Short term trading Idea of the month: Container Corporation of India Ltd (CONCOR)

 

Container corporation of India

In this article we will try to speak on short term trading ideas or swing trade, this month we have Container Corporation of India Ltd (CONCOR) in our radar.

Container Corporation of India Limited is engaged in transportation of containers and handling of containers. The Company is also engaged in the operation of logistics facilities, container freight stations and private freight terminals.

Currently CONCOR is trading at it 52 weeks high and lifetime high price.

Current CMP is 752.7 and today 09th September 2022 it gave 2.79% up move and it touched 772 in the first hour and later consolidated.

Keep CONCOR in your radar as it was moving in a range for several months now, it would be good for swing trading as well.

 

CONCOR chart in Daily time frame

From the chart you can see that if we break 775 price, we can see fresh up move and target for healthy 10-12% with few weeks. Also, we can see huge volumes in recent times for the stock as highlighted.

At the lower side we can accumulate at 660-675 range and at 550-575 range if at all we see it there.

Whenever stock reaches all time high, we might be tempted to short it but in reality stock don’t change trend abruptly and keep making new all-time highs.

Coming to fundamentals…

CONCOR have P/E ratio of 42.28 which is not too high.

Container Corporation of India’s (CCRI’s) revenues grew 9.4 per cent year-on-year to ₹1,980 crore.

Increase in rail haulage charges on account of reduction in exemption of haulage charges for empty containers to 15 per cent from earlier 25 per cent was effective from May 2022.

The Union Cabinet on Wednesday lowered the railway land license fee to 1.5% from 6% for certain usages. The lease period has also been increased to up to 35 years from presently 5 years.

This decision will speed up the sale of the Centre's stake in Container Corporation of India.
 

We are positive on CCRI’s prospects and believe that it is best positioned to capitalize on favorable infrastructure-related tailwinds. We remain positive on the structural growth story considering continual market share gains in domestic segment.

Top 5 FMCG stocks to buy in 2022

 


Fast-moving consumer goods, also known as consumer packaged goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

Why FMCG stocks are important to add in your portfolio?

FMCG is the fourth largest industry in the Indian economy. The three main segments in the sector include food and beverages(19%), healthcare(31%), and household and personal care(50%). 

According to multiple reports published by World Bank and Neilsen Research, the Indian FMCG market in India is expected to grow at a CAGR of approximately 23.15%. The rise in rural consumption and better access to these consumable products has been a key growth factor for the industry. The rural FMCG market in India is estimated to grow to US$220.00 billion by 2025 from US$23.63 billion in FY2018. 

The major FMCG companies also exploited the pandemic as an opportunity in the crisis to focus on volumes and margins given the nature of the industry. The sector witnessed learning and innovation even as the world was grappling with the fear of lockdowns and Covid-19. 

There is strong demand for FMCG products no mater what , In FMCG The urban segment contributes around 55% in revenues of FMCG companies and 45% is contributed by the Rural segment. 

Also, FMCG stocks balanced out well with high growth stocks and gives steady returns in your portfolio.

I have compiled top 5 FMCG stocks you should add to your portfolio

5) Dabur India Limited



Dabur India Limited is a fast-moving consumer goods (FMCG) company. The Company operates in various product categories, such as hair care, oral care, healthcare, skin care, home care and foods.

Current CMP: 569.6

5 Year Returns: 81.7%

PE Ratio: 58.03

 

4) ITC



The official meme stock of India but it has outperformed most of the stocks this year so far. ITC Limited is a holding company engaged in the marketing of fast-moving consumer goods (FMGC). The Company operates through four segments: FMCG; Hotels; Paperboards, Paper and Packaging; and Agri Business.

Current CMP: 317.6

1 Year Returns: 51.6%

5 Year Return: 11.99%

PE Ratio: 25.82

 

3) Marico Ltd



Marico Limited is a consumer products company operating in the beauty and wellness space. The Company's principal products include edible oils and value added hair oils. Company's brands include Parachute, Nihar, Saffola, Hair & Care and Livon.

Current CMP: 169.25

1 Year Returns: 67.52%

PE Ratio: 55.52

 

2) Nestle India Ltd



Nestle India Ltd is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment. Nestle India manufactures products of truly international quality under internationally famous brand names such as Nescafe, Maggi, Milky bar, Nestea, etc. and in recent years the Company has also introduced products of daily consumption and use such as NestleMilk, Nestle slim Milk, Nestle Dahi, etc.

Current CMP: 19732.95

5 Year Returns: 181.28%

PE Ratio: 88.7

 

1) HUL – Hindustan Unilever Limited



HUL is India’s largest fast-moving consumer goods company. With 50+ brands spanning in various categories its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Simple, Love Beauty Planet, TRESemmé, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s, Horlicks and Pureit.

Current CMP: 2606

5 Year Returns: 114.28%

PE Ratio: 68.96

 Which of the stocks do you own in your portfolio?

 

Top 10 EV Stocks in India 2022

 



If you are an investor and looking for the best sector to invest which has a great future, then the electric vehicle is the hot bait. EV stocks are booming in India, and in the future, you will not just witness auto stocks but also stocks that support the industry.

After the pandemic, people have started realizing the need for electric vehicles. The alarming pollution level, which was reduced significantly during the lockdown, has given a new perspective on sustainable transportation.

Thought process behind picking EV stocks?

India is the world’s fourth biggest emitter of carbon dioxide after China, the US and the EU. Accordingly, the Government of India, has aggressively pushed for electric vehicle adoption in the country. The focused efforts have seemed to start showing the results as 2022 seems to be the year of Electric Vehicle stocks or EV stocks.

The exponential rise in number of electric two-wheelers in India during 2021 and the back-to-back launch of electric cars by Tata, BMW, Kia, Honda, Hyundai have all directed focus of Indian Automotive market to Electric Vehicles. This interest is also being reflected in EV Stocks and even if you are not active in the stock market, it is difficult to miss or ignore the discussion around the Indian EV sector. 

Indian Companies will likely follow the footsteps of Telsa and its success in US market. Now it is high time to shift to sustainable energy sources. The automobile industry is among the top to produce electric-powered vehicles for consumers and make the planet safer and green. Thus switching towards sustainable alternatives proved a good choice for automobile manufacturers. 

Mainly EV industry can be divided into 4 parts:

a)  Auto manufacturers

b) Auto parts and EV software

c) Battery manufacturing 

d) EV charging stations/ infrastructure

 

We have compiled a list of most promising EV stocks that you can buy in India and can be a very good bet on your portfolio of stocks.

 

10. Greaves Cotton

Having a diversified class of business, Greaves Cotton has recently acquired a two-wheeler electric company named Ampere Vehicles with a target of entering the two-wheeler EV manufacturing market as the segment has a strong potential to prosper in the coming future. 

Current CMP: 169.25

1 Year Returns: 21.5%

PE Ratio: -114.01

 

9. Himadari Specialty Chemical Limited

The company is a significant presence in the chemical industry, but it has now announced to step into the EV segment by making electric bicycles. 

Current CMP: 96.7

1 Year Returns: 104.66%

PE Ratio: 98.54

 

8. Tata ELXSI Limited

Tata ELXSI is an IT-software development company that indulges in building software involved in EVs manufactured by Tata Motors. The company has also developed stock software that any EV can use. ELXSI is expected to sell this software to other auto manufacturers in the form of licensing in the future. 

Current CMP: 8870.85

1 Year Returns: 83.79%

PE Ratio: 105.92

 

7. Power Grid Corporation of India Limited

The state-owned company, which mainly supply high-voltage transmission and grid management to industries like telecom, is likely to set up charging station all over the country. With the state ownership label, the company is expected to enjoy government contracts and deals in future.

Current CMP: 227.05

1 Year Returns: 29.37%

PE Ratio: 9.55

 

6. Tata Power

Tata Power has already proved to be a conventional electricity providing company to the consumer. The company is setting up a charging station at various locations such as parking spaces, malls, and authorized automobile service centers. 

Current CMP: 232.65

1 Year Returns: 80.14%

PE Ratio: 43.14

 

5. TATA Chemicals Limited

The company’s vision is different from its competitors as Tata Chemicals focuses on developing an ecosystem of battery generation.

Current CMP: 1132.4

1 Year Returns: 35.71%

PE Ratio: 22.5

 

4. Exide Industries Limited

Exide is one of the major players in the battery industry. Till now, they were manufacturing lead-based batteries used in traditional vehicles. But now, they have full-fledged manufacturing lithium-ion batteries, which is an essential component of an electric vehicle.

Current CMP: 159.7

1 Year Returns: -1.15%

PE Ratio: 3.13

 

3. Hero MotoCorp Limited

Along with four-wheelers, the electric two-wheeler market is also on the boom. Hero MotoCorp has taken the initiative to expand a minor segment of two-wheelers.

Current CMP: 2827.05

1 Year Returns: 3.7%

PE Ratio: 24.38

 

2. Mahindra & Mahindra

Mahindra is the pioneer of EV in the Indian space. Being the first major EV manufacturer, it launched Mahindra Reva, its first EV as early as 2001. The Mahindra Reva was India’s first electric car. Over the years Mahindra has gone ahead to set up a dedicated R&D center in Bengaluru.

Current CMP: 1276.8

1 Year Returns: 61.3%

PE Ratio: 23.17

 

1. Tata Motors

Tata is India’s biggest automobile manufacturer. Its automobile segment ranges from the manufacture of cars, utility vehicles, buses, trucks, and defense vehicles. Its associate companies include Jaguar Land Rover and Tata Daewoo. But when it comes to the EV segment Tata is a new entrant when compared to Mahindra.  

Current CMP: 453.35

1 Year Returns: 55.28%

PE Ratio: -14.52

 

One Point to note is EV industry is usually high on debts as the starting capital required is huge but given the business potential and future profitability these aspects can be ignored.

Do you own any of the stocks? comment below to discuss about.

How to Buy Your First Stock with Groww App in 2022

 


Investing in stocks has been a great way for long term wealth creation even before the age of internet. Now, with the advancement of technology and innovation we can buy and sell stocks with just a click of button.

Ever since the Corona Virus pandemic, people have started reading about stock market and have opened their first Demat account during last 2 years and yet you might be surprised to know that only about 4% of Indian population invest in stock market compared to 13% in China and 58% in United States of America.

So, it is very important to investment with long term goal in mind based on your risk appetite.

Before making first investment you need to following things in Place:

1)  PAN Card

As per government mandate, every individual needs to furnish PAN to execute financial transaction in India, i.e you will not be able to buy shares online if you do not have a PAN card.

2) Open DEMAT and Trading account with Groww

If you want to Buy/Sell stocks online, you need to have Demat account which allows you to hold all the securities you possess in dematerialized form and with trading account you can buy and sell stocks.

You can open Free DEMAT account with Groww with this link.

Groww is discount brokerage trading platform where you can buy/sell stocks, trade in Futures and Option, Buy US stocks, Invest in Fixed Deposits, Mutual Funds etc. The User Experience is very user friendly for people who are new to trading and investing in stock markets.

Zerodha is another popular discount brokerage platform, you can open account with Zerodha with this link, note that opening Demat account is not free and you will be charged accordingly based on the service you choose but it is only one time charge.

3) Bank account

You need to have bank account to add or withdraw money from Groww app.

Steps to Buy your first stock with Groww:

You can use Groww from desktop browser or through mobile app, in this tutorial I will be using normal browser.

1) Login to Groww


Once you have opened your account with Groww then you can login to the app with your credentials

2) Go to search menu to search your favorite stock.

After you login to the application, you can now got to search bar at the top and search you




Or you can click on screener menu to filter out stocks based on some analysis like financial details, market capitalization, sectors etc.




3) Buy your stocks



Once you have selected your stock, now its time to buy the stock.

You can buy and sell stocks only during market hours i.e 9:15 AM to 3:30 PM IST and markets are usually closed on Saturday and Sunday and if there are any market holidays due to festival or national holidays.

You also need to have sufficient funds before making any stock purchase.


After you add funds, click on Delivery, and choose shares from NSE or BSE. These are two separate big stock exchanges in India.


Choose quantity of stocks to purchase and choose if it is Market order or limit order.

In case of market order the buy price will be same as that of market price and in case of limit order, it is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute.

4) Check your invested stocks

Once invested the stock will be visible in Stocks -> Investment page

 

Please do note, I have taken Reliance Industries as and example for this tutorial, it’s not investment idea. Please make proper analysis and consult with your financial advisor to make investments in stock market.

Join me and 3 Cr Indians on Groww to invest in Stocks and Direct Mutual Funds.

Create your free demat account by using this link here:  https://app.groww.in/v3cO/htdwqnww

Investing in Index Mutual funds vs ETFs , which one to choose?

 



Investing in Index Mutual funds vs ETFs , which one to choose?

When it comes to passive investment schemes on stock market Index Mutual Funds and ETFs stands out, these investment instruments are the once that track standard index like Nifty50, Nifty Next50 or Gold etc. This might be considered as good investments as the weightage of stocks will be same as that of the underlying index and most managed mutual funds fails to even beat the Nifty50 index.

What is index Mutual funds?

The asset allocation an index fund tries to replicate that of a popular index that it is trying to emulate like Nifty50, Gold or Nifty Next50. Since we can’t invest directly in standard index AMC will create a index fund with weightage similar to the index. Therefore, index funds having tracking error. The deviation of the returns that an index fund would generate from the returns that of its underlying index is directly proportional to the tracking error.

What is ETFs?

ETFs or Exchange traded funds are funds that mostly trade in the intraday shared market and click the profits at the end of the day. ETFs are highly transparent in nature, where investors get to know exactly their investments are allocated.

Like index funds, ETFs are also affected by the share market, and these transactions take place on a real-time basis.

Why should you invest in passive index funds or ETFs?

The truth is most mutual funds try to beat the index but fail at doing it, also if you try to buy stocks on your own then chances are you are still going to fail at beating the standard index, check the below image of Nifty50 index return for past 22 years. The CAGR for nifty50 index is around 16% which is awesome.

Nifty50 return for last 22 years with CAGR of ~16%


Should you opt for ETFs or Index Funds?

In this section I will walk through differences between ETFs and Index Mutual funds, so that you can choose what works for you.

Liquidity: The most important thing to know is that when you buy an index fund from an AMC it adds to the AUM of the Fund. On the other hand, when you buy an Index ETF you do not add to the AUM of the ETF, but you can buy or sell only if there is counter party to the trade. So, availability of market liquidity is paramount to the choice of an index ETF.

Time of Buying or selling: An index fund being a mutual fund is available for purchase or sale only at the end of day (EOD) NAV. You can buy index funds during the trading hours. Index ETFs, on the other hand are available to buy and sell during the trading hours at a price that reflects the Nifty fraction as closely as possible. This gives greater flexibility to the Index ETF buyer.

Additional Expenses: Expense ratio in an Index ETF is much lower compared to the index fund. For example, in India if a normal index fund has an expense ratio of 1.25% then an index ETF would have an expense ratio of just about 0.35%. However, there is a catch. Since ETFs are bought and sold on the exchange like any other stock, additional costs like brokerage, STT and statutory charges need to be factored in to get the correct picture.

Risk Involved: Both the Index ETF and the Index fund run the market risk or Beta as we popular call it. However, there are two additional risks you need to wary of. Firstly, there is the tracking error risk which is higher in case of index funds compared to ETFs as index funds need to keep larger cash balance to handle redemptions. But Index ETFs run a higher risk of bid-ask spreads widening when markets get volatile.

 

Investment through SIP: One of the most popular methods of investing inequity funds is through the systematic investment plan. This gives the added benefit of rupee-cost averaging which lowers your average cost of owning the units. All mutual funds allow the benefits of SIPs and SWPs. However, when it comes to Index ETFs, the benefit of SIPs is not available as it is like a closed-ended fund. That becomes a challenge from a long term financial planning perspective.

Dividend Payout: There is also an interesting difference between index funds and index ETFs in the way the dividend pay-outs are managed. For example, in case of ETFs since it is like a traded stock the dividends are directly credited to your registered bank account. This again becomes a hassle from a long term financial planning point of view. In case of index funds, you can opt for a growth plan or a dividend reinvestment plan where the dividends are automatically substituted by units. In case of ETFs this reinvestment will have to be done manually.

Taxation: On the taxation front, there is not much to choose between the two. Like in case of index funds, Index ETFs also are charged STCG at 15% and LTCG at 0%.

The two most important criteria you need to consider when making the choice between Index ETFs and Index Funds are costs and liquidity. If liquidity is easily available in the secondary markets without too much of a basis risk, then the lower costs will work in favor of the Index ETFs.

 

ETFs might seem to have a clear advantage over index funds as they come at a lower cost. However, you may not be able to track markets and take decisions accordingly. This may be due to a lack of market knowledge or time constraint. In this case, you can invest in direct index funds as they come at a lower cost than regular index funds.

Also, index funds are handled by professional fund managers, and they take the right decisions depending on the market scenario.

 

 



Top 7 Books On Stock Market And Investing You Must Read As A Beginner




Getting started with investing and trading can be intimidating at first as there are lot of financial terms number and “tricks and tricks” to learn. Once we start the journey we get to learn lot of things from others on youtube, twitter and blogs. I myself started learning about investing through books , call me old school but these are itself worth a million. The contents are carefully crafted keeping in mind of new retail investors.

I have compiled a list of most famous and go to books on trading and investing which talks about stock market from first hand experience of industry experts.

7) Stocks to Riches

 

The book is written by well know Parag Parikh and a must read for Indian investors, analysts and retail traders. In this book we learn that investing in the stock market is challenging, as the market dynamics are unpredictable. Analysts, brokers and retail investors realize to their dismay that investments do well, but investors don't do well. What could be the reasons behind this? What?s goes on in an investor's mind? What makes a stock market bubble? How does it burst? How does one find the right strategy of investing?

Intrigued by these pertinent questions, Parag Parikh, a seasoned broker and expert, took up this daunting task of understanding and demystifying investing in the stock market. Stocks to Riches is a distillate of his experience. It simplifies investing in stocks and provides key perspectives for a lay investor venturing into the market. And at the end of the day, Stocks to Riches helps the retail investor make money by following the time-tested and proven guidelines provided in the book.

6) The Warren Buffet Way

 

 A book by author Robert Hagstrom, which outlines the business and investment principles of value investing practiced by American businessman and investor Warren Buffett. In this book uses examples of from Buffet’s portfolio to explain the various strategies that will lead us to similar success.

5) The little book that beats the market

 

In The Little Book that Beats the Market—a New York Times bestseller with 300,000 copies in print—Greenblatt explained how investors can outperform the popular market averages by simply and systematically applying a formula that seeks out good businesses when they are available at bargain prices.

4) Common Stocks and Uncommon Profits

 

Widely respected and admired, Philip Fisher is among the most influential investors of all time. His investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. 

The updated paperback retains the investment wisdom of the original edition and includes the perspectives of the author's son Ken Fisher, an investment guru in his own right in an expanded preface and introduction

"I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits...A thorough understanding of the business, obtained by using Phil's techniques...enables one to make intelligent investment commitments."

 

3) A Random Walk Down Wall Street

 


A Random Walk Down Wall Street, written by Burton Gordon Malkiel, a Princeton University economist, is a book on the subject of stock markets which popularized the random walk hypothesis.

 

The million-copy bestseller, revised and updated with new investment strategies for retirement and the insights of behavioral finance.

Updated with a new chapter that draws on behavioral finance, the field that studies the psychology of investment decisions, here is the best-selling, authoritative, and gimmick-free guide to investing. Burton Malkiel evaluates the full range of investment opportunities, from stocks, bonds, and money markets to real estate investment trusts and insurance, home ownership, and tangible assets such as gold and collectibles. 

 

2) The Intelligent Investor

 

The Intelligent Investor by Benjamin Graham, first published in 1949, is a widely acclaimed book on value investing. The book provides strategies on how to successfully use value investing in the stock market. Historically, the book has been one of the most popular books on investing and Graham’s legacy remains.

The book explains the fundamentals of the stock market from the view-point of value investors. There are three main concepts covered in this book.

 

1) One Up On Wall Street

 

More than one million copies have been sold of this seminal book on investing in which legendary mutual-fund manager Peter Lynch explains the advantages that average investors have over professionals and how they can use these advantages to achieve financial success.

America’s most successful money manager tells how average investors can beat the pros by using what they know. According to Lynch, investment opportunities are everywhere. From the supermarket to the workplace, we encounter products and services all day long. By paying attention to the best ones, we can find companies in which to invest before the professional analysts discover them. When investors get in early, they can find the “tenbaggers,” the stocks that appreciate tenfold from the initial investment. A few tenbaggers will turn an average stock portfolio into a star performer.

 

As long as you invest for the long term, Lynch says, your portfolio can reward you. This timeless advice has made One Up on Wall Street a #1 bestseller and a classic book of investment know-how.

 

How many books have you read from this list, please comment below.