[SmartCat]

Originally Posted by ValarMorghulis

Is it time to exit the market and harvest the 50% return? I believe even with 10% LTCGT it is still a good deal than go bust when the market pops. And then start another SIP or equity investment.
Any suggestions experts?

Never exit fully. If you feel uneasy at these heights, clean out 50% of the portfolio and move it to liquid funds. After that, at the end of every month, keep booking profits so that 50/50 ratio is maintained between stock portfolio value and liquid funds value.

[speed_edge]

Hi Folks

Can someone please help me to understand how is M&M sales numbers being computed? If I look at below thread, so far best month for automobile sector, M&M sale approx 21K vehicle a month.

https://www.team-bhp.com/forum/india...-analysis.html (July 2021 : Indian Car Sales Figures & Analysis)

Extrapolating same for a whole year, total number of vehicles comes out to be 252K vehicles. If I assume Approx 10L average sale value per vehicle, total sales should be
252K * 10L, that's around 25,200 Crore. While when I look at Screener, TTM sales it shows 81,481Cr. Delta seems huge, not sure what I'm missing in this.

In fact standalone sales number is also quite high - 51,027Cr

Regards
SE

[SmartCat]

Originally Posted by speed_edge

that's around 25,200 Crore. While when I look at Screener, TTM sales it shows 81,481Cr. Delta seems huge, not sure what I'm missing in this.In fact standalone sales number is also quite high - 51,027Cr

Mahindra & Mahindra is the world's largest tractor manufacturer

You are also forgetting M&M's portfolio of commercial goods and passenger vehicles.

You should look at standalone financials only, when looking at automotive business. Consolidated turnover includes financials of Tech Mahindra, M&M Financials, Mahindra lifespace, Mahindra Holidays etc.

[Karan_n8]

Does it make sense to invest in Idea right now ?

[spookey]

Originally Posted by Karan_n8

Does it make sense to invest in Idea right now ?

Book value is minus 13 as of 30 June 21. Vodafone has already written off its investment in the venture and other promoter who was the chairman resigned overtly without even informing the exchanges to ring fence his other companies from bankruptcy proceedings.
CEO has been claiming that overseas funding is coming in few " weeks" which has now become a whole year while jio and bharti have both bagged investments from google.
Customers are porting out rapidly and service quality deteriorating with each passing day .
Investing right now will be more of a gamble than an investment as today's telecom package by the government is applicable prospectively so all the past dues are applicable when due.

[speed_edge]

Originally Posted by SmartCat

Mahindra & Mahindra is the world's largest tractor manufacturer

You are also forgetting M&M's portfolio of commercial goods and passenger vehicles.

You should look at standalone financials only, when looking at automotive business. Consolidated turnover includes financials of Tech Mahindra, M&M Financials, Mahindra lifespace, Mahindra Holidays etc.

Thanks for the response. XUV700 is around and probably even considering chip shortage, M&M can conservatively clock at least 2000 units per month. Does it make sense to enter at this stage? While other subsidiary are nearing bankruptcy like VI, what impact does it have on M&M stock?

Regards
SE

[hothatchaway]

Originally Posted by speed_edge

Thanks for the response. XUV700 is around and probably even considering chip shortage, M&M can conservatively clock at least 2000 units per month. Does it make sense to enter at this stage? While other subsidiary are nearing bankruptcy like VI, what impact does it have on M&M stock?

Regards
SE

It's unlikely that the stock quote for a behemoth like M&M will move on the basis of the prospect for a single model, that too in its passenger vehicle range (I am surmising that division is not its bread and butter)

Depends on what kind of play you are looking at. The parameters for, let's say, day trading to positional play to long term investment are completely different

[speed_edge]

Originally Posted by hothatchaway

Depends on what kind of play you are looking at. The parameters for, let's say, day trading to positional play to long term investment are completely different

Mostly looking for mid term - Say 1-2yrs horizon.

Regards
SE

[hothatchaway]

^^^^That's positional. You could look at technicals and decide. No point in detailed analysis for that short a period. It is off its 900+ high in the preceding 12 months.

Pick a target/stop loss before entering, if at all

[fordday]

To be honest I am a little confused.

Now that the govt is pushing for increased Ethanol blending in fuels, who are the likely beneficiaries of this change. I think the OMC are obvious ones but at the same time who are the ethanol producers who could benefit?

Govt also claims that it wants the country to move to gas based economy. This could mean natural gas and its products like LPG, PNG, LNG, CNG.

Govt is also pushing for Hydrogen as a fuel in the coming years.

Not to mention the grand push for EVs.

Whom should we as small investors bet on? I understand that long term and short term bets could be on different technologies.

[fordday]

My senior citizen mother wanted to invest some money in Hawkins Cookers fixed deposit scheme.

This is because it gives around 8.5% returns, much more than bank FD. Another reason being she, like most women who cook, have implicit trust in their Hawkins cookers and are attached to these.

But the shocker is, Hawkins could not accept our money and has put us in waiting list

[SmartCat]

Originally Posted by fordday

Whom should we as small investors bet on? I understand that long term and short term bets could be on different technologies.

Wait and watch. Let things unfold and then bet on new technologies. Let's see the effect on the balance sheet first (in terms of revenues or profits).

[Gansan]

Originally Posted by SmartCat

Any stock that pays FD-beating dividend yield can never be termed a 'value trap'.

Can you mention some of these stocks? I have some money to deploy in FDs, I will buy these stocks and hold instead.

[SmartCat]

Originally Posted by Gansan

Can you mention some of these stocks? I have some money to deploy in FDs, I will buy these stocks and hold instead.

Right now, there are around 30 stocks that have dividend yield ranging from 3% to 10%:

https://www.screener.in/screens/3943...ecap-dividend/
https://www.screener.in/screens/394318/midcap-dividend/
https://www.screener.in/screens/3943...lcap-dividend/

The above list needs some scrubbing though. Not all of them are 'buys'.

1) You will have to get rid of companies that have paid out one time/special dividend or companies with irregular dividend payment history or companies that have declared losses in the past
2) When you choose consumer (Eg: ITC) or business brands (Eg: oracle fin), you get dividend yield plus high probability of getting capital appreciation. These are 'fill it, shut it, forget it' type of stocks.
3) Commodity stocks like ONGC, Coal India etc can be bought - but one needs to play the cycles. These are NOT buy and forget stocks. Keep booking part profits regularly.

For 'active' investors:

If you are the type who keeps refreshing your portfolio every hour when the markets are open, you can adopt this low risk averaging strategy for dividend stocks. The whole idea is to average down in small increments, so that you do not run out of funds to invest. Risk reward is excellent here because your dividend yield will go higher, as you are acquiring more stocks at lower price.

1) Let's assume you have invested Rs. 100,000 in ONGC.
2) Assume that ONGC has dropped 2%. Now current value is Rs. 98,000
3) Invest Rs. 2,000 more in ONGC such that its current value comes back to Rs. 100,000
4) ONGC has dropped 5% more. Then invest another Rs. 5,000 such that current value always stays above the original invested value (Rs. 1L in this example). Not much risk here since you are getitng higher than FD yield in your Rs. (1L + 2k + 5k) investment.
5) Do nothing if ONGC is trending upwards. Current value will be above Rs. 1L.
6) Keep watching the screener everyday at 7 PM, when the prices are updated. See if ONGC still shows up in my screener.
7) Let's assume that ONGC has gone up 40%. At these valuations, dividend yield at CMP would have fallen. PE ratio would have gone up. P/BV ratio would have gone up too. So it is quite likely that ONGC would exit my screener filter (since the stock is now relatively overvalued).
8) Book profits in ONGC.

So this is a good rule-based strategy for trading/investing in high dividend yield stocks. The above strategy is best suited for commodity/PSU type stocks, which goes UP and DOWN and UP again in the short term, but mostly flat in the long term. The so-called 'value traps'. You can average down other dividend yielders (Eg: ITC) too, but there is no need to sell them after certain gains.

[jkrishnakj]

A generic query to the experts here.

What’s the trick to crack allotments in IPO’s?

The last three that I applied drew a blank, Zomato and Paras included.