Investment FAQs with Parimal Ade (Investment Satsang-10)

• The commodity cycle is upward.
• It is typical exchange stock.
• There are other examples such as the Bombay stock exchange, incoming days when NSE will also be listed at that point of time we have to see.
• It will be a rational kind of performer.

• Not very positive on PSU Banks
• Too much movement is dependent on the news which comes from the Govt of India and Reserve Bank of India
• From a business point of view, it’s not looking very positive.
• There is restructuring instead of growth in the board.
• If the investor is only looking for PSU Banks then State Bank of India is the only bank looking from the growth perspective.

• This is looking like a good growing sector.
• It is a good company.
• It is currently trading at a premium valuation against its peers.
• The company is doing everything right. And there could be chances of alpha growth.

• Reliance brings its product is a major challenge to many FMCG companies. But It will take time.
• From the longer horizon then it is going to be a challenge.
• These FMCG companies are also going to counter these things with their online platforms

• Fundamentals are very good.
• Need to understand the business model very well.
• The stock was taken to a very premium valuation. So the consolidation is seen into it.
• If there believe in this business from a longer point of earning and growth visibility.
• Currently, the earning and growth visibility is looking good. But there could be chances of disruption. Therefore need to have a close watch.

• It’s a good top-quartile fund.
• The fund is quite consistent.
• Mr. Ajay Garg is the fund manager who is managing this fund very well, he is also managing the Birla Sunlife MNC fund.
• If your fund is in the top 25% then it should not be a problem.
• Need to stay invested more than 5 years for Tax Funds.

• Yes, there is a challenge towards NBFC and the banking sector and needs to be watchful.
• It is always said that if you are investing in banking and NBFC, so the position of those companies need to be watchful based on capital adequacy, NPA trends, slippages, provisions they are doing. Then only the allocation needs to be taken.
• That’s why big names, big corporates with a good backup plan should be preferred.
• This is not time for an experiment. Need to have a clear thought process.

• It is a good stock.
• Looking at their order book next 4 years earning visibility can be seen and the orders will be increasing only.
• There is a good growth story.

• A lot of problems are still going to be there. Challenges are not over.
• The debts are rising and the inflows are not looking good.
• Revenues visibility is still uncertain. Need to wait for some more time.
• Industries growth and earning visibility are looking good but no idea which players are going to be there.

• Need to look at the overall sector perspective.
• Is there anything from the Government of India’s side about supporting the sector?
• Need to check organized or unorganized in that sector we need to see.
• There are two types of growth organic growth and inorganic growth.
• Inorganic growth the company is doing a lot of effort to grow and supporting factors supporting that business or sector.

• There is under-penetration in insurance sector.
• The growth opportunity is also good.
• So the company is having good market leadership.
• The future is good. A good growth number will be seen in these sectors.

• Recently they have got some market share because HDFC Bank credit card is not issuing the credit card.
• No player is listed in this sector and hence will continue to enjoy scarcity premium.
• Sbi card will be a star until and unless not other competitors are being listed.
• The under penetration is very high. In the coming time when the penetration increases the growth will be more.

• Patience testing could be there in this stock.
• ITC could perform better when operating margins in FMCG business and agribusiness go beyond 15% or at least start touching double-digit numbers.
• Although operating profit margins of ITC is 34% majorly because of the cigarette business.
• The margins of other FMCG Companies are double-digit 25% to 30% while it is single-digit in the case of ITC.
• Hence this stock can be good for conservative equity investors.

• Earning visibility is good.
• Growth is the question, the expense ratios will surely go down in the future as well.
• Due to ETF coming into the picture there could be more challenges.

• There is a challenge for this company from the AC business. But still, the penetration is growing.
• It is again an unorganized sector. But being in an organized section Opportunities are ample for this company.