Investing in the stock market can be a good way to grow your wealth over the long term. However, there are various stocks available in the market and finding the right ones may not be an easy task. Out of several kinds of stocks, sleeper stocks are the ones that have the potential to outperform the market. In this article, check the top sleeper stocks in 2023 and learn how to find the best sleeper stocks and why you can consider investing in them.
What Are Sleeper Stocks?
A sleeper stock is a stock that is not well-known or widely followed by investors but has the potential to generate significant returns in the future.
Top Sleeper Stocks in India
Here are the top 6 sleeper stocks in 2023 that you can consider.
|Name||Sub-Sector||Market Cap||PE Ratio||Net Profit Margin||Beta||Debt to Equity||Return on Equity|
|Godfrey Phillips India Ltd||FMCG – Tobacco||11,093.94||16.07||17.98||0.76||9.95||21.28|
|VST Industries Ltd||FMCG – Tobacco||5,540.03||16.94||23.89||0.75||0||29.01|
|Nesco Ltd||Real Estate||5,033.66||17.32||47.70||0.67||0.02||15.87|
|Kaveri Seed Company Ltd||Seeds||3,019.19||11.11||24.15||0.85||0.09||16.81|
|Accelya Solutions India Ltd||Software Services||2,421.41||19.11||25.85||0.68||9.50||30.41|
|G M Breweries Ltd||Alcoholic Beverages||1,107.34||11.09||16.27||0.94||0||15.69|
Note: The sleeper stocks mentioned above are as of September 6, 2023, and are listed as per the following parameters.
- Market cap – Small cap
- PE Ratio – From 0 to 20
- High Net Profit Margin
- Beta – Maximum 1
- Debt to Equity – Maximum 20%
- High Return on Equity
Godfrey Phillips India Ltd
Godfrey Phillips India manufactures cigarettes and chewing products and trades tea, tobacco, and other retail products. The 5-year CAGR of the company is 19.85%. It is important to note that Godfrey Phillips India is into the tobacco industry, which is heavily regulated, and any changes in regulations could impact the business of the company.
VST Industries Ltd
VST Industries manufactures and distributes cigarettes and unmanufactured tobacco. The 5-year CAGR of the company is 1.38%. VST Industries is also in the business of tobacco, which is heavily regulated. Any changes in the regulations can impact the operations of the company adversely.
Nesco is involved in building IT parks and exhibition centres and manufacturing capital goods, machinery and equipment. The 5-year CAGR of the company is 8.56%.
Kaveri Seed Company Ltd
Kaveri Seed Company is involved in the production and marketing of hybrid seeds. They offer premier seeds to develop high-quality hybrids in Indian crops. The 5-year CAGR of the company is -1.67%.
Accelya Solutions India Ltd
Accelya Solutions provides software solutions to the travel and airline industries. They offer computer programming, consultancy and related services. The 5-year CAGR of the company is 10.06%.
GM Breweries Ltd
GM Breweries manufactures and sells country liquor and Indian-made foreign liquor. The 5-year CAGR of the company is -3.42%. The company is involved in the alcoholic beverage industry. Any changes in alcohol-related regulations, licensing requirements, and taxation policies can significantly impact the company’s operations.
How To Find the Best Sleeper Stocks?
Sleeper stocks have the potential to generate significant returns in the future. They are often overlooked by investors due to a lack of awareness or temporary setbacks, but they may have strong fundamentals or be poised for growth.
There are a few things you can do to find sleeper stocks. Look for small-cap stocks with strong fundamentals and poised for growth. Analyse the earnings of the company along with the debt it holds. Go through the future prospects and management of the company as well.
Do your research and understand everything about the company before investing. Be patient, and don’t expect to get returns quickly. Diversify your portfolio to reduce your risk.
Why Consider Investing in Sleeper Stocks?
There are a few reasons why you might want to consider investing in sleeper stocks:
- They can offer the potential for high returns.
- They can be less risky than more popular stocks as they are not as heavily traded.
- They can provide diversification to your portfolio.
It is important to remember that sleeper stocks are not without risk. They may not perform as well as expected and may take longer to appreciate in value. As a result, it is important to do your research and understand the risks before investing in any sleeper stock. To invest in stocks, open a Demat account now for free on Angel One. Happy Investing!
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
What is the taxation on sleeper stocks?
The taxation on sleeper stocks in India is the same as the taxation on any other stock. When you sell a sleeper stock, you will be liable to pay capital gains tax. The amount of capital gains tax you will pay will depend on the holding period of the stock and your income tax slab.
What are the risks of investing in sleeper stocks?
Sleeper stocks are not without risk. They may not perform as well as expected, and they may take longer to appreciate in value. Besides, they may be more volatile than more established stocks. As a result, it is important to do your research and understand the risks before investing in any sleeper stock.
How much money should I invest in sleeper stocks?
The amount of money you should invest in sleeper stocks will depend on your individual circumstances and risk tolerance. However, it is generally advisable to start small and gradually increase your investment as you become more comfortable with the risks involved.
How do I manage my risk when investing in sleeper stocks?
There are a number of ways to manage your risk when investing in sleeper stocks. One way is to diversify your portfolio by investing in various sleeper stocks. You can also reduce your risk by investing for the long term and by not investing more money than you can afford to lose.