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Hi My Fellow Traders, I am Devam Maheshwari and I am 15 Year's Old meaning very inexperienced in contrast of the members of the wholesome community of Dalal Street but in the world of bulls and bear I would like to call myself a learning Technical as well as fundamental analysist.
Since, I am quite young and inefficient in comparison of the other members of these community, I would like to make sure the fact that the investment or trading of securities must be done on your own reasearch and risk appetite. And I am not recommending any stocks or form of advice in this form of communication system. This whole form of communication is just an opinion not an advice. I am just trying to pass my admiration towards a comapany that I feel is undervalued and has lot of potential. Thankyou,
Recently, I was locating for quality stocks whose Return on Equity, Return on Capital Employed and Return on Assestt were phenomenal and by phenomenal i meant above 15%. By applying this quality Returns filter, i got list of terrific companies but this wasn't enough for me. i wanted Companies who were stable or risk free. Since, Risk isn't something that is very abstract in nature. i had no option other than applying other indiactors to measure risk out of which , i chose the Classic Metrics of Beta. To Make sure that beta rate was well adjusted for returns, I opted for beta under 0 or 1. But this still wasn't enough i wanted Companies to be clear for that I made sure that comapnaies were debt free. and Also made sure that beta prfit was more than their Cash generated from operating Activity. But then I watched an case study Oracle of Omaha on buying the stock of coke and getting heavy cash returns in form of Dividends.
so I applied filters of dividend yield in my screener. Just to make sure the fact that availability of dividend is there or not but we must remember the fact that the dividend yield is a historic indiactor and doesn't promise anything in future. But This was still wasn't enough, i wanted Companies whose promoters had very high trust in them.
Other day, I was reading an interesting book called Intelligent Investor by an author called Ben Graham who was the mentor of warren buffet himself. So Ben Graham suggested that before acquiring any stock of company, we must calculate it's real valuation in our terms and add Margin of Safety which helps our trade.So I applied those following condition in the companies stock And Vala, The results speak for themselves but i am not here to discuss about all companies. Today, I am going to talk about the stock worth in penny that I Love.
The Stock is none other than \*\*\*Taparia Tools Limited\*\*\*\*.\* But Please make sure the facts that Most Penny stocks are illquid,High Risk and usually have weak fundamentals and that's why they are so feared in public and retail investment options . But Taparia Tools have indicated a very less risk according to indiactors like beta and volatility. And the fundamentals of stocks are also great. But the only flaw it holds it's one of the biggest strength. most of the company is hold by its promoter and that's actually a good and a bad thing so there is no equilibrium or balance but I would like to be the roaring Kitty and not lead but take a initiative that totally dependent on me and doesn't constitutes of other of buying this quality stop that I love. this was the quality analysis done my me and in this analysis I had better companies which one not many and very stable companies that actually fit the side of interesting buffet which I would share it my other reports so that was it today completely trying to be legal and starting this initiative. Thankyou So Much!!