7th July, 2023

Unlisted investments are those made in stocks or assets that aren’t traded on a public exchange. Unquoted investments are a term that is sometimes used to describe them. Investors’ interest in buying unlisted shares has increased substantially. Many unlisted companies have emerged in India, and their valuations are performing well. Purchasing shares on a recognised stock market might be simple, on the other hand, unlisted share purchases can in many ways be a challenge.

With our in-depth analysis of the best-unlisted shares that you should acquire, we’re here to make this small journey a little easier for you! The best 5 unlisted shares that you should not miss out on in 2023 are mentioned below.

#1. STUDDS ACCESSORIES

Studds Accessories, which began manufacturing its first helmet in a garage in 1983, now produces over 14 million helmets and motorbike luggage each year. Studds Accessories Limited has developed to become the world’s largest manufacturer of two-wheeler helmets. The company, which has its headquarter in Faridabad, operates four cutting-edge production facilities that produce a diverse range of over 50 goods. With a long history, a diverse product line, and a strong dealer network, the company has a market share of over 25% in India and exports to over 50 countries worldwide.

SWOT ANALYSIS

Strength-

Established market position: The promoter’s over four decades of experience and good ties with two-wheeler giants, as well as the company’s well-established brand name, should continue to support the company’s business risk profile. In 2019, SAL was able to preserve its market position as India’s #1 helmet producer. Over the medium term, its debut into the sports helmet and bike helmet segments and following tie-ups with new dealers should boost the marketing base.

Weakness-

The presence of a substantial unorganized segment, as well as competition from established companies like Steel Bird and Vega, will continue to limit pricing pressure and scalability.

Outlook-

The prognosis for Studds Accessories Ltd. appears to be stable, according to the research. It will continue to reap the benefits of its well-established brand name.

Threats-

UPWARD FACTOR *Adequate demand for increased capacity after Capex stabilizes.

DOWNWARD FACTOR * Revenue and profit decreasing 20% and 300 basis points, respectively. * If the company spends more money on debt than projected, pays out a huge dividend, or makes unrelated investments, the company’s financial risk profile will deteriorate.

Current Price: Latest Studds Accessories Share Price is around 765 per share.

#2. MARTIN AND HARRIS

Martin & Harris Laboratories Ltd, founded in 1996 in Gurgaon, Haryana, is a subsidiary of India’s oldest and largest business conglomerate, the Apeejay Group. Martin & Harris Laboratories Ltd is a pharmaceutical, medicinal chemical, and botanical product manufacturer. Aside from its core business, it managed its finances by investing in various channels that yielded strong returns, such as mutual funds, stocks – listed and unquoted, and so on.

SWOT ANALYSIS

Strength-

The unlisted MARTIN & HARRIS SHARE PRICE is quickly increasing during the global crisis. The company’s revenue in 2016 was Rs.108 crore, and it increased to Rs.296 crore in 2020. This represents a revenue boost of 29%. EBITDA in 2016 was Rs.36 crore which increased to Rs.93 crore in 2020, i.e., 27% increase. In 2016, total assets were Rs.99.5 crore, and by 2020, they had expanded by 39% to Rs.366.5 crore.

Weakness-

Walter Bushnell, one of its competitors, has one of the strongest coverage in the pharmaceutical sector in terms of both doctors and geographies (metro to rural), ensuring actual availability throughout India and Nepal.

Opportunities-

R&D growth to fuel New Products

Expanding to New Markets

Business Segments and associations

Threats-

Intellectual property policies

Global economic conditions

Patent litigations

#3. ELOFIC INDUSTRIES

ELOFIC INDUSTRIES LTD started in 1951, is a leading filter manufacturer in India, offering a comprehensive range of filters and lubricants. With experience of over 70 years, and production of more than 85 million filters annually, it plans to grow turnover of Rs.7000 million by 2025-26.

SWOT ANALYSIS

Strengths-

When compared to the
competition, one of their key strengths is their extensive network of
distributors, stockists, and retailers. Elofic is also entering lubricants,
which it regards as having a lot of potential in the next years. Elofic’s
revenue is well distributed, with no over-reliance on any one segment: roughly
30% from OEMs, close to 40% from the aftermarket, and over 30% from exports.

Weakness-

During the year under review, a modest change is seen in the Company’s Sale & other Incomes at Rs.22232 lacs, against Rs.23040 lacs of the previous year, showing a decrease of 3.51% from last year. The domestic sales remained same as it was in the previous year, whereas the decrease was seen in export sales from Rs.8131 lacs to Rs.7040 lacs. COVID 19 and the resulting lockout in the fourth quarter of the year were the primary cause of lower export sales.

Opportunities-

Data Science, machine learning, big data, programming, business analytics.

Threats-

Advancements in technological fields may pose a threat because no new technology has been imported in the last year.

#4. CHENNAI SUPER KINGS

The Chennai Super Kings (CSK) is an Indian Premier League (IPL) franchise cricket team headquartered in Chennai, Tamilnadu (IPL). The team, which was founded in 2008, plays its home games at Chennai’s M.A Chidambaram Stadium.

According to the Brand Finance Report, the Super Kings’ brand worth in 2018 was assessed to be $65 million, making them the most valuable franchise in the IPL. Also, according to their report, one of the big boosts for the IPL this year was not only the 11% increase in television viewing but also the fact that over 200 million people followed the tournament on digital platforms such as Hotstar.

SWOT ANALYSIS

Strength-

Experience and Quality all-rounders

Weakness-

Age factor and Lack of match practice

While the Chennai Super Kings’ experience makes them one of the top teams in IPL 2022, their age could work against them. The majority of their senior players do not routinely play international cricket.

Outlook-

On September 4th, 2017, the IPL reached a huge milestone when Star TV was awarded the media rights for the next five years (2018-2022) for a whopping Rs 16,347.50 crore. Franchises will get 50% of the above sum after deducting production expenses incurred during the season as a result of these rights throughout the next five years.

Threats-

CSK’s hopes in the UAE were hampered by poor batting last season, and if they don’t change their strategies, they may be doomed again. If the three-time champions are to put on a decent display, the pace bowlers will have to step up, or it will be another difficult season for Dhoni and his team.

#5. NATIONAL STOCK EXCHANGE

According to a World Federation of Exchanges (WFE) report, the National Stock Exchange of India Ltd.
(NSE) was India’s leading stock exchange and the world’s second largest by number of equity share trades during January to June 2018. It was established in 1992. In April 1993, SEBI designated it as a stock exchange, and it began operations in 1994 with the opening of the wholesale debt market, followed by the opening of the cash market section shortly after. NSE is one of the best performing stocks in unlisted market. 

SWOT ANALYSIS

Strength-

Experienced business unit

Skilled workforce

Existing distribution and sales networks

Domestic market

Weakness-

High loan rates, future competition, competitive market,

Opportunities-

New markets and acquisitions, increment in income level, growing economy

Threats-

Financial capacity, external business risks, price changes, increase in labour costs and lower profitability.

However, just because the shares aren’t listed doesn’t imply they can’t be traded; shareholders of a few unlisted firms (hidden gems) trade their shares in off-market transactions. Purchasing unlisted shares of a firm can unlock a lot of value in the future when the stock is listed on the stock exchanges (IPO route).

Current Price: NSE Share Price of NSE share is 3550