*Some interesting latest Data points*
- Debt has come down
- You would be surprised to know many companies have become debt free.
- Though PE multiple is historically highest but enterprise value to cash flow is 15.8 times which is historically average low in last 20 yrs (Avg has been generally 16)
- In 2008, enterprise value to cash flow was 25, so from here also there is a 60% value discount.
- Debt to equity ratio is just 0.16, we have never seen this India.
- Bonds yield GSEC is giving 6.2% and if you inverse the cash flow from enterprise value i.e. cash yield is 6.3%, rarely in India we have seen cash earnings yield higher than bond yield in last 20 years.
- In 2008 bond yields were 8% and cash yields were 4%, 50% discount still there.
- Many corporates are planning to double there capacity & that too without leveraging them.
_*- In 2003 to 2007 we had the best bull run but atleast in a year we have seen 15% correction every year or twice a year. So 15% to 20% correctiom is very much possible in any bull market run.*_
- It is not that market might not do well if the FED rises rates infact in interest rate rise cycle if you observe from bottom to top cycle market seems to do well as bond lose value in interest rate rise cycle so allocation increases towards equity and economy is also booming. Rising interest rates are good for market, it's when it touches the peak then it become little worry some.
- Debt has come down
- You would be surprised to know many companies have become debt free.
- Though PE multiple is historically highest but enterprise value to cash flow is 15.8 times which is historically average low in last 20 yrs (Avg has been generally 16)
- In 2008, enterprise value to cash flow was 25, so from here also there is a 60% value discount.
- Debt to equity ratio is just 0.16, we have never seen this India.
- Bonds yield GSEC is giving 6.2% and if you inverse the cash flow from enterprise value i.e. cash yield is 6.3%, rarely in India we have seen cash earnings yield higher than bond yield in last 20 years.
- In 2008 bond yields were 8% and cash yields were 4%, 50% discount still there.
- Many corporates are planning to double there capacity & that too without leveraging them.
_*- In 2003 to 2007 we had the best bull run but atleast in a year we have seen 15% correction every year or twice a year. So 15% to 20% correctiom is very much possible in any bull market run.*_
- It is not that market might not do well if the FED rises rates infact in interest rate rise cycle if you observe from bottom to top cycle market seems to do well as bond lose value in interest rate rise cycle so allocation increases towards equity and economy is also booming. Rising interest rates are good for market, it's when it touches the peak then it become little worry some.
Adani Enterprises’ Subsidiary Signs Share Subscription Agreement With Flemingo, MTRPL; Shares Advance
Shares of Adani Enterprises Ltd. rose nearly 3% to Rs 1,480 apiece after the company said that its wholly owned subsidiary Adani Airport Holdings Ltd. signed share subscription agreement with Flemingo Travel Retail Pvt (Flemingo) and Mumbai Travel Retail Pvt (MTRPL) for the purpose of strategic partnership to operate duty free outlets in airports and seaports.
In an exchange filing, Adani Enterprises said that the strategic partnership would allow the company to operate duty free outlets in airports and seaports by Flemingo and Adani Airport Holdings Ltd.
On completion of the transaction, Adani Airport Holdings will subscribe to 28,49,000 equity shares of face value of Rs 10 each constituting 74% of share capital of MTRPL for an aggregate investment of Rs 28.49 crore.
Shares of Adani Enterprises Ltd. rose nearly 3% to Rs 1,480 apiece after the company said that its wholly owned subsidiary Adani Airport Holdings Ltd. signed share subscription agreement with Flemingo Travel Retail Pvt (Flemingo) and Mumbai Travel Retail Pvt (MTRPL) for the purpose of strategic partnership to operate duty free outlets in airports and seaports.
In an exchange filing, Adani Enterprises said that the strategic partnership would allow the company to operate duty free outlets in airports and seaports by Flemingo and Adani Airport Holdings Ltd.
On completion of the transaction, Adani Airport Holdings will subscribe to 28,49,000 equity shares of face value of Rs 10 each constituting 74% of share capital of MTRPL for an aggregate investment of Rs 28.49 crore.
Good morning my dear readers,
Friday is named after the wife of Odin - 'Friaa'. She was associated with Venus, the Roman Goddess of Love and Beauty.
*No wonder why we all love this day so much. Wish you all a 'lovely' and 'beautiful' Friday :)
Today is Tech day.
*CarTrade update:
1- I recently attended a concall with the founder of India's largest car trading platform and he said something which stuck with me.
"It is impossible to make a loss in the used car business".
Basically, even you or I, if we started a used car trading business, we would likely make money.
2- The core thesis of CarTrade or most of the other Technology businesses is that they will capture market share from unorganised players.
*The used car market is absolutely perfect for this thesis to play out. Gone are the days of a 'broken' experience while selling or buying an used vehicle.
3- CarTrade has come down nicely from 1600 to 1380/share levels. Market cap has reduced to 6300 crore.
*But, yeh dil maange more. I would love to buy this around 5000cr mcap.
**Currently CarTrade is 0.16% of our portfolio in Negen PMS. It is too small to matter but this is a big watchlist stock for us. At the right price, this will do good for investors is my feeling.
4- I feel most of the top Tech players from the Car trading space will grow revenues at 20-25% CAGR for the next 10 years. The unorganised sector here has 'no chance' - please mark my words.
It will be structural growth without volatility and that's what I want across the Negen PMS portfolio.
Conclusion: Our strategy in Negen PMS for CarTrade is to start buying on further dips.
It is hard to control emotions and wait for dips but I'm glad we got this strategy bang on target with CarTrade.
-------------------------------------------------------------------------------------------------------------------
Universal Music 🎵:
1- The big boy of the Music space listed this week in Europe and it was beautiful.
+40% on day 1.
2- Bill Ackman had said - "Music Streaming is the best business I have ever seen".
*And I totally agree with him.
3- Not too long ago, everyone was busy copying music CDs and indulging in piracy. Music sales fell 60% in 2009-10.
*But with the rise of Spotify, Facebook, YouTube, Jio etc, everything changed on its head making Music Streaming the best business in the world according to me.
(Views can change too).
Conclusion: Sunny skies ahead for next 3-5 years as per all the music streaming platforms and labels. They cannot all be wrong.
*Not investing advice. Just for educational purposes.
-----------------------------------------------------------------------------------------------------------------
Before I go for the day, wanted to share that Negen PMS has been India's top ranked PMS for nearly half it's life as an investment manager.
Your blessings will take us a long way. We pledge to continue working relentlessly.
That's it for today my dear readers.
Next up, a very interesting special situation development. Watch this space.
My best,
Neil Bahal
Founder and CEO
Negen Capital PMS
Friday is named after the wife of Odin - 'Friaa'. She was associated with Venus, the Roman Goddess of Love and Beauty.
*No wonder why we all love this day so much. Wish you all a 'lovely' and 'beautiful' Friday :)
Today is Tech day.
*CarTrade update:
1- I recently attended a concall with the founder of India's largest car trading platform and he said something which stuck with me.
"It is impossible to make a loss in the used car business".
Basically, even you or I, if we started a used car trading business, we would likely make money.
2- The core thesis of CarTrade or most of the other Technology businesses is that they will capture market share from unorganised players.
*The used car market is absolutely perfect for this thesis to play out. Gone are the days of a 'broken' experience while selling or buying an used vehicle.
3- CarTrade has come down nicely from 1600 to 1380/share levels. Market cap has reduced to 6300 crore.
*But, yeh dil maange more. I would love to buy this around 5000cr mcap.
**Currently CarTrade is 0.16% of our portfolio in Negen PMS. It is too small to matter but this is a big watchlist stock for us. At the right price, this will do good for investors is my feeling.
4- I feel most of the top Tech players from the Car trading space will grow revenues at 20-25% CAGR for the next 10 years. The unorganised sector here has 'no chance' - please mark my words.
It will be structural growth without volatility and that's what I want across the Negen PMS portfolio.
Conclusion: Our strategy in Negen PMS for CarTrade is to start buying on further dips.
It is hard to control emotions and wait for dips but I'm glad we got this strategy bang on target with CarTrade.
-------------------------------------------------------------------------------------------------------------------
Universal Music 🎵:
1- The big boy of the Music space listed this week in Europe and it was beautiful.
+40% on day 1.
2- Bill Ackman had said - "Music Streaming is the best business I have ever seen".
*And I totally agree with him.
3- Not too long ago, everyone was busy copying music CDs and indulging in piracy. Music sales fell 60% in 2009-10.
*But with the rise of Spotify, Facebook, YouTube, Jio etc, everything changed on its head making Music Streaming the best business in the world according to me.
(Views can change too).
Conclusion: Sunny skies ahead for next 3-5 years as per all the music streaming platforms and labels. They cannot all be wrong.
*Not investing advice. Just for educational purposes.
-----------------------------------------------------------------------------------------------------------------
Before I go for the day, wanted to share that Negen PMS has been India's top ranked PMS for nearly half it's life as an investment manager.
Your blessings will take us a long way. We pledge to continue working relentlessly.
That's it for today my dear readers.
Next up, a very interesting special situation development. Watch this space.
My best,
Neil Bahal
Founder and CEO
Negen Capital PMS
Moneycontrol.com: Consumer court orders ITC Maurya to pay Rs 2 crore to a customer for a bad haircut.
https://www.moneycontrol.com/news/business/companies/consumer-court-orders-itc-maurya-to-pay-rs-2-crore-to-a-customer-for-a-bad-haircut-7500601.html
https://www.moneycontrol.com/news/business/companies/consumer-court-orders-itc-maurya-to-pay-rs-2-crore-to-a-customer-for-a-bad-haircut-7500601.html
Q4 Highlights (YoY) Revenue from consulting segment rose 29% to $7.3 billion. Outsourcing business revenue rose 19% to $6.1 billion. Earnings per share at $2.20 versus $1.99. Bookings rose 7.1% to $15 billion, against the $15.62-billion estimate. Free cash flow at $2.2 billion.
Other Highlights Increased quarterly cash dividend 10% to $0.97 per share. Approved $3 billion additional share buyback. The company expects to return at least $6.3 billion in cash to shareholders through dividends and share repurchase. Accenture expects revenue to range between $13.9 billion and $14.35 billion in the first quarter of FY22. For the full year, its projections for various metrics ar
Accenture Plc.'s revenue rose in the fourth quarter, aided by improved business across its various arms. The consulting and technology firm’s revenue increased 24% year-on-year to $13.42 billion in the quarter ended August, according to its filings. Analysts had pegged the metric at $13.41 billion. For the full fiscal, revenue rose 14% over the preceding year to $50.5 billion. Accenture follows the September-August fiscal
Global-Market Insights
-US Markets rally for 2nd day, turn higher for 2nd day
-US 10 year bond yield hits a 10-week high at 1.435%
-Japan index Nikkei-225 is up by 2%
-Brent crude oil at 7 weeks high @ 77.26
Global-Market Insights
-Dow +506, S&P +53, Nasdaq +155
-Investors digested the FOMC statement and were confident that the Evergrande debt crisis could be contained
-China asked authorities to be ready for Evergrande default
Global-Market Insights
-IT firm Accenture posted super results and a promising outlook
-Salesforce raised its full-year 2022 revenue guidance, the stock surged
-US Markets rally for 2nd day, turn higher for 2nd day
-US 10 year bond yield hits a 10-week high at 1.435%
-Japan index Nikkei-225 is up by 2%
-Brent crude oil at 7 weeks high @ 77.26
Global-Market Insights
-Dow +506, S&P +53, Nasdaq +155
-Investors digested the FOMC statement and were confident that the Evergrande debt crisis could be contained
-China asked authorities to be ready for Evergrande default
Global-Market Insights
-IT firm Accenture posted super results and a promising outlook
-Salesforce raised its full-year 2022 revenue guidance, the stock surged
South-based realty cos in sweet spot amid booming IT hiring, improving demand
https://economictimes.indiatimes.com/markets/stocks/news/south-based-realty-cos-in-sweet-spot-amid-booming-it-hiring-improving-demand/articleshow/86459838.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
https://economictimes.indiatimes.com/markets/stocks/news/south-based-realty-cos-in-sweet-spot-amid-booming-it-hiring-improving-demand/articleshow/86459838.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
The Economic Times
South-based realty cos in sweet spot amid booming IT hiring, improving demand
A strong trend in hiring by IT companies, better affordability relative to Mumbai and NCR property markets and the stamp duty cut by the Karnataka government are favorable factors for these companies.
Exclusive | RBI ex-Guv Subbarao says Fed taper won’t cause tantrums this time
https://economictimes.indiatimes.com/markets/stocks/news/exclusive-rbi-ex-guv-subbarao-says-fed-taper-wont-cause-tantrums-this-time/articleshow/86451708.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
https://economictimes.indiatimes.com/markets/stocks/news/exclusive-rbi-ex-guv-subbarao-says-fed-taper-wont-cause-tantrums-this-time/articleshow/86451708.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
The Economic Times
Exclusive | RBI ex-Guv Subbarao says Fed taper won’t cause tantrums this time
The Indian equity market shrugged off the Fed announcement and took the benchmark indices to newer heights on Thursday, as investors' risk appetite hit a new high.
Realty set for a multi-year bull run, go for direct plays: Dipan Mehta
https://economictimes.indiatimes.com/markets/expert-view/realty-set-for-a-multi-year-bull-run-go-for-direct-plays-dipan-mehta/articleshow/86449471.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
https://economictimes.indiatimes.com/markets/expert-view/realty-set-for-a-multi-year-bull-run-go-for-direct-plays-dipan-mehta/articleshow/86449471.cms
Download Economic Times App to stay updated with Business News -
https://etapp.onelink.me/tOvY/135dde21
The Economic Times
Realty set for a multi-year bull run, go for direct plays: Dipan Mehta
“ Do not play the real estate theme indirectly through appliances or home improvement or home décor companies. They have their own trajectory and they have their own challenges in terms of rising cost of inputs, supply disruption."
*Derivative Calculus @ 8am - September 24th, 2021*
*INDEX Derivatives*
*Previous FUT Closing to SPOT*
# NIFTY on 23.09.21 @ +19
# NIFTY on 22.08.21 @ +20
*OI PCR*
# NIFTY – 1.31
# BNF – 1.10
*Vol PCR*
# NIFTY – 1.03
# BNF – 0.91
*MAX CE OI*
# NIFTY - 18500, 18000
# BNF – 39000
*LONG Buildup*
# NIFTY – 17800-18500.
*MAX PE OI*
# NIFTY – 17000, 17500
# BNF - 37000
*SHORT Buildup*
#NIFTY – 17500-18000
*STOCK Derivatives*
Long Buildup:
#DLF # GRASIM # HDFCBANK # MCDOWELL.
Long Unwinding: # ZEEL # DRREDDY # MUTHOOTFIN
Short Buildup: # ICICIGI # BALKRISHIND # ASTRAL
Short Covering: # NATIONALUM # CADILAHC.
*In BAN* – # CANBK # ESCORTS # IBULHSGFIN # IDEA # IRCTC # PNB.
New in Ban – #CANBK
Out of Ban – #SUNTV.
*September, 23rd 2021 FII/DII*:
FII: +Rs. 357.93 crores
DII: +Rs. 1173.09 crores
*INDEX Derivatives*
*Previous FUT Closing to SPOT*
# NIFTY on 23.09.21 @ +19
# NIFTY on 22.08.21 @ +20
*OI PCR*
# NIFTY – 1.31
# BNF – 1.10
*Vol PCR*
# NIFTY – 1.03
# BNF – 0.91
*MAX CE OI*
# NIFTY - 18500, 18000
# BNF – 39000
*LONG Buildup*
# NIFTY – 17800-18500.
*MAX PE OI*
# NIFTY – 17000, 17500
# BNF - 37000
*SHORT Buildup*
#NIFTY – 17500-18000
*STOCK Derivatives*
Long Buildup:
#DLF # GRASIM # HDFCBANK # MCDOWELL.
Long Unwinding: # ZEEL # DRREDDY # MUTHOOTFIN
Short Buildup: # ICICIGI # BALKRISHIND # ASTRAL
Short Covering: # NATIONALUM # CADILAHC.
*In BAN* – # CANBK # ESCORTS # IBULHSGFIN # IDEA # IRCTC # PNB.
New in Ban – #CANBK
Out of Ban – #SUNTV.
*September, 23rd 2021 FII/DII*:
FII: +Rs. 357.93 crores
DII: +Rs. 1173.09 crores
#Brightcomgroup
🔥🔥🔥🔥🔥
This is biggest group of BCG investors being managed by able investors
Anyone wants to join BCG Investors Group they can join.
It's for long term investors only not for short term traders who is following UC/LC in BCG.
All join the BCG telegram group 🎉🎉🎉
Here is the link
https://t.me/brightcomgroup
🔥🔥🔥🔥🔥
This is biggest group of BCG investors being managed by able investors
Anyone wants to join BCG Investors Group they can join.
It's for long term investors only not for short term traders who is following UC/LC in BCG.
All join the BCG telegram group 🎉🎉🎉
Here is the link
https://t.me/brightcomgroup