Best Stock to buy in 2022 Bear Market - TCS

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  Best time to buy a stock ? Well what better than a recession when even the best in the business is available at a steep discount ! TCS is my 1st choice at the moment. Why ? Well, following points speak for itself (1) 2nd Largest IT company in the world with no worry of future business. (2) Largest company of Tata Group which is the largest business group of India.         App. 70 % of profit of  Tata group come from this single company. (3) Continuously growing top line and bottom line of business (4) Available at reasonable valuation with PE multiple of 29 (5) Regular buy back ensures value addition for share holders (6) Major company in both Sensex & Nifty and hence bought by both Indian as           well as Overseas investor. When FII will come back, they buy blue chip shares       like TCS first. (7) Operational for more than 5 decades now with consistent performance track         record.  (8) Need for IT solution across globe will only increase from here which will         
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High Dividend Paying Stocks in India - PFC

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Power Finance Corporation Ltd. is an Indian financial institution which is Public Sector Unit. It was Established in 1986 & is the financial back bone of Power Sector of India. It is one of the most profitable PSU. Proposed Merger of REC in PFC During March 2019, PFC completed acquisition of a majority stake in REC by transferring Rs 14,500 crore to the government for agreed merger of the two firms in 2019-20. PFC acquired 103.94 crore shares/52.63 per cent equity stake held by the government in REC. The merger of REC with PFC is unlikely to happen in near future because of RBI norms on exposure of NBFCs. The capacity to finance a project of the merged entity would be halved. As separate entities, they can finance up to 50 per cent in a project which would be reduced to just 25 per cent after the merger. Current regulations suggests that 51 per cent government holding is must to maintain the PSU character of a company. After the PFC-REC merger, the government shareholding in the proposed entity will fall to 42-43 % taking the company outside the PSUs fold. Goverment owned power sector companies may be permitted to buy up to 10 per cent equity in the new entity created after merger. Companies such as NTPC/NHPC/PowerGrid may be the likely candidates for this investment. Need to wait till further confirmation on the same.
With PE ratio of 3.38 & PB ratio of just 0.58, this company surely seems a good bet. Cherry on the cake is the divident yield which is as high as 8.26 % even during corona times. This was even higher before pandemic.
Goverment of India remains the largest share holder with 55.99 % while general public has just 6.52 %.
Since it pays high dividend regulary, there is nothing much on price appreciation part as per above chart. This stock is well below its all time high level and will reach soon after clarity on merger. Due to strict control and pressure from Goverment to perform, PSUs are good bet now a days for sure and this can be one of your bet. What do you say ? Jai Hind.



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Dmart Results - Q3 FY21(Avenue Supermart)

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चित्र
  Retail Gian Dmart (Avenue Supermart) has just released Q3 figures and as expected these are superb ! Consolidated result is as follows. Summary of the results is as following. Total Income increased substantially by 42 % & 11 % on QOQ & YOY basis respectively. Gross profit increased by 124 % & 24 % while Net profit/EPS increased by 125 % & 12 % substantially. This stock has already given 10 times return to its IPO subscribers who have hold the stock till date. 10 times return in 3 years , 9 months is simply superb !  As shown above, TTM EPS is 13.80 ( Excluding Q3 figures) & hence PE ratio of Friday closing price is 215 times which probably is highest among major listed companies. This shows faith of investors in this company and its promoter Mr. Radhakishan Damani.  Clikc on following link to go through the pdf file of Q3 as submitted to exchanges. https://www.bseindia.com/xml-data/corpfiling/AttachLive/eb8f954e-2780-4aad-a6d8-85973a32fd16.pdf Thank you. Jai Hind
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High Dividend Paying Stocks in India - PART 1

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चित्र
Who likes to have lucrative dividend income in bank account ? well all of us like the dividend income. How many companies in your portfolio give regular dividend? Very few ??? If so, don't you think it's time to correct your portfolio. Advantages of of regular dividend paying companies are as following. (1) Good companies pay dividend in the range of of 1 % to 15% on annual basis. Now this is a huge amount. Most of the mutual funds are giving approximately 10% return on annual basis. If if your company is giving even 10% dividend, it's a huge bonus since appreciation of stock value is entirely different. (2) regular dividend itself is a proof of good business management. Without continuous profit, continuous dividend is not possible. This itself is a proof that you are invested in the right company. (3) most of the high paying dividend companies are owned by government & hence there is always a sense of security. (4) sometimes market remains depressed for months or eve
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Nifty PE ratio at all time high at 40. sensex about to touch 50,000 mark

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चित्र
Sensex is about to touch 50,000 levels. PE ratio of nifty is about to touch 40 level. This highest peak level itself suggest that market is highly overpriced and is bound to correct very soon. please refer following chart. It is highly recommended that and long time investor should stay absolutely away from market right now. There is no by opportunity as such and if at all you have some plan to book profit probably this is the right time before market corrects itself so good luck friends thank you.
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