Best time to buy a stock after ipo is in pre open time period between 9 am to 945 am if one is convinced about the quality of stock n price which is being discovered n more clear around 940-942 am ( TIME) range. even if u bid at max possible price allowed in pre open one will get the stock at discovered price also which cud be lower.
At time s this strategy can also backfire as had happened in pre open of Chemcon when after pre open price of 731 it went down at 10 am n withing an hour was at LC of 588. so do your homework thoroughly.
Was studying Home First Finance, looks interesting ,here are my notes:
Started in 2010,Owned by PE players.
Company Motto is “Tech in Mind and Service at Heart”
Extends loans primarily to low to middle income segment(earning 20-50k per month)
44000 Customers
73% Salaried
Ticket size of Rs 10 Lakhs
Capital Adequacy of 51%
Cost of Borrowing:8.8%
Yield on loans:13.8%
NIM:6%
Spreads:4.5%
Gross NPA:1%
Net NPA:0.8%
Urban focused company to benefit from migration to cities from rural areas which is driving the demand for affordable housing.
Active in the top 60 Cities in Gujarat,Maharashtra,TN,Karnataka etc.
Gujarat + Maha forms almost 60% of loan book.
Will expand to 80-100 Cities in next 1-2 years.
Competition is high but company helps with documentation etc. and because of technology has a very quick turnaround time.
Competitive challenge is coming from digital players who are changing the rules of the game.
Company striving to remain ahead of the curve in digital and tech.
yes a sizeable allotment atleast in IRFC HNI category if not firm . certainly makes sense to apply in hni vs retail maybe due to psu tag n other more attractive ipos
Applied in Homefirst finance ipo & may buy more on listing expected on 3 Feb if price is correct with 2 year POV .
Rationale being good management, CAGR, ROE and huge opp size for affordable housing segment for first time buyers specially in urban centres… Valuation seems cheaper when compared with closest affordable HFC Avaas.
Vivek,how do you size your bets as % of allocation in your portfolio?Is there any max level above which you don’t go overboard in a script (like 15%) and do you add up in the way up or add in dips?
I feel allocation is equally imp as stock selection.When PF size is small allocation becomes all the more important. One shud take big bets then.
Once PF becomes large diversification helps to conserve gains.
I generally avg on upside seeing the performance of co & dont hesitate to buy more forgetting price anchoring if performance is good as allocation helps a lot in boosting PF performance.15% is a good limit for an individual stock
How r u?
Due to office work, had taken a break from VP forum.
Hope lots of money made in the bull run.
I see you are into gland and Route.
I have bought Gland, Route, Burger King and Mrs Bector after the IPO. SInce you are invested in few of them, whats your view on them.
Had got 1 lot of CAMS allottment which is doing decently after listing.
Rest investment remains same with wtage mainly on checmicals, APIs and CRAMS business.
Had taken contra bet by investing in sectoral bets like Auto and Infra. Auto has given good results in last 6 months. Hopefully infra will deliver soon.
Do let me know your feedback.
