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November 04, 2024

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Although Money Times recommendation have outperformed other media, stock brokers and research houses, the brief recommendations under Money Times Talk (MTT) cannot display ‘BUY’, ‘SELL’ or ‘HOLD’ recommendations. Readers should, therefore, exercise their own judgement and evaluate the future prospects of the stock given its past performance, industry prospects in the backdrop of a growing economy and in consultation with their investment adviser.
As per a market veteran, while Samvat 2080 rewarded investors well, he urges caution in Samvat 2081 due to anticipated volatility and suggest that investors focus on select stocks rather than the indices through November.
The 1500 cr. PLI scheme in recycling E-waste will benefit Eco Recycling the pioneer and leader in this space. Stock which is already hovering around the 4-figure mark is sure to cross it in Samvat 2081.
As per astrology view some important turning dates are 1, 4, 8, 14 & 18TH November 2024.
What investors should learn from Mahabharata: 1) Don't risk all your capital for profit like Yudhishthira. 2) Avoid becoming infatuated with any stock like Dhritarashtra. 3) Steer clear of advisors like Shakuni, especially those promising quick multi-bagger gains. 4) Don't treat your holdings like an army, as with the Kauravas. 5) View the stock market as a business, not as a game of cheats.
5 Key Lessons from ‘Stocks to Riches’ by Parag Parikh: 1) Parikh highlights the power of long-term investing and the magic of compounding where even small returns can lead to significant wealth. 2) He emphasizes patience in investing, advocating for a focus on long-term potential rather than short-term fluctuations. 3) Understanding behavioural biases is crucial; Parikh discusses emotional investing and stresses the need for self-control and a disciplined approach. 4) Quality over quantity is essential; invest in fundamentally sound companies and avoid speculative trends. 5) Diversification is key for risk management; allocate assets wisely to balance risk and return while aligning investments with clear financial goals. Following these principles can help investors build a solid foundation for long-term financial success.
Analysis of the crash in Small & Mid-Cap stocks: The recent decline in the small and mid-cap segment of the Indian stock market results from several key factors: 1) Weak earnings: Many results announced until 31st October were flat or negative affecting investor sentiment compounded by aggressive FII selling throughout October 2024. 2) SEBI's new collateral regulations: New rules have drastically reduced the stocks eligible for collateral, limiting leverage for traders and investors. 3) Margin calls and forced liquidations: The lower leverage led to margin calls, forcing investors to liquidate positions and intensifying the sell-off. 4) Impact on HNIs: High-Net-Worth Individuals, often leveraging their investments, faced challenges as many holdings became ineligible as collateral. 5) Potential implications: Short-term volatility is likely as investors adjust to new regulations and process earnings impacts while corporate governance practices among small and mid-cap companies may come under scrutiny. 6) Long-term opportunities: Despite short-term uncertainties, the Indian economy's long-term prospects remain positive with potential buying opportunities arising from the recent correction.
Advice to investors: Stay calm and avoid panic selling; maintain a long-term perspective. Do thorough due diligence before investing; research and analyze thoroughly. Diversify your portfolio to mitigate risks and protect investments from volatility. Monitor developments closely; as the market stabilizes, opportunities may arise for disciplined and patient investors.
Key Points to Consider Before Buying Shares: 1) PE Ratio: The company's PE Ratio should be lower than the industry average indicating undervaluation. 2) ROE: Aim for an ROE above 15%, demonstrating good returns on shareholders' investments. 3) ROCE: Seek a ROCE above 15%, reflecting effective capital utilization. 4) Debt: Opt for companies with low debt to ensure financial stability. 5) Promoter Holding: Look for over 50% promoter shareholding, which indicates confidence and control. 6) Net Profit Growth: Ensure the company's net profit has risen YoY signifying stable growth. 7) Cash Flow: Positive and stable operational cash flow is essential for financial clarity. 8) Dividend History: A strong dividend history reflects a profit-sharing policy with shareholders. 9) Management Quality: Choose companies with experienced and reliable management teams. 10) Sector Performance: Assess the performance and outlook of the sector in which the company operates. Keeping these factors in mind can make investments safer and more profitable. Be an informed investor.
As per market veteran, during bear markets, many investors exit for years before returning at the next peak. FIIs sold over Rs.1 lakh crore in October, while Nifty fell over 8%. However, stocks with significant FIIs ownership and no promoters have shown resilience: 1) HDFC Bank rose with FII holding at 48%, 2) ICICI Bank remained stable with 46% FII sownership, 3) Axis Bank declined slightly despite 52% FIIs holding. This highlights that fundamentals and stock selection are crucial.
In 18th May MTTs, Himatsingka Seid given at Rs.135 touched Rs.177.
In 15th June MTTs, E Pack Durable given at Rs.212 touched Rs.471, a gain of 122%.
Last week in 26th October MTTs, Amal Ltd given at Rs.377 touched Rs.430, Artefact Projects given at Rs.74 touched Rs.79 & still looks very good, Cochin Minerals given at Rs.299 touched Rs.331 & still looks very good, Cybertech Systems given at Rs.216 touched Rs.225, International Travel House (ITHL) given at Rs.626 touched Rs.649, NSE SME Megatherm given at Rs.324 touched Rs.339, Morepen Lab given at Rs.74.60 touched Rs.79.50 & still looks very good, MNC Multibase India given at Rs.252 touched Rs.267 & still looks very good, Parag Milk Foods given at Rs.193 touched Rs.205 & still looks very good, PNB Gilts given at Rs.115 touched Rs.119, NSE SME Rulka given at Rs.363 touched Rs.372, Resonance Specialities given at Rs.106 touched Rs.106 & touched Rs.111 & still looks very good, Sagarsoft given at Rs.206 touched Rs.210 & still looks very good, TIGLOB given at Rs.199 touched Rs.199 touched Rs.209 & still looks very good, Tyche Ind., given at Rs.180 touched Rs.185 & still looks very good, Vinyl Chemicals given at Rs.354 touched Rs.365 & still looks very good during the week.
GDP projection by IMF & Goldman Sachs: China GDP: 2028: $27.4 trillion, 2075: $57 trillion. India GDP: 2028: $5.5 trillion, 2075: $52.5 trillion. US GDP: 2028: $32.3 trillion, 2075: $51.5 trillion. Indonesia GDP: 2028: $2 trillion, 2075: $13.7 trillion. Nigeria GDP: 2 028: $0.9 trillion, 2075: $13.1 trillion. Brazil GDP: 2028: $2.7 trillion, 2075: $8.7 trillion. Germany GDP: 2028: $5 trillion, 2075: $8.1 trillion. UK GDP: 2028: $4.2 trillion, 2075: $7.6 trillion. Japan GDP: 2028: $5.3 trillion, 2075: $7.5 trillion. Russia GDP: 2028: $2.2 trillion, 2075: $6.9 trillion. France GDP: 2028: $3.3 trillion, 2075: $6.5 trillion. Saudi Arabia GDP: 2028: $1.2 trillion, 2075: $6.1 trillion. Canada GDP: 2028: $2.6 trillion, 2075: $5.2 trillion.
Diwali Alerts: 1) In the current market downturn, sell bad shares to book losses and reinvest in good shares. For example, sell a bad share bought at Rs.11.30 for Rs.7.30 (30% down) and buy a good share at Rs.400, down from Rs.515 (21% down). When the market recovers, the good share could rise to Rs.2000, while the bad share may remain at Rs.3-4. The experience of those who sold JPASSOCIATE at Rs.250 during the 2008 recession and invested in Tata Elxsi at Rs.150 is a testament to this strategy as Tata Elxsi soared to Rs.7100 after 15 years while JPASSOCIATE dropped to Rs.7. 2) Long-term investors should not view fluctuations in their portfolio as profits or losses until they sell as good shares will recover over time. 3) Avoid daily share tips from social media and TV channels to minimize losses.
Focus on stocks like Artefact Projects, Bank of Baroda, Cochin Minerals, HCC, Heranba Industries, International Travel House (ITHL), Lactose (India), Morepen Lab, MNC Multibase India, Parag Milk Foods, PNB, Pennar Ind., IPCA Lab, Resonance Specialities, Sagarsoft, Sucrosa, TIGOB, Tyche, and Vinyl Chemicals (India) for potential gains. Develop a process to maximize wins and minimize losses.

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