In this report, we look at the hits and misses of our Prime Stock calls this year and what we will do to add more value next year.
Sula Vineyards is launching an IPO worth Rs 960 crore, consisting solely of an offer for sale by investors including a 1% stake sale by the promoter. The offer for sale will result in approximately 32% of equity being sold by the selling shareholders with the promoter stake at ~28% post-issue. The issue opens on December 12 and closes on December 14. Shares are being offered at a price band of Rs.340-Rs.357 per share of face value Rs 2. This being an offer for sale, the company will not receive any funds from the issue.
The Reserve Bank’s monetary policy on Wednesday served up another repo rate hike of 35 basis points, adding to the 190 basis points through this year. That takes the repo rate to 6.25% from the Covid low of 4%. The key driving factor behind the rapid rate hikes – that of inflation – still remains. The RBI has clearly spelt its commitment to bringing inflation within the target range, even in its latest monetary policy.
In this light, debt fund strategies you have now, to make the most of the current scenario, can be decided based on what you want:
At PrimeInvestor, we took an ultra-conservative approach to debt investments during Covid and just after it. But with economic recovery taking root, interest rates rising and credit offtake improving, we believe investors can shoot for higher yields by taking on some credit risk. Perpetual bonds from banks with sound financials are one option, offering good reward for risks taken. We are covering one such bond here.
A lot goes into making that piece of gold jewellery you see at your jewellers’. Or even the copper that goes into your two-and four-wheelers. The first step starts with mining these metal and mineral ores. The next is to crush the ore lumps into desired sizes and processing them in mills to extract the metal or mineral. This involves a lot of machinery such as crushers, screens and other mineral processing equipment. In mill equipment, there’s a critical component that protects the equipment to ensure longer life, reduce noise as well as downtime, and improve safety.
A few weeks ago, we had written in detail the categories in which we think passive funds have become a necessity to keep your portfolio returns stable; even if you hold active funds. We made this call as performance of active funds were becoming relatively more inconsistent, in a few key categories.
This earnings season, the standout performers come from the banking sector. While private banks led the revival in earlier quarters, this time around, performance is visible all round – across leading private banks to old private banks and PSU banks.
In any portfolio that features equity funds, the long-running debate is whether one should go for active or passive funds. We, on the other hand, have held that a portfolio can well feature both active and passive funds using each where it does best. Of late, we have also been of the opinion that there are some categories where you should have passive funds if you are to keep returns up – even if you hold outperforming active funds.
There are three reasons why we think investors may be better off looking at other opportunities at present.
GATI is one of the oldest players in the domestic express logistics space with nearly 3 decades of existence. GATI was originally part of the assets of TCI (Transport Corporation of India), which was split between Mahendra Agarwal and his three brothers in 1998….
Prime Portfolios are a set of 19 unique portfolios that meet over 30 different investor timeframes and needs. Prime Portfolios are listed under Ready-to-use-portfolios in the Recommendations dropdown. These portfolios primarily use mutual funds, but where there are better-suited products such as deposits or government schemes, the portfolios include those as well.
With interest rates on fixed income options hitting rock-bottom in recent years, debt investors have been starved for reasonable yields. This is perhaps why the issue of Non-Convertible Debentures (NCDs) from National Highways Infra Trust (NHIT NCD), offering a yield which is a tad over 8%, is seeing such enthusiastic reception from investors, bond platforms and some advisors too.
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