>Deep Value Stocks

Global indices witnessed the steepest ever weekly fall of 16-20%, reflecting the
ongoing turbulence in financial markets. This has significantly shaken investor
confidence and depleted risk appetite. Consequently, valuations have taken a
severe beating. While predicting the bottom is not feasible, we believe that such
an event offers many excellent businesses on ‘sale’. Assuming a challenging
business scenario over the next year as well as conservative historic valuations
benchmarks, we have mined few potential winners based on our bottoms-up
analysis. We have focused on risks first (given the current environment) and then
estimated the potential conservative RoI in the next 3-4 quarters. Such deepvalue
stocks could generate 30-55% RoI in the coming year.

Globally, equities undergoing unprecedented meltdown. After a four-year bull
run, the sub-prime related financial crisis has taken toll on global equities, with the
Dow Industrial Average, MSCI World, MSCI Asia (ex-Japan) and Sensex
plummeting 28%, 34%, 45% and 43% respectively YTD. With rapid erosion in
equities’ risk premium, we have factored in conservative historical valuation
benchmarks to account for economic headwinds that India is likely to face.

Deep value BUYs with lower attendant risks. Based on highly conservative
historic valuations benchmarks and potential risks, we have screened all companies
in the I-Sec universe and handpicked deep-value stocks. We expect these stocks to
deliver potential RoI of 30-55% over the next 3-4 quarters.

Read more here Deep_Value_Stocks