The Idea in investing in stocks is to ensure that you get a handsome returns on it. The Stock market works on a principle " It Enriches some at the cost of the Rest ". There is a thin line between being the some and the rest.
The Idea to investing in the stocks is to get a return of about 25-35%, this is achieved by holding the stocks for a certain timeframe. Stocks should be ideally held with a perspective of 1-2 years atleast.
We are a group of friend that have identified a few stocks which have the potential of being a good investment idea. To start of , we have: Action Construction Equipment (ACE).
It is a typical infrastructure story, it manufactures Cranes and it is the bread and butter of its business. Keeping in mind that we are going to see a collosal growth in the infrastructure spending, i thing this company would benefit with it.
Its current market cap is abt 580 Croces and has posted a profit of 25 croces anually , that gives it a P/E of 23, which i know is not cheap but the fact of the matter is that the Management has guided 50% rise in sales next year and if that materialises the annualised profit would be roughly around 36-42 croces and at a P/E of 22 , i see the stocks going to level of 80-85 which is a good 25% appreciation from its current level.
