Now, Stocks and even the Sensex can have a MRP tag

All of us are used to shopping for stuff by looking at the MRP tag. This helps us to identify whether we are getting a good deal or being ripped off. But can we do the same when we buy stocks? Buying or selling stocks at the wrong price can often lead to huge losses. So, how can we ensure that investing is more profitable and not a game of chance for us, retail investors? Is there a way to determine the actual worth of a stock – its MRP?

This is exactly what the guys at MoneyWorks4me have done. They have labeled not only all the stocks but also the benchmark Sensex with an MRP tag. This MRP is driven primarily by the earnings power of a company and hence gives you an indication of the fundamental worth of a stock. Thus, it gives investors the confidence to take sensible buy and sell decisions based on the actual worth of the stock and not just market sentiments. Outlook Profit magazine has published an article on this concept titled ‘The Right Price’. The article also gives you a few stocks that you should be buying or selling at this time. Here is a copy of the article.

Also, MoneyWorks4me.com have written a few blog posts on this concept on their blog Stock Shastra. You can read them here.

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Hot Stock Recommendations From the Papers

Normally, I do not scout for stock recommendations from the MSM dailies or the TV. A bit curious (and having a bit extra time to kill!), I took a look around. I found one here today! (29th Oct, 2009).

Just take a look!

Screenshot, dated 29.10.2009

Screenshot, dated 29.10.2009

Infosys trades @ Rs 2207/ today!

Invest in a Company serious about CSR & Corporate Governance

CRISIL launched a 50 scrip index which tracks the top Indian companies on the basis of Corporate Governance, Ethics and Social responsibility. It’s called the ESG Index. (Environment, Social, Governance)

This is what I was looking for when I am looking around for stocks to invest. Infosys, ITC was already in my radar and I am glad to see that they rank right on the top of the 50 scrips. The top ten companies by weight in the index are:

  1. Infosys
  2. ITC
  3. Aditya Birla Nuvo
  4. Dr.Reddy Labs
  5. Wipro
  6. Jubilant Organosys
  7. Axis Bank
  8. GTL
  9. RIL
  10. HUL

See Crisil website for all the details

Mint reports that the first sustainability index that was launched in Brazil in 2005 has given returns of 26%, higher than the 18% offered by the benchmark index of Brazil.

So investors would be rewarded and you also have the satisfaction of investing in a company aware of its social responsibility and scores high on corporate governance.

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