What sensational did you miss this week?
- Gross NPA ratio of public sector banks have declined from 14.6% in March 2018 to 5.53% in Dec 2022, as per Parliament data. Public sector banks earned a profit of Rs 70,167 Cr in the first 9 months of the current financial year vs Rs 66,543 Cr in 2021-22.
- The Tata Group announced that it has ended discussions with Bisleri for a potential acquisition. Tata Group was earlier in talks to acquire Bisleri.
- The government is expected to spend an additional Rs 4.46 lakh cr on infrastructure projects as compared to the original estimates: Ministry of Statistics and Programme Implementation.
- India’s electronics production is expected to reach Rs 8.42 lakh Cr and export Rs 1.76 lakh Cr in the current financial year: Minister of Electronics and IT Ashwini Vaishnaw.
- India imported 34.19 lakh tonnes of fertilisers from Russia during April 2022-Feb 2023 – highest in the last 3 years.
- Over 2.78 lakh EVs were registered in India in Jan-March 2023: Union Minister Nitin Gadkari.
What can you learn from this?
- A sectoral analysis from stock market courses online with certificate of the Public and Private sector banks which falls in the category of structural sectors (those which align with the GDP of the country).
- Never invest in any company, however strong or big only based on news. Invest using fundamental analysis carried our over stocks from best stock market courses. News change and you might get trapped because of not having any Intraday strategy.
- A sectoral analysis of the infrastructure sector & also finding the best REITs available in the markets after carrying out analysis from stock market training institute.
- Finding out indigenous companies with good fundamentals and financial sheets in the electronics sector & carrying out Technical Analysis learnt from online share market courses over them to find the right entry.
- Figuring out fertilizer companies with good fundamentals and financial sheets in the respective sector & carrying out Technical Analysis of best certification courses for stock market over them to find out the growth trajectory & possible opportunities. If the company has a segment of natural fertilizer production, then it is even better.
- Identifying the companies having an active production line for EVs & carrying out fundamental analysis from stock market course online with certificate over them, followed by Technical Analysis for any possible trade opportunities.
- Global Surfaces IPO listed on the NSE at Rs 164, up 17% over its issue price of Rs 140.
- Udayshivakumar IPO was subscribed 32.49 times on the 4th day. Retail investors subscribed 14.95 times, while QIB subscription was at 42.92 times. It will list on 3rd Apr 23.
- IndiaFirst Life Insurance has received SEBI’s approval for an IPO.
Video in Focus!
- Has recession started? Why is everyone selling in markets? Check here!
Market Outlook this coming week!
Nifty50 : This Week
Not To Miss Updates!!!
- Check if your PAN is linked with your Aadhar, here!
- NSE has decided to withdraw the ‘do not exercise’ or DNE facility for investors trading in the stock options segment from March 30. It means that if a stock options strike goes into delivery (OTM contracts becoming ITM) and a trader has no cash in his Demat account (sufficient margin) or there is no liquidity to exit, then the broker will levy an interest as well as a penalty on the trader, depending on the penalty rule applicable to the broker.
- Focused Story of the Week: Why is gold rising?
Gold has reached at an all-time high price. In the last one year, gold has generated a return of 13.6% on average while in the same period Nifty 50 has given a negative return of 1.1%. So, what has caused this massive rally?
1. Less aggressive rate hikes by Fed Going Forward
If you can see the table, you will see that the Fed in last 4 FOMC meeting hiked rates aggressively by 0.75%. The investors anticipate a less aggressive hikes by Fed in 2023.
The US 10-year bond yields have also drastically fallen signalling less aggressive hikes in future.
As the bonds yields are falling, investments in bonds are not that lucrative as a couple of months back, making Gold much lucrative investment.
2. Uncertain Environment-Bank Runs
The uncertain environment arose due to the fallout of Silicon Valley Bank (explained in Newsletter#8), while Signature Bank made things worse.
Even the second-biggest lender in Switzerland-Credit Suisse is in big trouble and is currently undergoing a bailout plan. Such uncertainties are causing the price of gold to shoot up, as everyone is looking for safer investments.
Sentiments are simply SHORT term while analysis learnt from online share market courses is superior!
If you think that every summer you should buy companies catering to the products such as fans, coolers, Air conditioners & Refrigerators because the sales of these products increase during summers, then this data is for you.
This data shows that there is no correlation between heat waves and revenue growth of companies catering to the products mentioned above, implying that sentiments are simply short-term notions! All you need is right knowledge and mindset which can be learnt from best certification courses for stock market.
You Asked We Deliver Section: Fundamental Analysis of Mazda Ltd.
Requested by: Devansh Singh
About: Mazda Ltd. (Market Cap of 256 Cr: Small Cap) manufactures Engineering goods like Vacuum Products, Evaporators, Pollution Control Equipment & Food Products like Food colour, Various Fruit Jams & Fruit mix Powders etc. Some of its clients include Voltas Limited, Unilever Industries Ltd., United Phosphorus Ltd., Sterlite Copper, others.
As per the Qualitative Analysis from best certification courses for stock market, it has Brand Loyalty and Webbing Advantage but no Risks.
Financial sheet analysis of the company from our stock market training institute:
- Very good Interest Coverage of 54.8, & positive free cash flow of past 5 Yrs.
- 5 Yrs ROCE growth is 15.8%, which is decent & EPS has also been increasing in a healthy trend.
- Promoter holding at 48.3% which is good overall, but slightly lesser for such a small cap.
- It has slightly better than average 5 Yrs Sales growth from its peers, but less than average overall sales growth than its peers.
- OPM % has remained consistent throughout at an avg. of 15%, with a slow growing sale.
- Interest & other Income are in check with regular dividend payments.
- Profit Margin & cashflow statement for past 5 Yrs are a little concerning.
Valuation as per our share market training in Noida:
Stock P/E is 10.7 in comparison to sector’s 23.4, so undervalued.
Stock price just closed below 200 Daily MA yesterday, i.e., 24.03.23.
Below is the ranking of the company for Market Capitalization with its peers:
Verdict: The company’s financials are good but being a very small cap company, it has high risk, so smart allocation is required. One could trade as per their risk appetite and keeping its liquidity in mind.
PS: This is not a recommendation, rather to be utilized for educational purposes.
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Question of the Week #9
What should be the minimum public participation (in share %age) in a listed company in India?
Answer to Week#8 was Option 1: Bonds are High Security Debt Instruments issued in primary markets, with limited liquidity.
**Make sure you note your choices somewhere as we’ll covering the answers in our next issue…
Word of the week
Stock Market Correction: From the perspective of Investing, a sharp fall of 10% of more in an asset i.e. stock, bonds or Index etc. within a span of days, weeks, months or longer is correction. Usually, it is for a period of 3-4 months.