Is the Technology Stocks’ Recovery for Real?

While Indian tech stocks have staged a recovery, their global peers are soaring to new highs.

Tech Stocks Recovery

Here’s an extract…

Apple, Alphabet and Meta saw earnings doubling between 2019 and 2022. Amazon’s earnings nearly tripled during this period.

Also, after a substantial rebound in valuations the stocks are back to their highs. In 2023 itself, the Nasdaq 100 is up over 30% year-to-date.

All this on the back of a technology that has captured the imagination of technology geeks and users alike. It goes by the name of Artificial Intelligence or AI.

http://www.eqtm.in/o2NFi

When it comes to banks…the choice is not just between Public Sector vs Private or Large vs Small banks…

My experience of tracking banking stocks closely over the last 18 years tells me that it is the culture, discipline and diligence of the management that matters most.

Over the years, I have seen several large banks and financial entities shed investor wealth due to callous growth and poor control over credit quality.

The only reason we at Equitymaster managed to skip entities like IL&FS in our recommendations is because we only recommended financial businesses that we understood well.

And this we learnt from none other than Warren Buffett.

Remind yourself of Buffett’s words when looking for bank stocks…

As a matter of fact, there was a very wise man named — I think it was Morris Cohen (Morris Schapiro) — that said, “There are more banks than bankers,” and if you think about that awhile, you’ll get my point.

Sensex 100,000 Before 2028 Ends

When will the Sensex get to 100,000? Read on to find out…

http://www.eqtm.in/Ej3z9

Will Artificial Intelligence (AI) Replace Human Investors? Howard Marks has the answer... https://www.youtube.com/watch?v=QHS2a59fROU&t=1s

Infosys and TCS Can Hedge Risk to Fancy AI Stocks

Investors looking to buy fancy AI stocks may have to shell out a fortune in terms of valuations.

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http://www.eqtm.in/Xr7c6

Why Indian Defence Stocks are Not Overvalued Yet

Unless your timeframe to stay invested in defence stocks is short, you may not want to miss the upside.

Indian Defence Stocks

Here’s an extract…

Over the past seven to eight years, the number of defence licenses issued to industries has increased by almost 200%. This has stimulated the defence industrial manufacturing ecosystem.

The government’s target is to achieve a turnover of Rs 1.75 tn by 2025. Of this about 20% must come from export of military hardware. Military exports from India were negligible until 2017.

So, is India aiming too high with its defence production? Is India’s defence self-reliance story too good to be true?

Are defence stocks in India currently overvalued?

http://www.eqtm.in/Gw9f6

The P/E multiple is a ratio of valuations to earnings. When the denominator is at peak value the numerator is bound to look small. And if a reversion to the mean is eventually inevitable, the valuation multiple is bound to look expensive...over time...warranting a market correction. This data from CMIE suggests such an outcome in the future.

The aerospace unit of General Electric announced on Thursday ..

http://timesofindia.indiatimes.com/articleshow/101189656.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

What the ideaForge IPO Means for Infosys

There is a safer way to ride the asymmetrical payoffs of new disruptive tech businesses.

ideaForge IPO and Infosys

Here’s an extract…

Founded in 2007, ideaForge has over 15 years of research and development (R&D) history. It has more than 20 global patents.

It dominates the segment of security and surveillance with a 90% market share.

Infosys has been an indirect play on the opportunity in the drone sector all through.

http://www.eqtm.in/Yr6t7

Under Radar Stocks to Profit from India's Electronics Revolution

Selecting stocks in India’s electronics ecosystem must be with sufficient diligence.

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http://www.eqtm.in/Ax2e9

Why stock buybacks were illegal at one point?
Why stock buybacks are not exactly like dividends?
Why have stock buybacks hurt capex and productivity growth?
Is Warren Buffett right about buybacks?
Jeremy Grantham answers….

Aswath Damodaran: AI's Winners, Losers and Wannabes https://aswathdamodaran.blogspot.com/2023/06/ais-winners-losers-and-wannabes-nvidia.html

Growth stocks vs Value stocks

The way I think about the market is, not that there are growth stocks and value stocks, but rather that all stocks may hold value. But that all stocks also could potentially be overvalued.
You have to have a mechanism, a rubric for figuring out the value of different kinds of assets, different kinds of businesses, and then figure out which ones are trading particularly mispriced.
- Seth Klarman

https://acquirersmultiple.com/2023/06/seth-klarman-forget-the-definitions-of-growth-stocks-value-stocks/

India's Electronics Stocks to Ride Global Aviation Boom

It’s a matter of time before these companies find favour in the stock markets. Are they on your radar?

India’s Electronics Boom

Here’s an extract…

If you think that India’s electronics and defence manufacturing is limited to small orders of obscure firms…think again.

The preparation for electronics and defence foray started a decade back. And now India is a hotbed of such technologies.

One of the most significant benefits that India provides to the rest of the world is the availability of qualified engineers at relatively lower costs.
A lot of stocks participating in India’s electronics revolution are under the radar.

Read on to know more…

http://www.eqtm.in/z3T2E

Jeremy Grantham discusses AI and a world where you have 1,000,000 devices learning simultaneously.

Bubble in Defence and Drone Stocks?

Selecting stocks in India's defence ecosystem must be with sufficient diligence.

Bubble in Defence Stocks?

Here’s an extract…

Is India aiming too high with its defence production?

Is India's defence self-reliance story too good to be true?

Are defence stocks in bubble territory?

Read on to find out.

http://www.eqtm.in/o6L3Q

Beginning of Lithium Gold Rush? https://www.cnbctv18.com/economy/lithium-mining-auction-proposal-india-approves-removes-ban-on-six-minerals-17196511.htm/amp?utm_campaign=fullarticle&utm_medium=referral&utm_source=inshorts

The Dancing Elephant: A New India Since independence, India took 58 years to hit 1st USD trillion GDP mark, then took just 7 years to reach 2nd USD trillion, 6 years to hit USD 3 trillion mark. And the opportunity to grow even faster is still on. https://blog.abakkusinvest.com/public_html/blog/wp-content/uploads/2023/03/2023/07/Sunil-Singhania-ICAI-Special-Write-Up-A-Dancing-Elephant-A-New-India.pdf