Investeasy: Trading

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Sunday, 2 May 2021

Motilal Oswal Financial Services Ltd - Grab the opportunity

Table of contents

Business analysis
Financial analysis
Technical analysis

Business analysis
They are in following business:

Retail and Institutional Broking,
Private Wealth Management,
Investment Banking,
Private Equity,
Asset Management and Home Finance.

Financial analysis
By seeing the profit loss statement from 2010 to 2021, stocks have grown 5 times by its revenue. Even the operating margin percentage improved significantly and current operating margin percentage is 56%.
If we see the profit loss statement, the trend of operating profit and net profit increase significantly and it is almost 6 times.

If we see the balance sheet (please find below image), the trend of cash reserve and cash equivalent are sufficient it means that they have the capacity to expand in furure because of sufficient cash in hand.

Despite all the above positive outlook, the particularly stock is traded at low PE (7.10), it means that particular stock is still reasonable to buy. If we compare peer comparison ROCE (return on capital employed) is high (22.14)

Technical analysis
200 days simple moving average is almost at current price. If we see immediate previous high it is at INR 738 and before that just before pandemic, price of stock is at INR 906.
It is all-time high is INR 1568 on January 2018. Since so many months stocks is in cumulative stage. The most important reason is volume can be seen in chart pattern that means someone has start to buy in large volume.
200 days simple moving average chart

Volume chart

Reference:

Scrrenerview.com
Tradimgview.com
Moneycontrol.com

Disclaimer: I am not SEBI approved Analyst or advisor. Investor/Traders must do his/her own Study and analysis before investing

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Friday, 30 April 2021

HDFC AMC - Long term growth opportunity

What is HDFC AMC?

It is an asset management company for the HDFC Mutual Fund (HDFC MF) which pools fund from the investor and invest in different asset like equity, gold etc.

Why asset management company has long term growth opportunity?

Due to very low penetrationof mutual fund in India compare to other countries, it is likely to grow faster at 12 -14% CAGR over the next 10 years.

If we see the pre pandemic level stock traded highest level at prices of Rs 3380.

The ROCE (Return on capital employed) of the company is highest among the competitor and company has debt to equity ratio zero.

Promoter holding is 73.92% which is almost highest as per SEBI guidelines other than PSUs. Since Sep. 2018 to Mar 2021, FIIs has increases their holding.

Cash form operating activity is consistent.(Image not shown)

Last but not least is technical chart pattern,200 days simple moving average is almost near to current price.

Reference:

1. Screener.com

2. Tradingview.com

3. Moneycontrol.com

Disclaimer: I am not SEBI approved Analyst or advisor. Investor/Traders must do his/her own Study and analysis before investing

Tuesday, 20 April 2021

Bandhan Bank – HDFC promoter stock

Since last 2-year company is improving revenue and net profit. In fact, since 2017 company has grown three times in its revenue.

If we see the pre pandemic level stock traded highest level at 705 prices (please note that even IPO price is 370).

Other financial equation is in favour are ROCE which is 12 % and cash from operating activity is also improving.

NPA (non performing assets) is significantly decrease to 0.26%

Promoters holding is in safe hand

FII has increases there hold in Bandhan bank

If we see the public holding or shareholding pattern, HDFC is leading promoter which holds almost 10%.

If we see the technical chart pattern 200 days simple moving average is 338 and the current stock price is 309.

Reference:

1. Screener.com

2. Tradingview.com

3. Moneycontrol.com

4. chittorgarh.com

Disclaimer:I am not SEBI approved Analyst or advisor. Investor/Traders must do his/her own Study and analysis before investing

Wednesday, 14 April 2021

Manappuram Finance Ltd -Consistent Performer even during corona pandemic

Highest ever last 12 months revenue and profit

Keep in mind: whenever company’s growth is highest ever, stock will definitely achieve is highest price

If we see the pre pandemic level stock traded highest level at 187 prices, currently since long time stock in accumulative stage. (current : 148.50 price)

If we see the peer comparison, it is available at low PE 7.61, Highly profit-making company with ROCE 16.05%Even if company equals the PE of other peer, stock has potential to grow 3 times(3X).

Promoters holding is in safe hand

As per technical chart pattern and channel breakout strategy indicate to buy this stock. (refer red line in below chart pattern)

Reference:

1.       Screener.in
2.       Tradingview.com
3.       Moneycontrol.com
Disclaimer:I am not SEBI approved Analyst or advisor. Investor/Traders must do his/her own Study and analysis before investing