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OLECTRA GREENTECH | BSE 532439 | NSE OLECTRA | GROUP B

HIDDEN GEMS | FEB 2021

Dear Investor,

Hidden Gems is the Multibagger Subscription which involves Microcap, Smallcap & Midcap
stocks. These will be having High Growth up to 50 Times in a period of 5-10 years. Plus, they will
have High Delta in the sense a Credible news can show changes up to 50% up or down.

Due to the High-Risk High Returns nature, these Multibaggers are only Advisable to Advanced
Investors who already made profits through stock market & really know well how the market ups
& downs work.

Secondary Portfolio is preferred to manage these Hidden Gems. Most of the hidden gems will be
invested by the Advisor Team too. You can manage the stocks using Intrinsic Value Calculator
listed here & also there will be occasional updates on these Multibaggers over your Subscription
Period.

We expect you to follow the Value Investing Principles listed here.

As per the Hidden Gems Plan you will get 10-12 Multibaggers in 1-year period. However, we will
not be regularly releasing every month; Instead, we prefer to release 2-3 reports in one go when
valuations are low. This will protect you from potential price crashes & also zoom the returns.

Hope you understood all the Strategies of Hidden Gems plan.

We wish you Happy & Prosperous Investing Ahead!

Futurecaps Advisor | SEBI Registered Analyst | www.futurecaps.com

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About Company
Olectra Greentech Ltd. is a company operating since 1992 which engages in the manufacturing
and sale of electric buses and composite polymer insulators.

Olectra have Joint Venture between BYD (China) on which Warren Buffett is an Investor. BYD is
eyeing on US Electric Bus Market which will attracted lot of good investors & help mutual
technical alliance of Improved Batteries on the Indian counter side.

Website https://olectra.com/

Bus Video https://www.youtube.com/watch?v=h9NR6rh6o-w

Products
The company produces the Ebuses in series Ebus K6, Ebus K7, Ebus K9. The K9 EBus can
accommodate up to 49 passengers costing around Rs 2.5 crore and can travel up to 300 kms on
a single charge.

The company also produces EHV composite insulators insulators have been introduced as
a good alternative to ceramic and glass insulator.

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Performance
Company is having a Flat P&L due to the Automobile Sector de-growth in COVID times.

https://www.screener.in/company/OLECTRA/consolidated/#profit-loss

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Positives
Indian Automobile Sector is in Revival Path due to the Budget 2021 Focus on Infrastructure &
Vehicle Scrappage Policy along with the COVID lock down relaxing. This will boost the sales of
Automobile players including our company.

India is undergoing Expansion in Adaption on Electric Vehicles due to the Go Green Initiatives
leading to Less Pollution & Clean Environment coupled with the Increased Affordability & Low
Prices.

In order to encourage the use of electric vehicles the GST Council of India has brought down the
GST rate on electric vehicles (EVs) and Charging Stations to 5 per cent. Company is expected
to cross the 1000 EV in India this year.

It may take a year or two to get the Appropriate Boost for this sector through More Tax
Reductions, Battery Subsidies, Availability of Electric Chargers throughout the country. The
company is surely to benefit from these.

Company has unique R&D infrastructure and possess a High-Performance Battery for Long-
distance charging along with Low Maintenance.

It is the Niche Manufacturer of Energy Efficient Intercity Coach Bus which have continued
Traction from Metro cities.

Company is Investing in Charging Infrastructure for the Lithium-ion Variations through Alliance
with Bus Depots & Terminals in Metro Cities. These investments will further boost the count of
buses used by Metros.

Warren Buffett is the Investor in BYD(China) which is the Technical Alliance in US. This shows the
Credibility of this Sector & Company as a whole.

Company recently won 500 EV buses order from various state governments in Pune, Dehradun,
Gujarat, Karnataka. The Market Share of the Company is 50% compared to Tata Motors & Ashok
Leyland rivals.

Zero Debt Company shows No Stress in the P&L of the company during tough times.

Promoter Holdings are good at 59% with Whopping Increase of 22% in the recent years
witnessing past week purchases too.

No bad reputation for Promoters. No frauds found in our research.

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Negatives

Budget 2021 was not fully supporting the EV Segment due to Loss of Revenue from Petro, Gas &
Other Excise duties. It may take a year or two to get the Appropriate Boost for this sector
through Tax Reductions, Battery Subsidies, Availability of Electric Chargers throughout the
country.

Government may be Reluctant in Fully Replacing Fuel Vehicles as they are Good Source of
Revenue through Taxes & Excides Duties.

Presence of Big Competitors like TATA Motors, Ashok Leyland are a Threat to the company.
Arrival of Global Players like Tesla, Nikola in the segment will further increase the Stress on Bottom
Line.

P&L showing presence of Other Income to mark the Profit on Green side. Typical Ratios like
ROCE, ROE is not good at the moment & Stock witnessed heavy crash due to the bad times. The
Balance Sheet Reserves are increasing at slow rate due to the current issues.

This Multibagger is Not a Traditional Value Investing pick.

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Intrinsic Value
Considering the Aggressive EPS Growth of 30% past 2021 is at 70% Discount to Intrinsic Value.
Intrinsic Value Calculator

INTRINSIC
VALUE

CMP

The PB Ratio is at 2X.

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Checklist
Following are the Value Investing checklist.

Company is not witnessing growth in the

GROWTH
recent years due to high cost of EV buses
compared with competitors.

Company is Trading a Reasonable Value

VALUE
considering the PB valuation.

Low Debt makes it a Safe Bet for long-term.

DEBT
Promoters are Prudent & No Frauds found in
INTEGRITY
our checks.

Stock Price is growing in the past along with

DELTA
EPS growth & macroeconomic events.

Trailing Year & QR have flat-returns due to

TRAILING
COVID issues. This should be temporary.

Microcap Stocks are in High-Risk High-Return

ISSUES
category so be Cautious of Investing & Re-
Investing during down times.

Growth + Value + Integrity + NO Debt = Peaceful Investing

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Portfolio

Investor can buy this stock in their Secondary Portfolio consisting of 30% of the Total Stock
Capital. Keep up to 20 companies in this secondary portfolio. Shuffle them yearly.

CMP

Rs. 175 | Buy Below Rs. 250

BSE & NSE

Since this is a Group B stock with Limited Volume you may have to Retry Multiple Buying in BSE &
NSE with probable Offline Order too.

[Low Volume growth stocks go higher rapidly | Low Volume de-growth stocks go lower rapidly too]

Investment Strategy

Installment based Investing is advised as below:

• 50% at current price

• 10% next month
• 10% next month
• 30% again when any 30-50% correction occurs while the IV is intact

Any corrections in near term are opportunities provided the Growth & Integrity are good.

[10% Correction increases Intrinsic Value Discount by 20%]

Holding Period

5-10 Years

Expected Returns

10X or 1000% Returns expected in 5 Years.

100X or 10000% Returns expected in 10 Years if the EV Card played well with MF Investments & PE
Resizing.

Category

Moderate Risk | High Returns

Advisor Invested

Planning to Invest

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Why Portfolio Returns Matters in Long Term?

We are doing Thorough Analysis to ensure there is High Chances of Growth & Low Chances of
Loss. In the long run few stocks can go up like 50X and few can go down like 0X too. But
through Long-Term Holding we are ensuring Multibagger Returns on Portfolio is possible.

For example, you are Putting 1 Lakh on 10 stocks and holding for 5 Years:

• 2 stocks gave 50X returns = 1CR

• 2 stocks gave 20X returns = 40L
• 2 stocks gave 10X returns = 20L
• 2 stocks gave 5X returns = 10L
• 2 stocks gave 0X returns = 0L

Now your Portfolio Stands at 1.7CR Returns = 17X!

• If you would have sold the first 2 stocks at 10X returns you will not get this much growth
• If you were selling the 0X stocks before Reversal still it would not add much value

This is the Secret of Portfolio Management – Long Term, Less Actions, Peaceful, More Profitable!

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About Futurecaps
Futurecaps is a SEBI Registered 2000+ Investors for past 12 years. We are set of Advisors &
Investors inspired from Warren Buffett style of Value Investing along with Intrinsic Value
calculations.

We provide Multibagger Services at Affordable Prices to help Indian Investors accumulate

Wealth. Each Multibagger published will undergo 50+ Checklist to ensure the Future Growth,
Management Integrity, Sector Potential, Fraud Prevention etc.

We are strictly Long-Term Investors & Follow Fundamental Investing principles. No short-cuts, No
day-trading etc. We invest in our recommendations too – so you can Trust Us that our Money is
Put to Risk!

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Disclaimer

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