Knowledge Faqs with Parimal Ade (Knowledge Yagya-08)6 min read
Here are some questions asked by the viewers in the Yagya dated 24th August 2021. These questions can provide you 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.
• When the market has given very bad results and the market was looking very attractive from a valuation point of view then investing and doing SWP is understandable.
• Currently, the market has already given good returns.
• It is recommended to upfront buy the car and the monthly EMI Portion which was supposed to come could be invested in the SIP that could be the right choice.
• On both the companies, the view is positive.
• In the IDFC First Bank case, the consolidation can go longer because of Vodafone Issue.
• V Vaidyanathan said in the interview, the Rs 3,200 Cr. loan of Vodafone is not completed non funded. There is only Rs 1,100 Cr to 1,200 Cr. which is non-funded which means there is no collateral available for this.
• If provisioning is needed, it can be done from Rs 1,100 Cr to Rs 1,200 Cr.
• From Rs 3,200 Cr already Rs 400 Cr to Rs 450 Cr provisioning has already been done. The impact could be on the remaining Rs. 800 Cr.
• Currently whatever happens in the Vodafone stock same is replicating in IDFC First Bank. As the market has identified as coupled stock with Vodafone Idea. It might take some time.
• MCX overall there is a positive outlook.
• Financialization is happening not just from a savings point of view even from a commodities point of view. Things are getting connected.
• So in this time, MCX can also get benefitted. So this is a good sector to watch.
• There could be re-rating in such insurance stocks which is undeniable in HDFC Life too.
• The scarcity premium that HDFC Life used to get will not get after the listing of LIC.
• The kind of penetration that we are going to see in the life insurance industry has very good growth, trend and we have seen in the last 20 years, How LIC has lost its market share close to 33%.
• So there could be a benefit for the private companies in the market share from market share point of view.
• Future is good but there should also be re-rating as well. The kind of LIC is having a premium valuation. That is not going to continue until and unless they grow from the revenue point of view.
• Let’s wait for some more time. There could be some chances of consolidation. That is what is happening.
• LIC, HDFC Life or ICICI Prudential Life, or SBI Life insurance are in an organically growing sector.
• The Complexity of the business is not liked.
• The company is doing good from an inorganic point of view other than the organic point of view.
• Targets are also seen as inorganic growth capacity. It is not convinced due to the complex structure.
• Normally for retail investors. If the investor understands the company very well then it is better to go.
• Too much restructuring and changes in the company structure are not good.
• From qualitative analysis, this is not looking good.
• If the investment needs to be made in gold from the longer horizon. Then the SGB could be a good option as there is no taxation on the appreciation.
• In this, there is an interest of 2.5%
• Even they are in the Demat account.
• Whenever it is felt to sell then you can sell it. The volumes are also coming up in SGBs.
• In the coming days, things would be much better from the liquidity point of view.
• It is a positive thing as there will be one more subsidiary added to their business portfolio.
• It is also having a good customer base.
• Hence they would like to have an advantage by launching an AMC.
• Yet to see if they are going to launch a new AMC or acquire an existing AMC time will tell us.
• They have done good things in financial services.
• The biggest pain point of Bandhan bank is the microfinance loan book.
• Around 65% is a microfinance loan book.
• There is a problem in microfinance as the collection efficiency has been hampered a lot.
• Bandhan Bank is a normal bank not like a small finance bank. But still microfinance book is still more.
• So the collection efficiency has been impacted.
• At this time, It is recommended to stick with big banks. The banks which are managing very well is one should look at.
• Doing all things right, the traditional financial ratio could be wrong in this company.
• The opportunities are really good.
• Currently, the company is in expansion mode. That is why capital investment is required.
• Therefore the financial ratio is not looking very attractive.
• If you believe in Tata Consumer and Mr. Chandrasekaran’s vision. Then only you need to invest in this company.
• Very Positive on Tata Power.
• They are reducing the debt problem.
• The opportunities that are there from a distribution point of view and transmission point of view are going on well.
• There is a good focus on renewable energy.
• The ecosystem in the electric vehicle in which Tata Power has participated is also looking good.
• This is also a company that cannot be focused on just financial ratios. Need to discount the future growth prospects in the coming 5 to 10 years.
• Currently, the correction is around 10% to 15%
• It is still felt it is not like a crash. Still, the price is overvalued.
• One thing that needs to understand the margins of these contract manufacturers are very less. But the clients they are having are also very strong.
• The bargaining power is more towards the client-side instead of the companies. That is the problem. Even though the opportunities are very good.
• The PLI scheme could be benefited.
• The company is also trying to enter new categories also. The margin pressure will always be high.
• Overall the sentiment was positive these many days for these companies. And hence we have seen such kinds of rallies.
• If there is more consolidation then only it will be good.
• As the markets are crazy they keep on giving the valuations like this.
• KPIT Tech is doing all the right things during market consolidations. Specifically, if it is seen from the broader market aspect correction.
• The place where the extra alpha is created of the high beta stocks will have to suffer the brunt of the market.
• Over the investment of a longer horizon with 5-10 years there is no problem seen in it.
• From the electric vehicle automation point of view, the software is going to be an important part.
• The requirement of power in the coming days will be more. There could be support from the government as well.
• There are some states which are going to produce beyond capacity. Hence they are going to have a good future.
• So the player like IEX or the subsidiary IGX is the company to watch.
• This industry may face a challenge in the coming period due to electric vehicles.
• There are 2 things Growth and Stagnant Demand.
• If the new market is not captured then there could be a problem and that is what it is fearful of.
• As per Mr. Bhavesh Agarwal the promoter of OLA. The plan of the revolution that he is planning to bring is from OLA Electric.
• It is said that 10 million vehicles they are planning to produce.
• With this capacity, Hero MotoCorp has never achieved it.
• The pace is tremendous. If the response of the competition is not good then it is going to hamper their (Hero MotoCorp) market share.