IT Sector Growth in Q1 FY25:
- Driven by large and mega deals ramp-up and furlough reversals.
- FY2025 revenue growth guidance missed expectations across companies but outlook positive for FY 25-26.
Valuation Perspective:
- Recent corrections in IT stocks improved valuations.
- Further corrections may enhance appeal of mid-tier IT stocks.
Disclaimer : This is not an investment advice and this is not an investment recommendation.
- Driven by large and mega deals ramp-up and furlough reversals.
- FY2025 revenue growth guidance missed expectations across companies but outlook positive for FY 25-26.
Valuation Perspective:
- Recent corrections in IT stocks improved valuations.
- Further corrections may enhance appeal of mid-tier IT stocks.
Disclaimer : This is not an investment advice and this is not an investment recommendation.
Infosys Ltd - CMP : 1,440
————————————
Pros :
- Experienced decent correction in recent time
- Stock has been consolidating for quite some time
- Institutional Buying from last 4 quarters
- Expectations of interest rate cut
- Ended FY '24 with the highest ever large deal TCV of $17.7 bn
- Seeing traction with clients for Generative AI work across various services
- Announced strategic acquisition
- Positive outlook for Europe market performance
- Expected growth to accelerate in Financial Services and Telecom verticals due to large deal wins
Cons :
- Q4 revenue growth was flat
- U.S. market had a slower outlook in Q4 and the full year
- One-time impact on Q4 revenues due to renegotiation and rescoping of contract with a financial services client
- Headwinds from additional impact on salary increases, higher brand building, and visa expenses
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
————————————
Pros :
- Experienced decent correction in recent time
- Stock has been consolidating for quite some time
- Institutional Buying from last 4 quarters
- Expectations of interest rate cut
- Ended FY '24 with the highest ever large deal TCV of $17.7 bn
- Seeing traction with clients for Generative AI work across various services
- Announced strategic acquisition
- Positive outlook for Europe market performance
- Expected growth to accelerate in Financial Services and Telecom verticals due to large deal wins
Cons :
- Q4 revenue growth was flat
- U.S. market had a slower outlook in Q4 and the full year
- One-time impact on Q4 revenues due to renegotiation and rescoping of contract with a financial services client
- Headwinds from additional impact on salary increases, higher brand building, and visa expenses
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
"Tata Motors reported a consolidated net profit of Rs 17,529 crore"
Tata Motors CMP: 1,088
* Stock is up by 1191% since the first update
Congrats to all the investors who believed in Tata Motors turnaround story in 2020
Hope after my so many repeated fundamental teachings this makes sense
- Your Stocks can becomes multi-baggers
- Only if you remain invested for long term
- Belief in the Fundament Strength gives the patience to remain invested for long term
Enjoy the reward of your belief and patience 🙂
Tata Motors CMP: 1,088
* Stock is up by 1191% since the first update
Congrats to all the investors who believed in Tata Motors turnaround story in 2020
Hope after my so many repeated fundamental teachings this makes sense
- Your Stocks can becomes multi-baggers
- Only if you remain invested for long term
- Belief in the Fundament Strength gives the patience to remain invested for long term
Enjoy the reward of your belief and patience 🙂
Cycle Turns:
Ignored IT & FMCG Can Outperform now.
- This is how cycle turn in ignored and beaten down sectors
- Investments rotate from overvalued sectors to beaten down sectors
Disclaimer : This is not an investment advice and this is not an investment recommendation.
Ignored IT & FMCG Can Outperform now.
- This is how cycle turn in ignored and beaten down sectors
- Investments rotate from overvalued sectors to beaten down sectors
Disclaimer : This is not an investment advice and this is not an investment recommendation.
Zomato : CMP - ₹ 203
————————————
Pros:
*Institutional Buying
*Good Results expected
*Swiggy listing in process, can trigger valuation
*Increase in estimated EPS for FY25/FY26E by 41-52%.
*Bullish growth and margin assumptions for Blinkit.
*Lower effective tax rate (ETR).
*Increased take rates from newly onboarded restaurants.
*Platform and other charges also Increased for customer
Cons-
*Competitive landscape in the quick commerce (QC) sector.
*Significant traction among players like Blinkit, Instamart, and Zepto
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
————————————
Pros:
*Institutional Buying
*Good Results expected
*Swiggy listing in process, can trigger valuation
*Increase in estimated EPS for FY25/FY26E by 41-52%.
*Bullish growth and margin assumptions for Blinkit.
*Lower effective tax rate (ETR).
*Increased take rates from newly onboarded restaurants.
*Platform and other charges also Increased for customer
Cons-
*Competitive landscape in the quick commerce (QC) sector.
*Significant traction among players like Blinkit, Instamart, and Zepto
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
Fall in stock price doesn't always mean that its business isn't good or the company is doing bad.
Just like a wave coming to the beach; doesn't always mean a storm is coming.
Sometimes, it's just how the ocean moves naturally.
Remember, stock prices correct faster than they go up, but they always go higher than the drop....
Take Care, Stay Strong
Just like a wave coming to the beach; doesn't always mean a storm is coming.
Sometimes, it's just how the ocean moves naturally.
Remember, stock prices correct faster than they go up, but they always go higher than the drop....
Take Care, Stay Strong
————————
📊Watchlist
————————
Rationale
* Nifty IT index has experienced a continuous decline
* Interest Rate Cut Expectations
IT Sector Growth in Q1 FY25:
- Driven by large and mega deals ramp-up and furlough reversals.
- FY2025 revenue growth guidance missed expectations across companies but outlook positive for FY 25-26
❄️Infosys
❄️HCLTech
❄️LTIMindtree
❄️Tech Mahindra
❄️Mphasis
❄️Birlasoft
❄️Happiest Minds Technologies
❄️Sonata Software
Disclaimer : This is not an investment advice and this is not an investment recommendation.
📊Watchlist
————————
Rationale
* Nifty IT index has experienced a continuous decline
* Interest Rate Cut Expectations
IT Sector Growth in Q1 FY25:
- Driven by large and mega deals ramp-up and furlough reversals.
- FY2025 revenue growth guidance missed expectations across companies but outlook positive for FY 25-26
❄️Infosys
❄️HCLTech
❄️LTIMindtree
❄️Tech Mahindra
❄️Mphasis
❄️Birlasoft
❄️Happiest Minds Technologies
❄️Sonata Software
Disclaimer : This is not an investment advice and this is not an investment recommendation.
KYC - "Know Your Company" Before Investing
🛑Red Flags in Investing
- *High Inventories Growth*: When inventories growth surpasses sales growth for three consecutive years or more.
- *Promoter Behavior*: Beware if a company issues a Right offer to reduce debt, and promoters start selling shares after the right issue.
- *Continuous Losses with Rising Promoter Salaries*: If a company consistently makes losses but promoters keep increasing their salaries, it's concerning.
- *Spike in Account Payables without Sales Growth*: A sudden increase in account payables without corresponding sales growth might indicate an attempt to show positive cash flow.
- *Negative Cash Flow with Dividend Payments*: Watch out if cash flow from operations remains negative for three years while the promoter keeps paying dividends.
- *Increasing Promoter Pledges*: When promoters pledge their shares without concurrent growth in sales and profits.
- *Promoter Pledges for Personal Use*: If promoters pledge their shares for personal needs, it's a red flag.
- *High CFO and Auditor Turnover*: A company with frequent change in CFO and auditor positions could signal instability.
- *Annual Report Composition*: Be cautious of companies whose annual reports contain excessive images, drawings, or special features, as it could be an attempt to mask underlying issues.
- *Overconfident Earnings Guidance in Unpredictable Businesses*: When management of a non-predictable business confidently offers earnings guidance, it's a red flag.
#Investing
Take Care of your HEALTH & WEALTH
🛑Red Flags in Investing
- *High Inventories Growth*: When inventories growth surpasses sales growth for three consecutive years or more.
- *Promoter Behavior*: Beware if a company issues a Right offer to reduce debt, and promoters start selling shares after the right issue.
- *Continuous Losses with Rising Promoter Salaries*: If a company consistently makes losses but promoters keep increasing their salaries, it's concerning.
- *Spike in Account Payables without Sales Growth*: A sudden increase in account payables without corresponding sales growth might indicate an attempt to show positive cash flow.
- *Negative Cash Flow with Dividend Payments*: Watch out if cash flow from operations remains negative for three years while the promoter keeps paying dividends.
- *Increasing Promoter Pledges*: When promoters pledge their shares without concurrent growth in sales and profits.
- *Promoter Pledges for Personal Use*: If promoters pledge their shares for personal needs, it's a red flag.
- *High CFO and Auditor Turnover*: A company with frequent change in CFO and auditor positions could signal instability.
- *Annual Report Composition*: Be cautious of companies whose annual reports contain excessive images, drawings, or special features, as it could be an attempt to mask underlying issues.
- *Overconfident Earnings Guidance in Unpredictable Businesses*: When management of a non-predictable business confidently offers earnings guidance, it's a red flag.
#Investing
Take Care of your HEALTH & WEALTH
We always try to provide alerts about downturns and share what we've learned.
Brightcom Share Analysis https://youtu.be/PeXzSOQxogs
This video, posted on October 15, 2021, highlights:
- Issues with business activity
- Issues with receivables
- Suspicious cash outflows through questionable investments
Later in 2023, a SEBI forensic audit confirmed these suspicious issues.
Empower yourself with knowledge to protect your investments from such fraudulent companies.
Thank you for believing in me.
Brightcom Share Analysis https://youtu.be/PeXzSOQxogs
This video, posted on October 15, 2021, highlights:
- Issues with business activity
- Issues with receivables
- Suspicious cash outflows through questionable investments
Later in 2023, a SEBI forensic audit confirmed these suspicious issues.
Empower yourself with knowledge to protect your investments from such fraudulent companies.
Thank you for believing in me.
When a company's sales increases, its profit also increases. Naturally, its market value will also rise, it might happen quickly or take some time depending on market sentiment.
People don't understand this simple concept because their expectations are too high and they focus entirely on the stock price.
If the price is rising, everything seems good.
But if the price starts falling, they forget about the sales and profit.
Investors think that if there's any positive news about a company, the stock will rise immediately.
But it doesn't always happen that way.
Operators also know how we think, so positive news does have an effect, but not right away.
#psychology
People don't understand this simple concept because their expectations are too high and they focus entirely on the stock price.
If the price is rising, everything seems good.
But if the price starts falling, they forget about the sales and profit.
Investors think that if there's any positive news about a company, the stock will rise immediately.
But it doesn't always happen that way.
Operators also know how we think, so positive news does have an effect, but not right away.
#psychology
Tata Consumer Products
‐‐‐----------------------
CMP: Rs. 1095
-‐------------------------
- Products includes well-known brands like Tata Tea, Tetley, and Tata Salt, ensuring a strong market presence
- The successful expansion of Tata Starbucks, with plans to triple outlets by FY28, indicates robust growth potential in the coffee segment
- Consistent growth in sales and profitability, driven by strategic expansions and product innovations
- Focus on increasing market share in both urban and rural areas, especially through penetration into Tier-2 cities
- Improvement in store-level economics and EBITDA margins, leading to higher profitability
- Tata Starbucks' revenue expected to reach Rs. 32 billion by FY28, growing at 24% annually
Disclaimer : This is not an investment advice and this is not an investment recommendation.
‐‐‐----------------------
CMP: Rs. 1095
-‐------------------------
- Products includes well-known brands like Tata Tea, Tetley, and Tata Salt, ensuring a strong market presence
- The successful expansion of Tata Starbucks, with plans to triple outlets by FY28, indicates robust growth potential in the coffee segment
- Consistent growth in sales and profitability, driven by strategic expansions and product innovations
- Focus on increasing market share in both urban and rural areas, especially through penetration into Tier-2 cities
- Improvement in store-level economics and EBITDA margins, leading to higher profitability
- Tata Starbucks' revenue expected to reach Rs. 32 billion by FY28, growing at 24% annually
Disclaimer : This is not an investment advice and this is not an investment recommendation.
*Q: What are Cyclical and Non-Cyclical Stocks?*
Let's Simplify
- During a recession, if you lose your job at a private company, you'd likely avoid buying items like cars, bikes, jewelry, or a new house. These are considered non-essential or luxury purchases.
- Even during a recession, there are purchases you can't avoid, such as daily necessities like food and medicines. These are considered essential items.
Products you can avoid during a recession are typically from the cyclical sector, while essential products you can't avoid are from the non-cyclical sector.
*Q: What are some signs that indicate a cyclical stock is at its peak or bottom?*
Signs of a cyclical stock reaching its peak include (opposite to non cyclical stocks)
- Low price-to-earnings (P/E) ratio
- High dividends
- Rising earnings per share (EPS)
- Positive news surrounding the company
Signs of a cyclical stock hitting bottom include a
- High P/E ratio
- Negative news
- Falling earnings
- Lower dividends
Industries such as steel, automotive, chemical, paper, and aluminum often feature cyclical stocks.
*Q: Why do cyclical stocks often perform poorly during a recession?*
Cyclical stocks tend to suffer during a recession because their growth is closely tied to overall economic growth, particularly GDP growth. When the economy slows down, these stocks often face challenges.
*Q: Despite their poor performance during a recession, why do cyclical stocks often rebound quickly when the economy starts to recover?*
Even though cyclical stocks struggle during a recession, they're usually the first to bounce back when the economy starts to recover.
This quick rebound is often driven by investor anticipation of improved economic conditions, even if the fundamentals of these companies still appear weak.
Generally earnings per share (EPS) of cyclical stocks is highly fluctuating
*Non-Cyclical EPS:*
- Year 1: 2.20
- Year 2: 2.35
- Year 3: 2.70
- Year 4: 2.90
- Year 5: 3.20
*Cyclical EPS:*
- Year 1: 2.20
- Year 2: 0.50
- Year 3: 1.50
- Year 4: 0.30
- Year 5: 2.30
Let's Simplify
- During a recession, if you lose your job at a private company, you'd likely avoid buying items like cars, bikes, jewelry, or a new house. These are considered non-essential or luxury purchases.
- Even during a recession, there are purchases you can't avoid, such as daily necessities like food and medicines. These are considered essential items.
Products you can avoid during a recession are typically from the cyclical sector, while essential products you can't avoid are from the non-cyclical sector.
*Q: What are some signs that indicate a cyclical stock is at its peak or bottom?*
Signs of a cyclical stock reaching its peak include (opposite to non cyclical stocks)
- Low price-to-earnings (P/E) ratio
- High dividends
- Rising earnings per share (EPS)
- Positive news surrounding the company
Signs of a cyclical stock hitting bottom include a
- High P/E ratio
- Negative news
- Falling earnings
- Lower dividends
Industries such as steel, automotive, chemical, paper, and aluminum often feature cyclical stocks.
*Q: Why do cyclical stocks often perform poorly during a recession?*
Cyclical stocks tend to suffer during a recession because their growth is closely tied to overall economic growth, particularly GDP growth. When the economy slows down, these stocks often face challenges.
*Q: Despite their poor performance during a recession, why do cyclical stocks often rebound quickly when the economy starts to recover?*
Even though cyclical stocks struggle during a recession, they're usually the first to bounce back when the economy starts to recover.
This quick rebound is often driven by investor anticipation of improved economic conditions, even if the fundamentals of these companies still appear weak.
Generally earnings per share (EPS) of cyclical stocks is highly fluctuating
*Non-Cyclical EPS:*
- Year 1: 2.20
- Year 2: 2.35
- Year 3: 2.70
- Year 4: 2.90
- Year 5: 3.20
*Cyclical EPS:*
- Year 1: 2.20
- Year 2: 0.50
- Year 3: 1.50
- Year 4: 0.30
- Year 5: 2.30
Cyclical stocks with High Momentum:
This Week:
- Commodity Index: Copper hitting an all-time high.
- Aluminium Index: Retesting crucial levels on a weekly basis.
Focus Stocks Aligning with Copper and Aluminium:
- Hindustan Copper Limited (HINDCOPPER)
- Vedanta Limited (VEDL)
- Hindalco Industries Limited (HINDALCO)
- National Aluminium Company Limited (NALCO)
- Bhagyanagar India Ltd (BHAGYANAGARINDSLTD)
Disclaimer : This is not an investment advice and this is not an investment recommendation.
This Week:
- Commodity Index: Copper hitting an all-time high.
- Aluminium Index: Retesting crucial levels on a weekly basis.
Focus Stocks Aligning with Copper and Aluminium:
- Hindustan Copper Limited (HINDCOPPER)
- Vedanta Limited (VEDL)
- Hindalco Industries Limited (HINDALCO)
- National Aluminium Company Limited (NALCO)
- Bhagyanagar India Ltd (BHAGYANAGARINDSLTD)
Disclaimer : This is not an investment advice and this is not an investment recommendation.
ACEink Official
———————— 📊Watchlist ———————— Rationale * Nifty IT index has experienced a continuous decline * Interest Rate Cut Expectations IT Sector Growth in Q1 FY25: - Driven by large and mega deals ramp-up and furlough reversals. - FY2025 revenue growth guidance…
IT Sector in Action
"Slow and Steady Wins The Race"
"Slow and Steady Wins The Race"
Bharti Airtel : CMP - ₹1370
————————————
Pros:
- Institutional Buying
- Telecom reforms
- Rate Hike is expected after Election
- 20-25% Revenue increase is expected
- High Capex Plan
Cons-
- Highly Govt Regulated industry
- Debt
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
————————————
Pros:
- Institutional Buying
- Telecom reforms
- Rate Hike is expected after Election
- 20-25% Revenue increase is expected
- High Capex Plan
Cons-
- Highly Govt Regulated industry
- Debt
#longterminvesting #Investing
Disclaimer : This is not an investment advice and this is not an investment recommendation.
ACEink Official
Character of a successful Investor If Market corrects 25% - Rookie Investor sell in panic and exit - Pro investors buy more in instalments - Legends pray for 15% more fall #Investing
Congrats to everyone who held onto their winning stocks and didn’t panic during the recent dip.
Today, the markets are at a high.
Market Rule: Don’t panic during market fluctuations.
Holding onto the right themes with conviction has potential to make great returns.
#investors
Today, the markets are at a high.
Market Rule: Don’t panic during market fluctuations.
Holding onto the right themes with conviction has potential to make great returns.
#investors
ACEink Official
Affle India Ltd: ₹ 1,065 ———————————— Pros: •Institutional Buying- Retail Selling •Achieved highest-ever quarterly revenue, EBITDA, PAT, Conversions •Strategic moat fortified with 15 Gen AI patent filings •8 patents recently granted •CTV & E commerce to…
📊 Affle India CMP : 1230 Up by 15.41%
ACEink Official
———————————— Ashok Leyland CMP: ₹191 ———————————— Pros: * Record turnover, sales volume, EBITDA, and PAT * Attractive Valuation (PE 21) * Launched first-ever Electric Truck * Expansion of network in North and East zones * Dividend Yield * EV Theme * Technical…
📊 Ashok Leyland CMP : 214 Up by 12%
Good results by Ashok Leyland
- Net profit up 20% to Rs 900 crore.
- Previous year's Q4 PAT: Rs 751 crore.
- Previous year's Q4 revenue: Rs 11,626 crore.
- Strong demand in medium and light commercial vehicles.
- Market leader in M&HCV Bus segment with 5.8% market share gain.
- Chairman optimistic about industry growth and Indian economy.
Disclaimer : This is not an investment advice and this is not an investment recommendation.
Good results by Ashok Leyland
- Net profit up 20% to Rs 900 crore.
- Previous year's Q4 PAT: Rs 751 crore.
- Previous year's Q4 revenue: Rs 11,626 crore.
- Strong demand in medium and light commercial vehicles.
- Market leader in M&HCV Bus segment with 5.8% market share gain.
- Chairman optimistic about industry growth and Indian economy.
Disclaimer : This is not an investment advice and this is not an investment recommendation.
ACEink Official
Affle India Ltd: ₹ 1,065 ———————————— Pros: •Institutional Buying- Retail Selling •Achieved highest-ever quarterly revenue, EBITDA, PAT, Conversions •Strategic moat fortified with 15 Gen AI patent filings •8 patents recently granted •CTV & E commerce to…
📊 Affle India CMP : 1277 Up by 20%
Overall Market is slow but some particular stocks and sectors are moving very fast. Keep a note.
Overall Market is slow but some particular stocks and sectors are moving very fast. Keep a note.