Purchasing My First Stock based on my Valuation

The last valuation I did was for Nvidia. It is a US-based semiconductor company specializing in chip manufacturing. As the company is traded in the US, I didn't purchase it as I don't have an account there. So next, I decided to value an Indian-based company, which is still not known and can turn out a good buy if the valuation reveals that the stock is undervalued. Based on the following parameters, I first selected the Indian Real Estate sector as it has underperformed hugely for the last ten years. But I didn't want to get into real estate, hence I started exploring options in the real estate sector. Based on that I found a company named KNR Construction. It is a diversified company engaging in the construction of roads, highways, bridges, and flyovers and also has settled in the Irrigation sector. Both sub-sectors are not quite talked about, so I decided to finalize this company. 

Initially, I started with the Government plans for highways, as they will be the ones that will boost this sector. So I found out the government's 5-year plan was quite solid. Then based on the market share, potential growth, expansion ideas, and competition, I started the valuation for the company. After completing the mechanics of the valuation I found the stock to be undervalued by 7-10% approx. Which I believe will not be a multi-bagger but can give a good amount of returns. But now, when it comes to putting our money into it, we start questioning our valuations. As a result, I went through my story again and rechecked the secondary data, my estimates, and my assumptions. Then finally on the 25th, I bought 1st chunk of shares that I was planning to. Within two days it went down by 6% due to market conditions without anything changing fundamentally. Hence I bought twice the amount of shares that day, and today on 1st April, that is within a week, my 1st conservative target for the company has hit !! 

 I am happy that I put faith in my valuation, as it helps us understand the mechanics better, and where possible we can improve!!

Thank you for reading, Have a Nice Day!!!! 

Update: 09/05/2022

Due to current market uncertainties, stocks all over the globe are correcting significantly due to severe liquidity pullout from the market and also rising inflation and rates. Now, the price of the stock dipped severely below the last buying price. Hence I did the valuation again, now based on the factors of rising inflation and government spending, I still find the company undervalued post-correction, hence will be reinvesting in the company till the target.