Thanks hitesh bhai. Just to add to the discussion, and I don’t know how much these sort of things actually work in stock picking, but i being a frequent flyer, have found that these lounges are packed. Recently at Mumbai airport, at 6 in the morning the lounges are fully occupied. Some carry so many credit cards, and keep others waiting in the queue, till finally one credit card works. Same with Delhi and Ahmedabad airport. So business wise, as one sees with his own eyes, this is a decent business to be.
The problem here I find is that they may be squeezed by credit card companies. Also the credit card companies have reduced the complimentary access ( i used to get 3 per quarter before COVID, which I recently found out has been reduced to 2)
Most of debit card also has access to airport lounges. Also the idea of free snack lures one and all. Having previously worked in credit card dept few years back people buy credit cards to access airport lounge.
With domestic travel going up and people mindset of having a card changing. It looks structurally a long term trend.
Did you get a chance to look at VST Tillers? Company reported excellent numbers and confident of achieving 3000 crores of revenue in the next 3-4 years which is approximately 3x from current sales. Although, they have made certain claims in the past but failed to achieve it. Technically, charts started consolidating before results and gave a strong breakout after it.
I would like to get your views on this, and thanks for all the guidance.
Hi Hitesh bhai,
Thank you so much for all the precious knowledge that you share here always.
What are the market conditions in which technical works and in which, it doesnt work ?
Also what care should be taken by a novice person learning technical
Many thanks.
Hi Hitesh bhai,
Which one you suggest is better - momentum or technical investing ?
Also the books you mentioned - do they cover only momentum or technical too ?
Thanks
I have shared a repository of research papers on factor investing in this blog post. Enjoy reading and learning. The blog even details how to build a screener on your own.
Sir - many a times we wonder whether to put PI in agrochemicals sector or we should put it in CDMO space !
Agro chemicals sector is a cyclical sector ( especially generics ) whereas in CDMO space, one gets long term stable orders/contracts (though majority of PI CDMO is also in agro-chemicals ) .
Many a times if we put this company in pur agro-chemicals sector, we might misead this company. What are your views
PI inds has got agrichem plus CDMO business. And CDMO business has now achieved scale with order book consistently remaining above 1 Billion dollars and company showing good growth in segment.
This factor has lent a lot of stability to an otherwise cyclical agrichem business. Hence PI inds is akin to a consistent compounder inspite of having a cyclical segment…
In many cyclical sectors, there will be an odd company that will be an outlier, which will have that X factor that seperates it from the rest. PI is one such company in an otherwise cyclical sector.
Bharat Rasayan did seem to hold promise based on its capex plans, but has not delivered yet. So the next PI inds still remains PI inds. ,
What’s your reading on Natco Pharma results yesterday post market hours and market response today for it. If I remember correctly, you are also invested there.
What’s your insights in to sectors and names changing as you observe this result season? Do you think that Pharma is on the verge of moving up?
Nifty bees are not meant to be traded as it is an ETF. It’s usually considered a good alternative to investing in a MF. And time horizon should be decided accordingly.
Hello Hitesh Bhai, I was researching about dividend investing. And looking for some clarity on the below questions.
“Lets say if a Stock X, price-100rs which gives 4rs as dividend”. Let’s assum that the stock X as ITC then investing in that will be great coz it gives capital appreciate and also dividends more over the company’s future looks good and growing.
But now, lets assume the stock X as IOCL, BPCL or, HPCL. These stocks did gave dividends but the last 5 yrs returns where less than -10%. In such case is it good to invest for dividend of 4% (as said in example of stock X). Moreover the companies future are not great reason being EV.
Same goes for vedanta, 0% returns in last 10+years from 2009 till date.
Both REC and Vedanta are like twins multiple years of ups and down with no capital appreciation but only dividends.
ITC is exceptional
So, assume that in 50s or 60s in order to get 1L as dividends investing in companies like this with bad futures and without captial appreciation sounds little not okish. For 1L monthly dividend in IOCL we have to invest around 25 times which is 25L in IOCL. Is this fair, investing in companies with no future scope.
BTW, even if wanted to create a dividend port then considering CA and future scope and also dividends there are companies like PIDILITE, ASIAN PAINTS, M&M, BRITANNIA, CRISIL, INFY etc etc most of these companies comes under LCAP.
Concluding, I’m confused or stuck b/w investing in companies just for dividends and investing in companies along with dividends (personally feels like if we built a core portfolio then dividend automatically becomes a part of it).
Natco pharma has been a big disappointment time and again for a lot of investors. So for a company like this, it takes a couple of quarters of good results to make participants take notice of it again.
Results have been good as expected, and the response to the results has been lukewarm. But as said before, it might need another quarter or two of good results to start seeing action again.
About market observation, I think the broader space of small and midcaps seems to be attracting a lot of interest. Regarding pharma sector showing strength, I am not too sure. I think we have to be more stock specific in pharma space while taking a call
@hitusohi1 I don’t invest in nifty bees for any duration. I guess the day I decide to do that, I will probably retire.
I am not a big fan of dividend investing. There are some investors I know who have done very well doing dividend investing, but its not my cup of tea.
The main thing to take care of in dividend investing is to focus on companies in this theme with consistent predictable cash flows. These companies will be able to deliver dividend over a long period of time. If the business itself is cyclical, then dividend payout will keep fluctuating over a period of time.
But if a growth stock ( it may be slow growth like ITC) is available at decent dividend yield, it could be icing on the cake. Strong bear markets usually provide good opportunities for getting growth stocks with good dividend yields.
Hi Hitesh ji, how do we handle stocks which are in our portfolio, have so far grown considerably and keeps hitting new ATH.
I know it is a “good” problem to have, but I am not sure whether to sell or buy more as at every ATH, I think of buying on dip but it further rises. I am talking about KPIT which is giving good results but whether the CMP will give me margin of safety is something I am unable to gauge.
I have been proven wrong when it crossed 800 and again crossed 900. Your experience and insights can help.
Somehow I have realized that one can learn about how to buy a stocks, but holding and selling is purely based on psychology and experience
Riding winners is like riding tigers. You are too scared to ride, too scared to get off.
I guess the simplest solution is to follow an objective parameter like say 30 week moving average. This will get you stopped out once the major trend reverses… But here too there can be false breakdowns. So we have to learn by experience.
If you follow fundamentals, it makes sense to keep riding till the earnings trajectory maintains the same angle. Say a 20% CAGR valued stock grows at roughly 15-25 CAGR, 30% CAGR story keeps growing at 25-35% CAGR or near about and so on.
There is no holy grail for riding fast growing companies. We have to play it by the ear and keep learning on the go.
Hiteshbhai, do you track recently listed cash management companies like CMS info system & radiant cash management. I look them as bet on “currency in circulation” growth in India. They have good margin & growth too. Currently may be out of radar for most of the big guys.
