Friends, As you all know that my criteria to filter stocks are numerous and its very difficult for a stock to pass through all my filters…. So when in May 2022, one small company named Global Education ltd passed all my filters and appeared in my screener, it was a slight surprise for me…. Market Capitalisation of the company was less than 100 cores and the company was listed on NSE only… But instead of ignoring this company, I decided to research further deep in the company…. I analysed the financial statements and ratio of the company from many angles and found the numbers excellant … I cross checked the numbers from different sources, read annual reports, read all its websites (company has many websites)… Numbers were looking extraordinary from all perspectives and share price was not reflecting the underlying financial strength of the company….But still to be double sure of my research, Firstly, I called the company posing as their potential customer and I said to them that I want to avail their services…. After few days, I got call from the company and one gentleman explained their product and services …. He was sounding optimistic and positive and he sent to me some emails with brochures etc…. Secondly, I ordered online also some of the books published by the company and I received those books… Thirdly, I spoke to the Company Secretary of the company… So, I became sure of my research that I have found an excellent company, with real presence on the ground, and trading at extremely attractive prices…. Though its not possible to provide all the reasons, Below I am providing some reasons about my Bullishness of the company –
- Promoters have 75% holding in the company which shows their belief in their own company.
- Senior Management has Chartered Accountants who knows how to manage Finance etc.
- Company is in Education Sector which has bright future in the Country.
- All the Financial Ratio of the company are Excellent.
- Company is High Dividend paying and is investor friendly.
- Currently the company operates only in Maharashtra and so scope of expansion in whole india is Huge.
- Debt is Zero in the company.
- Return on Equity and Return on Assets were close to 25%
- Company was generating more cash than their profits.
- Generally I love ‘small’ but ‘strong‘ plants which has potential to become big Trees… I don’t like Big Trees because those have already achieved saturation level and can not grow further…. That’s why I love ‘quality‘ Small Cap Stocks.
