Well !! the simplest answer to this question is “YES”.
If you are a intelligent investor, having good knowledge about shares, then definitely you should go for investment in Unlisted Shares. But it doesn’t mean that you should start it immediately !! First understand what Unlisted Shares are… The risks involved in Investing.. Secrets of success in investing.. Keep learning.. its the power of Investor..
Let’s Start..
What are Unlisted Shares ??
“Unlisted Shares” can be defined in simple terms.. “Those companies which are not listed on any stock exchange are called as Unlisted Companies” looks very simple ?? ha ha ha.. It’s not so simple as it looks..
Unlisted segment is 100 times bigger than Listed Market.. Shocked ??? but it’s true..
There are around 10000 Listed companies in India. But if we talk about Unlisted Companies In India then the count is 1100000… Yes it’s more than 11 Lacs.. So is the scope to grow.. lot to
Characteristics of Unlisted Shares
- These shares are currently not listed on any stock exchange
- Shares which were listed on any regional stock exchange & are non tradable are also considered as Unlisted
- Price discovery is tough.. Depending on local dealers..
- Buying selling gap means ” Spread Difference ” is wide
Listed Vs Unlisted.. Major Difference..
- Unlisted Shares are less price sensitive than Listed Shares
- Unlisted Shares are generally known for “Valuable Bets” bcoz they have good intrinsic value
- Success ratio in Unlisted shares is much more than Listed shares. Its around 200% +
- Leverage – Person needs to do full payment for buying, so there is no leverage in Unlisted shares. Hence they are considered as safe investments
- Long Term Story – Generally, the dealers or Smart Investors have exposure in Unlisted Shares. They play on core fundamentals of business. They have a strong vision about the growth. Holding period is more than 2 years bcoz business needs time to grow. So, the chances for gain are much higher
Risk Factors in Unlisted Shares
- It is strongly suggested to go through the financials of the company before investing. There are some dealers in the market who sell poor quality stocks to the investors who don’t have adequate knowledge of investing
Tips to get Unbeatable returns
- Deeply understand the financials of the company
- Double check the stock from at least 2-3 dealers
- Always invest on the facts, not the story
- Avoid to invest in Loss making companies, until & unless you know deeply about the segment.
- Cross check with some other dealer whether they will buy that share or not
- 5 Year PAT CAGR must be more than 25%
Most Important thing to Understand.. “Top Secret”.
5 year PAT CAGR is the most important “Secret” of the success in Unlisted Shares. For example, a Unlisted Company name is “STUDDS ACCESSORIES LTD” is having 5 year CAGR is 52%.. So, it means that the company’s profit increases 52% every year. You can understand the power by this example
Stock price 1500
After 1 year 2280
After 2 year 3465
After 3 year 5266
After 4 year 8004
After 5 year 12166
Unbelievable !!!! but it’s true… this is the power of multiplication.
So, whenever you are about to invest in any unlisted share, kindly check the detailed financials of the company.
You can also discuss with our team & take our expert opinion on that.. Don’t worry we will not charge anything.
Our motto is to save every investor’s hard earned money & guide them for healthy investing.
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Contact @Manish Mittal
9215709100
You can also send your Unlisted Portfolio to our team for in depth analysis. our email id is given below
mittalmanish2003@gmail.com