Category Archive : Economic Concepts

7 steps to achieve financial freedom

7 Steps To Achieve Financial Freedom

How To Achieve Financial Independence?

Introduction

In this article, we are going to discuss 7 Steps To Achieve Financial Freedom. In today’s changed financial ecosystem, a long-term prudent investment is required to achieve financial independence.

We have already covered what is mean by financial freedom in our earlier blog.

7 Steps To Achieve Financial Freedom

  • Financial independence refers to a state where we have enough resources at your disposal to meet your expenses as well as fulfill your future financial goals.
  • Your monthly earned fixed salary may be barely sufficient for meeting monthly expenses and paying EMIs for like home, car and also planning for children education and marriage etc. In such case, then how one can actually achieve financial Freedom or independence? 
  • But, it is definitely possible, with careful financial planning and follow-up actions, one can build a wealth to break the dependency on the monthly salary. 

Following 7 Steps To Achieve Financial Freedom which would help you move towards your financial independence.

7 Steps To Achieve Financial Freedom

1.Start Early

  • The first step we should take on this financial freedom journey is start as early as possible, stop unnecessary delays. The more we delay, the more challenging it will become for us to achieve financial independence. 
  • A smart approach would be to make sufficient savings and investments in early stages of our career. The regular source of income allows us to build a corpus of funds that is sufficient to take care of all our expenses.

2. Save and Invest for Long-term

  • Savings is the most crucial and most important aspect of wealth creation and achieving financial freedom. Start with saving part of your salary by cutting your discretionary expenditures.
  • This can be done by committing to invest at least a minimum of 20-25% of your salary. The more you save now, the more your money compounds. The power of compounding should not be underestimated.
  • The appreciation you will receive on 20-25% of your salary if you save consistently and invest intelligently, is far beyond the expectation.
Be Financially Independent by Proper Financial Planning

3. Have a Healthy Portion of Equity Investment in Your Financial Portfolio

  • Equity investments have rewarded investors by multiplying investments in a relatively short span compared with other investment avenues.
  • If one starts early, plans properly and invests meticulously, one can endeavor to create sufficient wealth, helping to achieve financial freedom at a quite early age. 
  • In current volatile markets also, one can find opportunity to build a wealth through equity by staying for a long period in the market. For more details, you can refer our blog : 4 things to note for the investors in volatile markets.

4.Adopt SIP ROUTE; Avoid LUMP-SUM investments

  • If one is unable to commit lump-sum investments, systematic investments in equities would enable an investor to create wealth that can take care of his/her early retirement.
  • SIP route helps you average your purchase price and helps you with better returns with relatively lower risks. So by SIP route, one can get the advantage of stock purchases at the discount.
  • SIP option has made it possible for investors to bring the much-needed discipline in their approach towards investment while making the magic of compounding work in their favor. 

5. Plan Your Financial Goals

  • Have different investment strategy for your financial goals like home, marriage, health, education etc, Quantify them and set the time horizon for the same.
  • You should do research and give enough time to make informed decisions, don’t follow a herd approach and invest time and effort to know about the fundamentals.
  • Prepare your action financial plan for changing scenario and stick to it during the investment horizon. This will prevent you from making an impulse decision.

6. Manage Risk

  • You should have liquid funds to meet any emergency situation. Define you contingency fund requirements and work towards accumulating the same.
  • The idea is your financial plans should not get hit by any contingency which anyone can face at any time of life, be it health issues, job loss, repair and renovation to your physical assets.
  • Try to build a reserve which will sustain you for 6 months should you not receive any inflows in this duration. Refer major Personal Finance Risks.

7. Keep track of Your Investment & Review

  • Once you have created an investment plan, keep it on track. Review your portfolio from the standpoint of the rationale that formed the basis of your investment. Though short-term volatility is bound to happen, you should focus on the fundamentals of invested stocks.
  • Don’t be too inflexible just because you have put in time and effort for your previous research. So be ready to keep that flexibility to amend your portfolio with changes in fundamentals. Remember overconfidence may be hazardous to your wealth. 

Conclusion

Our Indian Independence has entailed dedicated and passionate pursuit of freedom by our freedom fighters. In the same way, a whole-hearted commitment to financial planning will ensure you achieve financial freedom or independence as well. 

RBI Bi-Monthly Monetary Policy Meet Key Highlights (7th August 2019)

RBI Cuts Repo Rate By 35bps to 5.40% | RBI Monetary Policy Review Aug 2019

RBI Monetary Policy Meet Highlights (7th August, 2019)

Introduction

Reserve Bank of India, RBI cuts repo rate by 35bps to 5.40% from 5.75% on 7th August 2019. RBI also decided to maintain the accommodative stance of monetary policy and lowered GDP growth forecast to 6.9% from 7%, in its third Bi-monthly monetary policy meet of the financial year 2019-20.

RBI Cuts Repo Rate By 35bps to 5.40% – MPC Meet Key Highlights

  • On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting on 7th August, 2019 decided to reduce the policy repo rate by 35 basis points to 5.40% from 5.75%with immediate effect.
  • The MPC also decided to maintain the accommodative stance of monetary policy.
  • These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Key HIghlights of RBI’s Bi-Monthly Monetary Policy meet

RBI Monetary Policy Meet Highlights (7th August, 2019)
RBI Monetary Policy Meet Highlights (7th August, 2019)
1.RBI cuts Repo Rate by 35bps to 5.40%
  • RBI cuts repo rate by 35 basis points to 5.40% from 5.75% with immediate effect. Consequently, the reverse repo rate adjusted to 5.15% and the marginal standing facility (MSF) rate and the Bank Rate to 5.65%.
  • This is the fourth cut in a row since Shaktikanta Das took over as the governor in December 2018. RBI had cut the policy rate by 75 basis points prior to this, through 3 rate cuts of 25 bps each in February, April and June MPC meet.
  • All members of the MPC unanimously voted to reduce the policy repo rate and to maintain the accommodative stance of monetary policy. 4 members (Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das) voted to reduce the policy repo rate by 35 basis points, while 2 members (Dr. Chetan Ghate and Dr. Pami Dua) voted to reduce the policy repo rate by 25 basis points.
2.Accomodative Stance of Monetary Policy
  • The Monetary Policy Committee (MPC) also decided to maintain the accommodative stance of monetary policy. It is prudent to remain accomodative as stated by MPC. In the second bi-monthly policy review held in June 2019, MPC had changed the monetary policy stance from neutral to accomodative.
  • A significant weakening of growth impulse, slowdown in investment activity and a continuous moderation in private consumption growth is a matter of concern, as noted by MPC.
  • On account of the slowdown in the above mentioned macroeconomic indicators, RBI sees scope to accommodate growth by supporting efforts to boost demand and re-energize the private investment activity.
3.Growth (GDP) Forecast
  • GDP growth for 2019-20 is revised downwards from 7% in the June policy to 6.9% on account of weakening of both domestic and external demand conditions.
  • It is revised in the range of 5.8%-6.6% for H1:2019-20 (April to September FY2019-20) and 7.3%-7.5% for H2 (September 2019 to March 2020) – with risks somewhat tilted to the downside. While, GDP growth for Q1:2020-21 is projected at 7.4%.
  • 5.8-6.6% for H1:2019-20 : As per RBI’s industrial outlook survey, the demand conditions in Q2 FY20 seem to have muted expansion in demand conditions. weakening of both domestic and external demand conditions
  • 7.3%-7.5% for H2:2019-20 : The impact of monetary policy easing since February 2019 is expected to support economic activity in second half of FY2019-20. High capacity utilisation, higher financial flows to the commercial sector, measures to enhance flow of credit to NBFCs are the positive sides which are promising for good investment activity. Moreover, base effects will turn favourable in H2:2019-20.
4.Revision in CPI Inflation
  • RBI has revised Consumer Price Index (CPI) inflation 3.1% for Q2:2019-20 and 3.5-3.7% for H2:2019-20, with risks evenly balanced. CPI inflation for Q1:2020-21 is projected at 3.6%.
  • Following are the key driving factors which are taken into consideration by MPC for the revision in CPI forecast :
    1. Impact of recent policy rate cuts
    2. Rise in food inflation driven by uneven temporal monsoon in 2019
    3. Volatile crude oil prices due to geo-political tensions in middle-east
    4. Ease in the output prices by the manufacturing firms as stated in the industrial outlook
  • A revival in monsoon has dampened agflation (Agriculture Inflation) fears, as it halved seasonal rainfall deficit to 7% of normal from 14% as on July 28. 
5.Transmission Process
  • The success of the accommodative policy would depend entirely on the next level of its application, that is, the transmission of the lower rates to the ultimate borrowers. Thus the key determining factor of expected favourable results of repo rate cut by RBI is the effective cascading of the benefits of lower base rate by the banks. 
  • In simple words, when RBI cuts repo rate, banks should immediately cut the interest rates of the loans. Interest rates of home loans, vehicle loan or business loans should be come down hand-in-hand.
  • The rate cut has sent a strong signal to domestic banks to cut lending rates before the festive season kicks off in September. 
  • The transmission of policy repo rate cuts to the weighted average lending rates (WALRs) on fresh rupee loans of banks has improved marginally since the last meeting of the MPC. Overall, banks reduced their WALR on fresh rupee loans by 29 bps during the current easing phase so far (February-June 2019).
Enhanced Credit Flows to NBFC Sector
  • RBI has taken several measures to facilitate credit flow to the well managed NBFCs or HFCs during the last one year.
  • MPC has declared to raise a bank’s exposure limit to a single NBFC to 20% of Tier-I capital of the bank from earlier limit of 15%.
  • The minimum holding period for assets to be securitised or assigned was reduced from one year to six months, thereby enabling the NBFCs and HFCs to raise funds by securitising their originations without having to wait for a longer period.
  • The durable liquidity in the system was increased through a series of OMOs and Forex SWAPs.
  • MPC has decided to reduce the risk weight for consumer credit, including personal loans, but excluding credit card receivables, to 100% from 125%.
Measures to Boost Payments System
  • RBI will set up central payment fraud registry for tracking payment system frauds.
  • National Electronic Funds Transfer (NEFT) services to be active 24×7 from December from the current timings of 8.00 am to 7.00 pm on all working days (including 1st, 3rd and 5th Saturdays in a month)
  • Expansion of Biller categories for Bharat Bill Payment System : 
    1. BPPS is an interoperable platform for repetitive bill payments and currently covers 5 segments : direct-to-home (DTH), electricity, gas, telecom and water bills. MPC has decided to permit all categories of billers, except prepaid recharges, who provide for recurring bill payments to participate in BBPS on a voluntary basis.
    2. Apart from digitisation of cash-based bill payments, these segments would also benefit from the standardised bill payment experience for customers, centralised customer grievance redressal mechanism and prescribed customer convenience fee.
  • In order to minimise the concentrated risk in retail payment system, to benefit from diversification of risk and also to encourage innovation and competition, RBI decided to offer ‘on tap’ authorisation to entities desirous to function/operate/provide platforms for :
    1. Bharat Bill Payment Operating Unit (BBPOU);
    2. Trade Receivables Discounting System (TReDS); and
    3. White Label ATMs (WLAs).

Summary

  • On account of US Fed’s July 31 rate cut Global rates are cycling down. Oil and commodity prices are also slipping on global uncertainty. The domestic inflation outlook remains liberal.
  • Domestic economic activity continues to be weak, with the global slowdown and escalating trade tensions posing downside risks. Private consumption, the mainstay of aggregate demand, and investment activity remained sluggish.
  • Even as past rate cuts are being gradually transmitted to the real economy, the liberal inflation outlook provides headroom for policy action to close the negative output gap.
  • The growth concerns are addressed by MPC by boosting aggregate demand, especially private investment, assumes the highest priority at this juncture while remaining consistent with the inflation mandate (4% within a band of +/- 2%).
  • The minutes of the MPC’s meeting will be published by August 21, 2019. The next meeting of the MPC is scheduled during October 1,3 and 4, 2019.
Budget 2019 Key Highlights

Budget 2019-20 Key Highlights

India on a Path Towards $5 Trillion Economy

Introduction

In this aticle, we are going to discuss Budget 2019-20 key highlights. Finance Minister Nirmala Sitharaman today, has presented the union budget 2019-20 with a vision for $5 Trillion economy in few years. The main focus is on investment-led growth and reforms including – the Infrastructure, Foreign investment, Aviation, NBFCs and Start-ups etc.

Let us discuss the key highlights of today’s budget 2019-20 in detail.

Budget 2019-20 Key Highlights

Budget 2019 Key Highlights
Budget 2019-20 Key Highlights

Economy

  • Target is to become a $3 trillion economy in FY20 and $5 trillion in a few years
  • Government has proposed the changes to kick-start domestic and foreign investment
  • Will create blueprint for gas grids, water grids and regional airports etc.
  • Government enhanced disinvestment target of Rs.1,05,000 crore in FY20 as against Rs.90,000 crore set in the Interim Budget
  • Also Government will start raising part of its gross borrowing programme in external markets in external currencies
  • Import of defence equipment is being exempted from basic customs duty

Infrastructure

  • Roads : Upgradation of 1.25 Lakh Km road length over next 5 years under Phase-III of ‘Pradhan Mantri Gram Sadak Yojana’.
  • ‘Housing For All’ Scheme : Under this scheme, already 1.55 Crore houses have been built in Phase-I. Now, in Phase-II, the number of houses proposed to build is 1.95 Crore.
  • Railways : Railway Station Modernization Programme is proposed. In this, high investment in sub-urban railways through Special Purpose Vehicle (SPVs) like Rapid Region Transport System (RRTS).
  • Investments in Agriculture Infrastructure is also covered.
  • For the faster Infrastructure development, a Public-Private partnership is planned to be established.

Banking

  • Recapitalisation of Public Sector Banks (PSBs) : Capital provision of Rs.70,000 Crore to PSBs to boost credit improvement in order to offer the momentum to the economy.
  • NPAs have come down by Rs.1 Lakh Crore over the last year.
  • Proposed Interoperability : Government to initiate steps to empower account holders to have control over deposit of cash by others in their accounts.
  • Government has planned to undertake the steps to improve governence of Public sector banks.

NBFCs

  • Government will provide one time 6-months partial gaurantee to public sector banks for the first loss up to 10%, for the purchase of high-rated pooled assets of financially sound NBFCs.
  • Housing Finance Companies (HFCs) will be regulated by RBI instead of National Housing Board (NHB) to ensure robust regulation.
  • NBFCs are required to maintain DRR (Debenture Redemption Reserves) for raising funds in public issues.
  • Fundamentally sound NBFCs can get funds from Banks, Mutual Funds.
  • Government is going to take necessary steps to allow NBFCs to directly participate on the Trade Receivable (TReD) platform.

Aviation & Space Power

  1. Aviation Industry
    • Government has proposed to enter into the Aviation Financing and Leasing.
    • Development of MRO Industry (Maintainence, Repair and Overhaul)
    • Blueprint for Regional Airports
    • Will re-initiate privatisation of Air India
  2. Space Power
    • India has emerged as a major space power.
    • To harness India’s space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of the ISRO (Indian Space Research Organisation)

Electric Vehicle

  • FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure. 
  • Upfront incentives on the purchase on Electric Vehicles (EVs).
  • Tax exemption of Rs.1.5 Lakh will be offered on the purchase of EV.
  • Building the infrastructure for EV charging points is also proposed.

Micro, Small & Medium Enterprises (MSMEs)

  • There is a need of high investment in MSMEs and job creation.
  • Interest Sunvention Scheme : 2% interest subvention on allocation of Rs.350 Crore for all the GST registered MSMEs.
  • Creation of payment paltform for MSMEs.

Start-ups

  • Start-ups will not be subject to any scrutiny on valuation of share premiums to resolve ‘Angel Tax’ issue.
  • Government has proposed TV program exclusively for the Star-ups.
  • ‘Stand Up India’ Scheme to be continued up to 2025.
  • Relaxation in conditions for carry forward and set-off losses.
  • Exemption of capital gains arising from sale residential house for investment in Start-ups, extended up to March 31, 2021.

Foreign Investments (FDI/FPI)

  • 100% FDI is proposed in Insurance intermediaries.
  • Government to examine for opening FDI in Aviation, Media, Animation.
  • Local sourcing norms eased in Single Brand Retail Sector.
  • Merging of NRI portfolio routes with FPI routes.
  • Government is to execute the action plan to deepen corporate debt market and long-term bonds and to allow FPIs/NRIs to subscribe to listed debt papers of REITs and InvITs.

LIVE Budget Updates & Analysis by Yadnya

1:15 PM – FM Nirmala Sitharaman concludes Budget Speech 

1:08 PM – FM hikes surcharge for high income groups (more than Rs 2 Cr annual income) but taxation for low income groups remain unchanged. The FM has proposed to increase the surcharge for those earning Rs 2-5 Cr 3 per cent and for those earnings above Rs 5 Cr to 7 per cent.

1:06 PM – Petrol, Diesel & Gold Price to be increased due to increase in Excise Duty. Custom duty on gold increased by 2.5%, says FM

1:04 PM – Angel Tax – To resolve the issue of Angel Tax the startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny

12:56 PM – No charge on customer for digital payment

12:55 PM – 2% TDS on cash withdrawal of more than Rs 1 Crore in one year

12:46 PM – VERY BIG – Exemption raised on home loan interest: Tax exemption on interest paid on home loans raised from Rs 2 lakh to Rs 3.5 lakh, says FM. Additional Rs 1.5 Lakhs Tax benefit is for houses upto Rs 45 Lakhs only.

12:44 PM – BIG – Tax benefit for loans taken on purchase of Electric Vehicles. Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles

12:40 PM – Corporate Taxation to be 25% for all companies upto Rs 400 Cr Annual Turnover. This will cover 99.3% companies in India

12:35 PM – So now the TAXATION part comes. Fasten your seatbelt.

12:30 PM – ETF which will be in ELSS category under CPSE -Central Public Sector Enterprises category to be launched soon – FM

12:20 PM – Non-performing asset (NPAs) recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year. Public Sector Banks are now proposed to be provided Rs 17,000 crore of capital to boost credit

12:20 PM – Propose to consider issuing Aadhaar to NRIs with Indian passports after their arrival in India without the mandatory wait of 180 days, says FM

12:10 PM – New National Educational Policy to be brought in to transform Indian educational system; major changes in higher as well as school system to be brought in : FM

12:03 PM – An exclusive TV channel on DD for start ups which will be created and run by Startups only.

11:56 AM – Govt to launch ‘Study in India’ program to attract foreign students in higher education

11:55 AM – 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries : FM

11:47 AM – Water supply in an integrated and holistic manner will help ensure ‘Har Ghar Jal’. FM said that the government will look at the management of water resources and supply, work with states to ensure ‘Har Ghar Jal‘ (water in every household) by 2024. 

11:45 AM – Stock exchange for social enterprises: Electronic Fundraising Platform, a social stock exchange, to be set up to list social enterprises and voluntary organizations working for social welfare objectives, announces FM.

11:40 AM -To provide NRIs seamless to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route: FM (PIB)

11:30 AM – This could be IMPORTANT – Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly : FM (PIB)

11:25 AM – Rs 350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans. Payment platform for MSMEs to be created: FM (PIB)

11:25 AM – FM proposes a no. of measures to further deepen the bond market. To deepen corporate tri-party repo market in corporate debt securities, govt will work with regulators RBI & SEBI to enable stock exchanges to allow AA rated bonds as collaterals

11:24 AM – Pension benefits will be offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man dhan Scheme

11:20 AM – One of the first sectors Finance Minister Nirmala Sitharaman touched upon in her speech is the transport sector. She talked about Udaan scheme, water transport and road transport to pit the rural-urban divide. She said that we will ensure that the National Highway grid is developed with an apt financial model. She also spoke about enhancing the navigational capacity of Ganga river.

11:10 AM – It took us over 55 years to reach $1 trillion dollar economy. But when the hearts are filled with hope, trust & aspiration, we in just 5 years, added $1 trillion.

11:06 AM – FM Nirmala Sitharaman says we will achieve to be USD 3 Trillion Economy in current fiscal only

11:05 AM – FM Nirmala Sitharaman says USD 5 Trillion Economy is the target in 5 years

11:01 AM – Union Budget 2019 – FM Nirmala Sitharaman starts Budget Speech

10:50 AM – Union cabinet approves Budget 2019. It will be presented by Finance Minister Nirmala Sitharaman at the Lok Sabha shortly.

Info Edge (India) Ltd – Business Portfolio

Info Edge India Ltd – Stock Analysis

Detailed Share Review

Introduction

In this article, we will analyze Info Edge India Ltd Stock. It is India’s premier online classified company in recruitment, matrimony, real estate, education and related services.

Info Edge India Ltd – Stock Analysis

Company Overview

  • Info Edge (India) Ltd was incorporated on May 1, 1995. Starting with a classified recruitment online business, naukri.com, Info Edge has grown and diversified rapidly, setting benchmarks as a pioneer for others to follow.
  • It is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. The company has an in-depth understanding of the Indian consumer internet domain.
  • With years of experience in the domain, strong cash flow generation and a diversified business portfolio, Info Edge (India) is one of the very few profitable pure play internet companies in India.
  • Innovation, Creativity, an Experienced and Talented Leadership team and a strong culture of Entrepreneurship are the key drivers of the company.

Info Edge (India) Ltd – Business Portfolio

Info Edge (India) Ltd – Business Portfolio
Info Edge India Ltd Stock Analysis

Info Edge (India) Ltd’s business portfolio comprises of :

  1. Recruitment : 
    • Online recruitment classifieds, www.naukri.com, a clear market leader in the Indian e-recruitment space, www.naukrigulf.com, a job site focused at the Middle East market, offline executive search (www.quadranglesearch.com) and a fresher hiring site (www.firstnaukri.com).
    • Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing.
  2. Matrimony : Online matrimony classifieds, www.jeevansathi.com, is among the top three in India’s online matrimonial space, and has offline Jeevansathi Match Points and franchisees.
  3. Real Estate : Online real estate classifieds, www.99acres.com, is India’s largest property marketplace covering almost all the major cities and a large number of agents and developers.
  4. Education : Online education classifieds, www.shiksha.com, is the smartest gateway for students to achieve their goals.
  5. Start-up Investments : The company’s spirit of entrepreneurship has also made investments in early stage companies/start-up ventures to tap into the growing and vibrant Indian internet market. 
    • Zomato : It is online restaurant search engine and food delivery site. Info Edge India Ltd is having shareholding of about 26.4% in Zomato.
    • Policybazaar.com : As we know, Policybazaar.com is online insurance policies marketplace. Info Edge is having a stake of about 15.8% in it.

Thus, Info Edge (India) is planning to increase its presence demography wise, explore new potential segment to launch portals and develop new technologies, processes and frameworks.

Shareholding Pattern

Info Edge (India) Ltd - Shareholding Pattern
Info Edge (India) Ltd – Shareholding Pattern

Financials – Past 5 Years Performance

Info Edge India Ltd Key Financials
Info Edge India Ltd Key Financials
  • The Revenue of Info Edge India Ltd is growing at a CAGR of 16.5%, while operating profit before tax (PBT) is growing at a CAGR 17.5%
  • Major profitability comes from Naukri.com segment. Profits from Recruitment (Naukri.com) is ploughed back to build 99acres, Jeevansathi and Shiksha segments.
  • The investments in start-ups for FY2019 is Rs.1,025 Crore. It is increased almost 32% compared to FY2018 (Rs.778 Crore).

Key Parameters

  • Current Market Capitalization = Rs.27,228 Crore, Large Cap Company.
  • PE Ratio = 89, Here, an important aspect of valuation should be taken into the consideration by the investors that the underlying investments of the company is being traded at completely another parameters of valuation. Here, profitability is not the only parameter for PE valuation. And therefore, we should not evaluate the Info Edge (India) Ltd stock according to the usual PE valuation analysis.
  • Thus, it is definitely a risky business to invest in such stocks, because they are discounting the future of other businesses. If it is not worked out in future, then it will be very risky for the investors. Agressive investors and the investors who understand the future of digital business platform of can opt for the stock.

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