Investment Satsang with Parimal Ade (Investment Satsang- 24)

3 min read

Here are some questions asked by the viewers in the Investment Satsang dated 16th October 2021. These questions can provide you with insights on some grounds. Please read these questions for knowledge purposes only and make any investment decisions only based on your research or the advice of your financial advisor.

Q  View on IRCTC?
Parimal Ade:

• Recently IRCTC had shared the shareholding pattern.
• It is an alarming situation. Currently, the general public holding of IRCTC was 13.26% and it has grown to 16.32%.
• FIIs and DIIs are decreasing their stakes in IRCTC continuously. If we see domestic institution investors holding then it is 11.29% has gone down to 8.48%. FIIs are decreasing their stakes from the last 4 quarters and currently, it is at 7.18%. Last December it was around 8.38%.
• Hence it is recommended to take a cautious approach for the long-term side.

Q  View on Indraprastha gas?
Parimal Ade:

• Overall natural gas is a bullish sector.
• How the government is pushing the natural gas sector is quite positive. Currently, the market share of CNG and other natural gas in the total energy sector is around 6%. The government wants to increase it to 15% of the total market. Therefore natural inflation growth will be available in this sector. Above that, the positive side is the government is also giving a push to natural gas.
• So if we talk about this sector, MNGL or Indraprastha gas these companies are performing well on different parameters. Hence it is required to keep it on the radar.

Q  Looking at the under penetration of the credit sector is SBI card good for 10-15 years and insurance sector?
Parimal Ade:

• Under penetration is huge in both these sectors whether it’s credit cards or insurance. There will be an added advantage to this sector will be there.
• Insurance sector valuations are on the higher side. It is also seen that the LIC IPO is going to come in the near term. Due to scarcity premium means less player in investment the market is giving a premium valuation. That angle is played out currently.
• Once the LIC IPO is listed after 6-8 months things will be rationalized after that it is all about growth percentage.
• This doesn’t mean these companies are going to underperform a lot.
• The expectation that was built in the last 2-3 years needs to be rationalized.

Q  Is it a good time to buy Tata Motors and Reliance now for 5+ years?
Parimal Ade:

• Tata Motors is doing a lot of good things such as electric vehicles. As TPG is also making a huge investment.
• Valuation is around 9 to 10 million dollars for that particular business.
• If the private equity player is investing in such business is such a positive thing and also the company is seeing growth in multifold. Hence the opportunity are good.
• It is felt that these numbers will be there for some decades. Hence Tata Motors should be on the radar.
• In Reliance there will be a lot of value unlocking opportunities.
• If we see reliance on Jio, retail, green energy. The aggressiveness that is seen from the reliance is also quite good.
• In the coming days, there could be chances of listing Reliance JIO, Retails, and Energy as well.
• Reliance is also managing the cash flows very well.
• Therefore, Reliance should also be there on the radar.

Q  What percentage of the portfolio should be in gold?
Parimal Ade:

• From an asset allocation point of view for the long term, the gold is not going to give returns of high double-digit returns.
• There will be some cycles that will give you returns. From the longer horizon, one should expect single-digit returns from gold.
• The percentage of gold to be taken depends on the risk profile.
• For an aggressive investor, equity will be on the higher side, if conservative and moderate kind of investor then they can have fixed income securities or gold as an asset class in portfolios.
• There is no thumb rule for the gold investment.

Q  View on momentum MF is it risky? What is the expected rate of return in Nifty 200 momentum 30?
Parimal Ade:

• This is a very interesting ETF launched.
• NSE teams are launching very good ETFs. It is going to be an interesting thing.
• There are going to be disciplined-oriented products.
• chances of failing will be quite less.

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