Every month we share the list of 10 businesses that we think are worthwhile to investigate. Also to see if there is any opportunity available to invest with. This list is not any random list to buy/sell advise from our end, but is the list to dig in more information and do further research. In this post, out of those 10 companies, I will also share which businesses we are looking closely and are in the middle of our research.

As a professional investor we generate this list every single working day. Every Thursday we all meet and discuss which companies are worthwhile to investigate further from the list. Then on next Friday we share our findings to take decision about our investments.

From the start of 2017 financial year we had found only few businesses from the list are giving compelling margin of safety. The above mentioned exercise helps us to build and manage our watchlist and keep track of them. This watchlist also helps us to buy stocks at our price.

We track more than 600 companies which are listed on National Stock Exchange (NSE). From these 600 businesses there are only 107 businesses that qualify our investment grade (A1, B1 & A2 grade). We create another list of these 107 businesses and grade them on the basis of future earnings growth. We create one more list and grade them on the basis of margin of safety available within them. Businesses with big margin of safety will be ranked first. Business with least or no margin of safety to our calculated intrinsic values will be ranked last. We give 50-50 weightage to both the list and create a third new list with their rankings. This new list gives us the best growth businesses which are trading at cheap price today in the market.

So what we share with you on monthly basis, we do that same exercise and generate that list daily for our investment business. Below is the list of those 10 businesses that was generated today.

hcl tech logo.jpg
shree cement logo
jk bank logo
eicher
lupin
thubilant foodworks logo
kitex garment logo
db corp logo
jagran prakashan logo
emami logo

We found that not all the businesses from the list are trading at discount to its estimate intrinsic value band for 2017. For example, JK Bank, Jagran Prakashan and HCL Tech are the only companies from the above list are trading at discount price today. The list changes with the daily change in the price. And also with earnings upgrade and downgrade of the business.

The stocks that we are closely looking from the above list for this months are as follows:

Kitex Garments: Is the world’s third biggest manufacturing company of infant wear. Many analysts in the market say, ‘it is child’s play’ for Kitex garment to manufacture quality clothes.

Jagran Prakashan: Is the Indian media mogul with more than 100 million readers across country.

HCL Tech: India’s fourth largest IT business and is also eying to generate 20% of its revenue from digital play by 2020.

Eicher Motors: Is India’s fastest growing automobile house. It has overtaken Harley-Davidson in market cap this year in February.

We had already shared our views last month about Eicher Motors. This month we will share our findings on the other three businesses with you. Stay tuned.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we advise you to take professional advice before going ahead with our views.