Thursday, 12 July 2018

Big Bigger and the Biggest of Equity market.

For last 12 months Indian Equity market witnessed big shift in sector allocation. While Blue chip Stocks hitting life high , mid and small cap companies are facing huge selling pressure. 

Tata Consultancy Services ltd (TCS), the IT giant after 2 year of consolidation started its new journey. TCS generated 61% return in past 12 month and added 2.87 lac cr in market cap. Also company entered in $100 Billion club of m-cap. TCS is now ranked 82th in term of M-cap in the World.  Management  is confident of future growth and approved buyback of 16000cr at price of 2100 INR which is still premium to current stock price.

Reliance Industry(RIL) also joined TCS in $100 Billion club after its stellar results. In last 12 month RIL generated 43.29% return and added 2.02 lac cr in m-cap . RIL is outperforming in all the sectors and Reliance Jio Infocomm Ltd is consider to be the next big thing for RIL growth in future.

FMCG is consider to be the most defensive sectors and  Hindustan Unilever ltd (HUL) proved it. Even after  stiff competition form Patanjali , company is able to delivered double digit volume growth due to strong demand coming from rural economy. In past 12 month , HUL stock also outperforming with 53.97% return. 

On banking side while most PSU banks are facing NPA issues. And private sectors banks like Axis, ICICI are under pressure due to management and compliance problems, there are two banks HDFC and Kotak which are wining the clients and investor's confidence with sustainable and quality growth. HDFC and Kotak bank generated 28.8% and 45.2% return on street respectively. On NBFC front  Bajaj Finance is the marathon runner for last 10 years. Stock is one of the few stocks which generated 100 times returns in 10 year time. In past 12 month Bajaj Finance generated 67.82% return and added 55thousand cr in its m-cap.

Street is currently favoring this this few giant of market. And like relay race, each day one other take charge to hold the indices at higher levels. Mid cap benchmark is 3000pt down from it high while, Nifty50 is just 100pt away to make new record. Recent Mutual Fund restructuring also one of the major reason of  this widen gap between madcap benchmark return and Nifty return. 

Lack of buying interest from FII side and also from Retail side is one more reason of mid-small cap under-performance . We believe that value investors should build strong long term portfolio by adding quality mid cap and large cap stocks. Mutual Fund is also one of the best route to invest in this market. Good Multi cap Fund  is best option to invest via SIP.

At the end just remember that Rome is not build in one day. Have patience and keep investing.

Be Smart. Invest Smartly.

Tuesday, 10 July 2018

Avoid this one mistake in Stock Market || Beginners Guide.

Most common mistake most investors do is that they buy price not business. If you ask some person that what stock you want to buy in 10000 INR, 1000 share at price of 10 or 10 share of Price 1000. Then most of the new investor prefer the first.Many still believe that 10 INR stock can go to 100 quickly and they can make huge but this is not the case.
Not all penny stocks become multibagger, 1 in 20 stock only sail through , rest all either depreciate or just remain at same level. Let’s have look at this with example.

Here Name of Stock A is Suzlon and Name of Stock B is Britannia.

In 2013 Suzlon and Britannia were same in size in term of m-cap only difference was the price of both.
After 5 years Suzlon is at same level while Britannia multiplied 7 times. Intelligent investor is one who pick a stock base on the Business model of company not the price of stock.

For any new investors , we highly recommend not to buy any penny stocks until they understand this market. Most of the new investors made mistakes initially and left the market with losses before they realize true potential of market. Comment your value destroyer stocks.

Be Smart. Invest Smartly.

Monday, 27 November 2017

Wealth Creation Idea : Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has 8 Plants- in Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. It offers more than 2,600 options in ceramic wall & floor tiles, vitrified tiles, designer tiles. Kajaria Ceramics exports to more than 30 countries round the Globe.

Financial Performance :
  • M-cap:  INR 11633 cr
  • CMP:  732 INR (27th Nov 2017)
  • EPS: 15.13 INR
  • PE: 48.3
  • Debt equity ratio :0.17
  • Book Value: 82 INR
  • Promoter Share holding is 47.39 %.
  • DII/FII/FPI Share  holding 29.14%

Why Kajaria Ceramics?
  • Company has consistent profit growth of 27.25% over 5 years.
  • Distribution Network of strong and loyal 1200 dealers all over the country.
  • Company is going to Expand the ‘Prima Plus’ channel network from the current 41 showrooms to 100 showrooms by March 2019.
  • Good return on equity track record: 3 Years ROE 27.33%.
  • According to CLSA, India expects to build 60 million new homes to be built between 2018 and 2024.
  • Smart Cities Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation, Urban Transformation (AMRUT) and Housing for all by 2022 is expected to provide significant impetus to the demand for tiles.
  •  Biggest organized player in Ceramics business in India.
  • 29 Year of Business Experience. 
  • Due to GST implementation, Organize player like Kajaria get preference in consumers as Price difference between organize and unorganized player decrease.
For long term investment this stock best suited. Next 5-7 year Kajaria ceramics can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Tuesday, 21 November 2017

Power My Portfolio Value Pick: Tata Elxsi Ltd.

Tata Elxsi is part of Tata Group providing design and technology solutions. It servers broadcast, consumer electronics, healthcare, telecom and transportation, Infra industries. Company is Leading player in Big Data Analytics and IoT solution. Tata Elxsi’s Industrial Design division helps customers develop endearing brands and products by using design as a strategic tool for business success.
It won International iF Design Award 2017 for design excellence.
It’s Transport Design Portfolio includes Indian Multi-Role Helicopter (IMRH), Kochi Metro Rail, Light combat helicopter, Business jet interiors etc. Tata Elxsi's Visual Computing Labs (VCL) is one of the leading animation and visual effects studio in India.Company has good consistent profit growth of 38.35% over last 5 years

Finance Performance:
  • M-cap: INR 5804cr
  • CMP: 932 INR (21 th Nov 2017)
  • PE: 28.4
  • EPS:32.7 INR
  • Book Value: 91 INR
  • Share capital is 31.14 cr of FV 10.
  • Promoter Share holding is 44.63 %
  • FII/DII share holder include prominent name like Morgan Stanley, LIC, Motilal Oswal

Company is Smart Solution provider for Auto, Transport, Infra segment. And India’s Smart City project will generate huge demand in this segment. IoT, Big Data, Virtual Reality are emerging technology and Tata Elxsi  Market Leader in this technology in India. For Next 5 years , Tata Elxsi can outperform the market. It can deliver 3x-5x Return in next 5 year.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

Power My Portfolio Value Pick : Nilkamal Ltd

Nilkamal is the world's largest manufacturer of molded furniture and Asia's largest processor of plastic molded product. 
Nilkamal Core Business  include:
  •     Material Handling Solutions,
  •     Moulded Furniture,
  •     Nilkamal Mattrezzz,
  •     Nilkamal Home Ideas,
  •     @home, the Mega Home Store Retail Chain

Company has 8 large manufacturing plant across the Indian.Nilkamal products are available in as many as 30 countries. Mr VAMANRAI V PAREKH is the Chairman of the Nilkamal Board of Directors. With 60 years of experience in the plastics industry.Nilkamal Furniture sold on most of the store in India and also online shopping site like Amazon.

Current Price of Nilkamal is 1610 INR (21th Nov 2017).
Market cap: INR 2399 cr
EPS:79.38 INR

Being dominant player in its sector, this stock has huge growth potential.
For next 3-5 years view, this stock can deliver multibagger returns.

Be Smart. Invest Smartly.
Disclaimer : Please take advice of your financial advisor before any investment.