I invested in Eveready Industries in the month of June 2014 after the stock came into our ranking tables. The ranking table measures a stocks earnings and its stock price against a group of stocks and ranks them. We invest in those stocks that have both their earnings(EPS) and price (PRS) above 80. At that time the stock price was ₹. 45.00. At the price, the stock’s chart was showing pretty high strength, it has a good run up I price. I normally don’t buy into a stock that has already run up. Now, the decision has changed, I had committed myself that I will follow the system without second guessing or judgement.
After I bought the stock it was going higher and higher. By September it crossed the 100 mark.
By the end of November 2014, it has reached 195.00, has given 350% profit on our investment in 5 months period. September quarter results came out and the performance was stronger, but, still was not in a position to give a growth signal, which we consider when a stock gives 25% plus growth in its sales as well as its earnings in comparison with the same quarter of the previous year.
One day when I had asked my son to buy batteries for the mouse and keyboards at home. He bought 6 nos, stating that, we need that much as it is used in the clocks, remotes, keyboards and mouse. This made me think, if we are consuming so much, it would be the same to others around the country too. With the world going wireless, usage of batteries has at least multiplied 3 times. And this is going to increase going forward. A reason enough for Eveready to sky rocket in its sales and earnings. Eveready has been the leader in this industry segment, when we think of batteries we only think of ‘EVEREADY’, it has become a ‘XEROX’ for copy machines. This means, there is a very high potential for this stock to give us 1000% profits along with some fancy dividends. The beauty is that, all of this profit will be tax free, as the period it would take to hold on to this growth is going to be above 365 days. What a nice choice to be invested in Equities.
This incidence also made me think, if I can search such kind of supporting thoughts to find companies that have the highest potential to growth, the returns on my investments will be triple digit year-on-year.