Top Stock Picks: Bank, NBFC & HFC Stocks To Buy Ahead of Q4FY22 Results

The brokerage firm HDFC Securities has given an eye on the banking space and has picked up Axis Bank for a target price of Rs 1,021, Bandhan Bank for a target price of Rs 406, City Union Bank for a target price of Rs 213, Federal Bank for a target price of Rs 126, ICICI Bank for a target price of Rs 1,001 as its top picks with a buy rating. Whereas, Cholamandalam Investment and Fin Co (CIFC) for a target price of Rs 774, CreditAccess Gr for a target price of Rs 994, and SBI Card with a target price of Rs 1,255 are the brokerage's top selections in the NBFC and HFC sector, with a buy rating ahead of Q4FY22E results.  

Banks	Recommendation	Target Price in Rs
AU Small Finance Bank	REDUCE	1,264
Axis Bank	BUY	1,021
Bandhan Bank	BUY	406
City Union Bank	BUY	213
DCB Bank	ADD	131
Federal Bank	BUY	126
ICICI Bank	BUY	1,001
IndusInd Bank	REDUCE	968
Kotak Mahindra Bank	REDUCE	2,155
Karur Vysya Bank	ADD	58
RBL Bank	REDUCE	160
Ujjivan Small Finance Bank	REDUCE	21
NBFCs and HFCs	Recommendation	Target Price in Rs
Bajaj Finance	REDUCE	6,413
Cholamandalam Investment and Fin Co Ltd	BUY	774
CreditAccess Grameen Ltd	BUY	994
IndoStar Capital Finance Ltd	REDUCE	229
LIC Housing Finance Limited	REDUCE	409
Mahindra & Mahindra Financial Services Ltd	ADD	207
Repco Home Finance Ltd	ADD	290
SBI CARD	BUY	1,255
Shriram Transport Finance Co Ltd	ADD	1,641
Ujjivan Financial Services Ltd	ADD	201
Source: hdfcsec.com. Data as of 14 April 2022

Disclaimer- Investing in stocks is risky and investors need to be cautious. Neither Brokerage nor the author would be responsible for any losses incurred based on decisions made from the article. Please consult a professional advisor and avoid investing lumpsum amounts.

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4 Multibagger Stocks That Will Soon Issue Bonus Shares

Bonus shares are issued in some provided proportion to the company's existing shareholders free of cost. From the company's free reserves, the bonus shares are issued at the existing FV of equity shares of the company.

So, here are 4 multibagger scrips that will go ex-bonus next week and hence will be soon adding bonus shares for your existing shareholding in the stock. So, check if you hold any of the below scrip and eligible for bonus shares.

BSE 

The monopoly stock exchange that turned out to be quite lucrative for investors with 1-year return of 421% announced bonus share issuance. The company on February 8, 2022 announced that it shall pay bonus shares in the ratio of 2:1 i.e. 2 shares of Rs. 2 each for every one full paid up share of Rs. 2 each held by the shareholders of the company as on record date fixed at March 22, 2022 and hence the stock shall trade ex-bonus from March 21, 2022. BSE stock ahead of the stock turning ex-bonus trades lower by over 5% on Thursday (March 17, 2022) at a price of Rs. 2811 per share, while the stock's 52-week high price is Rs. 3140. BSE as per the latest m-cap is the small cap company with a high public shareholding. The corporatized entity that offers a transparent platform for trading in equity, mutual funds, debt and derivatives instruments.

Virinchi 

The company has announced 1:1 bonus share issuance and shall again go ex-bonus on March 21, 2022. The small cap company from the software space works to offer market lending loan management system for short term micro credit industry, full scale IT services with speciality in Analytics & Mobility and Healthcare Delivery Business in India comprising Three Operating Hospitals with a Pan-India Healthcare Mobility solution. Established in 1991, the company operates out of Hyderabad. For the purpose of eligibility determination for bonus shares, record date is March 22, 2022.

DJ Mediaprint & Logistics 

A small cap company's is a leading provider of Integrated Printing, Logistics and Courier solutions in India and overseas with an extraordinarily networked transport operations, pre-eminent quality standards and leading processes & operations. It also provides Bulk Mailing, Speed Post, Records Management, Manpower Supply, RTO Management, Bulk Scanning, Moving and other services. The company also announced 1:1 bonus share issuance on 3rd February and the stock shall turn ex-dividend on 24th March, while the record date for the said bonus is March 25, 2022.

Nandan Denim 

This is the country's leading denim supplier. The company's annual denim production capacity is 110 million meters. The company supplies its fabric to its clientele in over 27 nations across the globe. The other products of the company are shirting and yarn. This company on February 10, 2022 announced bonus shares in the ratio of 2:1 and the stock shall trade ex-bonus from March 24, 2022, while the record date is March 25, 2022.

Effects of bonus share issuance one should know 1. Increases number of outstanding equity shares 2. Reduces share price in proportion to number of bonus shares issued 3. Reduces free reserves and surplus of the company. 4. Creates implicit value per shareholder 5. Increase liquidity in shares on the stock exchanges 6. Reduces per share ratios i.e. EPS, book value per share etc.

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Bet on these 3 stocks for double-digit returns:

Can you name a few stocks that look attractive at current levels and can give double digit returns in a month or so? Can you explain technical reasons that can support your advice?

Axis Bank: The Nifty Bank index has been an outperformer since quite a few sessions. Axis Bank is on the verge of a multi-year breakout. The breakout will get confirmed above Rs 828 mark and once that is taken out we expect a fast upside momentum in the stock. Traders are advised to buy the stock above Rs 828 with a stop loss of Rs 790 for an upside target of Rs 910 in the coming three-five weeks.

IDFC First Bank: After the sharp fall from the top of Rs 69, IDFC First Bank took a U-Turn from the support of Rs 40 which was the placement of 200-week EMA. After that the stock has confirmed a falling trend line breakout above Rs 50 mark. The stock has a placement of 200 DEMA at Rs 52 and above that we expect sharp upside in the counter. Traders are advised to buy the stock near Rs 50 with a stop loss of Rs 45 for the upside potential target of Rs 60 in coming 3-5 weeks.

PC Jeweller: PC Jeweller has recently confirmed a range breakout above Rs 27 and then rallied towards Rs 31 mark. Due to the ongoing profit booking in the market; the stock has again retested the breakout zone. At this point in time; the risk reward looks lucrative to go long for a trader. Traders can buy the stock above Rs 29 with a stop loss of Rs 26 for an upside target of Rs 35 in coming 3-5 weeks.

What should investors do with Reliance Industries, Yes Bank and ICICI Bank on Monday?

With regards to Reliance Industries, the stock is showing some signs of exhaustion. Despite the result, we are of the opinion that one should wait for a dip towards Rs 2,500 to make it an attractive buy. Those holding the same should continue to hold.

Yes Bank is still in a no trading zone till the time it is below Rs 15. Once it crosses Rs 15 then we expect some sharp momentum in the stock. Fresh buying is advisable only above Rs 15 in Yes Bank.

ICICI Bank is still trading and trading at its life high. The momentum shall continue till the time stock is above Rs 735. Short term traders who are holding ICICI Bank should continue to hold with Rs 735 as a stop loss. For investors we feel that the stock is poised for much higher levels once the Nifty Bank index clears 41,000 mark.

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New Margin rules in trading w.e.f. 01-09-2021

SEBI margin rules explain in layman’s language:

SEBI has changed some rules related to margin and trading. 

1) Buying and selling of shares will Require Upfront margin from now onwards.

Eg: If you want to buy Reliance shares worth 1lakh, you must have 20k Rs in your account as cash and the rest money to be paid within 2 days...

👆🏻 Major Change If you want to sell 1 lac worth of Reliance shares from your holdings for that scenario also you must have min 20k rs in your account. Failing which penalties will be levied.

👆🏻 Read Carefully... Selling from holding will also require Upfront margin in cash (Var+ELM).

You can keep extra cash or can pledge other holdings for the stipulated margin required.

2) Shares bought today cannot be sold Tomorrow. 

Implications:  BTST Closed

Eg You bought Reliance On Monday. You can only sell those shares after receiving the delivery of shares. T+2 you can sell on Wednesday.

You can only sell the shares after you receive in Your DP/only after receiving the delivery of shares.

3) Shares Sold Today from delivery..... the funds cannot be used for new trades today. You can use the funds for new trades the next day.

Eg:🌟 You sold 100,000 Rs worth of Reliance's shares today. 

👆🏻You cannot use this money to buy fresh shares of other companies. 

No changes In options and Futures Rules for Now Till further Notice. 

✍️

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Three Stocks That Can Give Good Returns In Short Term, Says ICICI Securities

 

Buy Sudarshan Chemical, Says ICICI Securities

Sudarshan Chemical, which was founded in 1951, is a major participant in the Indian colour pigment sector, with a 35 percent market share, and is also one of the top four companies globally.

ICICI Securities believes that the revenue growth of specialty pigments is expected to be aided by upcoming capex. To improve the business's margin profile, a higher share of value-added business portfolio is required. Allocating additional FCF to organic and inorganic growth is anticipated to expand return ratios even more.

Current Market Price	Rs 642
Target Price	Rs 795
Upside Potential	24%

Sudarshan Chemical: Upcoming capex offers strong visibility ahead

ICICI Securities has retained a Buy on the stock with a revised price target of Rs795. "The stock appreciated at 30% CAGR in last three years. We retain BUY rating on the back of better growth outlook from speciality pigments Target Price and Valuation: We value Sudarshan Chemical at 25x P/E FY23E EPS to arrive at a revised target price of Rs 795/share.

Apart from Sudarshan Chemical, we also appreciate Neogen Chemical in our chemical coverage. Future revenue growth for Neogen Chemical is projected to be driven by more bespoke synthesis opportunities," the brokerage has said.

Buy Motherson Sumi: ICICI Securities

Motherson Sumi (MSS) principally services the global PV industry with essential product lines such as wiring harnesses, vision systems (mirrors), and plastic body parts.

According to ICICI Securities, they expect a 12.6 percent net sales CAGR from FY21 to FY23E, backed by a healthy expected revival in global OEM client volumes and a strong orderbook. Minimal EV risk, with EV share of orderbook at 25% (FY21). Focus on higher content per vehicle to gain traction. Margins seen rising to 10.8 percent by FY23E, backed by higher capacity utilisation at greenfield plants and gene.

Current Market Price	Rs 225
Target Price	Rs 270
Upside Potential	20%

Target price of Rs 270 on the stock

"MSS' stock price has grown at ~10% CAGR from ~Rs 145 levels in August 2016, widely outperforming the Nifty Auto index. We retain BUY rating on global PV premiumisation play, EV neutral products Target Price and Valuation: We value MSS at 30x P/E on FY23E basis for a revised target price of Rs 270 (earlier Rs 300).

Buy Trent, Says ICICI Securities

Trent is India's largest retailer, having 400+ outlets and a presence in a variety of consumer sectors. Trent is one of the fastest growing companies in our retail coverage universe, because to the inherent power of its brands (Westside, Zudio, Star, Zara) and expedited store openings.

ICICI Securities believes that for FY22-23E, we estimate 175 new stores between Westside and Zudio. Expect revenue recovery to pick up speed from H2FY22 onwards, with revenue and profits CAGRs of 17 percent and 36 percent in FY20-23E, respectively. The company wants to expand its sales at a CAGR of 25%+ in the long run.

Current Market Price	Rs 947
Target Price	Rs 1100
Upside Potential	16%

DISCLAIMER

Investing in stocks is risky and investors need to be cautious. Neither Brokerage nor the author would be responsible for any losses incurred based on decisions made from the article. Please consult a professional advisor and avoid investing lumpsum amounts.

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Two Large Cap stocks should add in your Portfolio

We have shortlisted two stocks that have already delivered strong returns, but they have tremendous potential to sustain and provide superior returns in the future.

Dixon Technologies (India) Ltd

Established in 1993, Dixon Technologies is a manufacturer and exporter of electronics items. The company started its journey with the manufacturing of color TVs in 1994. Since then, it has expanded its product portfolio by manufacturing many electronic and lighting products, including mobile phones, CCTV security systems, washing machines, battens, downlighters, and LED lights. The company is a contract manufacturer of many electronic items for Philip, Samsung (KS: 005930 ), Xiaomi, and Panasonic. Dixon is looking for backward integration and spreading its wings into various categories related to its products. On the Q4FY2021 conference call, the company’s management expressed confidence to triple its revenue in the next three to four years on an FY2021 basis.

In the last three years, Dixon has more than tripled its revenue. The company posted a 47% year-on-year jump in its revenue in FY2021 to Rs 6,448.2 crore from Rs 4,400.1 crore in its previous year. Its 9-year revenue CAGR stood at ~30%, and its net profit CAGR remained at 75% during the same time frame. Steady opening-up of the global economy, high disposable income, penetration of mobile in across the urban, semi-urban, and rural India, e-commerce growth driving last-mile delivery, Dixon’s increasing share in domestic electronic manufacturing, global brands’ China+1 strategy to strengthen supply chains, Indian Government’s support through PLI scheme along with a healthy balance sheet make the stock a perfect pick for long term. In a year, Dixon Technologies stock more than doubled, touching nearly Rs 4,600 on July 22. Since its listing in September 2017, the scrip returned a whopping 764% to investors. It looks like the scrip is exhausted, but it returned 67.2% in the last six months and is poised to propel further. 

Polycab India Ltd 

Established in 1996, Polycab India manufactures and sells wires, cables, and fast-moving electrical goods (or FMEG) under the ‘POLYCAB’ brand. The company also manufactures and sells electric fans, LED lighting and luminaires, switches and switchgear, solar products, and conduits & accessories. Polycab diversified into engineering, procurement, and construction (or EPC) business in 2009. The company’s telecom division manufactures OFCs, FRP/ARP Rods, IGFR Yarns, and a complete array of end-to-end passive networking solutions. Polycab is India’s largest manufacturer of cables and wires, with an 18% market share in the organized market.

The present regime in India is hell-bent on improving the existing infrastructure and transforming the country into ‘Digital India.’ Constructing bridges, dams, civic amenities, and smart cities require cables and wires to transmit power. The same is true for fully blown digital commerce. Revival in the residential realty market, rapid urbanization, aspirations for a better life, customer awareness about safer and energy-efficient products should drive the demand for Polycab’s products in the future. On the financials front, Polycab registered an 8-year CAGR of 11.45% for total operating revenue by clocking revenue of Rs 8,856 crore in FY2021. Its profit after tax CAGR stood at a whopping 34.7% during the same time frame. More noteworthy is that Polycab recorded a 9.4% year-on-year growth in net profit in FY2021 touching Rs 831.3 crore despite pandemic woes. In a year, the scrip gained 129.4% and 58% in the last six months—currently, it is trading at a 6% discount to its 52-week high of Rs 2033.

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Three Stocks to Hold for Good Dividends and Best Returns

 

Markets are trading near their all-time highs, and the intense inflationary pressures are hovering over the Indian economy. The annual consumer inflation rate in India was 6.26% in June 2021, marginally lower than 6.3% in May 2021. The fixed deposit rates for more-than-365-days-FD in nationalized and private sector banks range between 5.5%-6.5%. It leaves investors searching for better returns on their funds. Dividend-paying stocks come to their rescue when markets are at a very high level or likely to move sideways. Steady and continuous dividend payouts provide cushion to investors and even cater to their on and off monetary needs. We have discovered three stocks that have a consistent dividend payment record. Apart from their consistent dividends, these stocks haven’t displayed any visible capital erosion in the last few years. We have picked up three stocks that are good dividend paymasters.

 

Oil India Ltd 

Oil India is India’s second-largest government-owned hydrocarbon exploration and production company with a Navratna status. The company is involved in the exploration, development, and production of crude oil & natural gas with geographical interests in India’s North East and Rajasthan. It is also engaged in the transportation of crude oil and the production of liquid petroleum gas. Oil India is a fully integrated upstream petroleum company. From March 27, 2020, the company’s shares have displayed an uptrend only.  It has consistently paid dividends in the last ten years. OIL announced a dividend of Rs 3.5 per share on February 11, 2021. Based on today’s closing price of Rs 161, the company’s dividend yield comes to 3.1%. Its dividend payout ratio is 19.7% compared to the industry’s 10.2%.

 

Balmer Lawrie & Co. Ltd. 

Balmer Lawrie and Company traces its roots to a more than 150-year-old partnership firm.  The company is a Miniratna-I public sector enterprise. The company manufactures steel barrels, industrial greases & specialty lubricants and is engaged in corporate travel and logistics services. For the last 20 years, the company has consistently paid dividends. For the year ending March 2021, the company declared an equity dividend of Rs 6 per share. At today’s closing price of Rs 137.6, the dividend yield comes at 4.4%, much better than the peer group’s dividend yield of 1.4%. The company’s dividend payout ratio was 85.3% against the peer group’s 29.7%. Despite being a dividend-paying company, its stock has delivered positive returns over the last few years. Balmer stock fetched a return of 32% in the previous five years, 15% in a year, 8.4% year-to-date, and 19.5% in the last six months. The upsurge in the company’s share price should support a decline in dividend payout in the future.    

 

Hindustan Zinc Ltd.

Hindustan Zinc is India’s largest and the world’s second-largest zinc-lead miner. The company’s mine life is over 25 years, with a reserve base of 150.3 million MT and mineral resources of 297.6 million MT. At present, the company holds a 78% market share in India’s primary zinc industry. Hindustan Zinc is also the 6th largest silver producer globally, with an annual capacity of 800 MT. The company has consistently paid dividends every year since 2001. For the year ended March 31, 2021, Hindustan Zinc has declared an equity dividend of Rs 21.3 per share. At the current share price of Rs 326.5, the dividend yield comes at 6.52%. Note that the company’s stock price fetched 60% in the last five years and 57.4% last year. In the previous six months, the scrip delivered a 21.8% return to shareholders. Hindustan Zinc provides an optimum combination of capital appreciation and dividend gains.

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Two Midcap Stocks for Long Term Investment

The BSE Midcap index returned 26.53% on a year-to-date basis, whereas it was up 66.25% last year. The previous three months delivered 14.3%, and it was up 2.1% in a month’s time frame. Thoroughly scrutinized mid-cap stocks have the power to change investors’ fortunes. We have scanned the mid-cap space and came up with two scrips that have the potential to create investors’ wealth over the long term.

 

Orient Electric Ltd (NS: ONTE )

Erstwhile Calcutta Electrical Company, Orient Electric became part of the 150-year old CK Birla group in 1954. The company manufactures fans, lighting, home appliances, switchgear, and other electrical solutions. Orient is the largest manufacturer and exporter of fans in India. Since 2018-19, the company partnered with De’Longhi group, which ensured gateway to premium brands of De’Longhi, Kenwood & Braun into India. Orient demerged its cement and consumer appliances business from Orient Papers. Orient Electric got listed in May 2018 post its demerger from Orient papers. Over the last few quarters, Orient Electric has increased its focus more on the niche products range and putting higher thrust on innovations. With the launch of new and premium products over the last few years, the company has successfully managed to remain ahead of the stiff competition in the electrical appliances space.

Orient Electric’s revenue CAGR for the last four years was 7.7%. While the Electric Consumer Durable segment’s revenue CAGR was 7.5%, the Lighting and Switchgear vertical posted an 8.4% CAGR. Revival of real estate augurs well for its Electric Consumer Durable business. Its operating EBITDA CAGR was 17.5% during the same period. Notably, despite pandemic-induced lockdowns, its operating EBITDA jumped 24.4% in FY2021 compared to its previous fiscal. Profit after tax CAGR for four years was a decent 23.7%. The company’s return on capital employed grew 1180 basis points to 38.7% in FY2021 from 26.9% in FY2018. For the year ended March 2021, Orient’s debt-equity ratio was a meager 0.03:1. The scrip returned around 90% to investors in a year and trading very close to its 52-week high.   

 

Hatsun Agro Product Ltd (NS: HAPL )

Hatsun Agro Product traces its root to 50-year old Arun ice cream. The company is engaged in milk and milk products, cattle feed, and fast foods. Hatsun is among the top players in the space in southern India. Milk and milk products constitute roughly 94% of the company’s total revenue in FY2021. While milk contributes 65% to revenue, the remaining 35% comes from value-added milk products. Hatsun’s branded liquid milk revenue growth is in line with market expectations. In FY2021, the company has expanded its geographical reach by opening a dairy plant in Maharashtra’s Solapur and paneer manufacturing facilities in Tamilnadu. It is in expansion mode, as is seen from its capital expenditure cycle. The board of directors has approved increasing its borrowing limit from Rs 1,500 crore to Rs 1,800 crore.

In Q1FY2022, Hatsun Agro posted a 20.8% year-on-year revenue growth to Rs 1546.2 crore from Rs 1,280.7 crore in Q1FY2021. Its net income jumped 4% during the same period. Notably, the company’s other than milk and milk products revenue jumped 27.6% in the quarter ended June 30, 2021, compared with the corresponding period last year. Expansion of existing product portfolio, gradual unlocking of economy, easing of supply chains and consumers’ shift from unorganized to organized milk and milk products should drive Hatsun’s top-line growth placing the stock as a long-term bet. The stock fetched an 85.4% yield to shareholders in a year and trading at an 8.7% discount to its 52-week high of Rs 1035.      

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This multibagger stock gave 514% return in 1 year and still running

Share of Mastek Limited has delivered 514 per cent return to its shareholders in the last 12 months. The share stood at Rs 423.55 on July 20, 2020. It has zoomed to Rs 2,600 today, translating into gains of 514 per cent during the period.

In comparison, Sensex rose 40 per cent in one year. Rs 1 lakh invested in the share a year ago would have turned into Rs 6.14 lakh today.   The stock rose 4.3 per cent to hit an all-time high of Rs 2,600 on BSE today after the company posted healthy June quarter results. The stock has gained 82 per cent in the last three months and risen 122 per cent since the beginning of this year. With a market capitalisation of over Rs 6,300 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.   The company posted a net profit of Rs 69.30 crore for the quarter ended June 2021 as against Rs 60.55 crore in the previous quarter ended March 2021. 

Mastek's dollar revenues grew 6.5 per cent quarter-on-quarter (QoQ) to $70.2 million.   "Mastek has delivered strong results in Q1FY22. The company added 40 new clients in the quarter. OPM Margin stood at 21.84% in June 2021 compared to 17.64% in June 2020. We have seen a strong run-up in the stock price in the last one year so buy on declines around Rs 2200-2300 is the best strategy in the stock for the long term," Akhil Rathi, Vice President Advisory at Marwadi Shares and Finance Limited told BusinessToday.In.   

According to MarketsMojo, the stock is trading at a premium compared to its average historical valuations. The technical trend has improved from Mildly Bullish on July 7, 2021, and the stock is technically in a Bullish range now and has generated a 13 per cent return since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV. It also noted that the company has a high Return on Capital Employed (ROCE) of 31.61% and the stock seems fairly valued at the moment.   Commenting on the Q1FY22 results, Arun Agarwal, Global Chief Financial Officer, Mastek Limited, said: "Q1FY22 has been another quarter of consistent financial performance. 

We reported Rs 516.5 crore revenue, reflecting a growth of 6.9% sequentially, demonstrating the strong fundamentals of our business in these challenging times."   "Despite an increase in costs due to onshoring, promotions, and investments in talents during the quarter, we have been able to maintain a healthy operating EBITDA margin of 21.8%. We continue to maintain the healthy free cash flow of Rs 115.4 crore during the quarter," he noted.   "We are confident that with increasing demand for digital services, strong order backlog, and strategic investments, we are well placed to sustain the growth momentum, create values for our customers, and maximize value for our shareholders," he added.   

The company informed that the 12-month order backlog stood at Rs 1,177.7 crore as on 30th June, 2021 as compared to Rs 1,130.4 crore in Q4FY21, reflecting a growth of 4.2% in rupee terms and 2.1% in constant currency terms on a quarter-on-quarter basis and Rs 764.5 crore in Q1FY21, reflecting a growth of 54.0% in rupee terms and 45.5% in constant currency terms on Y-o-Y basis.   Mastek enables large-scale business change programmes through its service offerings, which include Application Development, Oracle Suite & Cloud Migration, Digital Commerce, Application Support & Maintenance, BI & Analytics, Assurance & Testing, and Agile Consulting.

DISCLAIMER

Investing in stocks is risky and investors need to be cautious. Neither Brokerage nor the author would be responsible for any losses incurred based on decisions made from the article. Please consult a professional advisor and avoid investing lumpsum amounts.

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Eight simple strategies to manage your money in stock market

 

“Life is really simple, but we insist on making it complicated.”– Confucius

The same stands true for personal finance. Humans have two popular ways to pass time – listening and telling stories, and forecasting. There are two laws of forecasting. First Law: For every forecast, there is an equal and opposite forecast. The second law: They both can be wrong.

Timing the market is generally a zero-sum game. Stick to your desired asset allocation. But then, there are times markets move in extremes. You can call this madness of the crowd. Stories get overstretched. During such times, you can trim down your allocation. But then, markets can be irrational for a long time; so you should have the ability to bear some pain.

IQ vs EQ

Investment is a test of your EQ (Emotional Quotient). From 1 Jan 2003 to 1 Jan 2008, Nifty delivered ~43.7% CAGR. During such times, equity seems like Ferrari and fixed income looks like a bullock cart.

From 1 Jan 2008 to 1 Jan 2014, Nifty delivered ~1.6% CAGR and during this period, interest rates were high. In this scenario, fixed income seems like Ferrari and equity seems like a Bullock cart.Equity, gold, real estate and fixed income all have their own cycles. Having a combination of these assets is called asset allocation.Napoleon's definition of a military genius is "The man who can do the average thing when everyone else around him is losing his mind." The same is true for personal finance.

Outsourcing thinking will not help

All advertisements show the advantages of the product. You will not see a pizza advertisement talk about cholesterol. The same is true with investments. Risk and side-effects are invisible and need second-level thinking. A real estate agent will not tell you about the risk of buying an under-constructed property. Or a jeweller will not talk about making charges, impurity, storage cost, or issues of theft for physical jewellery. You will have to think on your own. There is no free lunch in finance; everything has a price. The price for high equity returns is volatility and uncertainty. The price for safe fixed income products is low returns.

Custom fit

Today, in a fast-paced life, we look for ready-made solutions. But in personal finance, everything should be custom-made. Your goals are unique. Your behaviour is unique. When you boil water, it becomes hot. But after some time, it comes back to its normal temperature. The same is true with our behaviour. We get emotional watching movies, inspirational videos, tweets, blogs, books, etc. But then revert to our original self. Our genes, upbringing, friends, parents, society, and circumstances shape our behaviour. Our behaviour is like a fingerprint – it’s unique. Hence, we need to build a portfolio based on our behaviour.

It's a mind game

When you get a promotion, you feel happy. Some chemicals produced in the brain make you happy. You can feel happy even without promotion if somehow your brain can produce the chemical. Exercise produces happy hormones. Gambling produces a chemical dopamine, which is like drugs. That is why gambling is addictive. It all boils down to building a portfolio with the right mix of assets. If you are checking your portfolio frequently, it means you have got your allocation wrong. Either you need to add equity or trim it down.

Keep it light

If many applications are working at the same time on your laptop, do you think your laptop will be able to work efficiently? Close unnecessary windows. Rather than tracking stocks or bonds on a daily basis, invest in an equity and debt mutual fund. Ask yourself, is finding stock ideas your competitive edge? Invest in a combination of actively managed and passive mutual funds to take exposure to the market.

Everything seems simple when you know the ending

Many investors regret not buying March 2020 fall. Today Sensex is at ~50,000 levels and you know the ending now. What if the ending were Sensex at 20,000 level? Would you have felt the same? Every fall looks like a buying opportunity in hindsight. But we freeze when the market falls. And that’s why asset allocation is important. In 2008, the 150-year-old investment bank Lehman Brothers collapsed. One of the biggest insurance companies, AIG, came down to its knees. And on top of it, imagine you losing your job at the same time. Does this look like an investment opportunity?

Importance of right tools

Personal finance has got nothing to do with the noise we listen to daily. The irony is that we consume information that has a few days of expiry and take long-term decisions. We use a microscope instead of a telescope to make financial decisions. When you play the long game, you are thinking of the whole voyage and not what happens next quarter.The truth is that we do not know what is going to happen tomorrow. Markets are crazy and nothing is guaranteed. A market correction is not a bug that can be fixed. It is a feature. Markets have always been volatile and will continue to remain volatile.

Stick to basics

Do not look for efficiency; look for effectiveness. There is no best fund, no ideal asset allocation formula and there is no single indicator that can help you time the market. There are sure shot stocks that are guaranteed to do well. There is also no guarantee that Indian equities will generate the same kind of returns which it has given in the past. There is no guarantee your health will be fine tomorrow. There are so many moving parts and all are fluctuating.

Planning is a continuous process. Your goal post keeps moving. Your risk appetite keeps changing because your circumstances are changing. Build a plan and stick to that plan. Seems simple, doesn't it? But then investors should also keep in mind Mike Tyson's famous quote: “Everyone has a plan until they get punched in the mouth”. They would do well to see that the plan should have a sufficient margin of safety to deal with situations that are beyond their control.

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5 habits you must to follow to be a successful investor

 1) Always be patient: Investment is a long term strategy and to be a successful investor it is important to ignore short-term volatility and stay invested. 

 2) Do not hesitate to ask for help: Investors should never hesitate to ask for help from a professional when it comes to money management. 

 3) Never get emotional: Keep emotions aside when it comes to investments.

 4) Always be inquisitive: Successful investors always know where their money is being invested. If you have hired a professional, ask them as many questions and clear all your doubts about any investment they suggest to you. 

 5) Follow a disciplined approach: To achieve success with your investments, make regular contributions towards your investment portfolio

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Hero to Zero share in Market

These are the company's which perform hero to zero in market and people's have lost their money after investing in this company ....

1. Reliance Infra   - 2500 > 42.70

2. Rel Capital   - 2924 > 62

3. Rel Power  - 430 > 4.15

4. R COM - 800 > 1.45

5. R NAVAL - 117 > 3

6. DHFL   - 690 > 62.90

7. Jet Airways - 883 > 33

8. Jain Irrigation - 264 > 25

9. PC jewellers  - 600 > 45

10. Vakrangee  - 515 > 31

11. Suzlon  - 400 > 3.35

12. Kwality  - 225> 2.45

13. JP Associates  - 339 > 2.70

14. JP Power - 140 > 1.90

15. JP Infra - 100 > 1.60

16. manpasand beverages  - 500 > 28

17. Central Bank - 210 > 22

18. J&K Bank  - 176 > 34.70

19. Mercator - 165 > 1.65

20. Aban offshore - 5400 > 35.40

21. Sintex Plastic Tech - 120 > 8

22. BPL 152 > 21

23. HDIL 1100 > 14.50

24. Videocon 760 > 1.70

25. MTNL 217 > 7.60

26. ILFS 308 > 3.10

27. Cox & King - 367 > 62.70

28. Mcleod Russel  - 325 > 18.85

29. Eros Int  - 643 > 25.80

30. LEEL  Electricals - 340 > 7.30

31. Alok Ind 105 > 3.80

32. Subex 725 > 5.80

33. Adlabs  - 207 > 4.05

34. Atlanta - 270 > 9.30

35. IFCI - 114 > 7.65

36. GMR Infra - 124 > 14.80

37. Uttam Galva  - 172 > 7.55

38. Oil Country  - 172 > 5.90

39. Punj Llyod - 580 > 1.25

40. Lovable lingerie - 612 > 69

41. Shree Renuka Sugar - 120 > 9

42. Patel Eng  - 1020 > 18.80

43. RS Software  - 400 > 20.75

44. On mobile - 361 > 31.15

45. Windsor machines - 150 > 25.10

46. Bartronics  - 255 > 3.90

47. Rolta - 375 > 5.45

48. kohinoor food - 136 > 16.30

49. Dolphin offshore - 445 > 29.40

50. Snowman logist - 130 > 29.50

51. IRB INFRA 310 > 93

52. HEG 4500 > 1320

53. Varroc Engineers 1151 > 450

54. Goa Carbon 1185 > 340

55. Hotel leela 85 > 7.55

56. Vodafone Idea 118 > 11.35

57. Educomp 1100 > 1.50

58. VIP Clothing 100 > 11.70

59. Gati 290 > 57

60. GTPL 180 > 58

_**ये तो सिर्फ झाँखी है*_

            _*पिक्चर अभी बाकी है**_

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Stock tips based on current news

 ✅ With orders of heavy weight torpedoes worth Rs.1200 crore, Bharat Dynamics is on its way to become a major defence equipment supplier. Buy for the long term.

✅ Dewan Housing Finance Corporation has paid Rs.962 crore interest towards non-convertible debentures within a week of default. Good times may not be far off. Buy selectively.

❎ There is no information available on why Kridhan Infra is falling like ninepins. Stay away from this counter.

✅ The Supreme Court has junked allegations of IndiaBulls Housing Finance being involved in siphoning off Rs.98000 crore. A good opportunity to buy.

✅ The recent tsunami in the stock market could not dent the share price of Suven Life Sciences, which indicates its inherent strength. With some approvals in the pipeline, its future looks bright. Buy.

✅ While most NBFC stocks have turned jittery, L&T Finance Holdings is firm. Buy at this beaten down level for good returns in two years.

✅ Last opportunity to accumulate Graphite India, which reported excellent results. The stock goes ex-dividend (Rs.35/share) this week. Buy immediately.

✅ Volumes at the Parag Milk Foods counter are rising each day. Some good news may be in the offing. Its latest results were also good. Buy.

✅ Varun Beverages plans to declare a bonus issue. Accumulate.

✅ Although Maruti Suzuki (India) cut its output by 18% last month, it remains a market leader. A correction in its share price may trigger selective buying. Keep an eye on this share.

❎ Another de-rating of Yes Bank is possible. It is advisable to sell now and buy again later.

✅ Ultratech Cement has received environmental clearance for its Rs.2500 crore project in Andhra

Pradesh. A positive for the company. Buy.

✅ Bajaj Auto’s Executive Director, Rakesh Sharma, is optimistic about the strategic alliance between KTM and its high power E-bikes. Buy for the long term.    

                                                                                                         ✅ Navin Fluorine International’s Q4 results were below expectations due to input cost pressures. However, the opportunities ahead remain lucrative. Accumulate in small quantities.

✅ Biocon now quotes ex-bonus. With quite a few profitable products in the pipeline, its future looks bright. Buy.

✅ The promoters of Sterlite Technologies removed their entire pledge on the company’s shares. This positive news could boost its share price. Buy.

✅ Titagarh Wagons plans to sell 4.5% stake in its arm Cimmco to pave way for the proposed scheme of amalgamation.  A correction in its share price may be a boon in disguise. Accumulate on dips.

✅ KEC International expects 15-20% revenue growth this year. Moreover, the promoters have been increasing their stake in the company, which is a positive sign.

✅ Natco Pharma is likely to announce new launches in the US markets. The stock is available at a 40% discount to its 5- year average trading range. Buy.

✅ Hospitality major Royal Orchid plans to add about 500 rooms in the next 2-3 years. Buy for the long term.

✅ Going by its FY19 EPS of Rs.35, Saksoft is likely to notch an EPS of Rs.45+ for FY20. The stock is poised to cross Rs.450 going forward.

✅ Based on its current performance, Shreyans Industries is expected to notch an EPS of Rs.38+ for FY20. Buy for about 30% returns in the short-to-medium term.

✅ Mawana Sugars, which posted an EPS of Rs.11 for FY19, is on a debt reduction drive.  It may notch an EPS of Rs.14+ for FY20. The stock is poised to touch Rs.75.

✅ Vindhya Telelinks posted a consolidated EPS of Rs.232 for FY19 on its small equity of Rs.11.8 crore. Its share book value is Rs.2020. The stock has the potential to cross Rs.2800 on a reasonable P/E of 12x.

✅ Going by its FY19 EPS of Rs.16, Trigyn Technologies is likely to notch an EPS of Rs.20 for FY20. A good stock to accumulate for the medium-to-long term.

✅ Accumulate Him Teknoforge for good returns. The stock has fallen in spite of reasonable valuations and solid fundamentals.

✅ Pitti Engineering completed its expansion programme last year. Its EPS is likely to rise to Rs.10.5 in FY20 once the full effects of expansion become visible. Buy for over 40% returns in the medium term.

✅ Meghmani Organics is expected to notch an EPS of Rs.12 for FY20 post expansion. Analysts expect the stock to cross Rs.90-100 in the medium term.

✅ An Ahmedabad-based analyst recommends BCL Industries, Magna Electro Castings, Mindteck India, Super Crop Safe and Vippy Spinpro.

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