Effect of UP election on the market?
NO EFFECT.
Agriculture is the main livelihood there. Whichever government comes, it will give some relaxation to Farmers' loan That will be a stress on the Banks, NBFC and microfinance companies. Plus the excess expenditure is already discounted by the market. All Agro companies near it’s yearly high. Also major fertiliser and plantation companies exist in south and not UP. Plus, el mini effect will cause less rain.
MSME: They form a huge part of UPs economy and they got tax exemptions as well in the budget but 99.99% companies are not listed.
I-T: Kanpur, Noida, Gurgaon thunderstruck with Trump effect. Completely clueless.
The loss due to above sectors will be covered by Rate Cut and GST effect followed one minor auction.
Plus, BJP doesn't get pure majority (202) as per exit poll. So, either it will join hands with BSP or BSP + SP + Congress.
For the first scenario, BJP +BSP, I am upbeat on Infra, housing and finance.
For the second combination, BSP+ Congress + SP, JHOL and GUNDAGARDI will be the most benefitted sector. But alas, these isn't a recognised sector.
Plus, if BJP puts Ram Mandir plan into action, it will cause riots, destroy property and make space for new construction ;)
So, I am super bullish on Infrastructure and realty projects. Every time BJP/ modi makes an announcement Infra/ realty stocks rock up, 31st dec, Budget, Mumbai election.
Invest heavily in infra till 2019. You won't be disappointed.
Top picks: J Kumar infra, Kolte Patil, Sunteck Realty, Simplex Infra, Ashiana Housing, Heidelberg cement, SREI infra, Prestige Estate.
Aviation also has astrology support.
Only one name there SPICEJET. Watch it fly.
Can you share your view regarding Srei infra
ReplyDeleteSREI Infra primarily finances private, personal, co-operative and public-private. It is a NBFC.
ReplyDeleteThey raise money from public by the means of NCDs and bonds. The current rate offered by them is around 9.5%. Which means they will be charging around 13-14% from the borrowers. Which is a good margin. Tax free bonds are also lucrative.
SREI reports consolidated PAT of Rs 180.65 crore during 9 month period ended December 31, 2016 as compared to Rs.51.98 crore in the corresponding period of previous year. That means more than 300% growth. Promoter holding is 60.8% Which indicates company is growing, strong fundamental and intact management.
Also most of the Infra projects kick off after monsoon, which gets discounted by HNIs and operators around Monsoon. So probably this is the best time to invest.
The thing I like about them the most is Strategical financing which includes SEZ projects, Rural IT and Infra projects as well as Equipment Finance as well as Equipment Rentals. Under NDA government many SEZs will come into picture which will boost local infra players to level up resulting in Borrowing Funds. Also stricter and transperant Norms coming after Mallya Kaand. 'Bad Banks' may proove useful for this sector.
Project Development, project advisory and Investment Banking and brokerage form the remaining revenue.
I haven't done in-depth research about the numbers but the company is fudamental and very little risk. Give it a shot. 150 might be on page.
VC funding and De-listing might also help it ride the wave IPO and Buy-Back instruments are already doing well but the IPO bubble may soon burst.
ReplyDeleteUltraTech Cement gains 5% post Q4FY19 numbers.
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