ABB Power Product CMP 1772
APPSIL provides product, system, software and service solutions across the entire power value chain. The company’s portfolio includes an extensive range of high-voltage products, transformers, grid automation products, and power quality products and systems.
Financial
- ROE and ROCE is around 14% and 19% respectively (Decent)
- P/BV: 8.1x, Face Value: INR 2, Mcap: INR 7.5K Crs
- Forward PE - 50 which is average as per industry benchmark.
- Q1FY21 topline was around INR 1,016 Crs Vs. 811 Crs in Q1FY20 Vs. 1,044 Crs in Q4FY20 therefore up by 25.2% and declined by 2.6% in QoQ.
- FY20 topline was around INR 3,420 Cr Vs. 3,236 Cr in FY19 (Dec ended FY20 Vs. FY19) therefore up by 5.9% in YoY despite Q2FY20 was washed out.
- Q1FY21 bottomline was around INR 39 Cr Vs. 29 Cr in Q1FY20 Vs. 55 Cr in Q4FY20 therefore up by 34.4% in YoY and declined by 29% in QoQ.
- FY20 bottomline was around INR 100 Cr Vs. 165 Cr in FY19 therefore declined by 39.3% in YoY.
- Company is virtually debt free and reduced the signficiantly debt from 348 Cr to 39 Cr now almost 300 Crs paid off.
- Small equity capital is INR 8 Cr which promoters hold around 75% which is very strong and stable, FIIs hold around 4.9%, LIC hold around 4.5% and other DIIs hold around 1.6% in the company.
Opportunities
- Strong order book as of Dec 2020 which was around INR 3,217 Cr and Q1FY21 received new orders worth of INR 849 Cr.
- Operating EBITDA in Q4FY21 was around INR 75.9 Cr Vs. 65.9 Cr in Q4FY20 up by 34% in YoY.
- APPSIL has a strong market position in the power grids equipment and automation solutions segment. The company has an established track record in this space and has also executed various large scale projects in India over the years (as part of ABB India Ltd). Furthermore, APPSIL’s clientele include reputed players across utilities, industries, and transportation and infrastructure sectors, such as Power Grid Corporation of India Ltd, JSW energy etc.
- Renewables (Solar + Wind) 1 GW of cumulative solar orders catered for in Q1-21 with major order from JSW
- Highly diversifed revenue strategy Railways and metro, AI tech in Data Centres 5G Tech. Offering technology for future energy system.
- Electric Mobility: Large scale EV charging.
- Debt free company with strong operating cash flow as of Dec 2020.
- Strong Promoter Hitachi ABB power and hold with 75% stake in the company. APPSIL commenced using Hitachi brand identity for all business purposes and for external communication. Furthermore, the company has access to all of Hitachi’s group-level resources.
Concern/Risk
- Due to govt orders realization is very weak and its around more than 5 months.
- After govt order restriction on use of Oxygen for industrial purpose. Q2FY21 can be more challenging.
- Profitability is susceptible to downturn in demand and structural issues and volatility in the power sector. Operating profit margin is also single digit and around 8% due to intense competition and bidding based govt projects.
View: Share price high 1860 and now 1770. Share is in bullish zone and next short term target can be 1850/1900 with SL 1650. Any correction will be good opportunity to add for mid to long term.
APPSIL provides product, system, software and service solutions across the entire power value chain. The company’s portfolio includes an extensive range of high-voltage products, transformers, grid automation products, and power quality products and systems.
Financial
- ROE and ROCE is around 14% and 19% respectively (Decent)
- P/BV: 8.1x, Face Value: INR 2, Mcap: INR 7.5K Crs
- Forward PE - 50 which is average as per industry benchmark.
- Q1FY21 topline was around INR 1,016 Crs Vs. 811 Crs in Q1FY20 Vs. 1,044 Crs in Q4FY20 therefore up by 25.2% and declined by 2.6% in QoQ.
- FY20 topline was around INR 3,420 Cr Vs. 3,236 Cr in FY19 (Dec ended FY20 Vs. FY19) therefore up by 5.9% in YoY despite Q2FY20 was washed out.
- Q1FY21 bottomline was around INR 39 Cr Vs. 29 Cr in Q1FY20 Vs. 55 Cr in Q4FY20 therefore up by 34.4% in YoY and declined by 29% in QoQ.
- FY20 bottomline was around INR 100 Cr Vs. 165 Cr in FY19 therefore declined by 39.3% in YoY.
- Company is virtually debt free and reduced the signficiantly debt from 348 Cr to 39 Cr now almost 300 Crs paid off.
- Small equity capital is INR 8 Cr which promoters hold around 75% which is very strong and stable, FIIs hold around 4.9%, LIC hold around 4.5% and other DIIs hold around 1.6% in the company.
Opportunities
- Strong order book as of Dec 2020 which was around INR 3,217 Cr and Q1FY21 received new orders worth of INR 849 Cr.
- Operating EBITDA in Q4FY21 was around INR 75.9 Cr Vs. 65.9 Cr in Q4FY20 up by 34% in YoY.
- APPSIL has a strong market position in the power grids equipment and automation solutions segment. The company has an established track record in this space and has also executed various large scale projects in India over the years (as part of ABB India Ltd). Furthermore, APPSIL’s clientele include reputed players across utilities, industries, and transportation and infrastructure sectors, such as Power Grid Corporation of India Ltd, JSW energy etc.
- Renewables (Solar + Wind) 1 GW of cumulative solar orders catered for in Q1-21 with major order from JSW
- Highly diversifed revenue strategy Railways and metro, AI tech in Data Centres 5G Tech. Offering technology for future energy system.
- Electric Mobility: Large scale EV charging.
- Debt free company with strong operating cash flow as of Dec 2020.
- Strong Promoter Hitachi ABB power and hold with 75% stake in the company. APPSIL commenced using Hitachi brand identity for all business purposes and for external communication. Furthermore, the company has access to all of Hitachi’s group-level resources.
Concern/Risk
- Due to govt orders realization is very weak and its around more than 5 months.
- After govt order restriction on use of Oxygen for industrial purpose. Q2FY21 can be more challenging.
- Profitability is susceptible to downturn in demand and structural issues and volatility in the power sector. Operating profit margin is also single digit and around 8% due to intense competition and bidding based govt projects.
View: Share price high 1860 and now 1770. Share is in bullish zone and next short term target can be 1850/1900 with SL 1650. Any correction will be good opportunity to add for mid to long term.
*Outlook and valuation*: The bank has sharpened organizational structure on separate operational team for Assets and liabilities. The bank has clearly defined product and distribution structure, segregation of underwriting and business function. After joining as new MD & CEO Mr. Murali Ramakrishnan, The bank has strengthened its team of product experts to head each business and support verticals on large scale. The bank is trying to build competency through change in anchor’s DNA. On strong focus on retail asset, the bank revamp its existing retail products suits of HL, LAP, PL, Credit Card with better delivery, pricing and quality. Multiple retail products like LAS, SBL, IPO Funding, Dealer Funding, Tractor funding etc. to be launched in phases. The bank will continue the strategy of building low cost CASA book, focus on increasing gold loans, improve NRI share of deposits, improving cost efficiencies and improve asset quality by focusing on building granular advances book through personal, agri and business segments. On profitability side, the bank’s target to deliver RoA and RoE of 1.0%+ and 13%+ respectively by 2024. At CMP of 11, bank trades at 0.4x FY21 BV 28 and at 0.7x FY21 ABV of 15.
*South Indian Bank Q4FY21 Result and Concall Highlight*
*The bank is on course of its 6C strategy of profitability through quality credit growth.*
• The bank successfully raised amount of ₹2.4bn of equity capital in Q4FY21, out of total target amount of ₹7.5bn. CRAR improved to 15.4% in FY21 from 13.4% in FY20.
• On the competency building through quality employee strength, the bank is now equipped with mix of internal and external talent as business heads. The experienced domain experts of key products like Credit, Operations, HL, PL, treasury and BIU has been on boarded from industry. Training programs is being developed across employee level.
• Customer focus approach is one the key strategy of the bank. The bank will have dedicated asset class product desk at branch level. On technology side, AI-enabled chatboats, Video KYC for account opening and Digital underwriting will improve customer experiences.
• The bank will also work to improve Cost to Income like centralized payment system, Set up non-financial subsidiary for outsourcing, ATM rationalization initiative etc.
• To avoid fraudulent activities, compliance culture has been reinforcing in all communication with employees.
*Advances & Deposits*
• Gross loan book stood at ₹594.2bn, in which Corporate, Personal, Business and Agriculture loan were at 25%, 25%, 33% and 17% respectively as on 31st March 21.
• Net advance stood at ₹581bn down by 10%yoy and 6%qoq.
• Gold loan book growth continued its robust trend and stood at ₹90bn against ₹78bn as on Q4FY20. LTV was at 77%. Separate Vertical Head for Gold business driven through distribution structure. Few fintech collaboration is likely to finalize to fuel the growth of this segment.
• The total deposits stood at ₹827bn as on 31st march 21. CASA improved to 29.7% as on 31st March 21 against 25% in FY20.
*Asset Quality*
• As on 31st March 2021, the GNPA and NNPA was at 6.97% and 4.71% respectively against the proforma GNPA and NNPA of 7.27% and 4.21% at the end of Q3FY21.
• Total slippages were at ₹21.2bn during the quarter, which is within the banks guidance of within 25bn during FY21.
• Onetime restructuring due to COVID-19 was ₹3.5bn, in which Business Loan, Corporate and Personal was ₹2.56bn, ₹0.8bn and ₹0.2bn respectively. Better than expected experience in terms of OTR request, as the bank was expected ~₹6bn of restructuring under Resolution framework 2.0.
• Total Std Rest Advances stood at ₹12.8bn as on Q4FY21.
• The Outstanding SR stood at ₹11.2bn against which amount of ₹6.3 has been provisioned. Amount of ₹1.8bn of SR has been redeemed during the quarter.
• Provision coverage ratio (excl Write off) was at 34%. The bank has target to improve the ratio to 38% by end of FY22.
• Collection efficiency stood at 91% in month of March 21. In month of Jan 21 and Feb 21 were at 98% and 95% respectively.
*Capital Adequacy*
• CRAR at the end of Q4FY21 stood at 15.42% with Tier-1 ratio 12.79% Out of which CET-1 ratio was at 11.73% against 14.47%/ 11.55%/ 10.54% respectively as on 31st December 21.
• RWA was at ₹472bn against ₹496bn as on 31st Dec 21. The bank has raised ₹2.4bn in March 21 through Marquee Investors and the balance amount ₹5.1bn of equity capital will be raised by March 22.
*Profit & Loss*
• The bank has reported profit of ₹70mn against loss of ₹0.9bn during Q3FY21 and ₹1.44bn during Q4FY20.
• NII was at ₹5.6bn for the quarter.
• NIM was at 2.61% for the quarter. NIM for FY21 was at 2.71%.
• During the quarter Yield on Advances and Cost of Deposits were at 8.76% and 5.22% respectively.
• Non-Interest Income was at ₹3.9bn during the quarter. Cash recovery of amount ~₹1bn from 1 large account during the quarter.
• Cost to Income was 55% for FY21.
• The bank has total 884 branches as on 31st match 21 against 877 as on 31st December Q3FY21. On the ATM rationalization initiative to cut down cost, the bank has reduced to 1315 ATMs from 1443 ATMs at the end of Q3FY21.
*The bank is on course of its 6C strategy of profitability through quality credit growth.*
• The bank successfully raised amount of ₹2.4bn of equity capital in Q4FY21, out of total target amount of ₹7.5bn. CRAR improved to 15.4% in FY21 from 13.4% in FY20.
• On the competency building through quality employee strength, the bank is now equipped with mix of internal and external talent as business heads. The experienced domain experts of key products like Credit, Operations, HL, PL, treasury and BIU has been on boarded from industry. Training programs is being developed across employee level.
• Customer focus approach is one the key strategy of the bank. The bank will have dedicated asset class product desk at branch level. On technology side, AI-enabled chatboats, Video KYC for account opening and Digital underwriting will improve customer experiences.
• The bank will also work to improve Cost to Income like centralized payment system, Set up non-financial subsidiary for outsourcing, ATM rationalization initiative etc.
• To avoid fraudulent activities, compliance culture has been reinforcing in all communication with employees.
*Advances & Deposits*
• Gross loan book stood at ₹594.2bn, in which Corporate, Personal, Business and Agriculture loan were at 25%, 25%, 33% and 17% respectively as on 31st March 21.
• Net advance stood at ₹581bn down by 10%yoy and 6%qoq.
• Gold loan book growth continued its robust trend and stood at ₹90bn against ₹78bn as on Q4FY20. LTV was at 77%. Separate Vertical Head for Gold business driven through distribution structure. Few fintech collaboration is likely to finalize to fuel the growth of this segment.
• The total deposits stood at ₹827bn as on 31st march 21. CASA improved to 29.7% as on 31st March 21 against 25% in FY20.
*Asset Quality*
• As on 31st March 2021, the GNPA and NNPA was at 6.97% and 4.71% respectively against the proforma GNPA and NNPA of 7.27% and 4.21% at the end of Q3FY21.
• Total slippages were at ₹21.2bn during the quarter, which is within the banks guidance of within 25bn during FY21.
• Onetime restructuring due to COVID-19 was ₹3.5bn, in which Business Loan, Corporate and Personal was ₹2.56bn, ₹0.8bn and ₹0.2bn respectively. Better than expected experience in terms of OTR request, as the bank was expected ~₹6bn of restructuring under Resolution framework 2.0.
• Total Std Rest Advances stood at ₹12.8bn as on Q4FY21.
• The Outstanding SR stood at ₹11.2bn against which amount of ₹6.3 has been provisioned. Amount of ₹1.8bn of SR has been redeemed during the quarter.
• Provision coverage ratio (excl Write off) was at 34%. The bank has target to improve the ratio to 38% by end of FY22.
• Collection efficiency stood at 91% in month of March 21. In month of Jan 21 and Feb 21 were at 98% and 95% respectively.
*Capital Adequacy*
• CRAR at the end of Q4FY21 stood at 15.42% with Tier-1 ratio 12.79% Out of which CET-1 ratio was at 11.73% against 14.47%/ 11.55%/ 10.54% respectively as on 31st December 21.
• RWA was at ₹472bn against ₹496bn as on 31st Dec 21. The bank has raised ₹2.4bn in March 21 through Marquee Investors and the balance amount ₹5.1bn of equity capital will be raised by March 22.
*Profit & Loss*
• The bank has reported profit of ₹70mn against loss of ₹0.9bn during Q3FY21 and ₹1.44bn during Q4FY20.
• NII was at ₹5.6bn for the quarter.
• NIM was at 2.61% for the quarter. NIM for FY21 was at 2.71%.
• During the quarter Yield on Advances and Cost of Deposits were at 8.76% and 5.22% respectively.
• Non-Interest Income was at ₹3.9bn during the quarter. Cash recovery of amount ~₹1bn from 1 large account during the quarter.
• Cost to Income was 55% for FY21.
• The bank has total 884 branches as on 31st match 21 against 877 as on 31st December Q3FY21. On the ATM rationalization initiative to cut down cost, the bank has reduced to 1315 ATMs from 1443 ATMs at the end of Q3FY21.
Events and Special Situations Weekly
- Rights Issue: Reliance Industries Partly Paid shares (RILPP IN)
- Bonus Debentures: Britannia (BRIT IN)
- Open Offer: Mphasis (MPHL IN)
- Buyback: Infosys (INFO IN)
- Merger: Tata Steel BSL (TATASTL) and TATA (TATA)
- Merger: United Spirits (UNSP IN) & Pioneer Distilleries (PND IN)
- Demerger: Motherson Sumi Systems (MSS IN)
- Delisting: Adani Power (ADANI IN)
- Delisting: Allcargo Logistics (AGLL IN)
- Rights Issue: Reliance Industries Partly Paid shares (RILPP IN)
- Bonus Debentures: Britannia (BRIT IN)
- Open Offer: Mphasis (MPHL IN)
- Buyback: Infosys (INFO IN)
- Merger: Tata Steel BSL (TATASTL) and TATA (TATA)
- Merger: United Spirits (UNSP IN) & Pioneer Distilleries (PND IN)
- Demerger: Motherson Sumi Systems (MSS IN)
- Delisting: Adani Power (ADANI IN)
- Delisting: Allcargo Logistics (AGLL IN)
💥 Upcoming Results💥
📌 Results Monday :
ADF Foods, Balaji Amines, Grasim, IG Petro, JK Paper, Mahanagar Gas, Ramco Cement, Lakshmi Machine
📌 Results Tuesday :
Alkem Labs, Astrazenaca, CAMS, Emami, GATI, Indico Remedies, Thurmax, LUX Industries,
📌 Results Wednesday :
Astra Microwave, BPCL, Bergar Paints, Cummins India, FDC, Gabriel India, Hindustan Foods, JKumar India, Karnatak Bank, LT Foods, Manappuram Finance, V-guard and Pfizer
📌 Results Thursday :
Balrampur Chini, Dixon Tech, Cadila, Eicher Motor, GSFC, Metroplis Healthcare, Jindal Saw, IFB Infra, HEG, Gujarat Pipavav, Sun Pharma, SH Kelker, Redington, RCF, Page Industries, Phoenix Mills, Wockhardt, TTK Healthcare,
📌 Results Friday :
City Union Bank, Delta, On Mobile, NCC, Max Healtcare, M&M, ITDC Cementation, Indian Bank, IPCA Labs, Hinduja Global, Glenmrak and GMM Pfaudler
📌 Results Saturday :
Bank of Baroda, Divi’s Labs, Kaveri Seed and Unichem Labs
📌 Results Monday :
ADF Foods, Balaji Amines, Grasim, IG Petro, JK Paper, Mahanagar Gas, Ramco Cement, Lakshmi Machine
📌 Results Tuesday :
Alkem Labs, Astrazenaca, CAMS, Emami, GATI, Indico Remedies, Thurmax, LUX Industries,
📌 Results Wednesday :
Astra Microwave, BPCL, Bergar Paints, Cummins India, FDC, Gabriel India, Hindustan Foods, JKumar India, Karnatak Bank, LT Foods, Manappuram Finance, V-guard and Pfizer
📌 Results Thursday :
Balrampur Chini, Dixon Tech, Cadila, Eicher Motor, GSFC, Metroplis Healthcare, Jindal Saw, IFB Infra, HEG, Gujarat Pipavav, Sun Pharma, SH Kelker, Redington, RCF, Page Industries, Phoenix Mills, Wockhardt, TTK Healthcare,
📌 Results Friday :
City Union Bank, Delta, On Mobile, NCC, Max Healtcare, M&M, ITDC Cementation, Indian Bank, IPCA Labs, Hinduja Global, Glenmrak and GMM Pfaudler
📌 Results Saturday :
Bank of Baroda, Divi’s Labs, Kaveri Seed and Unichem Labs
*STOCKS TO WATCH:* SHREE CEMENT, GUJARAT AMBUJA EXPORTS, UNITED SPIRITS, HERO MOTO, CCL PRODUCTS, AMBER ENTERPRISE, ELGI EQUIPMENTS, DR. LAL PATH, AARTI SURFACTANTS, BIRLA SOFT, JSW STEEL, GODREJ INDUSTRIES
*Shree Cement:* Q4 Cons Net Profit 7.98b Rupees Vs 5.36b (YoY); Est 6.7b | 6.31b (QoQ) || Q4 Revenue 42.05b Rupees Vs 34.15b (YoY) || Recommended Final Dividend At 60 Rupees Per Share
*Aarti Surfactants:* Q4 Cons Net Profit 56.9m Rupees Vs 33.3m (YoY) | 47.9m (QoQ) || Q4 Revenue 1.26b Rupees Vs 891.3m (YoY)
*Godrej Industries:* Q4 Cons Net Loss 158.1m Rupees Vs Profit 265.5m (YoY) | Profit 1.32b (QoQ) || Q4 Revenue 26.11b Rupees Vs 31.21b (YoY
*Aarti Surfactants:* Q4 Cons Net Profit 56.9m Rupees Vs 33.3m (YoY) | 47.9m (QoQ) || Q4 Revenue 1.26b Rupees Vs 891.3m (YoY)
*Godrej Industries:* Q4 Cons Net Loss 158.1m Rupees Vs Profit 265.5m (YoY) | Profit 1.32b (QoQ) || Q4 Revenue 26.11b Rupees Vs 31.21b (YoY
*JP Morgan on India 🇮🇳*
Cuts FY22 GDP est to 9% from 11% and raises FY23 EPS to 6.8% from 5.8%.
Cuts FY22 GDP est to 9% from 11% and raises FY23 EPS to 6.8% from 5.8%.
*Brokerages on JSW Steel *
MS
Overweight
Target Raised to Rs 920
--
Kotak Inst.
Downgrade to Reduce
Target Rs 640
--
Investec
Buy Call
Target Rs 854
MS
Overweight
Target Raised to Rs 920
--
Kotak Inst.
Downgrade to Reduce
Target Rs 640
--
Investec
Buy Call
Target Rs 854
*Global-Market Insight*
-US & Asia market futures indicating a positive opening
trade
-Currencies stable and the US VIX has come down
-Crypto tumbled again, Bitcoin down up to 18% during the trade
-Gold marching towards $1900
-Crude oil recovered losses
-US & Asia market futures indicating a positive opening
trade
-Currencies stable and the US VIX has come down
-Crypto tumbled again, Bitcoin down up to 18% during the trade
-Gold marching towards $1900
-Crude oil recovered losses
*Stocks under F&O ban on NSE*
Five stocks - BHEL, Jindal Steel & Power, NALCO, Punjab National Bank, and SAIL - are under the F&O ban for May 24. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
Five stocks - BHEL, Jindal Steel & Power, NALCO, Punjab National Bank, and SAIL - are under the F&O ban for May 24. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
*Results on May 24*
Grasim Industries, India Cements, JK Paper, Mahanagar Gas, ADF Foods, Balaji Amines, Barbeque-Nation Hospitality, Choksi Imaging, Dalmia Bharat Sugar and Industries, FGP, 3P Land Holdings, ADC India Communications, Hindustan Fluorocarbons, IG Petrochemicals, India Cements Capital, Jonjua Overseas, JSW Holdings, Kanpur Plastipack, Karda Constructions, Lakshmi Machine Works, Loyal Textile Mills, Nutricircle, Pharmaids Pharmaceuticals, Poly Medicure, Ramco Cements, Ramco Industries, Shanthi Gears, Shree Pushkar Chemicals & Fertilisers, Sparc Systems, Summit Securities, Tiaan Consumer, Tirupati Tyres, UTL Industries, and Wall Street Finance will release quarterly earnings scorecard on May 24.
Grasim Industries, India Cements, JK Paper, Mahanagar Gas, ADF Foods, Balaji Amines, Barbeque-Nation Hospitality, Choksi Imaging, Dalmia Bharat Sugar and Industries, FGP, 3P Land Holdings, ADC India Communications, Hindustan Fluorocarbons, IG Petrochemicals, India Cements Capital, Jonjua Overseas, JSW Holdings, Kanpur Plastipack, Karda Constructions, Lakshmi Machine Works, Loyal Textile Mills, Nutricircle, Pharmaids Pharmaceuticals, Poly Medicure, Ramco Cements, Ramco Industries, Shanthi Gears, Shree Pushkar Chemicals & Fertilisers, Sparc Systems, Summit Securities, Tiaan Consumer, Tirupati Tyres, UTL Industries, and Wall Street Finance will release quarterly earnings scorecard on May 24.
*These 10 Principles Will Help You Beat the Market*
*By Vijay Kedia who turned Rs 10 lakh to 650 crore in 20 years* of investments at componding rate of 55% pa.He explained the same in this video https://www.youtube.com/watch?v=b53nE7tN0zE
In his talk he said 10 points that have helped him to avoid defeat in the market.
*1. Create a fixed income outside the market for your livelihood*: Never be dependent on the income from the stock market because it is volatile. He is applying margin of safety logic even before entering the market.
*2. Be informed and read a lot*: The market rewards you as per your perception. If you think investing is a gamble, then it is a gamble. If you think it is a business, then it is a business. Read a lot and be a maniac when it comes to reading; it will help you connect the dots. Warren Buffett once held up stacks of paper and said he read "500 pages like this every day. That's how knowledge builds up, like compound interest."
*3. Invest a part of your savings, not the earnings, into stocks*: So if you have decided to invest 25% of your savings in stocks, invest 12% to 15% as it is a risky business. Also you should only invest a certain amount based on your risk-taking capacity.
*4. Don't trade and don't leverage*: Trading is a 24-hour business. Don't invest from borrowed money.Don't trade just because you see someone making money by trading.
*5. Invest only for five to 10 years; minimum time frame is five years*: rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multibagger returns.
*6. Invest only with the best management and let it worry ok about the company*: If you invest with the best management, you don't have to worry. Management is playing golf, and we investors are worrying 24 hours about what will happen to the company, looking at the dollar, macro, etc. What is the use of being an investor? Let management worry because management has its prestige and its name at stake.
Good management in bad business is better than bad management in good business. Example: Indigo Airlines.
*7. Your investment belongs to the market and the profits belong to you*: As long as you are invested, the profits belong to the market. Don't spend just because the stock has risen because tomorrow stock prices can collapse.
*8. Book profits periodically*: Invest profits in buying a house which is very important.
*9. Keep a balanced mind*: Don't be happy in an up market, and don't be sad in a down market. Be physically, financially and mentally sound.He explains how one should avoid regret. He says a stock can go up after you sell it. Don't regret. The stock market is a place of regret. You make money, you regret. You lose money, you regret. You make less money, you regret. That is why it is very important to keep a balanced mind.
*10. Luck plays a crucial role. Do good karma*: Be a good human being. The stock market is a mind game. If you are doing good karma, it will come back to you. the best
*By Vijay Kedia who turned Rs 10 lakh to 650 crore in 20 years* of investments at componding rate of 55% pa.He explained the same in this video https://www.youtube.com/watch?v=b53nE7tN0zE
In his talk he said 10 points that have helped him to avoid defeat in the market.
*1. Create a fixed income outside the market for your livelihood*: Never be dependent on the income from the stock market because it is volatile. He is applying margin of safety logic even before entering the market.
*2. Be informed and read a lot*: The market rewards you as per your perception. If you think investing is a gamble, then it is a gamble. If you think it is a business, then it is a business. Read a lot and be a maniac when it comes to reading; it will help you connect the dots. Warren Buffett once held up stacks of paper and said he read "500 pages like this every day. That's how knowledge builds up, like compound interest."
*3. Invest a part of your savings, not the earnings, into stocks*: So if you have decided to invest 25% of your savings in stocks, invest 12% to 15% as it is a risky business. Also you should only invest a certain amount based on your risk-taking capacity.
*4. Don't trade and don't leverage*: Trading is a 24-hour business. Don't invest from borrowed money.Don't trade just because you see someone making money by trading.
*5. Invest only for five to 10 years; minimum time frame is five years*: rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multibagger returns.
*6. Invest only with the best management and let it worry ok about the company*: If you invest with the best management, you don't have to worry. Management is playing golf, and we investors are worrying 24 hours about what will happen to the company, looking at the dollar, macro, etc. What is the use of being an investor? Let management worry because management has its prestige and its name at stake.
Good management in bad business is better than bad management in good business. Example: Indigo Airlines.
*7. Your investment belongs to the market and the profits belong to you*: As long as you are invested, the profits belong to the market. Don't spend just because the stock has risen because tomorrow stock prices can collapse.
*8. Book profits periodically*: Invest profits in buying a house which is very important.
*9. Keep a balanced mind*: Don't be happy in an up market, and don't be sad in a down market. Be physically, financially and mentally sound.He explains how one should avoid regret. He says a stock can go up after you sell it. Don't regret. The stock market is a place of regret. You make money, you regret. You lose money, you regret. You make less money, you regret. That is why it is very important to keep a balanced mind.
*10. Luck plays a crucial role. Do good karma*: Be a good human being. The stock market is a mind game. If you are doing good karma, it will come back to you. the best
YouTube
IIMB PGPEM VijayKedia 2016
Mr Vijay Kedia addressed students at IIMB on 20th Feb 2016, as part of the PGPEM day.
*The Week Ahead: All bullish eyes on Nifty’s all-time-high at 15432 mark.*
The benchmarks are likely to carry the positive baton from last week’s trade. We expect, the benchmark Nifty to scale above its all-time-high at 15432 mark and Sensex likely to aim a close above 52517 mark.
The street also likely to take in its stride the grim backdrop of second wave of COVID-19 pandemic. At the time of writing, India has recorded a dip in daily cases and logged 3,741 deaths in 24 hours, according to health ministry's updated data on Sunday. Total cases have jumped to 2,65,30,132. Total recoveries now stand at 2,34,25,467. Tap here for all live updates on coronavirus from India and around the world.
*Also, commanding investors’ attention will be the Q4 earnings for FY20-21:*
• Monday, 24th May 2021: RAMCOIND, RAMCOCEM, MGL, INDIACEM, GRASIM.
• Wednesday, 26th May 2021:BERGEPAINTS, VGUARD, PFIZER, KTKBANK, CUMMINSIND, FDC, ARVIND, BPCL,
• Thursday, 27th May 2021: SUNPHARMA, STAR, UCOBANK, PAGEIND, IRBINFRA, CADILA, EICHER, AMRUTANJAN, BALRAMCHIN.
• Friday, 28th May 2021: UJJIVAN, SUMICHEM, RELINFRA, REC, NCC, M&M, IPCALABS, GLENMARK, CENTRALBANK, .
• Saturday, 29th May 2021: BANK OF BARODA, DIVISLABS.
The Centre on May 23 has said that it is open to an amicable solution to the Cairn dispute. It also stated that the CEO and the representatives of Cairn Energy have approached the government for discussions to resolve the matter.
Technically speaking, another round of great fireworks display quite likely. Positivity should greet Dalal Street in this week’s trade as well with all bullish eyes on Nifty’s all-time-highs at 15432 mark. Nifty’s make-or-break supports are placed at 14927 mark. As long as Nifty’s 14786 support holds, the benchmark will aim its all-time-high at 15432 mark and then all bullish bets at magical 16000 mark.
If Nifty slips below the 14786 mark then its safe to assume that rising covid-19 cases are spoiling the party at Dalal Street.
Please note, Nifty’s 200DMA at 13333 mark. The price action for Nifty for this week’s trade is suggesting that we are likely to see a 14,901- 15551 range in near term with buy on dips as the preferred strategy.
The options data for May Series suggests Nifty is likely to be in a broader trading range of 14700-15500 as maximum Call OI is at 15000 followed by 15300 strike price. Maximum Put open interest stands at 15000 levels followed by 14500 levels. Call writing was seen at 15700 and then at 15500 strike price, while there was meaningful Put writing at 15000 and then at 15100 strike prices.
Also signaling optimism for our stock markets is the fact that the volatility index has slipped below 20 the mark. India VIX, which measures market's expectation of volatility, fell to 19.08, the lowest level seen during the calendar year, from 20.26 levels on a week-on-week basis, indicating positive bias in the market.
*Preferred trade for the week:*
*Nifty (15175):* Buy at CMP, targeting 15432 mark and then at 15751 mark. Strict stop at 14691.
Amongst momentum stocks looking bright on any corrective declines are: VEDANTA, ICICI BANK, SBI, PNB, BOB, ITC, COLPAL, LARSEN, VOLTAS, BOSCH, COROMOMANDAL INTERNATIONAL, CHAMBAL FERTILISER, UPL, SIEMENS, HINDALCO, SUN PHARMA, AMRUTANJAN, CDSL, TATA ELXSI, ALKEM LAB and CIPLA.
Meanwhile, we are negative on stocks like: CUMMINS, PAGE INDUSTRIES, PVR, BANDHAN BANK.
*Before we end, our most preferred pair strategies:*
• Pair Strategy: Long BALKRISHNA INDUSTRIES and Short APOLLO TYRES.
• Pair Strategy: Long VEDANTA and Short COAL INDIA.
• Pair Strategy: Long AXIS BANK and Short BANDHAN BANK.
• Pair Strategy: Long HCL TECH and Short LTI.
*Disclaimer:* Investment/Trading in equities is subject to market risks. Notwithstanding all the efforts to do best research, clients should understand that investing in equities, involves a risk of loss of both.
The benchmarks are likely to carry the positive baton from last week’s trade. We expect, the benchmark Nifty to scale above its all-time-high at 15432 mark and Sensex likely to aim a close above 52517 mark.
The street also likely to take in its stride the grim backdrop of second wave of COVID-19 pandemic. At the time of writing, India has recorded a dip in daily cases and logged 3,741 deaths in 24 hours, according to health ministry's updated data on Sunday. Total cases have jumped to 2,65,30,132. Total recoveries now stand at 2,34,25,467. Tap here for all live updates on coronavirus from India and around the world.
*Also, commanding investors’ attention will be the Q4 earnings for FY20-21:*
• Monday, 24th May 2021: RAMCOIND, RAMCOCEM, MGL, INDIACEM, GRASIM.
• Wednesday, 26th May 2021:BERGEPAINTS, VGUARD, PFIZER, KTKBANK, CUMMINSIND, FDC, ARVIND, BPCL,
• Thursday, 27th May 2021: SUNPHARMA, STAR, UCOBANK, PAGEIND, IRBINFRA, CADILA, EICHER, AMRUTANJAN, BALRAMCHIN.
• Friday, 28th May 2021: UJJIVAN, SUMICHEM, RELINFRA, REC, NCC, M&M, IPCALABS, GLENMARK, CENTRALBANK, .
• Saturday, 29th May 2021: BANK OF BARODA, DIVISLABS.
The Centre on May 23 has said that it is open to an amicable solution to the Cairn dispute. It also stated that the CEO and the representatives of Cairn Energy have approached the government for discussions to resolve the matter.
Technically speaking, another round of great fireworks display quite likely. Positivity should greet Dalal Street in this week’s trade as well with all bullish eyes on Nifty’s all-time-highs at 15432 mark. Nifty’s make-or-break supports are placed at 14927 mark. As long as Nifty’s 14786 support holds, the benchmark will aim its all-time-high at 15432 mark and then all bullish bets at magical 16000 mark.
If Nifty slips below the 14786 mark then its safe to assume that rising covid-19 cases are spoiling the party at Dalal Street.
Please note, Nifty’s 200DMA at 13333 mark. The price action for Nifty for this week’s trade is suggesting that we are likely to see a 14,901- 15551 range in near term with buy on dips as the preferred strategy.
The options data for May Series suggests Nifty is likely to be in a broader trading range of 14700-15500 as maximum Call OI is at 15000 followed by 15300 strike price. Maximum Put open interest stands at 15000 levels followed by 14500 levels. Call writing was seen at 15700 and then at 15500 strike price, while there was meaningful Put writing at 15000 and then at 15100 strike prices.
Also signaling optimism for our stock markets is the fact that the volatility index has slipped below 20 the mark. India VIX, which measures market's expectation of volatility, fell to 19.08, the lowest level seen during the calendar year, from 20.26 levels on a week-on-week basis, indicating positive bias in the market.
*Preferred trade for the week:*
*Nifty (15175):* Buy at CMP, targeting 15432 mark and then at 15751 mark. Strict stop at 14691.
Amongst momentum stocks looking bright on any corrective declines are: VEDANTA, ICICI BANK, SBI, PNB, BOB, ITC, COLPAL, LARSEN, VOLTAS, BOSCH, COROMOMANDAL INTERNATIONAL, CHAMBAL FERTILISER, UPL, SIEMENS, HINDALCO, SUN PHARMA, AMRUTANJAN, CDSL, TATA ELXSI, ALKEM LAB and CIPLA.
Meanwhile, we are negative on stocks like: CUMMINS, PAGE INDUSTRIES, PVR, BANDHAN BANK.
*Before we end, our most preferred pair strategies:*
• Pair Strategy: Long BALKRISHNA INDUSTRIES and Short APOLLO TYRES.
• Pair Strategy: Long VEDANTA and Short COAL INDIA.
• Pair Strategy: Long AXIS BANK and Short BANDHAN BANK.
• Pair Strategy: Long HCL TECH and Short LTI.
*Disclaimer:* Investment/Trading in equities is subject to market risks. Notwithstanding all the efforts to do best research, clients should understand that investing in equities, involves a risk of loss of both.
Money Market Update
The rupee ended at 72.83 against the U.S. Dollar on Friday as compared to Thursday's closing of 73.11.
The rupee ended at 72.83 against the U.S. Dollar on Friday as compared to Thursday's closing of 73.11.