Exponential profits is a service that aims to identify the most promising penny stocks based on the proprietary SOLID system.
Exponential profits is a stock recommendation service that aims to provide recommendations for what we call penny stocks – stocks that typically trade at Rs 50 or below – with the potential to generate strong returns over a period of 1 to 2 years.
Exponential profits is based on our proprietary SOLID framework that hunts for penny stocks with good fundamentals and attractive valuations.
To assess the investment worthiness of shares, they are passed through the SOLID filter. The constituents of SOLID consist of parameters such as the company’s balance sheet strength, long-term growth potential, profitability and a few others.
Only the stocks that pass the filters above are recommended in the Exponential profits employ.
What does Exponential profits offer?
The Exponential profits The report will include stock recommendations and provide subscribers with suggestions on how to best use the flexibility to increase or decrease exposure to stocks based on overall market valuations.
Who is the editor? Exponential profits?
Rahul Shah, the editor of Exponential profitsis a research analyst and co-head of the Equitymaster research team. Rahul has developed some of Equitymaster’s most rigorous and rewarding research processes and recommended some of the biggest winners in Equitymaster history. He believes that to invest successfully, you need to control your emotions and use smart systems that deliver market-crushing returns.
What is the frequency of reports and what is the minimum expected number of reports per year?
The Exponential profits reports appear monthly, on the 30the of every month. So there would be at least twelve reports per year. In situations where a good opportunity arises due to market action, we cannot wait until the 30th and provide a report much sooner.
On the Exponential profits page of our website, it also shows the status of all our recommended stocks that are currently in open position.
In addition to all the stock recommendation reports, we will also publish a detailed summary of the penny universe. This will be a monthly digest published exclusively for subscribers.
How often are stocks recommended and what is the replacement rate?
The frequency of the recommendations really depends on the number of stocks passing through our SOLID framework at any given time. If the number is large, there may be as many as 20 to 22 recommendations spread over a few months, and if the number is low, there may be as few as 8 to 10 recommendations in a year. Overall, the number of recommendations per year should remain between 8 and 20.
We expect that the shares will be replaced at a frequency of not less than one year, subject to certain exceptions. However, if fundamentals are sound and there is still room for share price appreciation, the stock could even remain in service for more than a year.
How long should one hold a share?
We expect that a stock that has once been recommended will be held for at least a year. At the end of the year, the stock’s fundamentals will be reassessed and a decision will be made on whether to exit the stock. Overall, we don’t expect any stock to remain in use for more than 2-3 years.
Because we use a group-oriented approach Exponential profitswe would like subscribers to rate the performance of the entire group over a 3-5 year period.
The above is indicative only and subscribers are advised to seek advice from their financial planners or investment advisors.
Has the department taken capital protection measures? What will be the recommendation on how to handle the idle money?
Yes. To stay protected against deep corrections in the markets, we conduct an annual stock market survey. If the research shows the broader market is expensive, we recommend subscribers exit most stock positions and hold just 25% in stocks and remain in cash.
In situations like the above, we recommend that subscribers move the unused funds into a safe, short-term fixed deposit. We strive to provide correct guidance on this in the reports.
What are the expected returns?
Penny stocks carry high risks and as a result are not worth it if one is not aiming for returns of at least 22%-25% per year from a 3 to 5 year perspective.
This will also be our pursuit. While returns may not be uniform and there are few penny stocks that lose money, overall we are looking for a 25% return over the medium term.
We cannot go further without warning that these returns cannot be guaranteed, despite our best efforts.
Additionally, since these stocks tend to be more volatile than the rest of the pack, expect few to experience significant losses.
Are all recommendations expected to perform well?
No. Some may well be below our suggested retail price. However, this is all part of the game. The strategy takes such losers into account. We expect that overall gains will more than offset losses.
How do we know when to sell the shares?
Through our reports we will explicitly state when we should sell a share.
Why do you call the stocks you recommend ‘penny stocks’? Is it the same as when other people say penny stocks?
When we say penny stocks, we mean stocks that trade at less than or around Rs 50. However, do not confuse this with other external definitions of penny stocks (such as those related to market capitalizations or stock market categorizations).
Are Equitymaster analysts allowed to invest in the recommended stocks?
Equitymaster is an honest, fully transparent and professionally run organization. We have a strict compliance system, internal policies and guidelines for stock trading. Please note that all stock trading of our employees is tracked and audited to ensure that our subscriber gets the first right to our paid research. We follow SEBI (Research Analysts) regulations and provide complete information about each recommendation. We further request our subscribers to read our stock trading guidelines.
How can one contact the customer service team in case of a query?
You can write to us with all your questions, we will be happy to help you. You can also call us at +91-22-61434055, Monday to Friday between 10am and 6pm.
What Exponential profits doesn’t offer?
Exponential profits is a general recommendation service. We do not provide tailored opinions for any particular subscriber or class of subscribers. We are not qualified financial advisors or investment advisors and we strongly advise our subscribers to obtain professional advice before making any decisions about their investments.
True Exponential profits fit into the asset allocation pyramid?

Penny stocks are inherently riskier than blue-chip or mid-cap stocks. On the plus side, they offer enormous growth potential. It’s not unusual for a good penny stock to become a multi-bagger within a few months. But on the other hand, there is a big risk involved.
Subscribers should note that not all penny stocks tend to outperform. We’ve even seen penny stocks plummet 80-90% when things go wrong. That is why penny stocks are not recommended for people with a low risk profile. Even for subscribers who want a little more risk, we recommend investing no more than 5%-7% of their portfolio in penny stocks. This means that the corpus that is set aside for the Exponential profits The servicing should not exceed 5% to 7% of the total money spent on equities.
What are Exponential profits Subscribers say?
I have been a member of Exponential Profit since 2017. Due to the dedication of my profession, I am not very regular in following the ups and downs of the market, but thanks to this service, as promised, I can profit from the stock market with little investment of time. I find that their reports are written in easy-to-understand language and that their recommendations are accurate and explicit.
-Shiwesh Kumar, Chandigarh
I appreciate the recommendations under Rahul Shah’s Exponential Gains. I have benefited from it so far and plan to hold the shares as advised by the Equitymaster team. I would like to thank the entire team at Equitymaster for the efforts they put in safely recommending stocks to us and helping us realize our dreams by multiplying our hard-earned savings. I wish all team members the very best in future recommendations in any plan. Trust that the above acknowledgment will encourage the team to strive for better stock selection.
-Opener Chadha, Mumbai
Congratulations. Many thanks to Rahul Shah for giving excellent recommendations on exponential gains.
– Anand Chaudhary, Bangalore
Read more subscriber reviews.
How can I try Exponential Profits
We’re happy to announce that you can try Exponential Profits completely risk-free! There is a 30 day money back guarantee. So if it turns out you don’t like Exponential Profits, we’ll be happy to refund every rupee you paid.

Or call us: +91-9136015013
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