Smart VERC - Less means more

Smart SuperGrowth Stocks

"Smart SuperGrowth Stocks" was introduced to our product lineup in 2022 and quickly gained the attention of investors for its consistently high returns on investment.

Objective

The scheme aims to deliver superior long-term returns, outperforming the market with a substantial margin of safety and harnessing the power of compounding for significant wealth growth!

Smart Strategy

This product focuses on identifying companies characterized by solid fundamentals, established promoters, scalable products, and a high degree of long-term visibility, usually more than 10 years. In the long term, the correlation between stock price and company earnings is notably strong, eclipsing the impact of market fluctuations. It is not solely the growth in company earnings but also the expansion in valuations that drive a swifter ascent in share prices.

Another influential factor contributing to these remarkable returns is the disciplined and logically grounded approach implemented by Smart VERC.

Long-term success stories identified early by Smart VERC

Our research team excels in identifying and recommending early-stage companies across various products whose stock prices have multiplied significantly over time, even surpassing their target prices.

For example, on May 27, 2011, we recommended Bajaj Finance stock at Rs 62 (adjusted for bonus and split) under our product Smart Gems. The rationale was straightforward:

A strong and capable management team, with significant reorganization in 2008.
Robust earnings growth over the preceding three years.
An attractive valuation, with a PE ratio below 10, coupled with high growth potential.
The stock, being part of the reputable Bajaj Group, was trading at a PEG (PE to Growth) ratio of just 0.07, assuming past growth trends continued.

The rest, as they say, is history. The share price skyrocketed to an all-time high of Rs 8,190 on October 6, 2023, multiplying 132 times in just over 12 years!

The consistent rise in EPS transformed Bajaj Finance into a mega wealth generator. As illustrated in the table below, investors were willing to buy the stock at increasingly higher PE ratios. The share price (calculated as EPS × PE ratio) experienced exponential growth, driven by two factors:

1. Rapid growth in EPS.

2. A substantial increase in the PE ratio.

Bajaj Finance

	01-06-08	01-06-09	01-06-10	01-06-11	01-06-12	01-06-13	01-06-14	01-06-15	01-06-16	01-06-17	01-06-18	01-06-19
EPS (A)	0.56	0.92	2.44	6.74	11.08	13.56	14.47	17.99	24.23	34.01	47.05	68.75
PE Ratio (B)	46	16	19	9	8	11	14	24	32	39	44	51
Price = AxB	26	15	47	63	84	147	209	437	764	1327	2075	3510

Price adjusted for Bonus / Stock Split.

About the Product

Typically, we recommend one stock in a year.
Stock selection Philosophy: Identifying undervalued stocks via a bottoms-up approach, with a tempting story /and adequate margin of safety
The average target returns: ~20% to 30% per year
Holding Period: 10 years plus
Comprehensive stock research report available on the App as well as website
Mode of entry and exit notifications: WhatsApp, Mobile App. and Email
Access to all the past recommendations

For Whom

This product is ideal for investors who want:

Superior very long-term returns with few stock transactions.
A reasonable margin of safety.
Low to moderate risk for higher returns.
A 10 year plus investment horizon.
A deep understanding of a company before investing.
To cushion portfolio with resilient stocks.

It is a choice for both beginners and experts.

Research Report

For every recommendation, you'll find a detailed research report accessible on your Mobile App / website dashboard. This report encompasses a thorough analysis of the company, incorporating an examination of its recent developments, financial performance from the past four years, competitive advantages, future strategies, projected earnings per share, market position, key takeaways, and pertinent insights derived from the latest annual report, conference calls, company presentations, management discussions, and sector outlook. Additionally, the report offers precise suggestions for the target price, stop-loss level, and investment timeframe, along with the recommended stock allocation within your overall portfolio.

If you liked this product, you might also want to read Smart Gems.

Benefits of Subscribing to Smart Gains and Smart Gems:

Smart Gains offers stocks with brief narratives for seizing market opportunities, while Smart Gems' recommendations encourage active involvement in long-term growth and expedite wealth accumulation.
Each service provides distinct recommendations.
It aids in resolving liquidity mismatches within your investment fund.
Automatically receive a 10% combo discount upon subscription.

How the subscription works: Click here

Click here to Subscribe

Subscription Charge: Rs 1,77,000 (inclusive of GST), Click here to Subscribe

FAQs

When and how should one reduce the average acquisition cost by averaging down?

Investors may choose to purchase additional shares of a company if the following conditions are met:

The underlying fundamentals of the company remain strong.
The current market price is at least 15% lower than the previous buying price.
The size of the new investment should not exceed 20% of the existing holding, allowing for further purchases in the future.
The stock does not exceed the weightage assigned at the time of recommendation.
The sector weightage of the stock in the portfolio is below 20%.

Is it prudent to purchase a stock if its ruling price exceeds the recommended price?

We aim for returns ranging from 20% to 35%, depending on the product and stocks. As a result, a minor price variation of up to 3% in a stock is unlikely to significantly impact the overall returns. For instance, if you buy a stock with a 5% portfolio weight that is priced 3% higher than our recommendation, the effect on your total portfolio would be just 0.15%.

What is the suggested investment amount for each stock?

Each investor has a unique risk profile, so stock allocations should reflect your risk tolerance.
Over the past five years, the average number of 'Open Recommendations' across Smart Gains and Smart Gems has been 20 stocks. As a result, we have assigned an equal weightage of 5% to each stock recommended under these products. You may adjust this weightage based on your risk appetite.

What occurs if I choose not to renew my subscription?

Upon completion of your subscription, you will no longer receive notifications regarding future and previous recommendations, and access to all subscribed content will cease. However, your account will remain active, and you can resubscribe to products from your dashboard anytime.

I am fully invested based on your recommendations; how to manage funds further?

Examine your portfolio and ensure each stock has the assigned weightage as our recommendation indicates. No sector should make up more than 15% to 20% of the portfolio. This will allow the funds freed up to be invested in future recommendations.

Is there any fixed date for the recommendation?

There is no fixed publication date for such stock research reports.

What are the criteria for stock selection?

Very long-term, reasonably clear vision for Revenue and profit growth, may be due to the product features / burgeoning order book / enterprising CEO, etc.

Will there be exit recommendations?

Yes!

Will these stocks be reviewed?

Yes. The stock shall be reviewed for all major events, including all the quarterly results.

What is the importance of such stocks in a portfolio?

These stocks are expected to deliver steady growth in EPS and keep rising steadily over time with least correlation with the market.

Where can I find my invoice?

Once your payment is received, an invoice will be automatically generated and can be accessed from your account dashboard on our website.

What is the refund/Cancellation policy?

Smart VERC reserves the right to suspend or discontinue research services if SEBI suspends or cancels our registration. In such an event, the remaining subscription amount will be refunded. Please note that refunds are not applicable under any other circumstances.

Can I switch to a different product after subscribing?

Switching to a different product after subscribing is not allowed.

Why do I need to provide my PAN or Date of Birth?

As per SEBI guidelines, Research Analysts are required to complete KYC verification at the time of subscription. To comply with this requirement, we need your correct PAN and Date of Birth.

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