In these reviews, we pick stocks that have rallied, or where businesses are interesting or changing, or where companies may be relatively unknown and so
The benchmark Nifty 50 index has been drifting lower since February 16, 2021 when it recorded a high of 15,431.8. While there has been some recovery in the past few weeks, the real action has shifted to the broader markets. Lots of stocks from the mid-cap and small-cap sectors have continued to seek higher levels even as the Nifty 50 index has been struggling in a broad range.
Price to Book Value (P/BV) ratio is a measurement of how much an investor pays for a stock over its book value. Book value is
Many years ago, I asked a fund manager about why did he not exit a lot of his portfolio and keep cash, since it was obvious that stock valuations were rather high. His response was that the investor has given him money to invest in equities, which made up his or her ‘equity’ allocation and therefore he was duty bound to keep it invested fully.
Most of the FMCG majors posted stellar numbers for the March 2021 quarter. But this performance has come by mainly due to favourable base effect.
This is Part II of our series on REITs. You can find the first part here. Apart from a secret passion for owning real estate,
Growth estimates are being placed at a CAGR of around 10% for the next five years for the diagnostics sector, presenting a very attractive opportunity to players that are ready and able to take advantage. Dr Lal Path Labs is a leading diagnostics player, building up its presence outside its traditional stronghold of Delhi.
In bull markets, expensive valuations often make it necessary for investors to look for offbeat opportunities to acquire a wealth generating company. The investment arms of leading promoter groups in India offer such opportunities to buy sound companies, at a discount to prevailing valuations.
The Nifty 50 index has drifted lower recently and has lost close to 8% from the high of 15,431 recorded on February 16, 2021. But though the Nifty 50 has slipped to lower levels, there are quite a few sectors that have delivered positive returns during this period. So, what are the sectors to focus on (and what are the ones to avoid)? Let’s find out.
Although some of the top Tier I IT companies such as Infosys or HCL Technologies missed market estimates for the quarter ending March 2021, they finished FY-21 on a strong note across various fronts. Steady deal wins, stable growth, sustained margins, expanding cash assets and buybacks characterized the fiscal ending March 2021 for IT companies. This, in a year ravaged by the Covid-19 pandemic. It is small wonder therefore that their price earnings valuations have moved up in trajectory, well-above their 10-year averages. Let’s take a quick recap of the performance for the latest fiscal and quarter – that led to PE moving to newer orbit. We’ve taken the 4 tech majors TCS, Infosys, Wipro and HCL Technologies for this purpose.
Stocks and sectors that are likely to take an immediate hit to revenue and profits have slipped more than others. But many among these have medium to long-term growth drivers in place, and are strong enough to weather near-term impact to profitability.
Human nature is generally programmed on self-destruct mode when it comes to the stock markets. We want to buy when everyone is happy and join the cheer. When everyone is forecasting doom, we want to be selling and patting ourselves for having apparently got out before the big crash. This behaviour unfortunately, is very injurious to wealth. Let me talk about the ‘falls’ or ‘crashes’ that happen in stock markets.
Hold On
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