Govt set for high FY22 tax collection; India among least prepared for automation in APAC, says survey

28th July 2021

At JainMatrix Investments, we want to think positive, and get back on Track, so here is what we’re reading:

  1. Govt set for high FY22 tax collection; Q1 is INR 5.6 lakh cr: Icra – ET – 28th July
  2. India among least prepared for automation in APAC, says survey – ET – 28th July
  3. Scientists find green option to plastic – TOI – 21st July
  4. Maruti crosses 50L cumulative sales in rural markets – TOI – 21st July
  5. Indian IT industry to post 11% revenue recovery in FY22 – ET – 07th July
  6. These states to witness good rains in July – Mint – 07th July
  7. Morgan Stanley says a bull run is only getting started, here’s why – MC – 27th June
  8. Health, credit, jobs: FM announces 8 measures – BS – 27th June
  9. Indian Railways approves 660 more trains – HT – 19th June
  10. India’s Covid Vaccination Rate Jumps 60% In June – MC – 19th June
  11. India offers huge potential for digital banks: Report – IndExp – 10th June
  12. 74% employees keen on remote work: Microsoft Index – Mint – 10th June
  13. Unlock status, rules and guidelines – Mint – 10th June
  14. Despite covid woes, profits of Indian firms hit a six-year high – Mint – 24th May
  15. India will be on faster growth path fuelled by infra – TOI – 24th May
  16. How the coming population bust will transform the world – ET – 24th May
  17. Overall coronavirus situation stabilizing in India: Govt – M’Control – 17th May
  18. Exports rise 80% to $7b during May 1-7 – Fin.Express – 17th May
  19. Crude oil and commodities rally as global recovery gains pace – FXstreet – 05th May
  20. Steel sector does well – Indian Express – 05th May
  21. RBI announces loan relief, Rs 50K cr liquidity to tide over Covid – BusinessStd – 05th May
  22. Tata gets nod to acquire BigBasket – (M’Control) – 03rd May
  23. Hot Sectors – a) Ports – $82b being invested in ports (M’Control)
  24. Budget 2021 lays foundation for $5 trillion economy – M’Control – 04th Feb
  25. India pivots to top ESG nation through Budget – ET – 04th Feb
  26. Towards $5 T: What is holding India back? – FinExpress – 07th Jan
  27. India should follow agri – led industrial growth model – BT – 07th Jan
  28. NBFC sector rebounded in six months of FY21, says RBI – LiveMint – 29th Dec
  29. Power sector limping back to normal – ET – 29th Dec
  30. Digital is the way forward in a post-Covid world – LiveMint – 16th Dec
  31. Disinvestment will now gain momentum – ET – 16th Dec
  32. India may grow at 11% in 2022, says N Chandra – M’Control – 13th Dec
  33. Six early trends in financial sector – M’control – 09th Dec
  34. View: How tech makes it possible to solve corruption – ET – 09th Dec
  35. Indian economy back on track in Q2 – FinExpress – 20th Nov
  36. India’s health spend low, needs to be made priority – BS – 20th Nov
  37. GST collections at 8-month high – IndianExpress – 05th Nov
  38. Economy to reach pre-Covid growth by fiscal-end – BS – 05th Nov
  39. COVID in India on recovery – BS – 05th Nov
  40. India reopens its doors, restores most visas – ToI – 22nd Oct 
  41. E-tailing to become USD 200-bn by 2025: Report – ETNow – 22nd Oct 
  42. FM’s consumption boost to turbocharge e-comm – BS – 13th Oct 
  43. Low finance rates leading to increased home sales – ET – 13th Oct 
  44. Gig economy to lead 80% of blue-collar jobs – BS – 13th Oct 
  45. How robust is India’s recovery? – IndianExpress – 5th Oct 
  46. Covid may have peaked in September – ToI – 5th Oct 
  47. Digital payments: Pandemic does what demon couldn’t – ET – 01st Oct
  48. Healthcare Reforms – National Med. Commission started – (ET) – 25th Sept 
  49. Export show signs of a revival – (LiveMint) – 25th Sept 
  50. Economic recovery sustains momentum through first week of Sept – (ET) – 10th Sept 
  51. Rice, sugar push up Q1 farm exports by 23% – (ET) – 10th Sept 
  52. IPL set to kick-start consumption cycle – (LiveMint) – 30th July 
  53. Unlock 4: Metros to start, no lockdowns outside containment zones – (LiveMint) 30July 
  54. Mfg. policies of govt to help firms shift base to India: ICEA – (BS) – 26th Aug 
  55. RBI at end of rate cut cycle, govt must play role for revival: Economists – (BS) – 26th Aug 
  56. Railway earnings, Power generation: weekly indicators about economy – (BS) 18th Aug 
  57. Import embargo plan for 101 defense items to boost indigenisation – (FE) 18th Aug 
  58. Must improve ease of business to be a mfg. hub: Industry captains– (ET) – 07th Aug 
  59. Here’s what Indians have been spending on during the pandemic – (ET) – 07th Aug 
  60. Redesign, rethink whole economy for success in post-Covid world – (ToI) – 05th Aug 
  61. Joblessness at pre-covid level as India unlocks more – (LiveMint) – 05th Aug
  62. Expect V-shaped recovery over next few months: Ridham Desai – (ET) – 30th July    
  63. A major change is shift in format: Panel on education – (ET) – 30th July 
  64. Hiring optimism grows as demand gathers pace – (LiveMint) – 20th July 
  65. IT may see surge in offshoring biz – (LiveMint) – 20th July
  66. The current wave of rail reforms is actually “historic” – (ET) – 17th July 
  67. Mapping India’s Post-Covid Capex Recovery – (BQ) – 17th July 
  68. View: Never a better time than now to build for India – (ET) – 13th July 
  69. India at the cusp of a huge explosion of demand: Panasonic CEO – (ET) – 13th July
  70. Record surge in sales of vacuum cleaners, dishwashers, DIY products – (ET) – 07th July 
  71. Labour shortage, factories go the extra mile to woo migrant workers – (ET) – 07th July 
  72. PMI, GST mop-up point to a pickup in economic activity – (LiveMint) – 02nd July 
  73. India Inc’s big bet on Bharat saving the day – (LiveMint) – 02nd July
  74. Green shoots in Bharat lead country’s economic revival – (LiveMint) – 30th June 
  75. Opinion | The onus is on us to conquer fear – (LiveMint) – 30th June 
  76. Not two years, 200 projects finished during lockdown: Railways – (ToI) – 29th June 
  77. Bankers in India are more productive working from home – (LiveMint) – 29th June 
  78. Global equity markets are likely to continue their up move – (BizStd) – 27th June
  79. Migration is reversing: Trains from UP, Bihar run full – (ToI) – 27th June 
  80. Indicators of economic recovery in India – (EcoTimes) – 24th June
  81. Get India fully back to business, says India Inc – (EcoTimes) – 24th June
  82. Post-crisis, increase integration with global economy – (EcoTimes) – 20th June
  83. Kharif planting rises 40% on strong monsoon start – (EcoTimes) – 20th June 
  84. Maruti Suzuki’s model can make India a global mobile mfg hub – (EcoTimes) – 18th June 
  85. Indian economy to recover very fast: HDFC Bank CEO – (EcoTimes) – 18th June 
  86. A COVID-19 workplace readiness tool for organisations – (IISC) – 17th June 
  87. It is time to be a little positive on financial space – (EcoTimes) – 17th June 
  88. Exports bounce back to last year’s levels in June – (EcoTimes) – 16th June 
  89. Unemployment rate declines sharply as India exits lockdown – (Livemint) – 16th June 
  90. Local trains, Mumbai’s lifeline, resumes services – (Livemint) – 15th June 
  91. Construction work restarts at over 100 projects in NCR – (EcoTimes) – 15th June 
  92. Govt urges use of bicycles, EVs to mitigate risks – (EcoTimes) – 13th June 
  93. Digital is the Key to Unlock this Disruption’ – (EcoTimes) – 13th June 
  94. ‘Put the money in Indian stocks, forget till 2025’ – (EcoTimes) – 12th June 
  95. Loans are getting cheaper, HDFC cuts lending rate – (EcoTimes) – 12th June
  96. View: Replacing China imports possible, even in EVs – (EcoTimes) – 11th June 
  97. ‘Time for Bold Investments, not conservative decisions’ – (Livemint) – 11th June 
  98. After steep falls, June exports show signs of improvement (EcoTimes) – 10th June 
  99. Partial lockdown lift gives work to 21 million; not salaried class (EcoTimes) – 10th June 
  100. Covid-19 is no plague or cancer; fear psychosis unnecessary (EcoTimes) – 09th June
  101. Import-intensive spending likely to feel the pinch – (EcoTimes) – 09th June 
  102. Getting growth back on track is non-negotiable: Uday Kotak (EcoTimes) – 08th June 
  103. Post Covid Opportunities – Global Work Force (Nasdaily) – 8th June
  104. Impetus To Realty Demand, But More Needs To Be Done (NDTV) – 06th June
  105. Collections improving, demand picking up in rural India (EcoTimes) – 06th June
  106. View: How to get Make-in-India to work this time (EcoTimes) – 05th June 
  107. Effects of Unlock 1.0 as new guidelines come into play – (IndianExpress) – 05th June 
  108. Cabinet approves amendment of Essential Commodities Act (Livemint) – 04th June 
  109. Goods movement pickup in May signals economic revival (Livemint) – 04th June 
  110. PM’s First Major Address On Economy After Unlock 1.0 (ndtv.com) – 03rd June 
  111. Five Indian states are leading in the recovery from lockdown – (EcoTimes) – 03rd June
  112. India’s 3-phase ‘Unlock’ Plan starts at last (ToI) – 1st June 
  113. Supply to improve post-unlock 1.0; demand pickup may be slower (Livemint) – 1st June 
  114. Over 1.65 lakh people traveled in 2,198 flights since Monday: Puri (Livemint) – 30th May 
  115. The global supply chain is being reconfigured, India can gain (EcoTimes) – 30th May
  116. Nearly 65,000 cured from COVID-19 in India, 42% recovery rate (Livemint) – 29th May 
  117. An India lockdown survey: The good, bad and the ugly (Eco Times) – 29th May 
  118. How is India doing against COVID19 in 3 graphs – 28th May
  119. Covid-19 proves the importance of telecom in India (Eco Times) – 28th May
  120. India runs on Rails: MORE TRAINS BASED ON DEMAND (Fin Expr.) – 27 May
  121. MY TAXI HAS VEHICLES WITH PPE KITS, CURTAINS (Eco Times) – 27th May
  122. COVID-19 Is Fast-Tracking Digital Transformation – 26th May 
  123. HOW DHARAVI IS TACKLING THE COVID INFECTION RATE – 26th May 
  124. AFTER 2 MONTHS, FLIGHTS ARE BACK – 25th May
  125. HOW INDIA INC. GOES BACK TO WORK, LEADERSPEAK (Eco Times) – 25th May
  126. A THIRD OF NSE MFG FIRMS BACK AT WORK (Eco Times) : 23rd May
  127. MAHINDRA FACTORY – COVID CARE READY – 23rd May
  128. We actually wrote about the need for a lockdown in Mar 2020 – CALL IN THE INDIAN ARMY TO HANDLE THIS EMERGENCY – 20th March

We have been tracking this infection since March when it came to India and we had to declare the lockdown. Today, 6 months on, we are at a different phase in the economy. We have to understand that this virus will not go away, it is we who have to adjust to it. Even as we maintain social distancing, and wear masks, and wash hands regularly, the important thing now is to dive back into business and achieve some semblance of normalcy.

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. Punit Jain and JM has no ownership or known financial interests in any company mentioned in this note. 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. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. 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.

Cryptocurrency – Or is it a CryptoCommodity?

Date: 16th June 2021

Summary

  • There is an excitement around Cryptocurrency (CCS) – a combination of high potential gains, high tech backbone, a novelty, and a rebelliousness, that has attracted investors and driven demand. While initial purchases were by professional traders, speculators, crooks and gamblers, the ecosystem and exchanges have been helping to simplify and popularize it.
  • The success of an asset class like CCS will be largely driven by regulations, and demand – supply. Regulations are now by and large benign. So far the demand has exceeded supply, but in June 2021 we are in a very positive investing cycle across stocks, commodities and CCS. A reversal will challenge CCS price trends.
  • If the two major issues around CCS of – 1) too many coins options and 2) high wastage of electricity for CCS mining and processing – are addressed, CCS has the potential to become a widely used and stable currency.
  • Until this happens, CCS has characteristics closer to global commodities, hence our term, CryptoCommodity.
  • Investing now into CCS is for professional traders, those with a high risk appetite, and who can see as much as a 50% fall in value, at least temporarily. Some experts suggest a maximum 5% of investible funds to be allocated to this asset class.
  • Past report on Cryptocurrency available A Note on Cryptocurrency

Introduction

  • The story of cryptocurrency (CCS) and blockchain technology began in the year 2008 when the globe was going through the financial crisis. We saw the fall of Lehman brothers, rising unemployment, and the bubble burst. Meanwhile, Satoshi Nakamoto founded bitcoin which was the first decentralised currency in the world valued at $0.0008, which is currently trading at $38,700. Also see Market caps of Coins in Fig 1a.
  • In the past 12 years of CCS market, many new coins were introduced that have almost disappeared. On the other hand, Dogecoin that was promoted by Elon Musk, helped it to rally very high just by his tweets.

Fig 1a- Market Capitalization in USD B / and Fig 1b – Volatility of Asset classes

  • CCS are digital currencies that utilize blockchain technology to provide improved security, anonymity, and decentralization. There is no central authority for CCS, and no third parties needed to facilitate transactions.
  • In Fig 1b, we compare Bitcoin with Gold and US equities in terms of volatility and drawdowns over 10 years. Bitcoin has the highest drawdowns, showing that it is more risky. 
  • Transactions are highly secure and independent. The most famous CCS, the blue chip cryptos, are Bitcoin and Ethereum. They have market capitalizations of ₹50.3 lakh crore and ₹22.6 lakh cr. resp.
  • Bitcoin, Ethereum and Dogecoin have rallied 2.7X, 9.4X and 133X resp. in a one year time frame. See Fig 2a.
  • CCS offers more confidential transactions with least transactions fees involved and provides more lucrative opportunities for easier international trade.
  • But CCS has some adverse effect on environment in terms of consumption of more power and electricity for mining which made Tesla to withdraw from Bitcoin as a payment option.
  • Even though CCS is decentralised, but they are still several powerful operators, who can manipulate the prices, and we can see huge dips and bounces in the market.

Fig 2a – BTC movement last 5 years and Fig 2b – In 1 year (Sources – Statista and Coinbase)

Recent News and Events

  • Recently RBI had issued notices to banks which gives relief to Indian crypto investors, allowing transactions in CCS but it needs to be regulated under KYC, Anti money laundering and combination of Financing of terrorism, Prevention of money laundering Act (2002).
  • The El Salvador Congress on June 9 approved a bill making the world’s largest CCS, Bitcoin, legal tender in the country. The Central American country is now the first ever to make Bitcoin legal tender.
  • Last month US CCS exchange Coinbase successfully listed on the Nasdaq stock exchange. This listing could stabilize CCS, change the perceptions of individuals and make the future bright for the industry. Coinbase also faces competition from Binance, the world’s largest crypto exchange, as well as decentralized exchanges like Uniswap, which handle more trading activity than Coinbase.
  • U.S Treasury calls for stricter CCS compliance with IRS as they pose tax evasion risk. Treatment of this in India is unclear. GoI has constituted a panel to develop crypto regulations for India.
  • China has taken a decision to ban financial institutions and payment companies from providing services for crypto transactions and has warned investors against speculation and volatility. This news led to bitcoin falling 50% from the years high to the lowest since February, See Fig 2a and 2b.
  • With the initial few CCS taking off, many new coins were being introduced in the form of ICOs (Initial Coin Offers). However this market became frothy and by Nov 2017, there were around 50 ICO offerings a month.
  • Indian blockchain start-up Polygon, is the first well structured, easy to use platform for Ethereum scaling which aims to provide faster and cheaper transactions on Ethereum. Mark Cuban a US based entrepreneur has invested an undisclosed amount in the Polygon Matic coin, which hit a new high market cap of $14 B.
  • Tesla allowed Bitcoin as payment option for purchasing vehicles, but later Elon Musk removed the option as there was significant increase in mining of the CCS after his announcement.
  • As technical outlook remains positive and strong, Bitcoin is expected to reach $4,00,000 level in 2021 as per Bloomberg. Many investors have added an exposure to CCS as a small part of their assets.

CRYPTO v/s GOLD

  • Gold is a traditional global store of value; Cryptos are new
  • Gold is physically heavy, difficult and costly to transport; CCS are instantly transferred
  • Country wise restrictions or taxes for import or export; CCS are digital and generally permitted
  • Gold is well established and regulated; CCS has low to medium clarity on rules and regulations
  • A rise in gold prices over the past 50 years; CCS/ Bitcoin has seen massive rally over last decade
  • Gold has been a protection against large risks like war and infection; also provides safety against inflation
  • CCS is itself volatile, so is not yet a safe store of wealth, but more is itself a high risk, potentially high gain asset
  • CCS can in future become a major threat to gold in global wealth and savings

CRYPTO v/s CURRENCIES like USD or INR

  • Cryptocurrency is weak as a currency due to high volatility.
  • Central banks stabilize their currencies and hedge against other asset classes to smoothen the spikes. Year on year movements reflect Trade balances and the strengths of their economies.
  • However CCS is increasing being accepted for purchasing on websites and as a medium of exchange. 
  • But it is right now being used as a speculative investment by itself.
  • CCS may evolve in time as a store of value and as an alternative to other stores of value.

CRYPTO v/s COMMODITIES like Crude Oil, Steel or Copper

  • The volatility of CCS can be compared to some global commodities.
  • Global commodities have supply restricted by mining and mfg. constraints and fluctuate in line with demand and supply.
  • Trading of global commodities happens rapidly on global exchanges but fulfilment and logistics to back the transactions of course require time.
  • Global commodities have an inherent utility and so trading of these is essentially the matching of producers with consumers, with a small fraction of speculative trading also happening.

Top Cryptocurrencies to invest in 2021

  • There are by now a large number of CCS, see Fig 3a below for a list.
Fig 3a – Cryptos
  • Of the options, we share a suggested ordered list of CCS for traders.
  1. Bitcoin
  2. Ethernum
  3. Cardano
  4. Ripple
  5. Polkadot
  6. Bitcoin Cash
  7. Tron
  8. VeChain

How to invest in cryptocurrency in India

  • There are lot of India available platforms like WazirX, CoinDCX Go and Coinswitch Kuber, etc. An investor can download the app, open an account by providing personal details, identity proof like Aadhar or PAN card. These apps are available in Play store and Appstore. Once the account is verified, the customer can link their bank account and add money to the wallet in the app using Mobikwik or bank transfer. See Fig 3b.
  • Once the balance reflects in the wallet, the customer can purchase coins available by just clicking to buy.
  • Purchased coin will be shown under My Investments. The platforms are user friendly and simple to navigate. See Fig 3c.
Fig 3b – Payment Transfer and Fig 3c – Buy the coin

Key Advantages & Disadvantages

Opinion and Outlook

  • There is an excitement around CCS – a combination of high potential gains, high tech backbone, a novelty, and a rebelliousness, that has attracted investors and driven demand. While initial purchases were by professional traders, speculators, crooks and gamblers, the ecosystem and exchanges have been helping to simplify and popularize it.
  • The success of an asset class like CCS will be largely driven by regulations, and demand – supply. Regulations are now by and large benign. So far the demand has exceeded supply, but in June 2021 we are in a very positive investing cycle across stocks, commodities and CCS. A reversal will challenge CCS prices.
  • If the two major issues around CCS of – 1) too many coins options and 2) high wastage of electricity for CCS mining and processing – are addressed, CCS has the potential to become a widely used and stable currency.
  • Until this happens, CCS has characteristics closer to global commodities, hence our term, CryptoCommodity.
  • Investing now into CCS is for professional traders, those with a high risk appetite, and who can see as much as 50% fall in value at least temporarily. Some experts suggest a maximum 5% of investible funds to be allocated to this asset class.

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 Cryptocurrency or related app. 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. Punit Jain has no cryptocurrency assets as on date. 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 or cryptocurrency specialist. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. 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.

Shyam Metalics and Energy IPO – will Rise and Shine

  • Date: 12th June 2021
  • Small Cap: ₹7,800 cr. Mkt cap
  • Sector –  Steel industry
  • IPO Opens 14-16th Jun, at ₹303-306/share
  • Valuations: P/E – 12.8, EV/EBITDA – 8.1
  • Advice: SUBSCRIBE

Summary:

  • The global steel cycle is on an upswing. Global and domestic demand for steel is rising, and many India based steel plants are running at good capacity utilizations.
  • SMEL have a good financial strength, low debt, fair cash and ability to invest in their balance sheet.
  • Integrated operations, proximity to RM sources, in house power generation and captive railway sidings build into a low cost operating model, which is good in a commodity industry.
  • Growth plans are good including new products launch and doubling of mfg. capacity over 5 years.
  • This IPO will also help SMEL to reduce debt and strengthen the balance sheet for planned growth.
  • Key risks are 1) dip in steel cycle or Indian steel prices 2) high competition 3) steel price control by GoI 4) Rising iron ore and power costs.
  • Opinion: Investors can SUBSCRIBE to this IPO with a 1-2 year perspective.

JainMatrix Investments Service – PRICING OPTIONS

IPO Offering highlights

  • The IPO opens from 14-16th Jun 2021 in a Price Band of ₹303-306 per share
  • Total IPO size is ₹909 cr. of 2.97 cr. shares, about 12% of the equity shares. The IPO includes a fresh issue of ₹657 cr. and an Offer for Sale (OFS) of the remaining value, making up 0.82 cr. shares.
  • The lot size is 45 shares and Face Value is ₹10 per share.
  • Objects of the offer: Table 1: The Fresh Issue of up to ₹657 cr. will be utilized in following manner:
Particulars  Amount which will be financed from Net Proceeds Estimated Utilisation of Net Proceeds in Fiscal 2022
Repayment and/or pre-payment of debt of Company and SSPL, one of its Subsidiaries470 cr.470 cr.
General corporate purposes187 cr.187 cr.
  • The promoters own 100 % in SMEL which will fall to 88.35% post-IPO.
  • The IPO share quotas for QIBs: 50%, Non-Institutional Investors 15% and Retail is 35%.
  • In the grey market, the price of SMEL is at ₹436, a 42% premium to IPO price.  

Do read our insightful research, we attach the complete Investment report in PDF format here.

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. JM has no stake ownership or financial interests in SMEL or any group company. Punit Jain intends to apply for this IPO. 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. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. 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.

A Portfolio of Good Medicine

Dear Investors,

Which Industry, other than IT Services, is India globally competitive?

In which industry are Indian products of high quality and reasonable cost on a global scale?

Which is the sector likely to do extremely well given today’s uncertainties?

The answer is – the Indian Pharma Sector.

JainMatrix Investments identified the pharma sector as attractive as the nation turns its attention to healthcare, hospitals and vaccines.
The Indian pharma firms have also been in focus globally, and the gates are opening slowly for these firms to win new markets, supply drugs & medicines and discover new cures.

We have made a report, Indian Pharmaceutical Sector – Good Medicine. Our report covers the following:

  • The progress of Indian pharma.
  • Why this sector is at an inflexion point in terms of global growth
  • Why this industry is globally competitive
  • The large cap and mid cap firms of interest
  • We benchmark a selection of the firms on financial parameters, across Large cap and Mid cap players. We sieve through them to find the preferred picks.
  • We map the share price performance of these firms over several years.
  • We provide a high quality portfolio of six firms of the Sector, 3 from large caps and 3 from mid caps, for investors.

Offer of the Month

  • Buy the JainMatrix Investments annual subscription for a special offer @ ₹15,999 (normal rates ₹16,999)
  • Get the Indian Pharma Sector report free along with the Welcome Kit and high performing Model Portfolios.
  • It includes a whole year of guidance on direct equity investing in Indian Markets. This offer is valid only for May 2021 as a special summer offer. See details
  • To take this offer, transfer in above offer amount on https://jainmatrix.com/payment-options/
  • Send a SMS message – Summer of ’21 Pharma offer/ your name to 9886110032.
  • Give us a day or two to contact you to start.

Happy investing !!

Regards,

Punit Jain – Founder, JainMatrix Investments

Disclaimer – While the offer is open in May ’21, we reserve our rights and may decline it in case our marketing objectives are not fulfilled.

How will you start?

upstox says

Sounds good, but

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DISCLAIMER

JainMatrix Investments based in Bangalore (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. Investors should consult their financial advisers if in doubt about whether the product is suitable for them. JainMatrix Investments has been an equity investment adviser commercially since Nov 2012, and is a SEBI certified and registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to him at punit.jain@jainmatrix.com

GREAT INVESTING WISDOM / 23 lessons I learned

23 lessons I learned on my path from $0 to $2M in 8 years / Mar 14, 2021

Here is an excellent tweet. Thanks Danny Baldus-Strauss @BackpackerFI. I’ve added my commentary.

Danny Baldus-StraussMy Thoughts
1. “Play long term games with long term people” @naval Anything that provides instant gratification is probably bad for you and your wealth. Anything that provides delayed gratification is likely good for you. There’s no such thing as “get rich quick” or “overnight success”  
Truly agree.
2. “Focus on the $10K+ questions, not the $5 ones.” @ramit Spend time focusing on the big decisions like asset allocation & building good credit rather than the $5 Starbucks decisions. Set an hourly rate for yourself. Outsource everything that’s under that rate to save time.  
Lets say you earn Rs 60,000/month. That’s 2,000/day or 250/hour. Outsource any work or task if it can be done for less than 150/hr.
3. Invest early and often. Time in the market > timing the market Consistency is the name of the game. Automate everything. Sometimes investing can be boring and that’s a good thing. Early on, investing more and often is far more important than yield or portfolio performance.  
In investing, smaller and earlier is better than later and more.
4. Learn to avoid lifestyle inflation. You really do need less than you think, trust me. Get out in nature, and you’ll see. Freedom + time are worth much more than nice cars and clothes. Keep your lifestyle flat even as you get promoted and make more. Invest the difference.  
5. You can get rich at your job, but you only get wealthy at home. 9-5s build necessary cash flow to consistently invest. But your employer isn’t responsible for your wealth building, you are. You are the director, try to do things every day that build your future.
 
6. Live in the present, while still building and planning for the future. The point of having $ is to not have to worry about having $. If you’re miserable while building wealth, you’ll be miserable when wealthy. If $ is all you think about, you’ll miss the present moment.  
Or Rupees
7. “You’ll never get wealthy renting out your time” @naval  9-5s can be great and necessary tools for building financial independence. But have an exit plan if you truly want freedom over your time and energy. For every 9-5, you have an entrepreneur to thank for your job.
9-5 is important to learn skills. To do things. But you are doing them for others. At some point, you should start doing things for yourself.
8. “Cut expenses in areas you don’t care about so that you can spend extravagantly in areas you do” @ramit You don’t need to live frugally your entire life to become wealthy. Cut out what doesn’t bring you immense joy and don’t feel guilty for splurging on things that do.
 
9. “Every action is a vote for the type of person you wish to become” @JamesClear  Your net worth is a lagging indicator of your financial habits of the past few years. Start now by “placing votes” every day for the financial future you desire. Habits compound just like your $.
 
10. “Money’s greatest intrinsic value is its ability to give you control over your time” @morganhousel Time and freedom is what you’re after. Nice things, looks, social validation … they all fade away. Time does too, but at least you can control it through financial freedom.
 
11. Generating income is more important than cutting expenses, but it’s a balance. Cutting expenses has a floor, you can only cut out so much. Generating income has no ceiling. Promotions, side gigs, investments, and business ownership have no limits, only you.
Stock market investing too has no ceiling. Rs 500 invested in 5 stocks can lose you Rs 500. They can also gain you Rs 10,000 (over a long time).
12. Mind, body, and business are connected. Wealth starts in the mind. Being broke is also a mindset and identity. Healing what’s in your mind, becoming aware of your limiting beliefs and toxic thoughts, & taking care of your body, spills over into business and wealth.
 
13. Be an optimist. Being a pessimist rarely lines your pockets. This doesn’t mean it’s ok to be reckless and ignore risk. But envision a better future and invest in it. The point of maximum fear is the point of maximum opportunity. “Be greedy when others are fearful”.
This is so important. Long back I used to be hopeless and negative. But positivity can be learned and practiced. I do it.
14. Invest in your greatest asset – You! I’ve invested tens of thousands in my own education, retreats, and men’s groups. The ROI has been incalculable. Don’t be cheap when it comes to your self-improvement. You are your only asset that is truly recession proof.
Always keep learning. Asking. Reading. And changing.
15. Money is made in the waiting. Sometimes good investing can be boring. Sometimes it’s more about the stomach than the brain. Sometime it’s more about inaction than action. Tune out the noise and play the long game.
 
16. Volatility is not the same as risk. It’s the price you pay to outperform. And it’s a mechanism that “transfers wealth from those who can’t handle it to those that can” @BrianFeroldi
 
17. “Focus on the future – not as in the next year, or even 3 years, but as in the next decade, or even two decades. Focus on the world-changing trends that will occur, irrespective of recessions, boom and busts, interest rates, even wars.” @OphirGottlieb
This is hard. Its uncertain. But so important.
18. “Only when the tide goes out do you discover who’s been swimming naked” @WarrenBuffett  It’s only after crashes and bubbles pop that people realize how over-leveraged they were. It’s only after one loses a lot of money that they realize how much needless risk they took.
It surely takes several cycles of boom and bust to really get this.
19. The way to create life changing returns is to hold onto your winners. You want to be in great companies in the first inning, out by the 7th. Pay up for quality and only invest in the very best businesses.
True about Long Term Investing.
20. Tune out the noise Financial media makes money on your fear. People on TV or on social media have very different backgrounds, risk tolerances, time horizons, and amounts invested than you. Take it all with a grain of salt and stick to YOUR plan and what works for YOU.
Note that People on TV or SM may have very different incentives than you. Why should they help you become wealthy? Are your objectives aligned?
21. Realize that stocks take the stairs up and the elevator down. Risk can come in a flash when you least expect it. So use the good times to plan for the bad times. Expect the best, but prepare for the worst.
 
22. “You do not rise to the level of your goals, you fall to the level of your systems” Goals help with process, but it’s your systems that allow you to make real progress. Set up your investing rules, create a non-negotiable morning routine, automate your finances.
 
23. “People who are right a lot of the time are people who often change their minds” @JeffBezos  Don’t get married to your stocks or portfolio. Embrace conflicting opinions to understand the other side. Humility is key. It’s ok to be wrong, but staying wrong is even worse.
Its true, of course. But I’m still grappling with this. This also means that whatever I know is always up for discussion, and can also become wrong sometime.

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. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. 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.

An Investments Discussion

Punit Jain was interviewed by a group of MBA students on aspects like – How JainMatrix Investments was started; the current investment outlook; what are the skills and competencies that one should posses – as an investor, and as an equity analyst; how to stay motivated; and about JainMatrix Investments.

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. 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 a Registered Investment Advisor (RIA). Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. 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.