Please share your medium long term investment ideas ;
Criteria:
- Should be Liquid stock.
- No frequent UC or LC.
- Preferably large or Mid Cap
- You may include any instrument even Debt/Liquid NCDs/Mutual Funds
- Write 2-3 lines about why you think its good investment at the moment or near term(any Technical/Fundamental/Valuation/Announcements/News )
- Can give rough entry criteria or may suggest any Model which you are successfully implemented in Bull Market(Current Conditions)
- May give any Links for Knowledge sharing.
- Holding period- Target based or Time based
[Idea 1]: REITs - Mindspace and Embassy[Large Caps].
- Its Debt+Equity kind of a instrument so limited downside risk.
- Trading in at discount from its current NAV (around 30-50% down). Its trading at March 2020(Covid Crash ) price.
- Offices are opening so potential to reach its NAV soon may even outperform if demand grows.
- Good alternatives who want to invest in Real estate alternative instruments.
- Recent accumulation happening by Promoters.
- New Renting Laws will strengthen this niche organised sector indirectly.
- Regular Yearly Dividend close to FD rates as 95% of Rental income has to be compulsorily given as dividend[Regulatory requirement].
Note: You may read about REIT which is very new Instrument type in India.Its very popular in developed country over 30-40 years history. Also please point out of any Data points or news from your personal research may add your views [positive as well as negative].
I would go with Indian Energy Exchange.
The stock has no competitors in its sector. I think the sector by itself has enormous room for growth left. Although the stock has been trading for expensive P/E , I think the monopoly justifies the P/E , Also EBITDA margins are constantly on the rise.
In debt Funds , I prefer floating rate funds for now, since the interest rates are low , floating rate funds are the one of the only few categories which can benefit from rising interest rates as well as giving decent returns in the present. The Volatility of the returns is really low and they have been consistently giving 8% for years. Nippon floating rate debt fund I’d choose in this category.
[Idea 2] : UGROCAP [Small Cap]
- Technicals: Large weekly volumes on buying side, recently crossed 50-200 EMA on weekly chart.
- Fundamentals: NBFC with current AUM > 1000Cr , good growing prospects for credit lending in MSME sector.
- Consolidating at March 2020(Covid crash)rates so downside should be limited.
1 Like
[Idea 3]: CARERATING[Small Cap]
1.Technicals: Very Large weekly volumes on buying side, recently crossed 50-200 EMA on weekly chart, Sustaining the breakout and may out perform the Multi year consolidation.
2. Fundamentals: No negative points on tickertape, Peers are already all time high but its still trading at huge discount. With huge demand of credit data and new MSME credit policy this sector is just starting with govt’s focus on data quality will benefit this industry. ML and AI Models will be the future for credit lending and this may benefit this industry .
3. Very limited downside , its good stock to average up or average down as peers are limited due to regulatory nature of business ,so no new easy competition[Duo,Trio poly business] .