A 14% fall in INFOSYS (INFY) in just a week is not something that you expect, especially when the index itself fell under 1% over the same period. But then, when markets are disappointed, they don’t cry, they rage.
Stock alert: Narratives and numbers – what to do with Infosys? Read More »
Picking a stock in the pharma space is not easy. The businesses are complex and can leave you feeling like you are preparing for a mini-MBBS. What’s more – no two companies are alike. To compound matters, it is also a heavily regulated space (and rightly so) with complex supply chains very often, heavily reliant on China. Not only do most end products have names that sound like tongue twisters but can be governed by complex patent regulations.
Prime Stock recommendation: A pharma stock available at a bargain Read More »
When markets make merry, many stocks have seemingly compelling stories even for entering at peak valuation. And the market is fine with stretched valuations to accommodate such stories. In other words, every market-favoured stock appears to scream – buy me at any price.
But when challenges emerge, the same market starts reacting so sharply that investors who bought into the story midway start making losses. Yes, there isn’t a bigger disaster for stock market investors than earnings and PE multiples contracting together.
Entering a stock at peak valuation? – 5 questions to ask Read More »
In February last year, we had issued a buy call on the stock of a premier fashion player housing a vast number of national brands. The steps this company had taken to expand its offering range, a return of focus on margins, and the consumption promise all propelled the call. the stock rallied handsomely as well, post our call.
However, owing to two factors, the stock has since given up nearly 40% from its high and is currently about 25% below our original call price.
Prime Stock: An averaging call on this fashion player Read More »
Indian markets have corrected about 10% (Nifty 50) from the last peak in December 2022. But many stocks have fallen much more than the bellwether index. This has provided an opportunity to revisit some of our recommended stocks – to either identify averaging opportunities or move them to a BUY from a HOLD.
Prime Stock alert: Shifting this auto stock from HOLD to BUY Read More »
Recent instances of countries rationing food supplies on import disruptions and grappling with hyper-inflation, have prompted governments the world over to refocus on food security. With limited supply of arable land and water, the key to achieving food security lies in improving crop yields. In India, there’s a crying need to improve yields not only to secure food supplies for the domestic population, but also to cater to global export opportunities for farm products, that are at an inflection point. Companies engaged in crop protection, fertilizer and hybrid seeds are positioned to make the most of these tailwinds.
But if you’re an Indian investor looking to make a long-term bet on this theme, your options aren’t very many. There are about 20 listed companies in the fertilizer space. But the sector makes for a poor investment because of whimsical government policies that hamper growth and profitability. Listed crop protection and seed companies offer superior options. Listed agrochem players offer choices from micro to large players, with differing business models that focus on generic agrochemicals, interm
Prime Stock recommendation: A promising play on food security Read More »
In August 2021, we recommended a sugar manufacturer, well placed to play the ethanol opportunity that was set to change the dynamics of the sugar sector in India. 18 months down the line, the ethanol opportunity has played out as we expected and we have more clarity on this front. But at the same time, stock returns for our chosen candidate stand at just ~5% since our ‘BUY’ recommendation even though it rallied over 30% and also fell by almost 20% in the interim. We think, this calls for an update.
Prime stock update: Are we still sweet on this sugar maker? Read More »
In April 2022, we had issued a buy recommendation on a general insurance player, as both the industry and the company itself were emerging from the Covid-driven impact and were poised for growth. Since then, however, the insurance sector has lost market favour as growth has not panned out as expected.
Prime stocks update: An exit call on an insurance stock Read More »
When we gave the call of this R&D focused company engaged in the manufacture of enzymes and probiotics, the company had Covid-related challenges but showed promise of growth. It was later also pulled down by consolidation of acquisitions and costs related to new product launches. We therefore knew that the call would take longer to pay off. The stock went through a significant correction after our initial recommendation as earnings disappointed.
Prime Stocks update: Moving this biotech stock from BUY to a HOLD Read More »
Covid proved be an ultimate stress test for Small Finance Banks (SFBs). As SFBs largely cater to low income borrowers comprising small businesses, small vehicle owners and other self-employed categories including micro-finance, they were among the most Covid-sensitive sectors.
Prime Stock update: Prospects brighten for our small finance bank call Read More »
We had, in mid-2021, initiated a buy call on a stock that was reinventing itself from a supplier of diesel engines into an EV player. It was an early call we’d made on the EV boom, which appears well-timed as electric 2-wheeler sales jumped from 16,000 units in 2018 to 150,000 units in 2021 to a whopping 615,000 units in 2022!
With the EV 2-wheeler market now clearly segmenting itself, there is more clarity on how competition and market share is shaping up. The EV 2-wheeler industry is also going through regulatory tightening.
Prime Stocks update: How this EV player is placed now Read More »
There are more theories on what works in stock investing than there are listed stocks. Each one seems to be successful at some point in time. However, there is still no single universally applicable formula. I am still in search of that magic formula. If any of you do find one, please post it in the comments section.
But if there can be said to be two warring camps on the right approach to stock investing, these are usually fundamental analysis and technical analysis. Both have loyal camps of followers who swear that their method works best.
Fundamental analysis or technical analysis: which is better? Read More »
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