The good, bad & ugly: Sectoral impact of GST & what brokerages recommend

The good, bad & ugly: Sectoral impact of GST & what brokerages recommend

(GST) council are a mixed bag for India Inc, some segments such as adhesives, coal and lignite, hair oil, luxury cars, soaps, two-wheelers, and toothpaste are expected to benefit from lower duties. On the other hand, manufacturers of chocolates, paints, sanitary ware and white goods will be adversely affected due to higher taxes. The ET Intelligence Group analyses sector-wise impact of the GST implementation would benefi t supply chain efficiency for FMCG companies with the consolidation of storage hubs. Simultaneously, we believe demand shift from un-branded to branded products on the back of level-playing fi eld against unorganised players would also benefi t the largest FMCG company in the country. ICICI SECURITIES HUL: GST implementation would benefi t supply chain efficiency for FMCG companies with the consolidation of storage hubs. Simultaneously, we believe demand shift from un-branded to branded products on the back of level-playing fi eld against unorganised players would also benefi t the largest FMCG company in the country. ITC: Indirect tax on cigarettes would be largely tax neutral with GST rate at 28% against...
PEG ratio can help you spot multibaggers; 10 stocks which rose over 100% in 1 year

PEG ratio can help you spot multibaggers; 10 stocks which rose over 100% in 1 year

PEG ratio or price/earnings to annual EPS growth which can provide a more holistic picture of the stock especially in a bull market where P/E ratio tends to look inflated. Finding value in the Indian market is hard, especially at a time when markets are trading at record highs. Benchmark indices have rallied over 17 percent in the last one year but there are a lot of stocks which have already more than doubled in the same period. To find value in markets even when most of the stocks have already doubled in the last one year could be a tough task. To make the job easier for investors, there is one ratio which is easy to calculate and is readily available i.e. PEG ratio. PEG ratio or price/earnings to annual EPS growth which can provide a more holistic picture of the stock especially in a bull market where P/E ratio tends to look inflated. A Price to Earnings ratio (PE) can be calculated by dividing market value per share by earnings per share (EPS). The relationship between the PE and Earnings growth gives a complete overview if the stock and valuation compared to P/E on its own. There are a number of stocks which saw huge price appreciation if tracked based on PEG ratio. For simplicity, we have taken a list of top ten stocks which more than doubled investors’ wealth and still has a lower PEG ratio, of less than 1. Some stocks which have a PEG ratio of less than 1 include names like Avanti Feeds, JM Financial, Sunteck Realty, Dewan Housing Finance, Edelweiss Financial Services,...
Are you ready to take advantage of the market fall to strike rich?

Are you ready to take advantage of the market fall to strike rich?

The Sensex and the Nifty opened sharply lower today due to a combination of factors i.e the government decision to withdraw Rs 1,000 and Rs 500 notes and increasing probability of Donald Trump winning the US Presidential election  spooked investors who feared a tough and uncertain time again for the economy and the market.   The Sensex was down over 1,500 points (5.5%) at open while Nifty was down 505 points (6%).All the 30 stocks were down in the dumps as panic spread the markets on a totally surprise moves by the government on the currency issue and lead established by US presidential candidate Donald Trump over favourite Hillary Clinton. Though the gap has closed down at the time of writing this article Donald trump has won 232 seats vs 209 seats for Hillary Clinton.   So what should investors do when the market falls? Run away from the markets?. No it is actually time to accumulate quality stocks and smile all the way to the bank. While these are inherent negatives for the market the real reason for the market correcting is one word “Valuations”. When valuations go overboard the markets tend to react negatively and these negatives form the reason for the correction.   We had clearly written last time that the markets may correct given the steep valuations and a correction is due and had asked our clients to book 50% profits and increase your cash levels. Today we had proved that our assumption is turning true. We would like to recall few of our last write up on the markets below. We had written” Coming to the question of...
Our safe long picks recommendation has returned 100% returns in 8 months(Our returns- 8 months-100% returns)

Our safe long picks recommendation has returned 100% returns in 8 months(Our returns- 8 months-100% returns)

On 14-02-2016 in our safe long term report we had recommended 12 stocks when the stock market was falling and there was panic in the market. We had recommended the stock as the street got nervous which provided a good entry point. The nervousness was exaggerated and we could sense people selling in panic. But we were not perturbed as we knew that the street is over reacting. We decided to go out and give a list of 12 recommendations. One of our recommendations was MOIL which we had recommended at Rs.185/- and today it is trading at Rs.380/- giving 100% returns in about 8 months time.We were determined to give recommendation which would be less risky at the same time generate good returns for our investors. Our belief has paid off and today our recommendations have given an average of 53.60% returns in 8 months withour stock MOIL delivering 100%stock. Remember the age old adage in Stock Markets” Buy when everyone is Buying and Sell when everyone is selling”. This has worked well for us and our investors are getting ready to laugh all the way to the bank.   Please find the list of stocks and their performance below.   There are two ways in which one can manage a Portfolio which is Active and Passive Style. A Passive sytle of investment is generally long term while an active style of investment involves active churning of portfolio to make returns. An active style of investing requires skill and fast decision making skills which would enable an investor to make quick bucks from trading. But the problem is...
Sublime Advisory: 3 Diwali Stocks With Unique Business Model

Sublime Advisory: 3 Diwali Stocks With Unique Business Model

At the outset we would like to wish our members a very Happy Diwali. May the festival of lights bring in all the wealth and happiness to one and all.   With the strong improvement in macros, India remains an attractive destination for the foreign investors. India’s annual FDI inflows have shown decent increase in the last three years indicating strong backing of foreign investors to the policy decisions taken by the government.   With the recent interest rate cut, India’s 10 year G-sec bond yields of 6.72% have fallen to 12 year low. The low inflation, improved liquidity, and subsequent rate cuts have seen ~100bps decline in the bond yields, in this calendar year. Inflation has played a major role in lowering interest rates. Owing to the supply glut and weak demand, crude prices have tanked from more than $100 per barrel in March 2014 to current $51 per barrel. Crude oil forms more than 30% of the country’s imports and any decline in crude oil is a boon for the Indian economy. A normal monsoon this year has also ensured inflation remains low for next year, giving RBI more headroom for further rate cuts.   Meanwhile, the world is in turmoil. From China to Europe and Brazil to the Middle East, every country is facing political, demographic and financial system issues while being under the climate of a macro slowdown. To deal with such a situation, central banks are printing large sums of money and distributing it to the public to stimulate economy, but the results are not encouraging. Instead, falling negative yields on bonds are creating...
Sublime Financial Advisory: Our Recommendation In TNPL Returned 22.78% in 15 days after booked 42% return on Heritage Foods last month

Sublime Financial Advisory: Our Recommendation In TNPL Returned 22.78% in 15 days after booked 42% return on Heritage Foods last month

As we have recommended our medium term stock ” Heritage Food” at 660 on 18th august so we booked 42% return at (940) on 20th September for last month.   We came with another stock TNPL as our next recommendation :-   Our recommendation is in TNPL @ Rs.317/- Stock Recommended Date-30-09-2016 (Our returns- 15 days -22.78% returns).   On 30-09-16 in our medium term recommendation report we had recommended TNPL when the stock was trading at Rs.316-318/-. We had recommended the stock as the company was getting into value added products, increasing their capacities as their current units are operating at full capacity which provided visibility for the company’s business which gave us the confidence to recommend the stock.   We booked on 13 Oct at Rs 388. In about 15 days the stock has given return of about 22.78%.We are all set to release our next stock in the coming days   There are two ways in which one can manage a Portfolio which is Active and Passive Style. A Passive sytle of investment is generally long term while an active style of investment involves active churning of portfolio to make returns. An active style of investing requires skill and fast decision making skills which would enable an investor to make quick bucks from trading. But the problem is one needs skill to figure out which stock to buy and when stock to book profits etc. This requires skill as you not only need to spend time but also keep a close watch which is very difficult given our busy professional lives. This is where the packages...