Few days back, couple of friends were having discussion over lunch about “Savings” and the talk slowly diverted to “Strategies that each one of us uses in order to maximize returns on Savings”. Many of them in the group were ‘Conservative Investors’ and hence they mostly invested their money in PPF, few Mutual Funds, Insurance policies etc. When he was questioned about the same, his clear-cut answer was that – Though returns might be less, at least it is predictable. Most of them agreed to the point since, sometimes being risk-averse (especially if the overall economy is not doing good) is the best thing to do 🙂
However, I follow a different strategy to manage my savings. Along with ‘Less risky investments that provide Fixed returns’, I also play the ‘Risky’ game by investing in Mutual Funds (mostly Equity based investments are more compared to Debt based investments) and Stock Market. Well, I decided to invest in stock market when Satyam Computers (the in-famous company founded by Ramalinga Raju) was latched up in the biggest corporate scandal of our times !!! Due to push from one of my old friend’s (who is active in stock market), I picked up shares at very ‘Low Price’ and the same stock ‘sky-rocketed’ after Mahindra acquired Satyam (which eventually became Mahindra Satyam).
As I understood from that incident, most of the times in stock market we are heavily influenced by the buying decision of our friends, acquaintances etc. Also, many times investing is ‘Emotion Driven’ hence, it becomes necessary to control emotions (be it fear or greed) & investing should not be done on your fear of loosing out 🙂 One of the mantras that I diligently follow is from the famous investor Warren Buffet
The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.
When I was looking to invest in some more stocks, there was a company by name of Kushal Tradelink [KTL] that struck my attention. In fact, the strange factor is that this stock was recommended to me by some of my friends (who also invest in stock market). Let’s deep dive into why that stock can be a valued proposition & must to be in your portfolio.
Background
Kushal Tradelink is a closely held private limited company (headquartered in Ahmedabad) and is a major paper products manufacturer as well as paper and agriculture products trader. It was established in the year 2000, which means it is a company that has established it’s foothold in the segment in which they operate. The company has very good financials and a company that is built on strong fundamentals is good pick for your portfolio.
Along with business, they are also involved in lot’s of CSR activities which gives a human touch to business !!
Financials
The promoters of the company have been in business of paper trading since 1965. Kushal Tradelink recorded sales of Rs 200 crore in fiscal 2015, however we could not get information on the bottom-line.
They have contract with Shree Rama News prints & also entered into Rs 250 crore deal with the Adani Enterprise. To top that all, they also have a deal with Bungee India (Fortune 500 company) and serve more than 1500 SME customers across India. Company has three giant paper mills in Gujarat as well as corporate house, wholly owned subsidiary in Singapore and in Ajman [UAE].
Listing details & stock performance
Kushal Tradelink is listed on the BSE (in the B group) and as per my knowledge (and understanding of the market) it is candidate of S&P BSE 500 stocks. Before investing in any stock, we definitely have a look at the previous dividends that the company has offered and it’s performance in the market. Stock of Kushal Tradelink is trading actively with over 10 Lakh shares average daily volume, stock price has risen consistently and has never fall even Rs. 10 from its high price at any point of time.
Also, if you are planning to start investing with 50% amount and are waiting on the sideline which is the tendency of the other investors i.e. to wait for the price to come down so that you can latch on to the shares on lower price. In that case, my suggestion would be that do not wait for that moment since the growth of Kushal Tradelink’s stock is very good and the demand of this stock is much higher as compared to supply (fundamentals of Supply v/s Demand theory). It is like retail concept ‘Offer Valid till Stocks Last’ 🙂
The company has already declared interim dividend twice, 40% in January and 60% in March. For more information about it’s share holding pattern, please visit Kushal Tradelink on BSE To check the performance of Kushal Tradelink on BSE, please check this link The consistent performance definitely gives a big boost to the confidence of the retail investors to invest in Kushal Tradelink 🙂
Retail Investor interest
After interacting with couple of traders in the stock market, we got the information that there has been an increasing retail investor participation after December Quarter in Kushal Tradelink. 7991 retail investors have invested in Kushal Tradelink’s stock (after December Quarter) and after March quarter it rose to 20270 which shows increasing substantial public interest in the company’s stock.
As per the discussion I had with my stock-trader friends, they expect announcement of another dividend from Kushal Tradelink depending on their overall performance.
When I started investing in stock market, I was always told that company’s stock would definitely go-up if the fundamentals of the company are strong !! Same holds good for Kushal Tradelink and considering the excellent performance of the company it definitely falls into my “Hot performing stocks” bucket 🙂
As seen above The stocks are currently trading at Rs 127.60 (rise of 0.87% since previous close) and expect the bull-run to continue for Kushal Tradelink !!
So, do you plan to invest in Kushal Tradelink ? Please leave your thoughts in the comments section.
Disclaimer: Information provided in the article is based on my research and I do not have any holding. Investment in stocks involves huge risk, so consult your financial adviser or do your own analysis before making any investment.
