stocks

Affordable housing finance companies (AHFC): Small caps with big valuations

While we generally look at lenders by their book size (advances) and network, the market has a different take when it comes to valuation and that has a significant impact on shareholder returns.ย AHFCs have become the market darlings in recent times over their conventional, broad based home lending counterparts, as reflected in their market valuations. So, what makes AHFCs market favourites?ย 

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Stock investing and the boiling frog syndrome

If you are interested in psychology or behavioural economics, youโ€™d surely have come across the boiling frog syndrome. The theory goes that if you try to dunk a frog in a pot of boiling water, it will immediately jump out. But if you place it in cool water and slowly heat up the pot, the frog will ignore the small changes in temperature and simply boil to death.ย 

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Prime stock recommendation: A consumer durables play gearing for a comeback

Consumer durables, a key consumer category, bore the brunt of Covid as companies lost two business seasons in FY21 and FY22 to lockdowns and supply disruptions. As demand took a hit, the sector lost its sheen, especially white goods and small appliances, leaving investors disappointed over the last 2 years amid a soaring market.ย ย 

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How to approach risky, but rewarding small caps

Small caps are always alluring to the investor. Everyone knows that it is difficult to make quick money in large well-known and well-researched stocks. We all want to find that small gem which turns a lakh of rupees into crores. The most money is made in such cases when we can spot a company that will turn out to be a market-leading name in five to ten years. Today, the investor population has increased dramatically. Besides, information is available to everyone. This makes small cap investing both interesting and risky.

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Prime Stock recommendation: A HOLD call on an auto stock

We are now moving the stock to a โ€˜holdโ€™. That means it will no longer be in our buy list. This means you need not take further exposure to the stock. Do not sell it. Simply hold it. We will let you know if it is time to exit.

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Consumer durables: On the comeback trail

Consumer durables is a category that stands between staples and lifestyle goods. This category has been hit on one hand by Covid-led lockdowns, and on the other by inflation eating into margins and hurting demand. The category has seen a more severe impact as it is neither buoyed by the non-discretionary nature of staples nor by the quick demand rebound that lifestyle consumption tends to see.

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