Synopsis Just a couple of months back, an industrial house issued an IPO for one of its group companies. It was heavily oversubscribed. The listing was at a premium, and there was a mad rush to buy the stock. The reason: The group has a track record of corporate governance and wealth creation. Today, in…
READ MORESynopsis What is the net profit margin of the company that is one of the biggest wealth creators of the last 20 years? Just 6.6%. And it’s not just in one year. In the last five years, the net profit margin has not moved into double-digits. At the same time, sales have been increasing year-on-year…
READ MORESynopsis It is after a long time that we are seeing corrections in absolute terms. Also, it is rare for the Indian markets not to be in step as global markets rise. On Monday, and also on last Friday, there were minor intra-day upmoves by the Nifty. But these were followed by sudden, sharp selling…
READ MORERepresentational image. Synopsis After a long time, probably after March 2024, stock prices and the indices have corrected in a very sharp manner – and across the board. The first phase of any correction is normally led by large-caps, and this time is no different. But remember: Large-caps also tend to recover first when there…
READ MORESynopsis To some our headline may appear confusing. When investing is all about the long-term, why even think of a tactical approach? But given that valuations are high or even in bubble territory, it’s best to be tactical when pumping fresh money into the market. When we say tactical, what we mean is: Consider sectors…
READ MOREThe Nifty Midcap 100 Index has recently hit an unprecedented high of 60,400 driven more by market forces than by robust corporate fundamentals. Currently, the index trades at a Price-to-Earnings (P/E) ratio above 44 — the highest level since the post-pandemic surge in midcap stocks. This P/E multiple is significantly above its 5-year and 10-year…
READ MORESynopsis A recent report suggested that for the first time, the AUM of Midcap mutual fund schemes have gone above the AUM of large cap mutual fund schemes. There are two ways to look and interpret this. First, that too much money has gone into mid-cap mutual funds and it is time to be cautious….
READ MORESynopsis There are many textbook definitions of the word “ moat”. But what it means in simple terms is that there has to be something in a business and the management which makes it different from others and also helps it grow faster and more importantly on a sustained basis. It is not a very…
READ MORE