Undiscovered stocks have strong qualities concerning business growth and financial prospects, but this aspect only has to be discovered by the investor. In undiscovered stocks, some qualities have to receive investor interest to discover the stocks.
There are generally significant assets in them that identify the growth of the stocks. In undiscovered stocks, they publically trade in the BSE, which has the following steps you should know:
First, find out the list of undiscovered stocks.
Second, the result of the undiscovered stocks that lead the investor to make a millionaire.
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How to find the Undiscovered Stocks?
There are ways to find undiscovered stocks in the Indian Stock market that get less attention from the investor. If the investor does good research before investing in stocks, they will find undiscovered stocks in the market.
And if you are lucky in finding the undiscovered stocks in the huge Indian stock market, you will get a good investment return that will make you a millionaire. Let’s look at the factors that how to find the undiscovered stocks in the Indian Stock Market.
- Debt of the Company.
- Unlisted the Companies stocks
- Business Manager
- Companies Product and Services
- Business Outlook Surveys.
- Promoter Holding
- Pledging
- Legal Issue
A debt of Companies: In business, it is important to see if a company is making a profit, but if a company has been in a huge dept since the past, it is an important factor to consider investing in that stock. As the company will be under the pressure of debt and there will be no profits in the future, it is also important to factor in whether the company will survive in the future. Due to the debt, you should never invest in these companies; investing in them may lead to losses.
Unlisted Companies Stocks: The unlisted companies in the stock market are mostly undiscovered because these stocks are undervalued. They may be old or have a small-scale e-business. Hence, as an investor, you should research before investing; there are chances for good returns but risks.
Business Manager: It is important to know the management of the business in which you will invest. Because you will invest the money in the companies, you need to know who handles the money and find out how much experience he has. Then you invest in them.
Company’s Services and Products: As you are finding the undiscovered stocks, you must find the product and services of the company because if there is product is strongly connected to the people, then there will be high demand for it and services, how they deal with the people or the customer this will show their services. Understand both things, then invest in the stocks of the company.
Business Outlook Survey: Business Outlook surveys keep track of the company’s past, present, and future economic situation.
You must check in detail the company survey that shows their employment, working hours, prices, paid, received, shipments, delivery times, etc. This thing will help you to figure out the detail of the company.
Promoter Holding: This means the higher the holding promoter, it will be considered a positive company. It shows the progress and future progress of the company.
Pledging: Pledging means taking loans against the shares that one holds. There is a high risk for the promoters who take 50% of the shares or above. Higher pledging leads to high debt, low credibility, and the least short-term requirements.
Legal Issue: While discovering undiscovered stocks, you should always remember whether the company is facing any legal issues on any matters or not. Because legal matters can affect their stocks and company, your investment would be lost.
Top Undiscovered Stocks in 2023
| Company | ROE% | Sales VAR 10Y% |
| Gujarat Themis Bio. | 50.35 | 29.42 |
| Supreme Petrochemical | 50.52 | 9.98 |
| Praveg | 52.22 | 25.64 |
| Sandur Manganese | 50.46 | 28.68 |
| Godawari Power | 52.08 | 10.12 |
| Vinyl Chemicals | 41.04 | 15.14 |
| Sarthak Metals | 38.81 | 16.35 |
| Shivalik Bimetal | 31.87 | 15.11 |
| Apcotex Industri | 28.11 | 14.24 |
| Raghav Product. | 24.47 | 25.11 |
| Themis Medicare | 28.34 | 9.6 |
| Roto Pumps | 25.38 | 8.69 |
| Avantel | 25.58 | 14.97 |
| Sr.Rayala.Hypo | 21.45 | 17.98 |
| Saksoft | 21.89 | 14.62 |
| Median: 15 Co. | 31.87 | 15.11 |
Top 5 Undiscovered Stocks that will make you a Millionaire.
- Tanfac Industries
- Supreme Petrochem
- Praveg
- Apcotex India
- Vinyl Chemical
Tanfac Industries
These industries are joint sector companies promoted by Anupam Rasayan India Limited and Tamil Nadu Industrial Development Corporation. This company is based in Cuddalore, 20 km south of Pondicherry, about 200 KM south of Chennai, India. It is a manufacturing company spread over 60 acres in the chemical complex of SIPCOT Industrial Estate.
The company started commercial production in March 1985 and became the leading producer of Hydrofluoric Acid.
Tanfac manufactured Anhydrous Hydrofluoric acid, Sulphuric acid, Aluminium Fluoride, Potassium Fluoride Oleum, Potassium Bifluoride, Boron Trifluoride Complexes, Calcium Sulphate (Gypsum), Isobutyls Acetophenone, Acetic Acid, Peracetic Acid and Poly Aluminium Chloride, etc.
Share Holding Pattern
- Company promoters are 51.82%.
- The Public Holds the remaining 48.13%.
- DII holds 0.07%
- FIIs have no stake.
In the past decade, there has been 0 institutional interest in the company; the stock price has grown 52% CAGR with the rewarding shareholders.
Supreme Petrochem
Supreme Petochem is a private limited company that owns and operates state-of-the-art production facilities in two locations; the first is Amdoshi Wangai, a village near the Nagothane District in Raigad Maharashtra, and the second one is New Manali Town near Chennai in Tamil Nadu. It exports its product to more than 100 countries around the globe.
Their product at Amdoshi manufactures – Styrene Methyl Methacrylate (SMMA), Specialty Polymers and Compounds (SPC), Polystyrene (PS), Expandable Polystyrene (EPS), Extruded Polystyrene Foam Boards (XPS), Expandable Polystyrene (EPS).
They also generate million tons of polymers.
The New Manali Town manufactures Expandable Polystyrene EPS.
Share Holding Pattern
- Company promoters hold 64.24%
- The Public Holds the remaining 31.22%.
- DIS holds 2.31%
- FIIs have 2.15%.
- The stock price has grown 29% CAGR with a higher return.
Praveg Communication Limited
This company is Praveg Communication Limited with Sword and Sheild Pharma Limited. It is an advertising company with a core in Exhibition and Event Management. It also provides services in the hospitality sector, publication, and Real Estate market.
This company has been catering to a diverse clientele, including the Gujarat State Government, with large corporates and renowned entrepreneurs, which reflects its versatility. It has a wide range of portfolios, including the execution of large-scale projects nationwide; it includes the USA, China, Soth Africa, Europe, and the Middle East.
Its branch is National and Internationally based.
Share Holding Pattern
- Company promoters hold 62.0%
- The Public Holds the remaining 35.63%.
- DII holds 0.04%
- FIIs have 2.34%.
The stock price has grown 118% CAGR with a higher return in the last 5 years.
Apcotex India
This is one of the leading producers of Synthetic Rubber (NBR and HSR) and Synthetic Latex (Nitrile, VP Latex, and Acrylic Latex, based on Styrene Butadiene Chemistry and Butadiane-acrylonitrile.
It includes paper, tire cords, carpets, construction, textiles, footwear, gloves, automotive components, rice dehusking rollers, hoses, and specialty products.
Share Holding Pattern
- Company promoters hold 58.23%
- The Public Holds the remaining 41.19%.
- DII holds 0.10%
- FIIs have 0.47%.
- Promoter holding has marginally increased in the past 3 years.
The stock price has grown 34% CAGR with higher returns in the last 10 years.
Vinyl Chemicals
Vinyl Chemicals India Limited is a Parekh Group Company promoted by Pidilite Industries Limited PIL in 1986. It is currently engaged in business trading in Chemicals viz Vinyl Acetate Monomer (VAM).
It is based in Plant located at Mahad in Raigad District, Maharashtra, India, which has a major share of business in product in India. The company mainly focuses on trading VAM, which is imported from various global suppliers and traded in India.
Share Holding Pattern
- Company promoters hold 50.41%
- The Public Holds the remaining 41.95%.
- DII holds 0.17%
- FIIs have 1.64%.
Promoter holding has been unchanged virtually for the past 10 quarters.
The stock price has grown 45% CAGR with a higher return in the last 10 years.
Conclusion
Identifying undiscovered stocks with the potential for high returns can be a lucrative investment strategy. However, conducting thorough research and analysis is important before making any investment decisions. The top five undiscovered stocks discussed in this article have shown promising potential. Still, it is ultimately up to the individual investor to determine if they align with their personal investment goals and risk tolerance. As with any investment, risks are involved, but with careful consideration and management, these undiscovered stocks could potentially lead to significant financial gains in the future.