Ever wonder why you only hear about amazing stocks after they have already made someone a fortune? Honestly, almost every investor thinks about this.
Every time the big names like Agrawal, Damani, Kela or Porinju flash on the screen, you cannot help but wonder, “What’s their secret? What am I missing?”
The world’s greatest investor, Warren Buffett, answered this years ago. He once said that we are always looking for the next shooting star when there are perfectly good constellations shining right in front of us.
ALSO READTwo microcap stocks India’s Warren Buffett refuses to sell
And that is the difference between us and the Warren Buffetts of India. They are not into the game of instant gratification. They find those hidden gems early on, when nobody else is paying attention, and then they watch their investments quietly grow.
Here are 2 such underdog stocks that have caught the attention of the Warren Buffetts of India.
TAAL Enterprises Ltd (TAAL)
TAAL, incorporated in 2013, was in the business of providing Aircraft Charter Services, which had to be stopped due to an unfortunate aircraft accident.
Currently the company in the process of merging its wholly owned subsidiary, TAAL Tech India Private Limited with itself giving birth to a whole new business that provides not only Air charter services but also Engineering services, embedded systems, and IoT solutions.
With a market cap of Rs 757 Cr, the company is almost debt free.
Add to this the company’s current ROCE (Return on Capital Employed), which is 32%. Which means on every Rs 100 the company puts into the business as capital, it makes Rs 32 on it in profits.
TAAL’s sales grew from Rs 149 cr in FY19 to Rs 187 cr in FY24, which is a compounded growth of 5%. For the first 3 quarters of FY25, the company has already recorded sales of Rs 140 cr.
The EBIDTA (earnings before interest, taxes, depreciation, and amortization) was Rs 31 cr inn FY19 and Rs 47 cr in FY24, which makes it a compound growth of about 9%.,
Even though the business saw some turbulent times, the share price for Taal Enterprises Ltd has shown tremendous growth and could be one reason of the interest the Warren Buffetts of India have shown in the stock.
» Read More
