10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.

com

Welcome to Equitymaster's The 5 Minute WrapUp

Thank you for subscribing to Equitymaster's "The 5 Minute WrapUp", our free daily e-
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As a subscriber of The 5 Minute WrapUp, this is what you will bene t from -

a. A logical and objective view on both important and interesting developments

around the world

b. The possible implications of such developments on the investment scenario

surrounding a particular stock, or sector or even the economy

In short, The 5 Minute WrapUp is all about 'views', and more so about making smarter
investment decisions based on these views.

Finally, welcome once again to The 5 Minute WrapUp. Happy reading...Start your
journey here!

In fact, allow me to share a way for you to start making high-potential investments
right away!

Hi, I'm Rahul Goel, the CEO of Equitymaster.

Here at Equitymaster we function with a simple objective: To equip you with the
information you need to make well-informed investing decisions and grow your
money safely...without falling prey to tips from brokers or even to your own gut
feeling.

To that end, here's something that might really interest you...

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10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.com

One segment of the stock market where you can make extraordinary returns is small
caps. In fact, a select group of investors have seen several triple-digit gains, and
numerous double-digit gains in the last couple of years alone!

If you would like to explore this opportunity for yourself, just keep reading...

Discover The Profits That Lie

Hidden In Unusual and Little
Known Small Companies
After more than 9 years of picking out high-potential
small companies, Equitymaster has uncovered the secret
to making big returns from small caps

One such stock recommendation turned Rs 10,000 into Rs 115,800

in 6 years 11 months and Another turned Rs 10,000 into Rs 276,063
in 8 years 3 month Read on to nd out more...

Dear Reader,

Consider the following scenario for a moment...

Around the 15th of this month, you receive a recommendation from Equitymaster for
a relatively unknown small cap stock.

This stock may not be talked about much in the media, your stock broker may not
have enough information on it, and it may not be the focus of any discussion with
friends.

But still, largely because it is Equitymaster that's recommending the company,

you decide to play it safe and invest a tiny-winy portion of your money in it.

You know, a very tiny amount, just in case.

And then, silently the company continues to grow behind your back.

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As you grow older, the company also grows with you... moving up in value and price --
doubling, tripling, and quadrupling during this period.

Then one day in the not so distant future, when you've probably even forgotten that
you own shares of this "once unknown" company, it surfaces as one of the leaders in
its industry...

Handing You Returns Of

500% or Even More!
Is something like this really possible?

Yes, it is!

In December 2004, Cera Sanitaryware Ltd. was a little known small cap stock available
for just Rs 16.4 a share.

Not many people expected it to grow the way it has, and therefore not many bothered
to invest in it.

But by cashing in on the increasing demand for stylish high-end bathroom ttings, and
coming up with a business model that set it apart from all its competitors, the
company succeeded in growing its business rapidly.

As a result, its stock price increased from Rs 16.4 in 2004 to Rs 1,779.7 in December
2014. And those who invested in Cera Sanitaryware in 2004 and held the stock till 2014
ended up making a whopping 10,785%.

So considering one had invested just Rs 10,000 in it in 2004, it could have turned into
Rs 1,088,500 by 2014!

And this is not a one-o case either. Take a look at the table below...

Change in share prices over 10 years

Company Dec-04 Dec-14 Change

Mayur Uniquoters Ltd. 01.5 428.7 28,174%
Ashiana Housing Ltd. 01.0 198.9 20,370%
Kitex Garments Ltd. 02.8 510.1 17,923%
Rollatainers Ltd. 0.37 460.0 12,372%
La Opala RG Ltd. 03.7 453.9 12,334%

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10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.com

Company Dec-04 Dec-14 Change

Hawkins Cookers Ltd. 33.6 3,687.1 10,890%
Cera Sanitaryware Ltd. 16.4 1,779.7 10,785%
Butter y Gandhimathi Appliances Ltd. 02.5 221.8 8,770%
Atul Auto Ltd. 07.7 675.7 8,725%
Vinati Organics Ltd. 05.7 430.1 7,507%

Now before we proceed, let me clear one thing:

Please note that none of the above small caps were recommended by Equitymaster in
2004. We are just giving them as examples to show what's possible with small cap
stocks in the long run.

And later on in this letter, I will actually share with you some small cap stocks
that WE recommended, and how well they've done.

But getting back to the original point...

What Was The Common Thing In All These Small

Companies That Made Them Deliver Such Pro ts?
Though not many people knew, all these companies were already leaders in their own
sub-niche or the small area of the industry they operated in.

And thus, they were much better prepared than their peers for managing their growth
in the years to come.

So when the demand for their product grew, they were able to provide a much better
service than all of their competitors and quickly established themselves as the go-to
guy in their niche.

And the rest as they say, is history.

It's true! Most of the companies you saw in the table above are pretty well known in
India today. But at one time they were not so well known.

They all started out small, established themselves as the leader in one main area
where their expertise lay, and then diversi ed into other areas.

So that is the kind of small companies you should look for and invest in as well.
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10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.com

Of course, given the uncertain nature of small caps, we cannot and should not expect
every small cap stock to be an out-and-out winner.

But we know that small caps are fast movers, and that the movement quickly shows in
their stock price.

So assuming one manages to pick 5 'reliable' small cap stocks, even if just 3 out
of the 5 manage to endure the market uncertainties and turn multi-baggers, it
would be more than worth it!

And that is what our small cap recommendation service, Hidden Treasure, aims to
guide you with...

Grab Reliable And High Potential Small Companies

Before Everybody Finds Out About Them. . .
Did you ever nd yourself thinking, "I wish I had invested in Titan while it was still
young?" Or even in Pidilite for that matter?

These were once-unknown-small companies that have grown rapidly in the last decade
to become household names in India today.

But there was no way you could have known that sooner... until now...

Through Hidden Treasure we're providing opportunities like that today.

The stocks we reveal through Hidden Treasure are companies that are either under-
researched or not covered by other stock brokers and research rms.

As far as we know, there's no other authentic source of LONG-TERM recommendations

on such companies. And whatever else is available could be biased.

I understand that small caps may not comprise a big portion of the portfolio. But that
doesn't mean one doesn't need to think about them at all.

This small part of the portfolio does the KEY job of maximizing overall returns...

That's Why One Needs To Be EVEN MORE Careful

In Choosing Small Cap Stocks
We launched Hidden Treasure in February 2008 with a view to provide pro table Small
Cap recommendations.

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But "pro table" doesn't necessarily mean 300% returns in one week.

We have always said and still say that one should look at small caps from the long-
term perspective.

"Equitymaster has made me more and more richer every year

since my association with them. It has given me more wealth
than my professional career. Convey my best wishes to all 52
members at Equity Master."

- Dr C V Ajmera, Rajkot

The stocks we recommend through Hidden Treasure are strong companies and
we recommend them not because we believe they will ourish in a month or
two, but over a minimum period of 3 to 5 years.

We reveal reliable small companies through Hidden Treasure as and when they're
available at a bargain... giving you the opportunity to snap them up early and set
yourself up for potentially huge gains as the company grows.

However, considering the risks that small companies carry, you should realistically not
expect each and every recommendation to be an out and out winner.

Plus, whenever the market crashes, small caps are the rst to bear the brunt of it.

So these are some things you need to understand and acknowledge when you invest
in small caps.

But despite all these drawbacks, we believe our Hidden Treasure service has actually
done quite well.

Our 9-Year Hidden Treasure experience

It was on 15th February, 2008... i.e. a little over 9 Years back, that we picked out our
rst Small Cap Stock.

After much deliberation, in-depth research and testing it across multiple factors... we
found it to be an excellent opportunity.

So we recommended it to a select group of subscribers , and monitored it constantly.

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Keeping them updated on its performance. Ensuring that our assumptions were right
and the company was strong on its growth path.

The e orts paid o !

Our First Small Cap Stock recommendation generated returns of an impressive 93%
return in 2 years 6 months.

A quite satisfactory beginning to many more successful small cap picks in the years to
come.

Our 2008 stock picks generated returns like:

Returns Investment Period

250% In 2 Years

110% In 2 Years 4 Months

93% In 1 Year 8 Months

217% 3 Years & 11 Months

Past performance does not guarantee future results.

After that...

✓ We saw many more smart readers joining our small cap recommendation service and
bene tting from our research.

✓ We saw our research team spending many more hours scrutinizing obscure but
fundamentally strong small caps.

✓ We had teams visiting various cities across the country, meeting various management teams
and recommending even more pro table small cap picks!

And the same good trend continued in 2009 also... despite both these years witnessing
some of the biggest market crashes.

That's right!

So, even from our 2009 recommendations, we saw returns like:

Returns Investment Period

288% In 2 Years & 5 Months

124% In just about 7 Months

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Past performance does not guarantee future results.

Our subscribers were ecstatic! And the Market was exciting.

"Very good unbiased recommendations. All the reports of

recommendations are in depth and very good. Overall when one
see the site one can easily understand the fundamentals of
investing. Very useful. The main thing is equitymaster can be
trusted. Overall my experience has been very good."

- Raghunathan Srinivasan, Mumbai

The year 2010, on the other hand, turned out to be tumultuous for the entire small cap
index. And possibly for our members too.

But starting 2011, our recommendations were back to generating gains...

✓ From our 2011 stock recommendations, we saw returns like 139% in 7 months, 100% in 1
year 1 month, 82% in 1 year 2 months, 241% in 3 years 3 months and 140% in 4 years.

✓ Further, from 2012 recommendations, stocks generated 123% in 3 months and 166%
returns in 2 years to name a few.

✓ Coming to our 2013 recommendations, we have closed 5 positions with 4 generating triple-
digit returns and 1 at a loss of 29%. And there are 2 open positions which are currently in
pro t as well!

Talking about our 2014 recommedations. Well, 7 of them have already given returns
such as 330% in 2 years, 106% in 2 years and 3 months, 105% in 2 years and 6 months,
126% in 11 months, 79% in 4 months, 133% in 1 year 3 months and 73% in 2 years and
4 months. And we had to close 1 at a loss of 25%. One more position was closed at no
gain no loss. So the service has performed well over time and today, it's One Of Our
Most Popular Services!

In fact, one of our best recommendations, eClerx Services, has given an amazing
return of 2,661% in 8 years and 3 months... and another, Balkrishna Industries, has
given 1,058% in 6 years 11 months ...

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Past performance does not guarantee future results.

*Returns have been calculated with respect to 30th June 2017

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10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.com

Past performance does not guarantee future results.

*Returns have been calculated with respect to 30th September 2016

So with thousands of subscribers and a solid track record... we can con dently
say that our research process works!

"I have been with equitymaster for nearly 20 years - happy to

have made a lot of money - Really investor friendly and
independent analysis. Compliments to Research team."

- Dildar Singh, Thane

But at the same time, we don't want you to get the wrong picture.

Not all Small cap stocks will be pro table!

However, the most important thing is that even if 3 out of every 5 small caps
eventually manage to endure the market uncertainties and turn multi-baggers, it will
be well worth it!

And that is what we want to guide you towards through our Hidden Treasure service.

Take a look at some more of the returns made by our Hidden Treasure
recommendations:

Stock Recommended Change

Nitin Fire Protection Ind. 139% in 7 months
Elgi Equipments 250% in 2 Years
KPIT Cummins Infosystem 288% in 2 years & 5 months
V-Guard 123% in 3 months
Page Industries 5,356% in 8 years 5 months (and still not closed)
Past performance does not guarantee future results.

It's for this reason that Hidden Treasure has been One Of Our MOST POPULAR
services over the last couple of years.

And we want YOU to bene t from it as well...

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So Today, We Have Got Something

Extra Special For You...
See, the usual price of Hidden Treasure is Rs 6,000 per year.

But for the next few days, you can get Hidden Treasure at More than 50% O ... or Just
Rs 2,950 for a One Year Subscription.

And then, there's also a 30-day, 100% refund policy on this o er.

So, you can sign up at this price and test-drive Hidden Treasure for a full 30 days.

If you don't like it, get in touch with us before the 31st day, and we'll refund the entire
fee you paid. That's a promise!

But you must act quickly.

This o er will close soon, and then you might have to pay the FULL price to sign up for
Hidden Treasure.

Here's What All You Get

By Subscribing to Hidden Treasure. . .
Once every month, we will notify you of an exciting small cap opportunity through our
monthly Hidden Treasure report.

The report we send will tell why we think a stock could be a good buy at that point in
time or at a lower price later, and it will also clearly explain the pros and cons of
investing in that company.

As you will know, good reliable small companies are very scarce and it also takes
a lot of time and research to nd them.

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"Equitymaster is comprehensive, trustworthy, is replete with rich

and well-intended analysis. It may go wrong - but no male des
only bona des. Intentions of serious research are loud and clear
as the church bells. I respect their analysis with healthy
skepticism."

- Bhushan Akerkar, Mumbai

Equitymaster analysts have to go through many more hoops to nd the few small cap
gems that exist.

And since it's OUR reputation at stake here, we also have to meet with the
managements of di erent companies and organise trips to various cities every month
to make sure we're accurate in our predictions.

All this takes time, and therefore just the one new recommendation per month.

But in addition, every month we will also publish the Top Small cap stocks you could
consider buying at that point.

Plus, you also get:

✓ Quarterly results review of all Open Hidden Treasure recommendations

✓ Performance review every month in our report

✓ Special updates on the recommendations as and when required

Why You Can Trust Us To Deliver . . .

We've been in this industry for a LONG time. In fact, we were the rst Indian entity in
the nance domain to venture onto the Internet.

And now, we have completed over 21 years online.

Today we have over 1,764,790 readers from 72 countries worldwide who trust us!

But at the same time, we are NOT stock brokers. We don't gain anything even if
you buy the stocks we recommend.

However, almost all of our income comes from the subscription fee we charge on our
stock recommendation services. And so it's extremely important to us that the stocks
we recommended make our subscribers money.

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That's why...

All our recommendations are supported by thorough research - we list out the reasons to buy and
also the investment concerns that we foresee.

We travel far and wide to meet companies before we put out reports on them

For each stock, we clearly state the rationale behind selecting that stock, the maximum buy price,
the target price and also the time horizon for achieving the same.

And nally, because we meet various companies, ask tough questions and continuously
track our recommendations... we reduce the risk of a Satyam like situation emerging in
stocks that we recommend.

Here's what one subscriber had to say about our research...

"I am member of Equitymaster since 2008. Time & again they

have provided unbiased reports in all market conditions. Their
reports always ensure that we investors take an informed
decision with rationale thinking rather than being swayed away
with the market sentiments."

- Shailesh Mistry, Bangalore

Another Reason Why Our Research Turns Out To Be

Accurate More Often Than Not . . .
You see, most investors take the return on stock investment to be the key yardstick
while deciding whether or not to buy a stock.

But legendary investors like Benjamin Graham and Warren Bu ett have always
maintained that 'evaluation of risks' should be given as much importance as
'estimation of returns'.

It is in this direction that our research team has developed the Equitymaster
Risk Matrix® or ERM® which helps quantify the risk attached to a stock. The ERM®
is an integral part of our stock selection process.

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Look, we all know that no two large, mid or small cap companies have exactly the
same degree of risk. Even if they operate in the same sector, their business dynamics,
managements and valuations are di erent.

That's why it is important to evaluate the risk involved in each case separately.

Now the ERM® is a matrix designed to evaluate the key risks attached to a business, its
nancial history and its management. It ranks not just the company but also the sector
in which it operates based on its relative risk pro le.

How the ERM Works For Our Subscribers. . .

®

When markets were at their nervous best in late 2008 and early 2009, our Buy
recommendations on Page Industries, eClerx, and KPIT Cummins were backed by
our con dence in the low risk pro le of these companies as shown by our risk matrix.

As expected, these stocks went on to generate huge returns.

Over the years, this original risk matrix has been re ned further into the ERM® we have
today.

Many a time, the ERM® helped us identify the best stocks to recommend to our
subscribers when several of them were looking attractive.

It did so by acting as one of the tools used for eliminating the 'bad stocks', so that we
recommend only the 'good stocks'.

But that's not all...

Again, it is the same ERM® that we rely on to quantify the risks we believe
subscribers need to be cautioned about while recommending a 'Sell'.

"I am very satis ed with the services o ered by Equitymaster. If I

have to pick one very positive thing than that would be unbiased
recommendations on stocks. The new tool of valuation using
ERM is very helpful.

If I can ask for one speci c intervention or better service, it would

be when should one really book the loss, if we get some sort of
an alert to really act on sharp declines that would be helpful to
us."

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- Parthiban A, an Equitymaster Subscriber

Given the complex operating environment that Indian businesses are aspiring to be a
part of, we believe the ERM® can o er immense value to our subscribers who are
seeking to maximize their long term returns without taking on too much risk.

But I Won't Lie To You -

Sometimes We Make Mistakes Too
Like we made a mistake in recommending MIC Electronics in July 2009...

The key reason for our belief in the company was its prominent presence in the fast
growing LED lighting space, where it is a market leader in India. The company had
grown strongly in the past and its balance sheet also appeared good.

However, despite our good expectations, the company failed to capitalise on the
growth opportunity. In fact, it lost a major order from one of its key clients.

Then, we also had some issues with the company's disclosure levels.

Over that, the management's silence on the several issues facing the company had
been deafening.

Given this, we recommended our subscribers to consider selling the stock, at a

loss of 45% from our recommended price.

And apart from MIC Electronics, there were some other companies also that did not do
as per our expectations and closed at a loss like:

Company name Loss %

SREI Infrastructure Finance Ltd. -71%
Ahluwalia Contracts (India) Ltd. -60%
Bartronics India Ltd. -32%
Innoventive Industries Ltd. -81%

But what these incidents have done is that they have made us even more careful now
with respect to our Hidden Treasure recommendations.

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10/26/2017 Investing in Indian Stock Markets - The 5 Minute WrapUp - Equitymaster.com

So like I said initially, you can't expect every small cap stock you invest in to be a
winner. But even if a few of them succeed in enduring the ups and downs and
turn multi-baggers, you could potentially make back whatever you lost in the
other stocks... plus a lot more!

Okay?

And here's what else you get by subscribing to Hidden Treasure...

Latest Edition of
Equitymaster's Stock Market Yearbook

Every year, we publish the latest and exhaustive data on Top 300 companies. Plus, a
wealth of information on over 20 sectors, the Indian economy, mutual funds... all, in
one place.

This invaluable information serves as a ready-reckoner for any smart investor.

Available in an easy-access PDF version, this Yearbook provides the latest data that
could guide you towards making smarter investment decisions.

Priced at Rs 750 normally, you will get latest Edition right away... Absolutely Free!

"How to Plan Your Equity Portfolio":

Our Hugely Popular Guide

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Now there is a very important thing you need to know while investing in stocks... And
that is asset allocation.

Asset allocation is the key to having a well diversi ed portfolio. It is what protects your
investments and could lead to their growth irrespective of the changes in the market.

A well diversi ed portfolio is one where your stocks are properly spread out across
di erent market caps and di erent sectors.

Our extremely popular asset allocation guide will guide you in understanding
what is the right diversi cation for one's portfolio, so that losses can be
minimized and small cap returns can be maximized. The allocation suggested will
of course vary from person to person and is merely indicative in nature. For something
that works best for you, we recommend you talk to your investment advisor.

And you can get this guide absolutely FREE when you subscribe to Hidden Treasure
now.

Portfolio Tracker
The Portfolio Tracker is an online utility that helps you track all your equity and mutual
fund investments in one place! It's online, and is available to you 24 hrs a day.

You just have to enter the details of stocks or mutual funds owned by you ONCE... and
Portfolio Tracker will show you what your entire portfolio is worth AT THAT MOMENT
anytime you log into it.

Furthermore...

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You can set your account to send you automatic end-of-week and end-of-month
performance updates for all your portfolios.

You can set up priced based alerts for all the stocks that you own (and also the stocks that
don't own but only wish to track).

Plus, now you can also track your short-term equity or derivative trades, SIPs and even get
NAV alerts for the mutual fund schemes with Portfolio Tracker

But what makes the Portfolio Tracker the indispensable tool that it is are the
"intelligent reports" that come along with it.

You see, we at Equitymaster have spent a considerable amount of time trying to

understand how the fund managers who invest for the long-term track and review
their portfolios.

And it is the relevant learnings from this exercise that we have translated into reports.

So you can now also generate automated customized intelligent reports for your
stocks or portfolio, to understand how a certain market event could a ect them.

We believe this feature is what sets Equitymaster's Portfolio Tracker apart from all the
other trackers out there.

Please Note: : Equitymaster's Portfolio Tracker is an online stock and mutual fund tracking tool. It is
NEITHER a Portfolio Management Service NOR does if o er any personalized opinions whatsoever.
Additionally, all the user data is strictly private and in no way used for making recommendations.
Equitymaster does not o er portfolio management service and is not registered as a portfolio manager
or investment advisor

And the Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to Hidden
Treasure, you get it absolutely FREE.

What's more, the Portfolio Tracker can also be accessed on your mobile now.

Yes! And you don't need to install anything on your mobile too. Just go to our website
or App and access the Portfolio Tracker with ease.

Free subscription to
Vivek Kaul's Diary . .
Now you can read what knowledgeable investors read every single day for a broad
perspective on the market and the economy...

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Yes, we are delighted to bring you 'The Vivek Kaul Diary', a daily nancial e-
column by

Vivek Kaul is a noted columnist and writer who has been studying the Indian Economy,
and particularly the evolution of money, for more than 10 years now. He has written a
trilogy on the history of money and the evolution of the global nancial system titled
Easy Money.

Vivek has traversed the length and breadth of India, giving lectures to students at IIM
Bangalore, IIM Indore, TA Pai Institute of Management and the Alliance University
(Bangalore. He has also taught at the ICFAI Business School in Hyderabad.

Vivek's writings have appeared in the Daily News and Analysis(DNA), The Economic
Times, The Times of India, Business Standard, Business Today, Business World, The
Hindu , The Hindu Business Line and several other publications. And also on
Redi .com and Firstpost.com regularly.

What's more, over 135,000 readers receive his e-letter every single day.

We believe you will bene t greatly from listening to Vivek's perspective on di erent
things and his style of explaining complex topics in an incredibly simple manner. And
that's why The Vivek Kaul Diary is something you just shouldn't miss!

And last but not the least...

Equitymaster's Private Brie ng:

Never miss a single thing we publish
You'll be glad to know that we now release a weekly email titled "Private Brie ng".

Private Brie ng is direct line of communication between our premium members, and
Rahul Goel, CEO, Equitymaster.

Private Brie ng o ers an honest, transparent, and unbiased insight into what's
happening in the Indian economy and the markets.

It will provide a wealth of insights into what's happening within Equitymaster and the
big macro themes from India and the world that could help you make potentially
pro table decisions.

Through Private Brie ng, we will connect the big picture to the impact it could have on
your wallet.

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E ectively, Private Brie ng will be the platform for an ongoing conversation with an aim
to empower readers with honest and credible opinions.

The primary goal of Private Brie ng is to connect the macro big picture to the aam
investor's wallet. It will carry the house view of Equitymaster.

We willunearth facts behind the stories pedaled in the mainstream media. It will bust
myths, expose vested interests, and o er ideas for creating wealth.

The letter will stay true to the core principles of sensible investing but will also o er
insights into the latest trends and ideas from the world of money.

And You Can Get All This At More Than 50% Off. . .
For Just Rs 2,950!

A year's subscription to Hidden Treasure usually costs Rs 6,000. But if you act
now, we will give you your Hidden Treasure subscription for Rs 2,950 only.

This is More than 50% O on the normal price!

Seriously, Rs 2,950 is probably way less than what you spend on all the phone calls to
your broker, the money you pay to watch the noise on your television, and all the
newspapers and magazines you buy hoping to nd good investment opportunities.

And we strongly believe that none of these other things can provide you unbiased and
reliable small cap recommendations like Hidden Treasure.

Yes, with a subscription to Hidden Treasure, you can rest assured that whenever we
come across little known, high potential small companies, we will notify you of them
right away.

Here's what two of our subscribers had to say about Hidden Treasure...

"Your Hidden Treasure is a beacon of light in these troubled

times. I am happy I took the right choice."

- P. S. Sathyamurthy, a Hidden Treasure subscriber

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"I have been investing in the market since the last 5 years and
have been a lifetime member of Equitymaster since the last three
years. I have found their advice to be quite unbiased. One good
thing about them is that they are constantly trying to bring in
new services via research and analysis which is helping me to get
an objective view on the market. I hope that they bring about
more expertise in the mutual fund market also. I trust them
because they have the transparency to go back and review the
performance of their recommendations."

- Prashanth Nair, a Hidden Treasure subscriber

And Now, Meet The Brain Behind

Hidden Treasure. . .

If you remember, I told you before how uncovering hidden and reliable small caps is a
very di cult task.

You are rst required to do back-breaking research on various companies in the small
cap sphere. And then, also traverse the length and breadth of the country to meet with
the people in charge personally.

Richa Agarwal, one of our senior most Research Analysts, has been heading the
Hidden Treasure since 2013.

She and her team meet dozens of managements face to face every year.

And this is after pouring through the data and details of hundreds of small companies.
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Having degrees in both nance as well as engineering has helped Richa greatly in
identifying the most deserving candidates for Hidden Treasure and analyzing their
business models and associated risks.

Coming to small businesses, Richa believes that paying a slight premium for wide-moat
companies is better than looking for cheap bargains that sometimes turn out to be
value-traps.

And Equitymaster's primary rule is also safety rst.

So it is this thinking that has helped Richa, the editors before her and the entire
Hidden Treasure team zero in on companies like Page Industries and e-Clerx much
before they became well-known entities.

And it has also made Hidden Treasure an extremely popular service with our
subscribers.

But Despite All This,

I Have To Warn You About Something. . .
There are some cases in which Hidden Treasure and small caps may NOT be right for
you.

Small caps are for those who are ready to take some risk.

While one could potentially make a lot of money from small caps, one could also lose a
lot of it very quickly.

Just one good small cap stock could be enough to create solid wealth. But to nd
that one small cap stock, you might have to go through a few duds as well.

Therefore, you need to understand this and plan your small cap investments wisely.

So To Summarize, Here's All You Get

By Signing Up For Hidden Treasure Now...
» Hidden Treasure for just Rs 2,950 (Normal price = Rs 6,000 for 1 year)

» 12 well researched and High Potential Small Cap Buy/Buy-at-a-Lower-Price

recommendations over the year!

» List of Top small cap stocks you could consider buying every month

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» Free Performance review every month

» Quarterly results reviews of all Hidden Treasure open positions

» Special updates on the recommended stocks as and when required

» Equitymaster's easy-access Stock Market Yearbook 2017 edition Worth Rs

750, this is invaluable data on top 300 companies of India.

» Our Hugely Popular Asset Allocation Guide Free

» Free access to our "Intelligent" Portfolio Tracker worth Rs 330 per year

» Free Subscription to Vivek Kaul's Diary

Plus, there's another good thing we can o er you if you sign up through this o er
today...

A Chance To Lock-In This

Discounted Price For Life!
If you join Hidden Treasure now through this o er, you can lock in your subscription at
the discounted rate of Rs 2,950 per year for life of this service!

Yes! Your subscription will be covered under our No-Interruption-Auto-Renew Plan

that allows you to stay subscribed to Hidden Treasure at this discounted price for as
long as you wish.

At the end of every year, acting on your standing instructions, we'll charge your card
the discounted price of Rs 2,950 (instead of the normal price of Rs 6,000 or more) and
automatically renew your subscription for another year.

But you will always be in complete control of your Hidden Treasure subscription.

We will send you a reminder email before renewing your subscription every year. If
you don't wish to continue, you can just reply to it and let us know and we'll cancel
your subscription right away.

Or you can also reach out to our Customer Service at any time via email or phone and
ask them to cancel.

So don't hesitate...

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Test-drive Hidden Treasure For 30 Days

And Then Decide. . .
We had sent our subscribers a recommendation to invest in Page Industries on 15th
January 2009.

So far, this stock has given a return of 5,356% in 8 Years 5 months.

And it's still not closed!

Past performance does not guarantee future results.

*Returns have been calculated with respect to 30th June2017

So if one had invested just Rs 10,000 in this stock when we recommended it, the
investment would be worth Rs 545,600 now and still going strong!

This is the money-making potential of small caps that the Hidden Treasure
wants to guide our subscribers towards!

So the price of Hidden Treasure should not be an issue anymore. And like I already
said, you can try Hidden Treasure without any risk for a full 30 days.

If it turns out that you don't like it, just let us know before the 31st day and we'll refund
the entire fee you paid. No questions asked!

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Sounds good?

In any case, I suggest you act fast because...

1. The volume of small cap shares traded is usually very low, so getting in early can make a
di erence. By subscribing to Hidden Treasure now, you get that advantage.

2. Through this o er you can get 1 Year of Hidden Treasure for just Rs 2,950 instead of the
usual Rs 6,000... which will be the case till for the next few days only.

So don't squander this opportunity...

This o er will close soon.

Click Here To Join...

Regards,

Rahul Goel
CEO, Equitymaster

P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055
or Write in to us. We will be delighted to assist you!

Note 1: For closed and open positions, the returns have been calculated with respect to closing date and 30th June 2017 respectively.
Note 2: The total number of Equitymaster members is taken as on as on 3rd December, 2015.
Note 3: Past performance has no bearing on future performance.
Note 4: Equitymaster does not track or monitor subscriber's portfolios. Please read our Privacy Policy.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.

Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission
of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity
research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and
should be used at one's own risk. This is not an o er to sell or solicitation to buy any securities and Equitymaster will not be liable
for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein.
Information contained herein does not constitute investment advice or a personal recommendation or take into account the
particular investment objectives, nancial situations, or needs of individual subscribers. Before acting on any recommendation,
subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent
professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or
access is unlawful or which may subject Equitymaster or its a liates to any registration or licensing requirement. All content and
information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not
warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or
implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content
and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past
performance and does not guarantee future results.

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