Tag: JainMatrix Investments

The Changing World Order, and the India Opportunity

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07th April – Time to read article – text 10 min, video 43 minutes.

  • Today the Indian markets fell sharply, up to 5%, but lets look at this event in the global context.
  • I came across this wonderful video by Ray Dalio recently, (43 minutes) and this helps us put the current market scenario in context.

My lessons from this video:

  • The USA is in a down cycle and is showing the classic signs of this – more expenditure than revenue, high and rising debt, signs of domestic unrest and discomfort, and now this big one, new tariffs that are trying to curb imports and hopefully boost domestic production.
  • China has been rising for long in trade and defense, with strong manufacturing, and till now was a big exporter to USA and ran a massive trade surplus.
  • As USA fights China in the trade war, there may be bumps here, but this is a period of transition as China finds other markets and continues its rise.
  • In an era of extended cold wars (USA-Russia) and nuclear powered countries, my expectation is that modern transition of Big Cycles will happen in the form of Trade wars and slow stagflation of economies.
  • One example here is of Japan, which was a rising economic power till the 1980s, and could not sustain the rise, but has preserved its economy, and GDP has grown at about 1-2% p.a for 2-3 decades

So where is India and what is India’s play?

  • China is a manufacturing giant, making products in high volumes, from metal – steel and aluminium, to cars, EVs, toys, furniture, ships, trains, etc.
  • India’s play is in services –
    • Indian IT services industry is a miracle, with customers in over 150 countries. It gained momentum in the 1990s, and is today a massive industry commanding 50% of the global outsourced IT services market.
    • The second generation of Outsourced services has already rolled out – consisting of – Engineering services, contract medical & pharma services and Knowledge Process Outsourcing.
    • Global Competency Centers (GCCs) of many MNCs present in India also provide additional services like Marketing, Legal, HR, transaction processing, Finance and Accounts, etc.
  • The following Services sectors must learn from the Indian IT services giants and look at the global market potential:
    • Banking, Financial Services and Insurance – We have yet to see Indian BFSI firms grow aggressively abroad and establish a global brand. Given the domestic strengths and penetration, this is possible.
    • Hotel Chains – not just Taj hotels, but also Oberoi, ITC, Leela, etc. can also expand globally.
    • Education – Indians spend $60 billion (₹5.1 lakh cr.) per year on education abroad, mostly graduation and post grad degrees. This is 4X the entire GoI annual education budget. Quality education should be available more easily domestically, at a fraction of the cost in USA, UK or Australia. This will save outflows, and can even earn inflows.
    • Tourism – If packaged well, tourism to India can attract large numbers. The Himalayas in Kashmir, HP and Arunachal, the Goan and Kerala beaches, the Taj Mahal, historic forts and monuments, food and rich culture, etc. can draw in millions for the exotic Indian holiday.
    • Healthcare – the opportunity exists not just for domestic services, but medical tourism in India, and also hospital chains in the developed world, where there is a shortage. Yoga and Ayurveda are traditional Indian healthcare systems already admired globally.
    • Telecom – Bharti Airtel ventured successfully to Africa, the next stage is a global brand, and even other companies can roll out the India success model.
    • Aviation – Indigo & Air India have the opportunity to grow globally, building on the India base.
    • Retailing – the success by Reliance Retail, Zudio (Trent) and DMart can expand globally. Titan with Tanishq can also be in this category.
    • Food services – the Jubilant Foodworks franchise in India is a scalable QSR model, and Indian chains can expand abroad. Saravanaa Bhavan has expanded into several countries. Indian food is popular internationally, so there is a demand that can be tapped.
    • Infrastructure services – firms like L&T already have global footprints, and other firms with a good domestic projects roster can grow internationally.
    • Logistics – as India itself improves its infra, expands domestic capacities and cuts the costs of logistics, opportunities exist globally in Ports, Shipping and Railway services, where we can deliver projects to friendly nations through GoI.
    • Shipping – Indian shipmen dominate global merchant navies & shipping. India’s coastline stretches for 7,500 km. But how big is the Indian merchant shipping industry? There is massive potential here.

How can this play in Services be accelerated?

  • The need is for Industry focused colleges, universities and education, practical training with industry participation, and for skills development of the students at scale.
  • GoI should provide Plug and play industry infrastructure – Offices and Factory parks, ready with connections of water, electricity, road connectivity access and ready to occupy workspace.
  • Focus on growth in Tier 2 cities and towns by Govt. and current industry players.
  • Exports have to be encouraged more. The IT Services industry grew on the basis of all exports being Income Tax free in the 1990s. While GST is exempt today, broader encouragement like Global Sales Support desks, Trade Commissions, Think Tanks on exports markets, desks by Ministry of External Affairs, and various Ministries of GoI, and loans / funding will help.
  • While english speaking is an advantage for services, competence in Japanese, German, Spanish and French may also help in communication and business. A case – In a recent Vietnam holiday, we visited a mid sized Suits and Garments Tailoring showroom. A few minutes later, a batch of 20 odd Italian tourists walked in. I was stunned to see, a showroom sales staff made a fluent 20 minute presentation in Italian to them. Selling them 8 hour turnaround formal suits and traditional women’s dresses. No doubt the tourists bought lots of clothes that day.

Manufacturing and related thoughts

  • Manufacturing in India remains a massive opportunity, with the first objective to meet domestic needs. Here the sectors with potential are Defense, Shipping, Railways, airplanes, electronic products – mobiles, laptops, TVs, music equipment, Air conditioners and gadgets. Silicon chips are a key input which also can be made domestically.
  • PLI schemes have been started in 14 sectors to accelerate them.
  • Assembly in India is just the first step to get the supply chain and value add to increase in India.
  • We have to build on our success stories in automotive and pharmaceutical mfg. When will we be able to see an Indian made car succeed all over the world? Who will do this – Tata Motors? M&M?
  • The success of Indian 2W is admirable – Bajaj Auto, Eicher Motors and Hero Motors are doing well.

  • Why do Indian companies not list abroad? A quick check on ADRs and GDRs from India reveals a very short list of 10-11 companies. Any Indian company with significant global presence should list in USA or Europe.
    • Many years ago Cognizant listed in USA. It was riding global trends – HQ and listing in USA, IT workforce primarily in India, and customers in USA and spread across the world.
    • Chinese companies have long exploited this trend. A quick search reveals 286 Chinese companies listed in USA. Why have Indian companies missed this trick? The deepest stock market in the world is USA, listing here can give rich valuations, and help raise growth funds for Indian firms.
  • A large number of MNCs operate in India with subsidiaries, GCCs and factories or development centers. Like Hyundai India and Schneider Electric Infra., can they be nudged to list in India? This would cement their presence and commitment to India, and help to deepen Indian markets.
  • India has benefited from the free markets of the last few decades. With USA imposing tariffs for protection, India should continue trade with USA while growing free markets and trading with other countries and gain from global trade growth. To do this, it will have to lower tariff and non tariff barriers and sign Free Trade Agreements. At present 6-7 FTAs are under negotiation.
  • Japan can be an excellent target country, for Indian firms to partner with Japanese MNCs, and help them develop India as a manufacturing base for global sales, with success stories like Maruti Suzuki.

Conclusions

  • So Mr Leading Indian Bank CEO. USA isn’t just the place where you go on annual vacation to your brother’s house to admire the opulence and great roads. It’s the place you go with a crack team of CFO, CMO, retail head and CHRO, and plot your company’s 40% annual growth for the next decade.
  • In the wake of Trump Tariffs, we see a change in global order, with China emerging strong.
  • As some doors close, others can be opened. Indian firms have an opportunity to grab large chunks of the global services pie, while some can excel in select manufacturing opportunities.
  • We see a future of the parallel rise of China and India, CHINDIA, in the next BIG Cycle.
  • However there is little hope of cooperation, their rise will be independent and mutually exclusive, offering different products and services.

Disclaimers and Disclosures

  • Any mention of companies in this article are purely to explain and illustrate a point, and these are not investment suggestions.
  • This document has been prepared by 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 JMI. 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. Registration granted by SEBI to JMI, and certification from NISM in no way guarantee the performance of the Research Analyst or provide any assurance of returns to investors.
  • JMI has been an equity investment adviser commercially since Nov 2012, and a SEBI certified and registered since 2016, under SEBI (Research Analysts) Regulations. 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 names

Should you Invest or Prepay your Home loan? – Jan 2025

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Introduction

Last month, my conversation with an investor went like this –

Rahul (not his real name): I have a home loan of ₹ 75 lakhs, of 20 years duration, and am paying an EMI every month. Right now I have cash available with me of ₹ 10 Lakhs. I have already been an investor in Equity markets for 10 years. Should I use this amount to repay my Home loan, or should I add it to my investments in the markets?

The rest of the conversation, I share below in a formal manner:

Approach – Review Rahul’s Profile:

Deciding whether to use cash savings to pay off the home loan or invest in equity depends on several factors, including Rahul’s financial goals, loan terms, risk profile and the potential returns on investment. Here’s how to think through this:

1. Consider his Home Loan Details

  • Interest Rate: Is Rahul’s home loan interest rate high (above 10-11%)? For Rahul it was 10%.
  • Loan Tenure Remaining: If he is in the early years of the home loan, paying off part of the principal can save more in interest, than in the latter half of the repayment period.
  • Tax Benefits: If he is availing tax deductions on interest (Section 24(b)) and principal repayment (Section 80C in India), consider how much benefit he is getting. The real post tax cost of Home loan may be lower, so from a 10% Home Loan rate, he may be actually paying about 6-7%.

2. Evaluate his Market Investment Details

  • Equity Returns: Historically, equity markets have offered average returns of 12-13% over the long term per the Sensex. However, the returns can vary depending upon Rahul’s actual market instruments – Equity Mutual Funds, Direct Equity Portfolio or ETFs. For Rahul it was 15% compounded on average over the last 7 years.
  • Rahul’s Risk Tolerance: Is he comfortable with short-term investment fluctuations? Equity investments certainly face market risks and volatility.
  • Time Horizon: Equity Investments generally perform better over a longer horizon (3+ years). If Rahul has a shorter time horizon for his equity investments, adding to these may not be a good idea.

3. Assess his Financial Situation

  • Emergency Fund: Rahul must ensure he has 6-12 months of expenses saved in a liquid emergency fund before considering his options.
  • Other Debts: High-interest debts (e.g., credit cards, personal loans) should be prioritized for repayment before addressing the home loan.
  • Working years: Are Rahul’s working years before retirement more than the Home Loan Tenure?
  • Retirement Goal: Is he on track for retirement savings? Equity investing might help achieve these if the Time Horizon is larger.

Calculate Two Data Points for Rahul

  • Tax adjusted cost of Home Loan: let’s assume that for Rahul from (1) that it is 7%.
  • Rahul’s expected Equity market returns: The past is apparent, while the future is unpredictable. However we can be conservative and project lesser returns in future than in the past. As noted in (2) Rahul got 15% returns compounded from his mix of Equity MFs and Direct equity. Let’s project future returns from these instruments at a lower 12%. Tax here is difficult to project but if fair tax planning is happening, capital gains can be within annual zero tax limits.

With the above data points it becomes obvious that for Rahul, Equity gives higher returns of 12% than the cost of Home Loan (7%).

Conclusion

  • The immediate conclusion would be that Rahul should use the 10 L funds in Equity investments and continue to repay the Home Loan as per the original plan. Here Rahul should be able to grow his incremental savings of ₹10 L by (12 – 7) = 5% annual average over the duration of the Home Loan.  

However several caveats and conditions can color or even change this conclusion:

  • The Home Loan repayment is an almost fixed commitment of monthly payments. There can, of course, be some interest rate resets, but otherwise, EMI and tenure are fixed. On the other hand, the Equity market returns can be volatile and unpredictable in the short term. So Rahul has to be comfortable with taking on these uncertainties and both commitments together.
  • If the Home Loan tenure is longer than expected working years of Rahul, it may be wiser to repay the Home Loan partly with the Rs 10 L, reduce the tenure, and plan for an EMI-free retirement
  • If the returns that Rahul projects to get from Equity markets are on average 9% or less, then the benefit is lower, and it may be better to repay the Home Loan than to invest in equity.
  • If Rahul’s job or business future cash flows are uncertain or constrained, early repayment of Home Loan again might be the prudent choice.

Liked the article? Like and comment on this website, and on LinkedIn, Twitter & Facebook below.

Disclaimers

  • Investors new to our Research Analyst service can look at our OFFERINGS, and sign up using the PRICING AND PAYMENT OPTIONS link, to grow their Direct Equity investment portfolios.
  • This note has been prepared by 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 JMI. 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.
  • Investments 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 financial planner or RIA Registered Investment Advisor.
  • JMI has been an equity investment adviser commercially since Nov 2012, and a SEBI certified and registered Research Analyst 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. Logos / brand name –

Business Standard – Revealing the 100X strategy: ultimate wealth creation

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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 –

https://www.business-standard.com/economy/analysis/revealing-the-100x-strategy-the-ultimate-instrument-of-wealth-creation-124121701224_1.html

Warm regards

Punit Jain

Mid and Small Cap Stock Trends Nov 2024

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27th Nov 2024

JainMatrix Investments, a Research Analyst firm, is pleased to present a note on Mid and Small Cap Market Trends. We have done some research and here are the key findings:

  • The Sensex peaked recently at 85,900 (26Sep) and then fell to 77,100 (21Nov), a fall of 10.2%. For the NIFTY Midcap 100 the fall has been sharper at 11.7%, over the same period.
  • The fall can be described as a recovery to better valuations, and investors can look at starting (or continuing) with equity investments and SIPs at these levels.
  • Our rating and ranking of attractive sectors is:
    • Financials (Bank / NBFC)
    • Power sector
    • Auto and Auto Ancillary (manufacturing)
    • Infotech
    • Consumer QSR,
    • Also travel, tourism and hospitality, pharma and healthcare.
  • Investing Trends: The trends we notice are:
    • Valuations have corrected sharply, but are not cheap yet.
    • However, valuations can remain expensive for extended periods, as we saw in 2004-07, and if they do not get excessive, it should not inhibit investors.
    • Mfg. and IT services can have an export component, the rest are more domestic-focused
    • From 2021 till recently, we have not had big broad corrections, but several waves of sectoral rises and micro-corrections, such as Infotech, Speciality Chemicals, Defense, PSUs, Shipyards and Rail stocks.
    • These cycles have in aggregate kept valuations in check.
    • IPOs too may now become more sober in terms of pricing and valuations, but this route continues to work, and throw up exciting companies, and encourage risk-taking promoters and Private Equity/startup investors.
  • We do not want to choose or trade-off between Large-cap, Mid-cap and small-cap stocks.
  • Large caps have had a big correction as the FIIs pulling out have been more invested in these.
  • Mid-caps present the potential ideas, and if they scale, they are the large caps of tomorrow (and good investments too).
  • Small caps are a higher risk and potentially higher return play and investors with such a risk appetite can look for success here. However, these need deeper primary research as firms are not very good at communicating their story and progress, and may even be secretive.

Suggestions and Disclaimers

  • Investors new to our service may look at our OFFERINGS, and sign up using the PRICING AND PAYMENT OPTIONS link, to grow their Direct Equity portfolios.
  • This note has been prepared by 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 JMI. 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.
  • Investments 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. Logos / brand name –

Hyundai Motor India IPO – This Time It’s Different

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  • Date: 15th Oct
  • IPO is open from 15-17th Oct, at ₹ 1,865-1,960/share
  • The IPO is the largest from India, to raise ₹ 27,870 cr.
  • Large Cap. with mkt cap ₹ 1,59,000 cr.
  • Sector: Automobile
  • Opinion: Buy with a 2-year perspective

Summary

Why Hyundai India: As the #2 company in Indian passenger vehicles, Hyundai Motor India has been popular for its attractive cars. Combining good riding with fair prices, it’s products have held up well against Maruti’s value offerings and the Indian, European and Japanese automobile firms. Capacity utilization is close to 100%, so the new plant in Pune by next year will be useful. The financials and balance sheet look healthy to support needed investments. HMI’s auto products have evolved in sync with Indian consumers, and we expect this to continue.

Why now in IPO: 1) This will be India’s largest IPO by value, aiming to raise about ₹ 28,000 cr. The next 7 largest IPOs suffered problems post IPO, but we believe This Time It’s Different, and it will succeed 2) HMI’s strong Indian presence and product excellence can help command a valuation superior to Maruti Suzuki 3) The success of recent IPOs suggests that the large size of this IPO is not an issue 4) The IPO will be Hyundai’s first stock market listing outside South Korea. It’s an opportunity.

Risks: 1) Increase in competitive intensity 2) GoI regulatory changes including taxes, pollution, etc. 3) raw material price inflation 4) any manufacturing or factory disruptions 5) sector or economic downturn 6) increase in royalty to Hyundai Motor Company, South Korea, and related party transaction pricing.

Opinion: Buy with a 2 year perspective

See report in PDF format

JainMatrix Investments_HMI IPO_Oct_2024Download

Disclaimers and Disclosures

  • Punit Jain discloses that he has no shareholding in HMI, or any group company as on date of report. In addition, JainMatrix Investments Bangalore (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. But Punit Jain is the owner of a Hyundai i10 bought in 2013. And in line with his recommendation, he may apply in the IPO.
  • This document has been prepared by 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 JMI. 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. Logos / brand name –

Bajaj Housing Finance IPO – Take This Loan

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  • Date 08th Sept 2024
  • IPO Opens Sep 9th-11th, at ₹ 66-70 /share
  • IPO of ₹ 6,560 cr., Large Cap with ₹ 58,300 cr. Mkt cap
  • Sector – Housing Finance
  • Valuations: P/E – 33.7 , P/B 3.83 times post IPO
  • Opinion: It is a BUY. Investors can SUBSCRIBE for the Long term

Summary:

  • Bajaj Finance Ltd. has transferred its mortgage loans business to BHFL. Growth in Home loans AUM has been excellent over 3 years at 42% CAGR. As the #2 largest HFC NBFC, BHFL looks set to grow and expand this market with competitive and innovative offerings. The BHFL vision is to build a reputation in mortgages on par with HDFC group. Its systems look excellent as its loans have the lowest GNPA & NNPA in this sector. It’s adopted the digital path with mobile applications, website and loan processing apps, which should drive new business. The IPO valuations look reasonable adjusted for growth, quality and top notch Bajaj Group backing, as the P/B of BHFL is 3.8 times versus Bajaj Finance-5.6. The leadership & brand of Bajaj Finance should rub off on BHFL.
  • Risks: 1) Regulatory risk and control of RBI 2) Economic & cyclical risk – we can expect a Real Estate slowdown in 4-6 years 3) mortgage loan competition from banks, NBFCs & fintechs 4) Deterioration of asset quality 5) interest rate sensitive sector 6) Some overlap in business with BajFin.
  • Opinion: The BHFL IPO is a BUY, and Investors can SUBSCRIBE for Long term.
  • Disclosure: JMI and Punit Jain have analyzed and tracked Bajaj Finance since Feb 2012, see reports Bajaj Finance, Automatic Growth and Bajaj Finance – a Firm you can Bank on and NBFC Sector

Here is a note on Bajaj Housing Finance Ltd – BHFL.

IPO highlights

  • The IPO opens from 9-11th Sep’24 in a Price Band of ₹ 66-70 per share.
  • The IPO is a Fresh Issue of ₹ 3,560 cr. and ₹ 3,000 cr. of Offer for Sale totalling ₹ 6,560 cr.
  • The main reasons and objects of the IPO are:  
    • RBI identified BHFL as an “upper layer” NBFC, and mandated it to list by Sep’25. It is early in this.
    • BajFin will use the IPO to boost BHFL’s capital base, enabling it to fund expansion of lending operations and capitalize on future growth opportunities in the housing finance sector.
    • BajFin too in the OFS will raise funds that will help in future growth.
  • The lot size is 214 shares and Face Value is ₹ 10 per share.
  • The IPO share quotas are QIBs: Non-Institutional Investors: Retail is 50:35:15%. In addition, BHFL has reserved shares worth ₹ 200 cr. for eligible employees, and shares worth ₹ 500 cr. for shareholders of BajFin and Bajaj Finserv. (The Record Date was 30 Aug’24.)
  • The unofficial/grey market premium of BHFL is ₹ 50/share over the IPO price. This is a positive.
  • The IPO allotment is likely to be finalized on 12th Sep., refunds will be on 13th Sep., and also crediting of shares to eligible allottees. BHFL shares will be listed on BSE and NSE, on 16th Sep.

Download Full Report

JainMatrix Investments_Bajaj Housing Finance IPO_08thSept2024Download

Disclaimers and Disclosures

  • JMI and Punit Jain have analyzed and tracked Bajaj Finance since Feb 2012, see reports Bajaj Finance, Automatic Growth and Bajaj Finance – a Firm you can Bank on and NBFC Sector
  • Punit Jain discloses that he has shareholding in Bajaj Finance since April 2003 (<1% stake). Other than this, he has no financial interest or transactions with Bajaj Finance, or any group company. 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. Punit Jain intends to apply in this IPO in line with this research note opinion.
  • 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 –

JainMatrix Satellite Stocks Report Aug 2024

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26th Aug 2024

Subscribers and Investors,

JainMatrix Investments, a Research Analyst firm, is pleased to present its latest update of our Satellite Stocks Basket. Key points are

  • Introduction: It’s over 3 years since we introduced the Satellite stocks basket
  • This update report is dated 25th Aug, and the report covers 10 stocks
  • These firms are a mix of small, mid and large-cap firms
  • The objective of this basket is to look at shorter-term, high-potential ideas that must outperform the Mid and Small-cap indices by 2-3% per year
  • The Satellite stocks have performed excellently over the years
  • Recommendation Changes:
    • In our last report, we had 7 BUYs and 2 HOLDs
    • In this, we introduce a new BUY, and downgrade a HOLD and a BUY, to SELL
    • So we now have 7 BUYs and 1 HOLD as the final stocks recommendations
    • These 7 BUYs represent 4 high potential sectors, and are high performers within these sectors
  • Investing Trends: The trends we notice and capture in our report are:
    • Investor Optimism even at all time highs on Indices
    • More domestic focus rather than exports
    • Key themes are Consumption, Automobiles and Infrastructure
    • Several sectors are witnessing a cyclical upswing that should be sustained for several years.
  • Based on our research, this Satellite stocks report includes 1-2 page notes on all these stocks and 2-year Target Prices for May 2026.
  • Current subscribers may note the changes recommended.
  • Investors new to our service may sign up using PRICING AND PAYMENT OPTIONS link, to grow their Direct Equity portfolios.

Disclaimers

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. 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, 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. 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 names are –