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Vivek

Vivek Shah

Financial Planner 

38 Answers | 15 Followers

Vivek Shah is a SEBI registered investment advisor and certified financial planner from FPSB India. He has over 18 years of experience in financial planning and has founded Finrise, a financial planning and wealth management firm, in 2011. He believes that equity investment is the only way to generate long term wealth. He has an MBA in finance, a degree in chartered accountancy and is a registered life planner from Kinder Institute of Life Planning, USA.... more

Answered on Mar 08, 2023

Asked by Anonymous - Mar 08, 2023
Money
Hello, I am 37 Years old and my name is Vivek. I want to generate around 5 crores in the next 15 years for my child's education and a new home. Please suggest the SIP amount and the funds that will help me achieve this target?
Ans: Hello,

Glad to know that our names are same. Secondly, you also have your financial goals mentioned which is really a good sign to more forward with structured investment and tracking of your investments.

Looking at your requirement, please find the below solution from my side.

1) I am supposing that both your goals are maturing in the same year after 15 years.

2) I am assuming the returns of 12% and i am assuming that the figure which you have mentioned is already inflation adjusted which is Rs 5 crore.

Based on this information and assumption, you should have SIP of Rs 1,07,000.

I would recommend to invest in following funds:

1) large & Midcap Fund- 25%
2) Midcap Fund- 25%
3) Flexicap Fund- 25%
4) First Small Cap Fund- 13%
5) Second Small Cap Fund- 12%

You can select any good fund in these categories and stick to it for long term until and unless there are not any major changes to the fund.

Remember one thing, investment is not about selecting the best funds but 95% success in fulfilling your financial goal is managing your emotions and behavior in your journey of wealth creation.

I hope this will help you... Happy Investing...

Disclaimer: This information is only for educational purpose and it should not be taken as buy or sell recommendation. I may or may not have any position in these mutual funds or stocks while answering this question.
(more)

Answered on Mar 08, 2023

Money
i have BEL Shares 600 purchased @ 101/- should i hold
Ans: Hello Vasudev,

BEL has a strong business model and hold this company for long term with long term appreciation.

You can note following points:

1) Order inflow guidance intact.
2) Revenue growth likely to be boosted from new facilities.

Revenue growth for FY23 likely at 15% and 15-20% thereafter. Gross margin for FY23 is expected to remain at similar level to that in 9MFY23 i.e. at ~42%. Expect a turnover of Rs170bn in FY23.

Capex: To incur Rs6bn of capex in FY23 and Rs6bn-8bn in FY24.

Expect an order inflow of Rs155bn in Q4FY23 as discussions are almost concluded for Rs120bn worth of orders – while an additional Rs35bn is in various stages of approval. The inflow of Rs155bn assumes ordering of: 1)
Himshakti programme of Rs33bn, ii) Atulya medium-power radar of ~Rs20bn-30bn, iii) ~Rs100bn expected from naval shipyards for radars and SONAR.

New facilities to take care of growth: Company is pursuing new facilities at: 1) Nagpur, for ammunition at capex of Rs2bn; 2) Ibrahimpatnam, for land-based EW systems; 3) Nimmaluru, for advanced night vision equipment; 4) Hyderabad, for super components at an investment of Rs1bn; and 5) Anantapur, for manufacturing and integration of big systems for defence and paramilitary segments. These facilities will be commissioned in next 2-3 years.

Export orderbook is at Rs20bn.

Please hold this company for long term for decent wealth creation.

I hope this will help you. Happy Investing...

Disclaimer: This information is only for educational purpose and it should not be taken as buy or sell recommendation. I may or may not have any position in this business while answering this question.
(more)

Answered on Mar 08, 2023

Money
Best mutual fund which gives me 15% per annually
Ans: Hello,

First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment. This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

After looking at all these parameters you can think of taking allocations to mutual funds and decide how much allocation to Large cap, midcap or smalll cap funds.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 27, 2023

Money
Is it good to buy Adani Power now?
Ans: Hello Banibrata,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 24, 2023

Money
is it wise to enter adani green energy now
Ans: Hello Sashi,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 23, 2023

Money
what is your through in short term in Tata communications ?
Ans: Hello Raman,

Please find the below details on Tata Communications. Business model is very good for long term holding. One should look at holding this business for long term ( 5 to 7 years) for wealth creation.

Tata Communications GlobalRapide powers enterprises with intelligent, automated, cloudfirst unified communications A single partner to drive end-to-end UCaaS business needs - An end to end managed unified communications as a service (UCaaS) to enable enterprises deliver digitally advanced, sophisticated, and intelligent collaboration experiences to employees.

With this new service, Tata Communications becomes a one-stop-shop to address all digital-first, cloud-first unified communications requirements of global businesses. Tata Communications GlobalRapide helps enterprises with identifying the right collaboration platforms, simplified migration, robust enterprise-grade communications management, and endto-end visibility, monitoring, and reporting of the collaboration solutions.

Augmented with SaaS (Software as a Service) platform-based strategy, training, and insights capabilities, the service provides businesses with usage analysis of their collaboration tools, maximising the service adoption. With this addition, Tata Communications suite of cloud-based, secure collaboration solutions now enables enterprises to unlock the full potential of their digital collaboration strategy with better visibility and control of their unified communications infrastructure.

Tata Communications and Cisco Systems expand global strategic partnership - Tata Communications, a global digital ecosystem enabler, and Cisco Systems, the worldwide leader in technology that powers the Internet, announced the expansion of their two-decades-long strategic global partnership. This new agreement is between Tata Communications and Cisco Meraki to empower enterprises with simple and easy to deploy, manage, and analyse IT infrastructure for delivering anywhere, anytime access. Cisco Meraki is on boarded within the Tata Communications ecosystem to offer a world-class suite of next-generation cloud-managed Wi-Fi services based on the latest Wi-Fi 6 technology and SD-WAN (Software-Defined Wide Area Network) services across various industries. The combined expertise ensures smoother lifecycle management and superior user experience to the enterprises’ stakeholders with greater security, efficiency, and agility.

Tata Communications offers pay-as-you-go feature on Ethernet network services in India - Tata Communications, offers ‘Bandwidth-on-Demand’ (BoD) feature on Ethernet services, delivering flexibility, improving end-user experience, and bringing cost efficiency. This enables enterprises to self provision additional capacity on a pay-as-you-go model to meet short term bandwidth needs conveniently through a self-service customer portal. With this feature, Tata Communications powers enterprises to move closer to achieving their digital-first ambitions. The new BoD feature helps customers dynamically manage, scalable and resilient Data Center (DC) connectivity. Ethernet network is built upon the strong foundation of Tata Communications DC ecosystem infrastructure, providing seamless connectivity and maximum coverage across the DC clusters in India with multiple diverse routes. Tata Communications Bandwidth-on-Demand feature on Ethernet services cater to industries such as

1) IT, ITES and the Service sectors get the flexibility which increases capacity to handle cloud backups and data replication services.
2) BFSI during scheduled data migrations and back-ups.
3) eCommerce and retail which benefits by managing network performance during annual or periodic ‘big’ sales days campaigns.
4) Media services to enhance their workflows for efficient event-based remote production

TM and Tata Communications join forces for IP Transit Services in ASEAN - Kuala Lumpur, MALAYSIA and SINGAPORE, Telekom Malaysia Berhad (TM), Malaysia’s national connectivity and digital infrastructure provider through its global and wholesale arm, TM WHOLESALE and Tata Communications, Tata Communications International Pte Ltd., join forces to offer stable, high-speed and reliable connectivity in the ASEAN region and open access to global enterprises. This collaboration will enable service providers, mobile network operators and internet service providers in the region to address their customers’ growing data connectivity needs by providing access to a global Tier 1 Internet Protocol (IP) network. This will help deliver reliable, stable Tier-1 IP Transit (IPT) service, an internet connectivity service that enables end-users to access all websites and content on the internet. This will further boost sectors such as e-commerce, online entertainment, retail, online banking and delivery services that have accelerated in recent times.

I hope this information will help you to take informed decision in Tata Communications.

Happy Investing...

Disclaimer: This information is only for educational purposes and should be taken as buy or sell recommendation.
(more)

Answered on Feb 23, 2023

Money
Is it time to buy adani enterprises
Ans: Hello Manoj,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 23, 2023

Money
Sir what is your advice to buy shares of Adani group companies? which company equity shares you will advise to buy from Adani group.
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there are few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows.

Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.

Out of all Adani Companies, Adani Ports have the most comfortable position.

Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 23, 2023

Asked by Anonymous - Jan 27, 2023
Money
Good Time To Buy Adani Stocks?
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 23, 2023

Money
Please shares views on Sudarshan Chemicals stock.
Ans: Hello Yogesh,

Please find my below comments on Sudarshan Chemical Limited:

1) SCIL is yet to capitalise Rs1.3bn of capex, which should be complete by end-FY23. It has capitalised Rs6.2bn by Dec’22. New capacity utilisation is low despite product approvals from clients due to underlying demand challenges.

2) SCIL expects new capacity to achieve peak utilisation in 3-4 years with incremental revenue potential of Rs15bn.

3) SCIL’s market share in India was stable due to decline in the ink segment; it has improved its market share in coatings. New players entering the coating market also add to the opportunity for SCIL to cement its position;

4) Pune land sale will help deleverage the balance sheet. FY24 will have only maintenance capex of Rs400mn. Debt repayment of Rs1.5bn is likely in FY24.

5) SCIL’s gross profit margin expanded by 210bps QoQ to 40.8% on softening raw material prices, but the benefit was restricted due to 1) high-cost inventory, and 2) the company’s cautious approach to price correction to avoid demand disruption. Gross profit declined 11.7% YoY (rose 5.2% QoQ) to Rs2.2bn, EBITDA dipped 43.6% YoY to Rs416mn, and EBITDA margin was just 7.9%. Forex loss was Rs100mn. SCIL anticipates EBITDA margin to improve with rise in revenues (operating leverage), reducing power and freight costs, and more cost optimisation measures to reduce fixed costs. Net profit fell 98.4% YoY to Rs6mn.

I hope this will help you to take informed decision in Sudarshan Chemicals Limited.

Happy Investing...

Disclaimer: This is just for educational purpose and should not be taken as buy or sell recommendation.
(more)

Answered on Feb 17, 2023

Money
can we purchase Adani Enterprise
Ans: Hello Mr Venkataswamy,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 14, 2023

Money
Hi Sir, How do you expect the banking and defence sector stocks to perform in 2023. Which banking/defence stocks would be worth buying on dips. My investment horizon is between 1-2 years
Ans: Hello Mr Rohit,

First of all as an investor and also managing your family finances, you need to answer following questions before deciding on additional investments in equity markets:

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

You should remember one thing that after deciding on above parameters, TIME IN THE MARKET IS MORE IMPORTANT RATHER THAN TIMING THE MARKET. As an investor, wealth is created over a period of DECADE and have your allocation to equity accordingly and enjoy the journey of markets which is going to be up and down.
After looking at all these parameters you can think of taking allocations to equity stocks or equity mutual funds and decide how much additional allocation to equity stocks or equity mutual funds is comfortable to you. If you dont have any prior expertise in investing in mutual funds or equity markets, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.
Both Banking and Defence sector stocks are being allocated in various mutual fund schemes and also there are sector schemes for Banking and Financial services.
Regarding defence stocks, please find the below stocks which are considered to be having maximum benefit of Defence sector growth in india.
1) Hindustan Aeronautics Limited
2) Bharat Forge Limited
3) MTAR Technologies
4) Bharat Electronics Limited
5) Bharat Dynamics Limited
6) Rossell India Limited
7) Mishra Dhatu Nigam Limited
8) Paras Defence Space
9) Mazagaon Dock Shipbuilders
10) Solar Industries.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

As a retail investor, one should do the due diligence based on the above points and then one must consider the decision of investing in the company.

I hope this helps. Happy investing

Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 14, 2023

Money
Is it a good time to invest in Adani ports (currently trading @ 550 level)?
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at Adani Port, this company is best placed amongst the Adani companies.
Let’s looks at some of its strenghths:
1) Strong cash-generating ability from core business - Improving Cash Flow from operation for the last 2 years.
2) Book Value per share Improving for last 2 years
3) Company with decreasing Promoter pledge
4) Debtor days have improved from 80 to 57 days.
5) Company's median sales growth is 18.7% of last 10 years
Now lets look at the weakness and cons of investing in this company:
1) Valuation seems to be still higher but better placed now as compared to before this fall
2) Promoter holding has decreased over last quarter: -0.89%
Lets analyse Q3 results:

• Performance largely in line.
• Absolute EBITDA grew 15% to Rs 3011 crore (margins remained range bound at 62-63% levels – higher realisation negated by change in product mix).
• PAT de-grew 16% to Rs 1316 crore due to forex loss of Rs 315 crore
• Since major capex is behind APSEZ, the management expects to repay and prepay some bonds, NCDs and maintain debt/EBITDA in the 2.5x range. It has not had incorporate loans and deposits for two to three years.
• Total - 18% growth in EBITDA includes current growth deceleration in Exim movement
• ICD Tumb (Vapi) and Haifa port are expected to fully contribute in FY24 in logistics and port vertical, respectively
• QoQ slowdown in the bulk segment is mainly due to higher duties on iron ore, steel, fertiliser, sugar, etc, and ban on wheat, etc
• The management has prioritised loan repayment and prepayment over other immediate inorganic growth initiatives (debt/EBITDA to be maintained at 2.5x in the near term). However, strategic initiatives may be evaluated as time comes.
• APSEZ has Rs 3000 crore of cash (FD) and another Rs 2200 crore of overdraw (not yet utilised). In a hypothetical event, the company can deploy its entire capital base (~ Rs 42000 crore) to raise cash.
• Also, 22% of gross debt, which amounts to ~Rs 8500 crore, is secured and APSEZ has pledged 1.25x of its assets. The company intends to repay Rs 1600 crore of this secured debt. In FY24, pledging is expected to reach nil.
• Haifa port has been consolidated into APSEZ’s book as on Q4FY23
• Of the Rs 4000-4500 crore capex planned in FY24, Rs 3500-3800 crore would be utilised in ports division, rest in logistics vertical. Karaikal port acquisition (Rs 1500 crore) is a part of the planned capex.
• FY24 capex has been lower as majority of the project based capex has occurred in FY23 and the management expects to ramp up logistics capex as and when demand reaches current capacity.
• Total 100 trains would come online for Adani Logistics in FY24.
Looking at this numbers of Q3 and management concall highlights it looks attractive after the current fall with a price target of Rs 800 in near term but an investor should also look at Gujarat Pipavav Port where there is a MNC promotor ( (Maersk Group). The port container capacity is at 1.35 million TeUs.
As a retail investor, one should do the due diligence based on the above points and then one must consider the decision of investing in the company.

Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
(more)

Answered on Feb 14, 2023

Money
Should I invest more in stock market because the market has fallen ?
Ans: Hello Ms Nitika,

First of all as an investor and also managing your family finances, you need to answer following questions before deciding on additional investments in equity markets:

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

You should remember one thing that after deciding on above parameters, TIME IN THE MARKET IS MORE IMPORTANT RATHER THAN TIMING THE MARKET. As an investor, wealth is created over a period of decade and have your allocation to equity accordingly and enjoy the journey of markets which is going to be up and down.

After looking at all these parameters you can think of taking allocations to equity stocks or equity mutual funds and decide how much additional allocation to equity stocks or equity mutual funds is comfortable to you. If you dont have any prior expertise in investing in mutual funds or equity markets, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 14, 2023

Money
Hello Mr. Vivek. I want to know what should be the split of our investments in terms of investment categories
Ans: Hello Mr Ashish,

First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

You should remember one thing that after deciding on above parameters, TIME IN THE MARKET IS MORE IMPORTANT RATHER THAN TIMING THE MARKET. As an investor, wealth is created over a period of decade and have your allocation to equity accordingly and enjoy the journey of markets which is going to be up and down.

After looking at all these parameters you can think of taking allocations to equity mutual funds and decide how much allocation to equity mutual funds is comfortable to you. If you dont have any prior expertise in investing in mutual funds or equity markets, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 13, 2023

Asked by Anonymous - Feb 13, 2023
Money
Sir Is it right time to invest in Mutual funds as the stock prices are falling due to Adani Problem
Ans: First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

You should remember one thing that after deciding on above parameters, TIME IN THE MARKET IS MORE IMPORTANT RATHER THAN TIMING THE MARKET. As an investor, wealth is created over a period of decade and have your allocation to equity accordingly and enjoy the journey of markets which is going to be up and down.

After looking at all these parameters you can think of taking allocations to equity mutual funds and decide how much allocation to equity mutual funds is comfortable to you. If you dont have any prior expertise in investing in mutual funds or equity markets, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 13, 2023

Money
Sir, i am an investor of about 10 year horizon. Which stocks can i invest.
Ans: First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment.
This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

After looking at all these parameters you can think of taking allocations to stocks or equity mutual funds and decide how much allocation to stocks or mutual funds is comfortable to you. If you dont have any prior expertise in investing in stocks, its better to hire an advisor to help you do that or start with allocation in Equity Diversified mutual funds which will help you to take exposure in stocks.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 07, 2023

Asked by Anonymous - Feb 07, 2023
Money
Is it safe to invest in Adani stocks now?
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.

Disclaimer: This is just for educational purpose and this should not be takne as advise for buy or sell.
(more)

Answered on Feb 06, 2023

Money
My friends claim that small cap mutual funds peform way better than index funds. Can you please guide whether I should buy small cap funds and what should be allocation to the same?
Ans: First of all as an investor and also managing your family finances, you need to answer following questions before deciding on which instrument you want to invest

1) Goal or financial goal or purpose of doing investment. This will matter a lot as a goal of child education and retirement needs to see with different perspective and also should have asset allocation and market cap exposure accordingly.

2) Time Horizon of your goals- this is very important as it will help you to select the asset class and it's allocation based on your time period of financial goals. This is where investor makes biggest mistake of misalignment of asset time cycle and goals time period. If you allign this properly, your journey will be quite smooth.

3) Optimum Return expectations on your capital invested-
If you are saving and investing for some better future to fulfill your goals offcourse you will ask something in return which should be respectable higher returns than inflation for long term period( more than 7 years). If you are investing in India than equity return assumptions and calculations should be based on 12% return expectations and debt it should be 6.5%. Remember that you should assume practical return assumptions ( not the highest or what your friend says) as you can put any number in the excel sheet for your mental satisfaction­čśâ

4) Risk taken on your capital-
Risk is a very negative word being taken in india but actually it's the risk appetite and risk acceptance of an investor which makes his outcome/ returns favourable. Understand one thing that if you want high returns you have to assume high risk and there is no option for it or an investor has to be happy with sub optimal returns if he is not ready to take risk.

Risk according to me is the capacity of a person until where and when he will not have any palpation in his stomach and he can absorb the downside easily( both realised and majority of time unrealised).

After looking at all these parameters you can think of taking allocations to small cap and decide how much allocation to smalll cap funds or small cap stocks is comfortable in your portfolio.

And after all that, i would say it's your behaviour and emotions management which will help you create wealth in the equity market.

I hope this helps. Happy investing
(more)

Answered on Feb 06, 2023

Money
How new tax regime annouced in budget will benefit sr. Citizen?
Ans: Union Budget 2023 has hiked the maximum permissible investment in the senior citizens savings scheme. It is one of the most reputed investment scheme for elderly people. The monthly income scheme by post office has been more attractive now after Budget 2023.

Under the Senior Citizen Savings Scheme (SCSS), the maximum limit ranges from Rs.30 lakh to Rs.15 lakh. The scheme provides 8% interest per annum which will be paid on a quarterly basis.

Under Post Office Monthly Income Scheme (POMIS), the investment limit has been increased by Rs.9 lakh. Earlier, it was Rs.4.5 lakh. In case of joint accounts, the investment limit has been increased to Rs.15 lakh from Rs.9 lakh. The investors can earn interest of 7.1% per annum.

The revised new tax regime has introduced a standard deduction of Rs 50,000 for pensioners as well including family pensioners. Thus, a senior citizen pensioner may benefit under the revised new tax regime if they are unable to claim maximum deductions and exemptions for income tax outgo to remain the same in both tax regimes.

Senior citizen having gross income of Rs 7.5 lakh will have no tax liability in both the tax regime. This will happen if he/she is able to claim the maximum deductions and exemptions (including a standard deduction of Rs 50,000) of Rs 2.5 lakh in the old tax regime. By claiming deductions, the net taxable income will come down to Rs 5 lakh. This will make him/her eligible for a rebate of Rs 12,500 under section 87A in the old tax regime.

On the other hand, if the same pensioner opts for a new tax regime, then he/she can claim the standard deduction of Rs 50,000. This will bring down the net taxable income to Rs 7 lakh. This will make him/her eligible for a rebate under section 87A in the revised new tax regime.

If the pensioner has a gross income of Rs 10 lakh and is able to claim deductions exceeding Rs 3 lakh (such as section 80C, 80D, 80TTB etc., and a standard deduction of Rs 50,000), then the old income tax regime maybe beneficial for them.

In case of gross income of Rs 15 lakh, a pensioner is required to claim deductions of more than Rs 3,50,000 for continuing with the old tax regime in FY 2023-24.

So one can take either old or new tax regime depending on the above factors. I hope this was useful to you.
(more)

Answered on Feb 06, 2023

Money
Is it good time to buy the beaten down stocks of Adani Group. The likes of Adani Total Gas, Adani Green Energy, Adani Power, etc. Also, it is advisable to apply for ongoing Adani Enterprises FPO ?
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.

Disclaimer: This is just for educational purpose and this should not be takne as advise for buy or sell.
(more)

Answered on Feb 06, 2023

Money
what future lies ahead now for Adani stocks ?
Ans: First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.

Disclaimer: This is just for educational purpose and this should not be takne as advise for buy or sell.
(more)

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