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Stock Market in India Investing in the Stock Market +4

What are the stocks to buy for the long term of 10 to


15 years in the Indian market?
Answer Request Follow 23 Comment Share Downvote

5 Answers

Raghav Behani, Founder at Raghavbehani.com


Answered May 24

This answer is from my blog - A 10 Bagger Stock

Disclaimer: Home | Raghav Behani is a SEBI registered equity research


analyst. Please consult your own nancial adviser/broker before making any
nancial decision based on the contents of this post.

A lot has been asked o late about buying and owning stocks for 10 years to earn
multibagger returns. But most businesses are just gone from the market in such a
long time. In this post, we will discuss the making of a 10 bagger. This might help
you do your own analysis for future multibaggers.

What we can learn from this report is that to earn multibagger returns, you dont
always have to grow your revenues > 20% p.a. A company with an average growth in
More Related Questions
earnings and decent return ratios can be a multibagger too if bought at cheap
valuations. HSPPL saw its PE expand from 15 to 24 in the last decade despite an
Question Stats
average sales growth.
22 Public Followers
The Indian GDP has grown by ~6.5% p.a. over this period and ination has averaged ~
32,713 Views
6% p.a. HSPPL has managed to grow at par with the nominal GDP growth rate and at
Last Asked May 11
the same time has improved its margins, thus generating wealth for shareholders.
Edits

About:

Honda Siel Power Products is a subsidary of the Japanese company Honda Motors.
HSPPL was incorporated on 19th September, 1985. The company enjoys a leadership
in the power products industry with a wide product range which is consumed in the
domestic market and also exported. The company has its manufacturing facilities at
Greater Noida.

Products:

Portable Generators

Water Pumps

Engines

Lawn Mowers

Brush Cutters

Rotary Tiller
Backpack Sprayer

The Honda engines are used in power sprayers, air compressors, rail drilling
machines, pump sets and concrete saw cutting machines to name a few applications.

The Honda water pumps are used for irrigation in small land holdings (Upto ~ 5
Acres). The pumps come in three varieties Kerosene, Diesel and Petrol. Honda
enjoys a 40% market share in the water pumps industry.

The Honda portable generators are used during power cuts. Honda enjoys market
leadership in the organized portable generators segment with a huge 80% market
share. Honda generators are also acclaimed as the quietest generators in the market.

The company launched the rotary tillers in April, 2016 and expects signicant
revenues from the same going forward. The company claims to be getting good
response for their tillers but what remains to be seen is if they can grow the tiller
segment at 25%+ YoY and grab market share from existing players.

The revenue breakup of the major products is given below:

Geography:

North America is the major export destination for the company whose exports
contribute roughly ~41% of the revenues as per FY17 gures. UAE is another
important destination for the company.

Industry:

The power backup market in India is around ~ Rs 5,000 Crores. The global diesel
genset market is expected to be worth $19 Billion by 2019. Inverter industry is highly
fragmented and dominated by Luminous Power (28% market share), Microtek and Su-
Kam.

Financials:

Despite having low growth rates over the last 10 years, Honda Siel Power Products
turned out to be a multibagger for its investors largely due to PE expansion.

The company has retained earnings totaling ~ Rs 229.73 Crores over the last
10 years and added value of ~ Rs 1,182.78 Crores for its shareholders in terms
of marketcap

The networth has gone up from Rs 151.13 Crores to Rs 366.57 Crores between
FY06 to FY16 which is a CAGR of 9.27%

The book value per share has increased from Rs 149.04 per share to Rs 361.40
per share between FY06 to FY16 which is a CAGR of 9.25%

The company has been able to convert the prots to cash. The gures in the
above table show dierence due to some adjustments of extra-ordinary
items.
The ROCE has uctuated between ~ 11.5% and ~ 22% throughout the decade. The
Return on Networth is however quite average with it peaking at ~15% at three ...
(more)

Upvote 37 Downvote Comment

Niyam Vora, B.E Electronics and Communication Engineering (2017)


Updated Jul 6

1015 YEARS IS EXTREMELY LONG TERM. INFACT I AM NOT SURE YOU WILL BE
EVEN PRESENT TO SEE YOUR INVESTMENTS OR NOT. BUT HOWEVER IF YOU
LOOK FROM A PERSPECTIVE OF 23 YEARS YOU CAN GET GOOD RETURNS.
CHECK OUT THIS

Download telegram.

in search bar search for DARKHORSESTOCKS and join the group.

These are some of the past recommendations. do join this group to nd out more.

For Future ideas of multibaggers you can join this group and nd out more..

Find out the past returns one might have made by investing in any of these shares
mentioned below over the period of 23 years.

There is no such specic share that this will surely be multibagger but however there
can be possible substantial gains possible over the period of time. Check Out the
image given below for yourself and let me know if there are the kind of multibaggers
you are looking for.
If You dont Believe mail me and i would show you the contracts of each share with the
above mentioned purchase price. Yes thats what called wealth creation.

For My newest Ideas do Follow this Instructions

2.8k Views 8 Upvotes

Upvote 8 Downvote Comment

Naman Jain, Trader having 10 + years of experience in stock market


Answered May 21

Here are my stocks which you can invest safely for next 10 -15 years .

1. CARE It is into rating agency business which has only 3 players in Indian
market . The other 2 are CRISIL and ICRA. So it oers good safety and
visibility.

2. BSE. Stock exchanges are here to stay . Invest in SIP manner.

3. Symphony Small cap but good margins and exports in 60+ countries .
Global warming will cause more and more people to buy it across the globe.

4. Ultratech Cement Cement being a regional play so it will continue to


generate wealth for its shareholders.

5. Marico This FMCG company will continue to grow having strong brands
like Parachute , Saola, Hair & Care , Livon

11.2k Views 33 Upvotes

Upvote 33 Downvote Comment

Sanjay Upreti, investing in stocks and mutual fund.


Answered May 11 Related Questions
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ONGC

Sun pharma

ICICI bank

UltraTech cement

Grasim industries

I have not mentioned any stock from IT as Visa problems with USA may hurt growth
of this sector.

Infosys and TCS are two stocks which fall in the category of evergreen shares but
investment in this sector may be delayed by six months to one year so that
uncertainty looming in this sector is settled.

1.5k Views 3 Upvotes

Upvote 3 Downvote Comment

ANAND KUMAR BADAL, Technical Analyst and Trader


Answered May 11

Any stock in Nifty will give u gud return. Buy them during their retracement..
486 Views 1 Upvote

Upvote 1 Downvote Comment

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