HAS BEEN A MAJOR CONCERN FOR BANKS AND RBI > stock analysts have also expressed dismay and alarms at rising NPA levels of some banks in India >
banks with npa levels below 2.50% can be termed healthy >
NPA RATIO BELOW : 2 . 5 0 % , IS SIGN OF HEALTHY ASSET QUALITY ,
WHICH BANKS HAVE N P A BELOW 2.50 % ? ?
under 2.50 % the npa is easily manageable , MANAGABLE LEVEL OF NPA if it is under 2 . 5 0 % >
STATE BANK OF INDIA ( SBI ) HAS A NPA RATIO OF 5.56% , ( 5 . 5 6 % ) >
PNB has a ratio of 4.84 % , , central bank of india = 3 . 8 5 % , , ICICI BANK ( i c i c i ) = 3.60 % , >
UCO bank = 5.58 % ( u c o ) , , state bank of mysore = 5 . 6 1 % , >
GROSS NPA RATIO ABOVE 5% IS ALARMING , > more than 5 % should ring alarm bells >
here is a list of banks which Stock ANALYSTS & INVESTORS can BANK on :
yes bank
hdfc bank
indusind bank
axis bank
kotak mahindra bank
ing vysya bank I n g
karur vysya bank
city union bank
south indian bank
jammu & kashmir bank
bank of maharashtra
corporation bank
syndicate bank
canara bank
bank of baroda
dena bank
With Regards ,
SABYASACHI MITRA ,
BARASAT , KOLKATA – 7 0 0 1 2 4 , 700124 . ,
# + 9 1 9 9 0 3 0 0 6 1 4 5 = 09903006145 =
+ 91 9 9 0 3 0 0 6 1 4 5 . ,
Of the seven stocks, only Balmer Lawrie & Company Ltd meets any complete set of the Benjamin Graham’s investment criteria.
Given below are the Defensive Graham ratings for all seven stocks.
Defensive Graham investment requires all the ratings to be at least 100%.
Enterprising Graham investment requires the ratings to be at least – CA/CL : 75%, CA/LTD : 90%, EPS Stability: 50%, Div Record: 5% and GN/Price: 137%.
Coal India Ltd – Defensive Graham Ratings
Sales: 14.09%
Current Assets / Current Liabilities: 98.33%
Current Assets / Long Term Debt: 4,823.26%
Earnings Stability: 50.00%
Dividend Record: 20.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 29.35%
NMDC Ltd – Defensive Graham Ratings
Sales: 428.17%
Current Assets / Current Liabilities: 386.36%
Current Assets / Long Term Debt: 100.00%
Earnings Stability: 50.00%
Dividend Record: 80.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 98.29%
Bharat Heavy Electricals Ltd – Defensive Graham Ratings
Sales: 1,936.99%
Current Assets / Current Liabilities: 83.71%
Current Assets / Long Term Debt: 100.00%
Earnings Stability: 50.00%
Dividend Record: 90.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 123.20%
Engineers India Ltd – Defensive Graham Ratings
Sales: 72.94%
Current Assets / Current Liabilities: 93.51%
Current Assets / Long Term Debt: 100.00%
Earnings Stability: 50.00%
Dividend Record: 80.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 51.05%
Gujarat Gas Company Ltd – Defensive Graham Ratings
Sales: 156.04%
Current Assets / Current Liabilities: 22.55%
Current Assets / Long Term Debt: 0.00%
Earnings Stability: 50.00%
Dividend Record: 85.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 52.65%
Balmer Lawrie & Company Ltd – Defensive Graham Ratings
Sales: 103.23%
Current Assets / Current Liabilities: 85.92%
Current Assets / Long Term Debt: 100.00%
Earnings Stability: 50.00%
Dividend Record: 80.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 194.74%
Maharashtra Scooters Ltd – Defensive Graham Ratings
Sales: 0.17%
Current Assets / Current Liabilities: 44.95%
Current Assets / Long Term Debt: 0.00%
Earnings Stability: 20.00%
Dividend Record: 90.00%
Earnings Growth: 0.00%
Graham Number / Current Price: 66.58%
The final Graham Assessment for the stocks is also given below.
The Quantitative Result for a stock has to be 100% for true Graham investment (Quantitative Result = Graham Price ÷ Previous Close).
Coal India Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹106.46
Enterprising Price (Serenity Number): ₹77.75
NCAV Price: ₹18.89
Qualitative Result: Good / Enterprising
Graham Price: ₹77.75
Previous Close: ₹362.70
Quantitative Result: 21.44%
NMDC Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹158.05
Enterprising Price (Serenity Number): ₹115.42
NCAV Price: ₹57.41
Qualitative Result: Good / Enterprising
Graham Price: ₹115.42
Previous Close: ₹160.80
Quantitative Result: 71.78%
Bharat Heavy Electricals Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹275.04
Enterprising Price (Serenity Number): ₹200.86
NCAV Price: ₹105.41
Qualitative Result: Good / Enterprising
Graham Price: ₹200.86
Previous Close: ₹223.25
Quantitative Result: 89.97%
Engineers India Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹145.87
Enterprising Price (Serenity Number): ₹106.53
NCAV Price: ₹41.51
Qualitative Result: OK / NCAV
Graham Price: ₹41.51
Previous Close: ₹285.75
Quantitative Result: 14.53%
Gujarat Gas Company Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹232.59
Enterprising Price (Serenity Number): ₹169.86
NCAV Price: ₹-26.07
Qualitative Result: OK / NCAV
Graham Price: ₹0.00
Previous Close: ₹441.80
Quantitative Result: 0.00%
Balmer Lawrie & Company Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹999.02
Enterprising Price (Serenity Number): ₹729.58
NCAV Price: ₹242.45
Qualitative Result: Good / Enterprising
Graham Price: ₹729.58
Previous Close: ₹513.00
Quantitative Result: 100.00%
Maharashtra Scooters Ltd – Final Graham Assessment
Defensive Price (Graham Number): ₹429.09
Enterprising Price (Serenity Number): ₹313.36
NCAV Price: ₹-5.14
Qualitative Result: OK / NCAV
Graham Price: ₹0.00
Previous Close: ₹644.50
Quantitative Result: 0.00%
These results do not imply that the stocks that don’t clear the Graham criteria are bad investments.
The Graham criteria are just extremely selective. Only stocks of very high investment quality selling at very attractive price ratios clear them.
http://india.serenitystocks.com gives detailed instructions for finding Indian stocks that completely meet Graham’s criteria today.
i am fresher to this stock world, i need the basic information how to do the trading and gain profit and what are the steps to be taken when the stock is in negative status.