No HOT Stock Tips Please….


Will it help you if we recommend 20 stocks every year ?

It is easy for anyone to recommend 100 different stocks over the next 5 years. At least 10-15 random stocks will give good returns.  This way it is convenient & you are free to say “Maine Bola Tha !”.  But how many stocks will you be able to buy out of these 100 ? And what is the probability of you profiting from such inputs ? ZERO !

  • Only the advisor can claim so called success in 10-15 random stocks, and investors make nothing. That’s simply what we will never do at Alpha Invesco.
  • We are full time investors & very well understand the practicality of portfolio construction.
  • We will prefer to recommend very few stocks, and own complete end to end responsibility for every recommendation that has been given out to our readers & subscribers.
  • That’s why we do not want to cover more than 15 stocks at any point of time in our “Stocks To Buy” & “Stocks To Hold” list combined together.

Thumb Rule : Add a new stock idea only if it offers better returns than the existing one.

Finding good companies to invest is not a tough task at all ! There are so many of them. But the question is, can they create wealth for you from current levels? 100-200% returns can be made from any decent Nifty 50 stock or from any average stock from Midcap Index in current market situation. In fact, if we look at last 1 year, every 2nd stock has doubled. Is that 100-200% return going to make any serious impact on your present financial status ?

Our job is to make big returns, not to find new stock ideas every week. Our focus is on serious wealth creation and not on chasing the latest hot sector. It is really difficult to identify a good company, trading at fair valuations & offers a serious wealth creation opportunity. When we find such companies, our job is to stick to them and make sure our clients too hold on to them. There is no point in jumping from one stock to another. But, if we strike an idea where it will give far better returns than the existing one, we will be the first one to move on.

We have found a simple way to implement this approach. 

For any new stock to be added, an existing stock shall be replaced. This makes sure that any new idea has to be better than the older ideas & quality of stocks will only go up.

Makes sense ? Well, you can check our subscription plans & see if you would like to join the community of profitable investors.

See How It Works


Take Solutions : From 32 To 145, 380% Returns & Still Holding


We entered Take Solutions around 32 in July 2014. The company was going through strategic shift to focus on life sciences division & was trying to reduce its dependence on low margin supply chains business. This resulted in a stagnant revenue growth for a couple of years as the company was going through its lean period & purposely let go revenue growth from supply chains business. As a result, stock too was available at fairly attractive valuations.

The stock has moved from 32 to 150 rs over the last 15 months & we are still holding the stock for far higher levels. The best is yet to come for Take Solutions with its changing profile & is fast emerging as a niche player in life sciences services & analytics area. Take Solutions is just another example of the wealth creation opportunity that is offered in ignored midcap stocks segment.

Changed Product Profile & Concentration On High Margin Business

  • TAKE Solutions let go nearly 100 clients & reduced about 200 employees as they discontinued low margin supply chain management solutions in south east asia & middle east. As a result, revenue from supply chain management dropped to 28 per cent in financial year 2015 when compared with 39.5 per cent in the previous year 2014. Share of revenue from life sciences increased to 64 per cent as against 52.6 per cent in the previous year.
  • The realignment led to higher operating profit of 21.3 per cent for the year ended March 31, 2015 as against 19 per cent a year ago. This was achieved despite a 10 per cent drop in revenue during the year.
  • The addressable global market for life science research and development is around $16 billion with equally divided between collection of data, and analytics and solution. Nearly 80 per cent of analytics and solutions are done in-house by global pharma companies. That leaves 20% for players like Take Solutions. In effect present market size is around $3.2 Billion & as pharma companies focus more on lean operations, outsources their processes, the market size can further scale up rapidly. With its low cost advantage, company can grab share of new business that is coming in.
  • There is a scope for revenues to grow at more than 20%+ CAGR for a very long period.

Focused On Products. Not A Typical IT Services Company.

  • Unlike typical IT services companies in India, Take Solutions is one of the few companies that has its own products & enterprise software. ( SaaS – software as a service )
  • In products business, there is one time development cost & the same product can be sold to multiple clients with little / moderate changes as per the client requirement.
  • Product companies offering enterprise solutions usually have very high stickiness in demand, as it is difficult for clients to easily migrate to other platform. This ensure steady renewals / maintenance revenue stream over the years.
  • Product companies usually have an exponential growth possibilities compared to services companies. As the product category grows & company maintains its market share, the margins will only go up as expenses remain lower compared to revenue growth.linear_exponential_business_model_growth

 Niche Business Domain

  • Nine out of the top ten pharmaceutical companies are clients of Take Solutions, which help them in regulatory compliance. In the last five years, the company has made over two lakh submissions with regulators in 29 countries.
  • As pharma companies want to focus more on adding efficiency to their operations, and would want to focus more on their core activity, trend to outsource non-core activities will accelerate further. As the entire life sciences, data & filing processes are very critical & are highly regulated all over the world, it is not easy for new players to emerge as domain experts. Perhaps most of the new business will go to existing players with established networks & systems.
  • Patent protection expiry of a list of drugs is expected to pass through one of the largest phases till 2016 which indicates that there is added pressure on R&D functions within the large pharma companies to replace outgoing blockbuster drugs with newly developed molecules. This will increase demand for ancillary R & D services from Take Solutions.
  • There is a thrust amongst Pharmaceutical companies towards focusing on pure research and molecule development, while outsourcing activities linked to safety, compliance and vigilance as well as the larger functional areas of programming and statistical analysis, and the life cycle management of document and submission publishing. This provides ample opportunities for companies like Take Solutions with its life sciences data analytics products.
  • More than 20% of the company’s total employee strength is domain experts – PhDs, doctors and supply chain industry experts and not just IT professionals.

A brief note on the stock is available at our client login portal. Click Here

Disclosure: We are holding the stock in personal capacity & our clients are holding the stock as well. Mentions here are just for the case study purpose. This is not a recommendation to buy at present level. SEBI registration No: INA000003106

Here is a copy of latest quarterly results & investor communication.

Download (PDF, 645KB)