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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Evergrande Crisis in China & Its impact on Global Economy including India

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Does any one recall the real estate bubble of 1980's in Japan ?  It was an economic bubble in Japan from 1986 to 1991 in which real estate and stock market prices were greatly inflated. In early 1992, this price bubble burst and Japan's economy stagnated.  Look at the following graph which will make the point clear.



But Why are we even referring the same now ? Only because the similar situation has arrived in China right now. What next ? a downward trajectory in Real estate market and subsequently in stock market as well. Believe it or not a stock market crash is coming soon !

Property rates have sky rocketed in china in last 3 decades and have reached to a level where it is no longer affordable for common man to own a house. Apartment rate of 3 of major cities are more than 40 times that of annual gross income of an individual. This is significantly higher that world average. Real estate companies are finding it difficult to find new buyers in a market where there are millions are of investor properties lying vacant. Before Evergrande, HNA already filed for bankruptcy where it owes more than $ 180 Billion. It seems Evergrande will join the party with more than $ 300 Billion debt which it seems unlikely to repay.

Its not that CCP or Chinese Government can not bail the company out. However, the situation is so bad in China that many projects initiated by Government are already in Huge loses and this burden is on Government. i.e. High Speed Rail Corridor project. Except Beijing Shaghai Route, all other routes are incurring huge losses.  Few of the Railway projects have been established in areas where there is not enough population who can use these services and hence it is unlikely that these routes will be profitable anytime soon.  Another problem with high speed railway is that it can not be used for Good Transportation to maximize its profits. High speed trains are for passengers commuting only since it can not carry heavy load at such high speed. 

 So Evergrande is not capable to clear its debt on its own and is least likely to get any support from Government. It seems this will surely be a Lehman Moment  for China and for rest of the world for sure.  Time to be cautious !  

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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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