1 Lakh Rs. Portfolio 2024 | Best Portfolio for the Year 2024 | Top 10 Best Small Cap Stocks 2024

Summary

In this educational video, Mr. Vijay Kedia discusses the potential for higher long-term returns by investing in small, mid, and micro-cap companies, as opposed to large-cap companies that may have limited growth potential. He presents a curated portfolio of top 10 small-cap companies across various sectors like FMCG, pharmaceuticals, defense, construction, consumer electronics, AI technology, and branded steel products. The video delves into each company's financials, growth potential, and investment strategy, advising viewers to conduct their research before investing.

Takeaways

• 😀 Mr. Vijay Kedia suggests investing in small, mid, and mid-cap companies for higher long-term returns, as large-cap companies may not offer the same growth potential.
• 📈 The video discusses a model portfolio of top 10 small-cap companies from various sectors including FMCG, pharma, defense, construction, consumer electronics, AI technology, and branded steel products.
• 💼 The first company highlighted is a construction segment player involved in road and highway construction, irrigation projects, and urban water infrastructure projects, with a significant presence across 11 states in India.
• 🏢 The second company is a consumer electronics retailer with a strong market share in Bihar and Jharkhand, offering a wide range of electronic items and home entertainment solutions.
• 🏭 The third company is a diversified FMCG contract manufacturer supplying to major FMCG companies in India, with a strong client base including Hindustan Unilever and ITC.
• 💊 The fourth company is a pharmaceutical sector player involved in the manufacturing of active pharmaceutical ingredients and contract manufacturing for other pharmaceutical companies.
• 🛠 The fifth company specializes in designing and manufacturing electronic systems, printed circuit boards, and assemblies, with a significant presence in the defense and aerospace sectors.
• 🏗 The sixth company is a leading decorative laminate manufacturer with the largest manufacturing plant in Asia, exporting products to 80 countries.
• 🗺 The seventh company is a pioneer in providing digital mapping services in India, capturing a significant market share and providing data for navigation vehicles.
• 💻 The eighth company is a technology and AI sector player, providing high-end computing solutions across multiple sectors including education, research, space and defense, IT, and the automotive segment.
• 🔩 The ninth company is a manufacturer of stainless steel cubes and pipes, with a focus on expanding business due to increasing product demand and plans for significant investment to increase production capacity.
• ⚙️ The tenth company is a leading player in the Indian wire and cable industry, with a strong presence in the branded wire and cable segment, targeting to increase its production capacity and volume growth.

Q & A

What is the primary focus of Mr. Vijay Kedia's advice for long-term multi-bagger returns?

Mr. Vijay Kedia suggests focusing on small-cap, mid-cap, and some large-cap companies for long-term multi-bagger returns, as larger companies may not offer high return expectations due to their already substantial size.

Why are mid-cap and small-cap companies considered potentially more rewarding in the long run?

Mid-cap companies have the potential to become large caps, and small-cap companies have the potential to grow into mid or large caps. This growth potential can lead to higher returns compared to already established large-cap companies.

What is the strategy for an investor with a 1 lakh investment in the discussed portfolio?

An investor with a 1 lakh investment can distribute 10,000 across each of the stocks in the portfolio, ensuring diversification across different sectors.

What is the significance of the construction segment company mentioned in the script?

The construction segment company, KEON Constructions Limited, is significant due to its rapid business growth, projects running across 11 states in India, and possession of construction equipment worth 1450 crores, which aids in completing projects swiftly.

What are the financial indicators that make the electronics retailer discussed in the script attractive?

Aditya Vision Limited, the electronics retailer, is attractive due to its market leadership in Bihar with a 50% market share, consistent growth in sales and profits over the past 5 years, and a market cap of 6500 crores with a P/E ratio of 13, indicating a potentially undervalued stock.

How does Hindustan Foods Limited's client base and acquisition strategy impact its growth potential?

Hindustan Foods Limited has a diversified client base including major FMCG companies and is expanding its business through acquisitions, which can lead to accelerated growth and increased market share.

What is the potential growth driver for Arti Labs Limited in the pharmaceutical sector?

Arti Labs Limited's potential growth driver is its consistent expansion in the active pharmaceutical ingredients market, with a strong market share in India and a global presence, along with planned investments in new manufacturing plants.

What factors indicate a positive future growth potential for Cyient Limited in the electronics systems design and manufacturing sector?

Cyient Limited's positive growth potential is indicated by its 30+ years of experience, diversified revenue streams from both domestic and export markets, and management's target of growing revenue by 30% CAGR over the next 3 years.

What are the key financial metrics that make Style Industries Limited an attractive investment in the decorative laminates sector?

Style Industries Limited is attractive due to its market cap of 3500 crores, book value of 317, dividend yield of 0.12%, and a debt-to-equity ratio of zero, indicating strong financial health and potential for growth.

How does CE Info Systems Limited's market share in digital mapping services contribute to its investment potential?

CE Info Systems Limited, also known as MapmyIndia, has a significant market share in providing digital mapping services and has captured a large portion of the market, which is a positive sign for its investment potential.

What is the strategy behind Netweb Technologies India Limited's government-supported business model, and how does it impact its growth?

Netweb Technologies India Limited has a unique business model supported by government incentives under 'Make in India', which allows it to provide services across multiple sectors. This government support contributes to its growth by providing stability and opportunities for expansion.

What are the key financial indicators that make Venus Pipes and Tubes Limited an attractive investment in the stainless steel industry?

Venus Pipes and Tubes Limited is attractive due to its market cap of 4700 crores, book value of 200, dividend yield of 0.04%, and a debt-to-equity ratio of 0.37, along with consistent growth in sales and profits over the past 5 years.

What is the growth potential and strategy for RR Cable Limited in the branded wire and cable segment?

RR Cable Limited has a growth potential due to its market leadership in the branded wire and cable segment, with a 74% market share. The company aims to increase its production capacity and revenue, which can lead to higher profits and stock price growth.