Knowledge FAQs with Gaurav Jain (Knowledge Yagya- 05)

• Currently, the market is at an all-time high and every strategy is working.
• FIIs are pulling out the money in the last few sessions. DIIs are investing money in the market. That is the reason why the market is doing well.
• Need to have the thought process about the existence of the service and product from the long-term perspective.
• Is the industry growing well? Who do the promotors work with? Need to look into financials, valuation, etc.
• So we need to always look into the 5 parameters just as we talk about FIVE-G (Financials Industry Valuation Enterprise and Governance) framework.
• It is always good to look into these 5 parameters keeping the horizon of 10+ years.

• It is always about behavior management.
• Suppose the market which is around 16,000 comes down to 14,000 in the next 6-8 Months.
• To manage the behavior it is always recommended to invest in a staggered manner in the current markets.
• Suppose if the market gets corrected and got the opportunity to buy then you can park your investment now.
• It is better to take benefit of averaging. The averaging should not be more than 1 year.

• VI is currently having a customer base of 27 Cr.
• VI is not doing good currently.
• Mr. Kumar Mangalam Birla is ready to give the stakes to the government or any other buyers without the expectation of money just to save the company.
• A lot of people feel that government will save this company. It is felt that the government will not be helping in saving the company. There could be a possibility if BSNL and MTNL were doing good.
• There is no option other than the private sector to protect it.

• According to Indian Pharma major MOAT is manufacturing, regulations, and compliances which they do.
• The current MOAT is quality standards.
• R & D could be MOAT in the future.
• But Bharat Biotech has proved by creating COVAXIN. Which is completely indigenous.
• The other MOAT is also distribution.
• R & D will be outsourced to India is a very big opportunity not just in pharma but overall.

• There are some parameters to evaluate pharma stocks.
• Need to see how much is the export business, API business, formulation business.
• Also need to know the therapy area. What is the scope of therapy area in the future?

• HDFC Life has a minor promoter holding.
• The Promoter-HDFC Limited is doing some kind of provisioning.
• There is no such major selling of promotors.
• In HDFC Group there is no role of promotors.
• Due to covid death, the claims have increased that is the reason why companies’ numbers are not looking good.
• They are a very good company and in a very good industry.
• In India Life Insurance, health insurance is going to do very well.
• The focus they have in the protection business, they are not in group insurance where there are low margins.
• They are also having HDFC Bank as a distributor.

• Cipla is a good company. Sun pharma is also a good company but is having problems related to governance and many more.
• IT and Pharma industries are more or less similar. Because both are export-oriented.
• Cipla is into respiratory therapy which is very fast-growing,
• Sun Pharma is very aggressive. Looking are governance issues should be avoided. But looking at the business there is no problem.

• A smart way is to understand what they are doing just like need to understand what Zomato like a company doing in the market.
• Also need to know about the competition. How big they will be?

• The banking sector will be underweighted for some time due to NPAs on account of moratorium numbers.
• There will be stress in the banking sector for the next 6 months to 8 months. Will get to know about the NPAs.
• These are double engine growth in these banks.
• The financial growth sector is there and they are also taking PSU Banks sector market shareholdings.
• So there is market share growth and sector growth. That’s why the growth should happen.