Discovered Tata Tech and IREDA stocks? Invest for the long run or sell right away?
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| Discovered Tata Tech and IREDA stocks? Invest for the long run or sell right away? |
It is evident that IREDA operates in an oligopolistic or monopolistic market. It has a long-lasting edge over competitors. I think those who have been allocated will hang onto them. Indeed, there are many benefits to listing; people will work on that, but these are businesses that, in the long run, generate healthy wealth.
"People who own shares in Tata Tech will be giggling till they drop," predicts Devang Mehta, director of equities advice at Spark Private Wealth. However, this is a much better deal than selling the shares the first day, as many would be inclined to do. However, holding it for a longer time makes things like the price it will list at, the value at that time, etc. somewhat monitorable, so we should do that rather than purchasing it without any guidance."
Although gold financiers like Muthoot Finance and Mannapuram Finance have increased by 5 to 6%, and they have, of course, restated their forecast at the analyst meeting, would you purchase any of these stocks?
Devang Mehta: I don't follow the industry extensively, but certainly, a number of variables, including increasing gold prices and strong performance across the board, have been cited as the cause of Wednesday's market bounce. A little traction. "I won't be able to comment specifically on those businesses."
"The remaining NBFC group and banking brands, particularly those of mid-sized and small-sized banks?
Yes, the whole financial basket, preferably. Consequently, throughout the last several months, midcap and largecap banks have consistently underperformed the market as a whole. Both NBFCs and the majority of these banks have seen robust loan growth. The majority of these businesses will release strong January sales results when discussing automobile sales and holiday sales. Therefore, the statistics for October, November, and December that are decreased in January and February will be a beneficial set of data.
Additionally, several PSU banks and NBFCs responded to the risk exposure restrictions that the RBI established; nevertheless, it's possible that the market has forgotten about this as well. We all believe that the market is quite optimistic right now and is eager to dismiss any news, including this one. It is also encouraging that the financial sector, which has traditionally underperformed over the last three-six months, is beginning to perform well as well, particularly the financial institutions.
Which new-age stocks would you suggest investing in?
While I believe that the majority of these businesses have reached their lowest point, a few have begun to perform well. It's encouraging for these businesses that at least a few of them have begun to turn an EBITDA positive. We believe that profitability, as opposed to just sales, is appreciated in the Indian market, even if we haven't invested in any of these businesses. Yes, we maintain a watchful eye. While we're monitoring this area, we haven't yet received any suggestions. "I haven't bought it for any of my customers yet."
How do you feel about IREDA? Without a question, it has been a bumper listing, and nobody anticipated anything different. Is it still a good purchase after this 80% premium, in our opinion? Is it worthwhile?
Although it's difficult to recommend, let me also point out how special this firm is. As we speak, India is in dire need of renewable energy, and as an NBFC, financing the renewable energy industry is its primary activity. This corporation is part of the generation that believes that environmental clearance will be challenging in the long run, based on the government's trust and the concept of ESG. This is the first thing people would notice when you discuss renewable energy and the Indian government's focus on it.
In addition to financial achievement, the gradual elevation of Miniratna classification to Navratna is also encouraging. Overall, PSU sentiment has been positive. It is obviously a monopoly or an oligopoly in the industry it operates in. This company's edge over competitors is long-lasting. Therefore, I think that those who have some kind of allotment will hang onto it. Yes, there are many advantages to listing; people will accept it, but these are long-term profitable enterprises.
What are your thoughts on Tata Technology, considering that Spark has published a thorough analysis that compares the company to the others? What listing advantages are reasonable to anticipate for those who are fortunate enough to get allocated? Should you purchase tomorrow if not?
This will rely on the listing price and the appraisal of the property. Indeed, the initial public offering (IPO) was reasonably priced, which piqued investors' interest since something was still up for grabs. Speaking about business, it's a highly specialized field with a small labor pool of competent workers. There are a lot of entrance obstacles in this industry. Businesses engaged in robotics, artificial intelligence, and engineering research and development include Tata Elxsi and L&T Technologies. However, this is more precise.
"Considering the volume and changes the automotive industry is going through, as well as the next three to five years for the Indian auto sector, if I may make this comment on the migration of automobiles to electric vehicles or EVs Whatever improvements in per capita consumption are taking place. Thus, the location is quite attractive.
This company is fantastic. After 20 years, the Tata Company conducted its initial public offering (IPO), sparking a lot of debate. Because it wasn't given much significance, it doesn't get as much enthusiasm as it ought to. Yes, maybe we should check the listing price once it has been listed. IREDA's listing for today gives me the impression that it will be a bumper listing.
What are your priorities in light of the significant changes that BHEL and other PSUs are undergoing?
The majority of these PSUs have to do with electricity or capital costs. The majority of public utility companies (PSUs) in India, including NTPC, Power Grid, REC, PFC, and BHEL, will engage in capital expenditures. Particularly in the last two or three years, the government has made excellent progress toward capital expenditures. And because this is an election year once again, a lot of projects are being constructed, finished, and commissioned, including both greenfield and brownfield projects.
Thus, the answer is that capital expenditures have also implicated the private sector. These businesses have emerged from a multi-year economic cycle, and many of them have prospects for growth over the next two to three years in a variety of industries, including defense, aviation, and railroads. yes . This time, it's more than just a tale; several businesses have released financial statements and are showing robust profits growth. The majority of these businesses will succeed. However, as I have said, there is a limit to how far values can go until tales just stop selling. The majority of these businesses are now delivering. Thus, maybe the buyer of the shares will be able to hang on."
"Where are the market's contrabets located? For instance, the IT industry is doing well right now. Do you believe that this should be reevaluated?
The pharmaceutical and IT industries are the two that are focused on exports. Pharma has done very well overall. While certain pharmaceutical firms have had exceptional success, other businesses have also shown positive results. It was a mixed quarter, indeed. While some businesses had excellent information when they arrived, others entirely missed their projections.
Since the earth is still becoming smaller due to the strain in these two sectors, the only question that arises is why?
It is crucial to note that, in my opinion, the US demand scenario will also most likely begin to take shape if the narrative around interest rates, inflation, and the higher for longer story is being questioned.
Everyone has an opinion, and that's what matters most. The Street thought the Fed wouldn't lower interest rates until at least the middle of next year, but it seems like the Fed may act a bit sooner. These industries will prosper if the economy does not enter the much-feared deep recession or depression. Yes, there's a chance that IT demand may increase again. Yes, going forward, it may be a bit of a contrarian play. Of course, you shouldn't look for 20–25% returns on this bet, but CAGR in the IT sector is quite attainable for someone hoping for 12–15% returns over the next two–three years. Could.
What's your business here, though? Is Tata Technologies still something you should buy or subscribe to right away?
It was, in my opinion, a fantastic IPO that offered many opportunities for financial gain and received positive feedback. As I said before, Tata's IPO is coming after 20 years; an excellent IPO was planned. It's also crucial to remember that this is an ER&D-focused business that operates in that setting. We discussed cars before and how sales of them would be quite strong.
The folks who made this IPO, in my opinion, will be laughing until they die. However, from what I gather, it's a pretty excellent catch that draws folks in rather than being sold out on the first day. However, instead of merely recommending a purchase, we need also keep an eye on things like the price it is listed at and the value at that moment if the stock is held for an extended period of time. As.
