I came across an excellent article on Business Standard.
This is very useful for investors new to Equity. Several important concepts are covered here.
Do Read –
Warm regards
Tag: indian stock market
Ola Electric IPO – Profitability in 2 years
- Dated 04th Aug.
- IPO is open from 2-6th Aug, at ₹ 72-76 /share
- The IPO offering is large, at ₹ 6,150 cr.
- Mid-Cap firm with Mkt cap ₹ 33,500 cr.
- Sector: Automobile, EV, 2W
- Opinion: High-risk takers can buy with a 2-year perspective
Summary
- Ola Electric is a startup by serial entrepreneur Bhavish Agarwal for Electric two Wheelers. With a good brand drawn from Ola Cabs, Ola Electric has created the products, factories and sales network, and grabbed a 35% market share in India in E2W. Revenue grew 88% in FY24, indicating that Ola may have hit the ‘growth inflexion point’ in the hockey stick formation. The organization and structure set-up looks good to handle the possible growth. The overall 2W industry size and growth offer a massive opportunity for disruption. The products are beneficial to reduce pollution from fossil fuels and are aligned with electrification & renewables initiatives. Govt. of India policies are helpful with Ola using FAME and PLI incentives. E4W adoption in China is a good early indicator of possible E2W adoption in India. Our analysis indicates Ola can hit profitability by FY26, in two years.
- Risks: 1) Typical startup risks of small possibility of success of massive disruption and ambitious goals; Typical IPO risks of undiscovered firm 2) currently cash-burning business 3) Dependence on China for RM – is being overcome through R&D and new mfg. facilities 4) Competition – Entry of new startup players and E2W plans by current ICE players 5) support drying up from GoI policies as industry accelerates 6) Volatility in RM prices
- Opinion: High-risk takers can buy with a 2-year perspective
Here is a note on Ola Electric Mobility Ltd (OLA).
IPO highlights
- IPO application dates: 2nd – 6th Aug’24, with Price Band: range of ₹72 – 76 per share, of FV: ₹10.
- IPO Size is of ₹ 6,150 cr. – Offer for Sale 8.49 cr. shares (₹ 645 cr.) and Fresh Issue 72.3 cr. (₹ 5,500 cr.)
- Lot Size: Investors can bid for a minimum of 195 shares and in multiples of this.
- The promoter is serial entrepreneur Bhavish Aggarwal who owns 36.94%.
- The main objectives of the IPO Issue are
- From the Fresh Issue, Capex is to be incurred for expansion of capacity of its cell mfg. plant from 5 GWh to 6.4 GWh, classified as phase 2 of expansion plan, reduction of debt; Investment into R&D and product development; Expenditure for organic growth initiatives, and General corporate purposes.
- From OFS, the Promoters and some of the prior investors get a chance to exit.
- The IPO share quotas are QIBs: NIIs: Retail is 75:15:10. (Qualified, Non-Institutional Investors)
- The unofficial/ grey market premium of Ola is ₹ 9/share over IPO price. This is a positive.
- The IPO allotment is likely to be finalized on Aug 7th, refunds will be on Aug 8th, and also crediting of shares to eligible allottees. Ola Electric shares will list on BSE and NSE, on Aug 9th.
See report in PDF format
Disclaimers and Disclosures
- All assumptions are mentioned in main body of report along with Fig 7 Financial Projections.
- Punit Jain discloses that he has no shareholding in Ola Electric Mobility, or any group company. He was not involved in the IPO preparation. In addition, JMI and its promoters/ employees have no direct or financial interest in these companies, and no known material conflict of interest as on date of publication of this report.
- This document has been prepared by JainMatrix Investments Bangalore (JMI), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. This report should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JMI has not independently verified the accuracy or completeness of the same. Neither JMI nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Investment in the securities market are subject to market risks. Read all the related documents carefully before investing. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from a RIA Registered Investment Advisor. JMI has been an equity investment adviser commercially since Nov 2012, and a SEBI certified and registered since 2016, under SEBI (Research Analysts) Regulations. Registration granted by SEBI, and certification from NISM in no way guarantee the performance of the Research Analyst or provide any assurance of returns to investors.
- Any questions should be directed to punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747. Logo/brand name –
Who and what is a long-term investor?
A long-term Equity investor is one who
– is willing to wait even 10 years for his investment to achieve satisfactory returns
– is much greedier (I prefer the word Ambitious) than a trader, he wants a 5-20 times return from an investment compared to a 5-20% gain by a trader or other investors. Note – this does not always come through, but when it does, its awesome.
– is able to stay unaffected by notional loss situations, of 30-40%, many times over this journey. He may even use these falls to accumulate more.
– has a very patient and positive mindset. Time is on his side. He is a business owner rather than a trader. He does few transactions, but these are big in value.
– yet he is decisive when required, and has to separate the wheat from the chaff, when he sees it
– has no regrets over past decisions. He has to book real losses many times. He also can make mistakes of smaller allocation. But the future is always very hazy, and the past, crystal clear.
– but he learns continuously. Every decision he makes has to be better than the ones made before. His insights can come from many sources. Mistakes should not be repeated. Only learned from.
This is my mindset as the independent Research Analyst at JainMatrix Investments.
Of course, some of these are difficult to really do, not just for an individual investor, but also for a professional. Join us at JainMatrix for an exciting and profitable journey if you wish to be a long-term equity investor.
PRICING AND PAYMENT OPTIONS
DISCLAIMER
JainMatrix Investments based in Bangalore (hereinafter referred as ‘JMI’) is an independent equity research firm started by Punit Jain. Content in this website should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained has been obtained from sources that are considered to be reliable. However, JMI has not independently verified the accuracy or completeness of the same. Neither JMI nor any of its affiliates, its directors, or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available, or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and the value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from a certified Investment Adviser. JM has been an equity investment adviser commercially since Nov 2012. Punit Jain is a SEBI-certified and registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee the performance of the Research Analyst or provide any assurance of returns to investors. Any questions should be directed to him at punit.jain@jainmatrix.com
Rule#7 Pitfalls – If you want to invest in Indian markets, start NOW
Dear Investor,
One of the most difficult skills in investing is called Timing the Markets. My experiments with this have pushed me to the conclusion – most of the time, we should just avoid timing the markets. More important than this is Time in the Markets. Start right away and allow the markets to grow your wealth. We can earn average and even above average returns by just investing in good companies for longer periods.
Markets work in waves or cycles, that are quite unpredictable. And in fact the hype and enthusiasm to invest in the markets peaks around the time they are at new highs. A large number of new investors are then disappointed at their immediate returns and shy away from it.
Many well informed potentials also promise themselves, and their advisors, that they will start investing when the markets bottom out, when everything is cheap. This really never happens. At such times, fear is highest, and most people are worried about (notional) and real losses. Time flies, and that window of opportunity slips by.
Instead, it makes more sense to start now, yet keep some funds available (dry powder) for additional investments if the market falls. Or if a great new opportunity presents itself.
Most of the time, I find myself fully invested, and if a great opportunity presents itself, I sell the lower potential stock to buy the higher potential one. Thus improving my portfolio.
Outlook: Today India is the fastest growing large economy in the world. We are on the cusp of many years of good GDP growth and the economy is both producing and consuming more and better. Investments in infrastructure are bearing fruit. There are few shortages to be seen. At a Nifty PE of 21.6 times TTM, valuations are just above the long term median of 20.6 times. I am quite optimistic.
If you are an individual investor, we at JainMatrix Investments, as a SEBI registered Research Analyst firm can help with your wealth building. Sign up for our services, and to find out more reach out to us on
CONTACT US
Or explore on this website
OFFERINGS
Comment, leave a reply below, and like and share this post with your friends.
Regards, Punit Jain
DISCLAIMER
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.
Rule #6 Pitfalls – To be a good investor, do things differently
To paraphrase a popular saying, “If you do the same thing as everyone else, you should not expect different results”.
For an investor this means, you have to invest differently, in order to get superior results. At JainMatrix Investments, we take a counter-cyclical approach to get superior results.
- When Covid infection struck in March 2020, just like everyone else, we were clueless on the new infection, its impact on health, daily life and the economy. The 40% fall in markets emphasized the panic among shareholders.
- However by following the news reports, we formed an opinion on the impact, and reported
- March 2020 – https://jainmatrix.com/2020/03/
- May 2020 – https://jainmatrix.com/2020/05/
- By May-June, we had decided that the impact will not be so severe, and investors need to return. Investments made in the next few months did very smartly over the next 1 year
- When demonetization was undertaken in 2016, it surprised everyone, and investors too reacted negatively. This banking event however was understood by us as a short term cash shortage. Thus we felt the market fall will unwind once enough notes were printed.
- https://jainmatrix.com/2016/11/22/investment-outlook-nov2016/
- Sure enough, the markets were back in 2 months, with a full recovery.
- In the stock markets Knowledge is Power, and investing is easier with this Knowledge. Going counter cyclical has been the method we follow when we are convinced of the situation. It may be natural to panic in such situations as an investor, but if we can overcome this and instead treat it as an opportunity to BUY at low valuations, we will benefit.
- Both these above events were market – wide, and our stand was successful. However sometimes there can be company specific events too, and it may be profitable to invest in a troubled firm, if one is confident that this is a short term event, likely to reverse soon.
- However, it may be high risk for individual investors to take such investment decisions.
Here’s where JainMatrix Investments, as a SEBI registered Research Analyst firm can help. Sign up for our services to help in your wealth building journey. To find out more reach out to us on
CONTACT US
Or explore on this website
OFFERINGS
Comment, leave a reply below, and like and share this post with your friends.
Regards, Punit Jain
DISCLAIMER
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.
Rule #5 Pitfalls – Do you have too many stocks in your equity Portfolio?
Individual direct Equity Investors should not to have more than 30 shares in their Portfolio.
This is my thumb rule for Individual Direct Equity Investors. Why? More than 30 shares, and the investor will have difficulty in following the firms in terms of results, events, updates and news. This is in addition to price and profits. Investors also should not miss or forget the stocks they own.
I myself have about 36 shares in my personal portfolio. And I am a professional. For an individual investor, the fewer the shares, the easier it is to track the portfolio.
The investors Buy decision is easier. Investors tend to quickly collect more firms in their portfolio because of this. The Sell decision is hard for several reasons.
Is the share currently in profit or loss? Is this gain sufficient? Is the firm’s outlook good or bad? Is there a better idea that I can reinvest in?
Indecision may result in a bloated portfolio with too many stocks. The investments then get frozen as the capital is stuck in these shares and the sell decision is delayed.
Is this suggestion cast in stone? Not at all. It may suit some investors to have 50, even 100 stocks in their portfolio. If they are able to manage it. Others may limit this to just 5-10, and run a very concentrated portfolio.
JainMatrix Investments services provides 21 recommended shares in 3 baskets based on our in depth equity research. This is immediately useful both to new and experienced investors. To find out more reach out to us on
CONTACT US
Or explore on this website
OFFERINGS
Comment, leave a reply below, and like and share this post with your friends.
Regards, Punit Jain
DISCLAIMER
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.
AI Instructions for the Investor
The flavor of the season today is Chat GPT and OpenAI. Its gone viral and appears to be interesting and useful. I decided to test it with a simple, basic question –
How do I get rich?
The answer below is crisp and useful.
There are many ways to accumulate wealth, and what works for one person may not work for another. Some common ways to build wealth include:
- Investing in stocks, bonds, or real estate.
- Starting or investing in a business.
- Saving and budgeting effectively, and spending less than you earn.
- Building a diverse portfolio of income-generating assets.
- Continuously educate yourself and acquire new skills that can be monetized.
- Network and surround yourself with successful and financially savvy people.
It’s important to remember that building wealth takes time and effort, and there are no guarantees of success. Additionally, It’s important to maintain a balance between earning and saving and enjoying life.
Good solid response from ChatGPT.
Here’s where JainMatrix Investments services can help you. We are active on point #1 above. As a SEBI registered Research Analyst, we can help you in your Direct Equity investments. To find out more reach out to us on
CONTACT US
Or explore on this website
OFFERINGS
Comment, leave a reply below, and like and share this post with your friends.
Regards, Punit Jain
DISCLAIMER
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. This is a marketing collateral. The securities quoted here, if any, are for illustration only and are not recommendatory. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Registration granted by SEBI, and certification from NISM in no way guarantee performance of the RA or provide any assurance of returns to investors. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747.
JainMatrix Investments 