Coffee investing is a great investing strategy that can multiply your wealth with minimal amount of risk. In this strategy investors purchase stocks of companies which have performed exceptionally well for a consistent period of time. After this, forget the stock for 10 years and avoid buying or selling them.
After the end of the 10 year horizon, some stocks will give negative returns, some will give average returns but some stocks will deliver extraordinary returns on investment. This investing strategy is really simple but requires a lot of patience to leave stocks untouched for 10 years.
Parameters of coffee can portfolio-
● Company has been in existence for more than 10 years.
● Average Return on capital employed (ROCE) should be 15 percent or more ● Sales growth for last years should be 10 percent or more
● Market capitalization should be more than 100 crore.
● Return on equity should be 15 percent or more.
By these parameters you will get more than 150 companies listed in the Indian stock market. Out of those companies here are the top 3 growing companies in the coffee can portfolio according to sales growth.
Refex industries:
With a market capitalization of 1406 crores this stock has delivered 167.14 percent in the last 6 months and 287.43 percent in the last 1 year. The company has grown its revenue by 178.9 percent overall.
Refex industries is a manufacturer and refiller of refrigerant gases in India particularly, environmentally acceptable gases that are replacements for Chloro-fluoro-carbons (CFC’s). These are used primarily as refrigerants, foam blowing agents and aerosol propellants.
Lloyds Metals and Energy Ltd:
With a market capitalization of 27,129 crores this stock has delivered – 4.85 percent in the last 6 months and – 4.85 percent in the last 1 year. The company has grown its revenue by 212.58 percent overall.
Incorporated in 1977 Lloyds metal and energy Ltd is into the business of manufacturing of Sponge iron, power generation and mining activities. In 1995 Lloyds metal and energy limited (LMEL) set up its manufacturing facility near coal rich area near Ghugus, at chandrapur District of Maharashtra.
MK Ventures Capital Ltd.
With a market capitalization of 489 crores this stock has delivered 14.89 percent in the last 6 months and 59.27 percent in the last 1 year. The company has grown its revenue by 238 percent overall.
MKVentures Capital Limited (Formerly known as “IKAB SECURITIES AND INVESTMENTS LIMITED”) is a Non Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI).
Written by Vinit israni
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