Updated: Jan 29, 2021 13:19 IST
New Delhi [India], January 29 (ANI/Digpu): Do you know what’s common between Ola Cabs, Byju’s, Flipkart and OYO Rooms?
All four were market disruptors that brought in innovative new business models, relatively unknown in India before, and became immensely successful. In a short span of less than a few years, all these companies have become giants in their respective fields with valuations in millions.
According to popular estimates, 9 out of 10 startups fail within a year. But those which succeed create enormous wealth for their founders and investors. Ola Cabs, Byju’s, Flipkart and OYO Rooms are not publicly listed companies, but can you imagine how much wealth their shareholders would have made in less than ten years if they were listed on the stock exchange?
There are approximately 5,500 listed companies on India’s top stock exchanges, out of which few will cease to exist after few years, while few have the potential to replicate the success stories of companies mentioned above by introducing disruptive business models.
Tesla is an excellent example of how a disruptive business model can create exceptional wealth for its shareholders. Tesla’s stock has returned a staggering 794 per cent over the past year, rising from $98 a year ago to over USD 880 per share. Though Tesla stock is not listed on Indian stock exchanges, it has generated a lot of interest from Indian investors.
Investing in stocks of companies which introduce disruptive business models can create immense wealth for investors. However, it is equally important to understand whether the company’s product is sustainable in the long run or just a fad that will perish with time.
So before investing in a stock, it is equally important to understand whether the company’s business model is sustainable in the long term.
How to invest like an expert for wealth creation?
Investing in stocks for wealth creation requires an in-depth understanding of the company’s business model, topline, net profits, free cash flows, return ratios, and management pedigree. Stock markets and stock prices are affected by global, economic and political factors. Hence one requires an in-depth understanding of the businesses from several perspectives.
Research & Ranking’s unique approach for identifying great businesses
India’s leading equity research advisory, Research & Ranking uses an impeccable combination of assessing quantitative parameters and human judgment and expertise to evaluate the commonly ignored intangible growth parameters.
Their criteria for picking a winning stock include assessing the company’s overall financial health, consistency of the cash flows, management commentaries, competitive advantage, supply and demand, and other individual indicators of such as track record of the promoters over time. Along with these, the advisory’s team of experts also look at the growth plans of a company and the management plan to achieve the growth.
Some other parameters used by Research & Ranking to evaluate companies include:
Purpose: Their inhouse team of research experts look for companies with a purpose, vision and the passion of the leadership team to achieve the vision in an ethical and disciplined way.
Symbols of change: Once Research & Ranking’s team of experts identify a solid stock using a bottom-up approach, they study the sector/industry and innovation or change the industry is experiencing.
Forerunners in technology: Whether the company has operational capabilities and its commitment towards R&D division to adopt the industry’s change.
Sustainability: Their research experts conduct an in-depth study on the sustainability of the business model, process, product or technology.
Leadership qualities: The leadership qualities of yesteryears will be different from the leadership qualities of tomorrow. Along with the credibility and expertise, the advisory’s team of experts look for businesses run by management that can take proactive steps in the changing world.
With detailed checks and evaluations using multiple parameters, Research & Ranking’s portfolio includes businesses that have recurrently displayed robust corporate governance policies and risk management processes.
Research & Ranking’s model portfolio has delivered whopping returns of 480 per cent gains in 6 years for more than 15,000 investors by embracing this unique approach. So, if you are looking for the next Tesla-like stocks in Indian markets, Research & Ranking can help you invest the expert way for enormous wealth.
For more information, visit https://researchandranking.com
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