Thursday, October 30, 2014

The Game Changer


The investors are always lured to the new pastures which always catch the investor’s attention, and it later on proves to be an investor’s paradise. Now there are few aspects that it’s quite possible that the investors by default invest in dying or matured stocks thereby burning their fingers but in the case of a successful investing will always require anticipating the changes and keenly watch the implications. One must make a strong note that the market is ever evolving and so it’s imperative that one must also evolve with the time and do thematic investment with the clear focus on the broader macroeconomic themes identifying strong companies as well as the trends and sustain over the medium term.

It’s an irony that the risks and returns are the two faces of the same coin, higher the risk and higher the return  but the need of any hour is that the investor must be able to identify the mega futuristic trends when they are about to take the baby steps. For example those who invested in IT and pharmaceuticals in 2008 must be definitely harvesting rich.

Now we suggest The Awesome Eight:-

1)   The internet and the Data duo:-If we compare amongst any other growing economies the number of internet users is just 10% against its peer where the internet users are 34% so also the emergence of smart phone are on the rise so also is the rise of 3G to 4G services and also the government is initiating and actively promoting the broad band and so the boom in data is expected. It’s not a surprise that the internet will potentially contribute to the India’s GDP by 8% from the present 4% that is just the double so this only goes on to strongly indicate that that those companies which are dealing in businesses related to internet or data in social media, mobiles and computers, service providers-commerce and networking are headed for huge earnings growth.

2)   The Tourists destination:-The tourism is now a hot potato as it is on the government’s top of the list as it brings in substantial foreign exchange. The government plans to kick start 50 tourist circuits. The tourists inflows has grown from 11% to 17% over the years and has got the potential to grow  5 to 10 times in the next five year or so if compared to Thailand,Malaysia,China and Turkey. India has got a plus point that it is rich in history as well as geography. As soon as the tourism picks up the rerating of both the hotels, transporters and travel operators will be rerated.

3)   The Financing Companies:-The Financial Sector never goes out of flavor. The valid point is that no economy can flourish without having access to the capital. So if we see that the investor is busy in India than his portfolio must definitely be having handful on financial sector stocks because the interest rates cycle I at its peak and is expected to reverse around the next corner. So watch out for the consumer financing, auto financing, housing loan financing, SME Financing, Micro and Rural would be the best bets.

4)   The concept of make in India:-This is the new flavor on the blocks. Since the past two decades China has dominated the international scene in exports is now losing the grip and is going downhill owing to the losing its grip on low cost capital, cheap labor and now the undervalued currency.

5)   The concept of made in India:-Now it’s better late than never, India is becoming more and more competitive in low cost capital, cheap labor and growing currency. India is fast becoming the world’s best destination for make in India and made in India. SO in the coming times we will witness a surge in presence of manufacturers dealing in various sectors such as chemicals, textiles, engineering and auto-ancillaries.

6)   The paradigm shift from unbranded to the branded:-There is a sudden change in taste in the new generation of Indian consumers which has shifted from unbranded to the branded. Right from the jewelry, Titan, dress materials, sanitary ware etc.

7)   Gold:-With the mega job opportunities cropping up there will be a definite rise in the living standards so gold will be the one of the most sought after metal. So your portfolio without gold would be incomplete.

8)   The Banking as well as NBFS:-The banking as well as the non banking financial sector are destined to boom in the next five years.

Wednesday, October 29, 2014

The Four Idiots

There are colossal reasons for these four Nifty stocks to lead the market and lead from the front .Because after a prolonged consolidation the Indian equity markets are raging bulls and investors are pouring in funds generously than ever before , Nifty is on a new highs, and these four idiots are sure to double in the next 42 months .

1)   Hindalco:- Finally the aluminium prices have started crawling up , as LME aluminium has increased to 20% during the past quarter and it only goes to indicate that the signs are positive for the company and the upward cycle has begun. And also the global automobile manufacturers are preferring the much lighter aluminium over steel to meet the stricter emission laws and also pressure is to improve the fuel efficiency .Novelis is the subsidiary of Hindalco which is going to benefit the most due to the great timing of the company’s auto grade capacity expansions underway, and Novelis accounts for 66% of Hindalco’s revenues. With these changes in the scenario the company sniffs 15% operating profit growth in the next three and a half years and in addition to the deleveraging process will only add to benefit to the net profit levels because even the interest too will start slipping down . And if we keenly observe the Novelis’s stock is trading at much lower multiples than its competitors and this gap is headed to reduce contributing to more than double of the Hindalco stocks.

2)   ONGC:- The Oil and Natural Gas Corporation is state run and currently contributes to 28% of the total under-recoveries in the Indian petroleum sector which totaled a grande Rs56,384 crore in last financial year .As the diesel prices deregulated this company is bound to be benefitted the most due to the reduced burden of the subsidies, even more so the company is heavily investing and focusing upon expansions which will help in clocking well above 20% to its current output and the direct beneficiaries will be its subsidiaries like ONGC Videsh and MRPL  and the news is the three mega project in downstream industries ONGC Petro-additions ,ONGC Mangalore Petrochemicals and ONGC Tripura Power will very shortly be commissioned which will trigger the super duper returns !!!

3)   Maruti Suzuki:-This is one Indian automobile company which has made its mark right from its day one and left its foot marks and there is no stopping it , with all state of art indigenous parts , this company promises to keep its dominating nature going on and on .This company is looking forward to multiple trigger the operational as well as its financial performances. It’s all new mid segment sedan ciaz has hit the bulls eye after few haywire hits and trials in this segment and it is definitely going to get immensely benefitted by the pent up demand in passenger car sales in the coming decade more so because the company has always lived up more to its expectations .Besides ciaz the company is also planning to launch five diesel variants soon .Besides the Maruti car is always any Indian’s first car and the company enjoys its strong portfolio and its products are well regarded for the low cost ownership and the very vast dealers and service center network and it is headed to eat into the major market share with its firm domestic growing sales volumes and to add to it its vigorous exports strategy .So Maruti company is marching ahead and has a looong way to go .

4)   Bharat Petroleum:- Bharat Petroleum is India’s Oil marketing company and the company’s market capitalization has excelled well over 2.5 times and still there is ample potential of growth . As there is a very steady growth in the book value of the company and hence the company’s value will be around Rs38,785 crores, as the company is currently trading at a price to book value in the multiple of 2.5 times and the and the price to earnings ratio of 11 and further more the company’s Current accounts and savings accounts (CAGR)over the next three years is bound to reduce the subsidies and lower the interest costs. And another feather in the hat is that Bharat Petroleum has its investments in listed companies like Oil India,Indraprast Gas and Petronet LNG which is currently valued at Rs3,600 crores . And with its E&P projects in Brazil and Mozambique will be commissioned soon and this will take the company ahead by leaps and bounds.

Tuesday, October 28, 2014

Combo Pack: For Smart Trader

Combo Pack

A) 1 month plan @ INR 30K [Basic Plan for investor/trader]
B) 3 months plan @ INR 60K [Affordable Plan]
C) 6 months plan @ INR 80K [Most Selling Plan]
D) 12 months plan @ INR 100K [Plan suitable for HNI, NRI or Sub-brokers]

Combo Pack:

Smart Traders understand very well that stock market does not give money every day, also every segment do not perform as per our expectation on day to day basis.

The facts which most of the traders do not know or do not want to accept are:

1)   Very few smart traders only make money from the stock market.
2)   You cannot earn daily profit.
3)   You cannot make money only from 1 segmented trading.

Whereas the most important fact which we often forget during trading is that, every month stock market gives 100% good opportunities which are very limited in numbers, and we miss those because of various reason. (Money already stuck in some stock, or capital loss etc.)

VPS Advisory Services gives opportunity to all traders to become smart and en-cash those market opportunities into your profit.

Combo pack is designed for those who understand above mentioned facts. The product features are as follows:

1)   Total 6-9 trades in a month.
2)   Trading in Stock future, Equity Cash, Stock Option, Nifty Future segments.
3)   Accuracy 100%.
4)   Holding Period Maximum T+3 days.
5)   Profitability 50k to 70k in a month.
6)    Investment required 1 lac to 1.5 lac.


Wednesday, October 22, 2014

Happy Diwali

VPS Advisory Wishes Happy and Prosperous Diwali to all .

Tuesday, October 14, 2014

Forget the market Hudhud,It happens only in India

In a hurry to meet the deadlines, the Indian government, the power companies and the leading banks are thinking to accomplish the herculean task of finding a quick and a permanent solution to the stalled power projects and tones of loans stake .The banks take the nasty blow if the projects financed by them fail to generate the cash flow after the announcement of the date of completion basically due to the delays in the land acquisitions and the environmental clearances. 

The RBI had given at least during this period the banks will not take any loss on these loans , and this grace period is about to end with in coming one year. The various other factors to be taken into the consideration are financing the extra costs of over runs and over heads, want of extra flexibility in financing the existing projects and refinancing the various projects which are stranded at one or the other stages of completions and last but not the least the fuel crisis due to the cancellation of the coal blocks by the supreme court of India.

So these are some of the very crucial points to ponder upon to bring the economy back on track and do some contingency planning.

                             Bezos and Biyani sniff an Amazon Future ahead

Finally the east meets the west!!!!. The world’s largest online store Amazon alliances with the India’s largest listed brick and mortar retailer – The future group. This could be the turning point as they have decided to jointly sell goods between online and offline retailer in the country to counter the heavy discounting battle .Future group will promote its own labels of 45 apparels and other categories of food and beverages and range of electronics goods while the Amazon will take care of handling the logistics and customer services for merchandise on its portal. Another pleasant development is that both companies will jointly develop an exclusive brand new line of products across various categories. 

This is a new breed of business where various opportunities will be explored like synergy of data, co working, mutual promotions and sharing the logistics too. This had to happen as the Future group was rattling from one scheme to another and Flipcart too had on the Billion Day Sale on October 6 fell head over heals !!!!

Advantage – Crude Oil

The crude oil is on its four year low will have multi dimensional positive effects in our country as our country heavily depends upon imports for almost 75% of its required consumption. It will give a fillip to pivotal macroeconomic indications not only such as CAD and fiscal deficits but also help in giving a shot in the arm to the consumer companies , the tyre industry but also give the booster to the energy sector. The cooling of the crude oil prices will also help the public sector units like HPCL, IOC and BPCL directly as the cheaper prices of crude will help reduce their working capital requirement and also put fewer burdens on the Government of India as it has to shell out subsidies. 

Saturday, October 11, 2014

The Odd Couple

It’s happening in India .The uncommon is becoming common – The Tata Power shakes hand with ICICI and team up to venture into buying into the stranded Power Assets!!!!. Tata power will take care of O&M where as ICICI will pump funds and plan to raise $750 million of equity initial equity, and that’s why we can call it an unusual collaboration of sorts as ICICI being the India’s one of the largest domestic private equity company in its sector will join hands with Tata Power to wade through the troubled water to pump life in the troubled power plants which are short circulated by the regularity uncertainties like high debt, intermittent fuel supplies and poor demands.

Both the concerns are finalizing and chalking out the common platform with a common mandate to buy out those specific power plants which are disrupted. The division of work is simplified that Tata Power will work in its field of specialization that is of operations and maintenance and post acquisitions where as ICICI will be solely responsible for arranging both the debt as well as the equity funding for all such acquisitions. The name of Tata and Tata Power is the India’s largest integrated power company in the private sector with a vintage heritage presence in the country in the generation, transmission and distribution will use its expertise in making these acquisitions come back on the fast tracks. The finalization of various technical, financial as well as commercial viability details are underway.

Monday, October 6, 2014

The rise of online food business industry

With the rise of the internet and Smartphone has brought a huge change in our eating habits .As the lifestyle has changed and so also has our cuisine habits, even if we are in utter shortage of time but still we can have best of the assorted range of food at our finger tips delivered at our door step thereby totally avoiding the traffic commotion and the long queues.

The online food and home delivery has crossed Rs-1000/- crores and is expected to grow by 40% because of the wide range of eateries and the increase in the purchasing capacity of the customers not only in metro cities but also ‘B’ grade towns too . There is a change in trends as some restaurants are coming  up without any sitting spaces but  engage only in booking order for cash and carry or free home delivery .

There are  web sites of big food chains who take order of multiple restaurants and offer you discounts too like

Than there are some apps like zomato who give you information of the restaurants in the vicinity and you can review the menu to give the order, yes and a major chunk of revenue of McDonalds and Dominos comes from the home delivery and same is the case with the other restaurants which have big names are following this new trend and are clocking 65%, moreover 75% is the growth rate of the food chain restaurants, and 80% of the restaurants in the metro cities are offering the free home delivery.

The websites have a dual benefits as they not only provide services but also get earning through ads and innumerable hits and the websites have grown by more than 30% .The customers are happy as they save on both the money and the time plus they have the choice to choose food as well as the place of delivery and a whooping 30,000 clients hit the foodpanda website. 

This revolutionary growth in online business industry is due to the fact that it has eaten into the market share of traditional restaurants and highway restaurants and school – college food joints, and also the online food industry has hit badly the grocery market and ready to cook food or ready to eat food products are no more in vogue . But alls not that glossy until the local cuisine like roti-dal-chaval,or idlee- dosa-samber are available online at the same price as in home. The unusual rise in online food industry is solely due to the chine and Italian food which customers order for the sake of change .There will be a phenomenal growth as and when they are able to market the Indian staple food.