Swastika Investmart – Massive Multibagger Potential

Swastika Investmart multibagger

Falling interest rates and rising stock markets have ensured that investments in the financial space, particularly in stocks and shares, are on the rise in India.

Stock prices of quality brokerages have gone through the roof and are refusing to look back and these keep climbing higher.

IIFL is 618 (FV2, EPS 5), MOSL is 1458 (FV1, EPS 6) — you name it, every quality brokerage stock is available at stratospheric and almost unreasonable valuations. Yet, there are takers for brokerage companies because financialization of savings will ensure that brokerages continue to grow at a healthy pace.

Now, in this scenario, wouldn’t you just love to invest in a quality brokerage stock that has national exposure and is priced between 180 and 190, has an EPS of Rs 22, FV of 10, and is engaged in the following verticals?:

Stock Broking
Commodity Broking
Merchant Banking (company has managed 5 IPOs already)
Insurance (not yet gained traction)
NBFC
Financial Training Institute (yet to fly)
Online Discount Brokerage Trading (Like Zerodha/SAMCO).

Of course you would. No one would want to miss out on such a stock.

And that stock is Swastika Investmart Ltd

To justify my recommendation I just have one question to ask you:

Suppose Zerodha announces an IPO. Wouldn’t you expect a minimum price of Rs 300-500/share?

I’m sure you would.

Now hear this – Swastika Investmart has already developed an online discount brokerage trading tool – Trading Bells.

Trading Bells - Swastika Investmart

The company is spearheaded by a very dynamic individual, Sunil Nyati, who has pulled out stops to ensure that Swastika keeps up with technological changes and becomes a national brand.

Please read the annual report to read through the financials, business model, director’s commentary and then make a decision.

Disclosure: I own some stocks that I picked up today (12 Oct).

7 Comments

  1. This is to inform you that in the meeting of Board of Directors of the Company held on Tuesday, the 29th Day of May, 2018, the Board has approved the draft scheme of merger of Swastika Commodities Private Limited (Wholly Owned Subsidiary Company) with Swastika Investmart Limited (Holding Company).Copy

  2. Sir,
    Could you please elaborate on the management issues.
    Their broking business trading bells seems to be picking up well. These prices seem to be mouthwatering.

    • When management does not deliver per its promises, it loses investor trust. This is what has happened to Swastika. I too booked a loss.

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