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Advisory Services

Wealth Builder

Wealth Builder

Fundamentally strong companies with potential of exponential growth available at attractive valuations – hand-picked by StockAxis through its deep research, extensive experience and insights.

OBJECTIVE
The objective is enabling our clients to take advantage of the opportunities available in the mid cap companies. The research team endeavours to identify companies which are likely to do well in short to medium term investment duration.

STOCK SELECTION APPROACH
StockAxis’ ‘Wealth Builder’ team of research analysts have years of experience in spotting fundamentally strong growing businesses. The StockAxis ‘Wealth Builder’ team looks for businesses who will be witnessing exponential growth and the market will recognize it within the short term. Exponential growth could be due to various reasons like big order, price hikes etc. These businesses are spotted through extensive research and analysis which include past performance, track record of the promoters and management, growth stage of the industry the business belongs to, its competitors, etc.

STOCK SELECTION PROCESS
StockAxis follows 3 key stages of screening potential wealth builders:

Step 1: Fundamental strength at an attractive valuation
The ‘Wealth Builder’ research team uses a number of proprietary screening tools to shortlist stocks (among the large universe of companies) that meet the parameters of having fundamental strength while being available at an attractive price.

Step 2: In-depth fundamental research
The StockAxis ‘Wealth Builder’ research team undertakes rigorous fundamental analysis of the shortlisted potential wealth builders. These potential valuation outliers must meet parameters such as earnings growth, profitability parameters, management experience and competence, return on equity benchmarks, competition analysis, etc.

Step 3: Stock monitoring and review
Stocks that meet StockAxis’ investment criteria are recommended to our customers. These stocks are actively monitored till the positions are open.

KEY STOCK SELECTION CHARACTERISTICS
  • Meets StockAxis’ proprietary screening tools
  • Potential to show exponential growth in bottom line
  • Business environment turning positive
  • Strong fundamentals
  • Available at attractive valuations
  • Expectation of exponential price rise over the short term

PHILOSOPHY
StockAxis applies bottom-up fundamental research to uncover wealth builder stocks available at an attractive entry price with the potential to rise exponentially on being recognized by the markets. We look for robust companies with strong fundamentals that are well-positioned to witness price rise over the short term. We bring to our customers such companies at attractive valuations to maximise their investment returns. Our benchmark is to out-perform the S&P BSE Midcap index.

WEALTH BUILDERS - KEY TRAITS
Number of Recommendations over the year
:
12-15 stocks
Holding period
:
6-9 months
Potential upside
:
50% - 60% per recommendation
StockAxis’ support services
:
  • Direct touch with Fundamental Research Analysts
  • Recommendations via sms, email & app notifications at real time
  • Research reports & updates via email
  • Dedicated relationship manager
  • Full support on your invested portfolio

An Example:
Past Recommendation: Pokarna Ltd
Recommended Price: Rs 841
Target Price: 1261
Profit Booked: Rs 1284

Thesis

Qualitative:
  • Company had a high margin business i.e. Quartz and that was growing bigger than their core business i.e. Granite. This would lead to higher margins overall and hence increase in ROE.
  • Company had almost utilized 75% of their Quartz facility and the segment was growing at 25%+.
  • Possibility of spin-off of their garment business would have stopped losses they were making.
 
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