First of all wish you Shubh Dipawali, may Goddess Laxmi be always kind on you.
But as the saying goes "Bhagwan ke ghar par der hai, lekin andher nahi" we can't wait, we will have to plan in advance. Just for that, like every year I am sharing a list of stocks that you should definitely consider for investing. Just a brief review from last year's Muturta Trading I had suggested three investment.
1. Arrow Green tech (at 830) - a packaging and a cyber security business. Don't know how they manage both but anyway, the stock zoomed 40% in literally a week's time and I had shared another note to book partial profits. Currently the stock is down 31%.
2. Eternal (@250): This was the long term investment play, still is. Currently the stock is up 34%. Last year as well I had mentioned those who wish to buy stock for decades if not more, go with Eternal, so no point in exiting now.
3. Gold (73k): I had recommended gold, to be honest not just for profit purpose but for diversification, my understanding was it will touch 1.10-15k, but gold has rallied 65% and reached 1.30k. It is borderline bubble territory, so if you don't wish to hold for several years, then I will suggest keep a hard stop loss of 7-8% from current price and hold it until it breaks the SL. Would not recommend buying fresh or buying more currently. Now onto this year, every year I try to publish this blog at least a day or two before the Muhurta trading, so that you all will get time to study the shares and make your own informed decision. After all, these are not tips this is just for reference. But, this year I could not find any idea what to recommend, because since June 25, the market is in recovery mode and the stocks have reached newer highs every day. So following what Warren Buffett has recommended "Good Company at bad price is always a bad deal" because of that I do not believe we are going to get some good deals in the market. This applies to fresh buying only.
But if you are holding any stocks like L&T, Ultratech, Airtel, etc. then only it makes sense to add more to your old positions. Eternal as well is coming down after making a high of 368, which is in good position to buy. There are several beaten down stocks which fit the "Average company at a great price makes a great deal" With that logic, Tata Motors, Asian Paints, Policy Bazar, etc. are really worth buying, because they are trading at their lowest P/E, Price to Sales ratios. At the end what you should do? Just to record something on this Auspicious occasion buy a small amount of share that you already own especially the profitable one, wait for a small correction in overall market, which may not occur for another month or two and then buy big. If you have big amount ready now, then buy small quantity in each share that you own. STOCK OF 2025 If you are part of my Signal group then you are already aware about this stock, it has actually rallied 36% since I first started buying near 4400 and currently trading at 5900/- just 4.5% away from all time high price but the company has such strong fundamentals and technically it has formed base near 6000-5600 levels for two months that I do not have any problem recommending this name. You should ideally hold this stock till 2047, when the company will achieve 10-15 times higher revenue than 2025 (Compounding effect). With equal or better profit margins, or you can hold it for next one year as well. The company has one major cost expense that is Fuel Cost, which accounts for 60% of its total expenses and with Crude Oil prices falling below $59 with a forecast of staying below $60 for another year, the company should be able to post higher profits this year. Obviously there is risk of Sanctions on Russian crude oil import and conflict in middle east pushing the prices upward, but since Trump has not won the Nobel peace prize my hope is he will mediate and resolve any conflict within days in not hours until he gets what he deserves. (Just Kidding, such oil shocks do not last more than couple of days because of law of supply and demand so nothing to worry.) The stock do not have any major risks that are known at the time of writing. The name of the stock is Interglobe Aviation Ltd. or AKA - INDIGO AIRLINES. You can consider buying fresh, buying large (not more than 15% of PF at once) in this stock. Some notable mentions are 1. Ather Energy - below 650. - Amazing management, great fundamental, very bad price. 2. Anant Raj - Current Price (Leading AI stock in India, but we don't know if AI stocks are in a bubble) 3. JIO FIN - After waiting for 9 month they have finally delivered on one mutual fund scheme, hope they will launch more this year. 4. Swiggy - Or you can call it sasta wala zomato. Like always, please do your own analysis, please look at every major aspect and then take an informed decision.
Muhurta Trading - 1:45 pm to 2:45 pm. Shubh Diwali!! Regards, Chinmay
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