Hidden Gem Stock Picks

Investors generally focus on stocks and industries which are very much in the news. Hence most of the time we end up buying overvalued stocks. The best investment opportunity is however in stocks which have not got lot of public, mutual fund or FII investments but are still good or great companies in the making. Listed below are some of these stocks which are not in focus now but can be multibaggers in the long run.

1)VST Tillers Tractors Ltd

• This company is involved in the manufacture of tillers, tractors and diesel engines.
  

• It has got sound financials with steady revenue growth.
  

• The demand for tillers and tractors is expected to go up locally as well as globally and the company can be a major benficiary of the same.

• The company is currently trading at a PE of 4.19. VST also has no FII holding while mutual fund holding as of 30th September 2008 is 3.78%.

2)Gujarat Reclaim & Rubber Products Ltd (GRRPL)

• GRRPL is another company which very few people are aware of but has got good fundamentals and has been showing good growth on a consistent basis.

• The company is involved in the sale of reclaimed rubber and products are exported as well as sold locally. In short term demant for product might decline slightly but long term outlook looks bright.
  

• Currently the stock is trading at a PE of 4.74 and valuations look attractive from a long term perspective.

• This is another company which does not have any FII holding and mutual fund holding is also very less.

3)Honeywell Automation India Ltd (HAIL)

• HAIL is another company with great fundamentals but has not recieved big investor attention so far. While most of us know about Honeywell but very few may be aware of this Indian listed entity.

• HAIL is in the business of Instrumentation & Process Control. Its products and services cater to broad range of industries such as security, fire detection, home and building control products and solutions and also products serving the process industries, which include Refining, Oil and Gas, Pulp, Paper & Printing, Power Generation, Power Transmission & Distribution, Chemicals & Life Sciences, Petrochemicals, and Metals, Minerals and Mining.

• The company is currently trading at a PE of 10.39. The FII holding in the company is below 1% with arount 4% mutual fund holding. This company has a great future and can reward investors in a big way.

4)Siemens Healthcare Diagnostics Ltd

• While everyone knows about Siemens Ltd. this company has not been much into limelight. It was earlier owned by Bayer and has been acquired by Siemens. The company has got good fundamentals and a backing of the parent Siemens company.

• One might argues why Siemens is better then other medical equipments provider companies. The reason is its cutting edge technology due to the German parent company. So its high end medical equipment products cant be made by Indian counterparts and hence its competitive advantage.

• The stock is currently trading at a PE of 14.29 which might seem bit higher compared to the way valuations are today. But its an attractive long term bet and will give good returns to shareholders. A merger with parent Siemens company in the future is also possible which will also be good for shareholders.

This list is not exhaustive at all and there are many more such companies which are not in the picture bigtime but are doing very well. If one can identify these companies before mutual funds and FII's do then the possibility of returns is the maximum. This is because the retail investor is always the last one to enter into a good stock or industry and by that time its already overvalued.

So try looking and thinking beyond what is already there in front of everyone. It will surely help in picking few multibaggers in the long run.