**Contest Alert** Share One Stock - Winner Announced
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Hi All, it’s great to see the finance forum grow well and dimers help out each other.
We regularly see dimers asking questions about credit cards, insurance and the stock market and other dimers coming and helping each other out.
We thought why not make this into a small contest…
The contest is simple, all you need to do is -
Share a stock that one can hold for the next 10 years to get maximum results.
Dimers need to share any one stock (it could be anyone listed on the NSE/BSE)and give a reasoning (fundamental) why you believe this would give great returns after 10 years.
We will choose one lucky dimer who shares a sound fundamental reasoning as the winner of the contest.
The winner of the contest gets
- 2 shares of Tata Power – https://www.google.com/finance/quote/TATAPOW...SE (CMP – 244.35) as Gift From Desidime (via Zerodha).
- The winners Zerodha referral will be shared once on the Desidime telegram channel (referral terms- https://zerodha.com/tos/ref...ls)
Terms -
- One dimer can enter multiple times
- One stock can be mentioned by multiple dimers.
- Users can share multiple posts why one stock is good however – he needs to quote his previous post
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The contest is from – 29th January till 5th of Feb 2022. and winner will be announced on 7th Feb 2022
Kindly note – this is just a contest and for sharing knowledge, request all dimers to do their own research before investing.
Do let us know in case of any queries.
Deal Wiki
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Created by : azzuridd
Content Winner!!!
His call of Tata Elxsi and his reasoning given below – https://www.desidime.com/discussions/contest-alert-share-one-stock?page=2#post_8235333
So is hdfc life
HUL
Indian Hotels
TATA CHEMICALS
HDFC AMC
For medium term
or otherwise
accumulate blueChip stocks
Reliance
TCS
HDFC Bank
HUL
etc.
Or
Simply Go For Top 10 Stocks
My two picks and rational behind it
1. RIL (This is essentially Dmart+ONGC+Airtel+etc etc etc). Mukesh wont do mistake of his father(leaving the companies undivided). Sooner or later company will be split and that’s when we will have proper unlocking of value
2. Brightcom Group :- Small cap company. post covid their revenues are going up like crazy..
Disclaimer* Holding both the companies
Brigthcom group has bonker results, from Rs6 to Rs180 ,3000% my god , and i was searching for a digital marketing company last year 
i knew this sector would grow ,but this company existed did not know.
TCS
Irctc next multibagger for sure
AFFLE INDIA LTD (technology company this is related to mobile advertising it is a singapore based company)
1. Federal Bank
2. Home First Finance
Why no one is talking about paytm
@chota_chattri
Paytm business model in itself is a problem.
They say that they are payments company but how are they going to make money if MDR for UPI is zero. They say we have wallet and other txns methods through which they make money but the charges are minimal which will just cover the txn charges. Also volumes of UPI are increasing day by day so with zero revenue from that front they aren’t going to make any money.
The counter they give is that we offer free services but lateron we graduate those small sellers to our payment gateway by which we make money. But again the competition in this sector is high and margins are low.
The counter they give is that, this is the way we attract people to our platform ( customer acquisition) later we sell them our financial products through which we make money .
So lets look at their financial products:
BNPL ( Buy now pay later)— Now they don’t want to lend on their books, so they have lending partners through who they will get 3% (roughly) commission. So, lets say their lending business becomes big and they are going to lend 10K cr per annum through their platform. How much money they make in commission 300Cr profit – by the time it comes to bottom line post taxes expenses – you will be left with 50% of that profit = 150cr -- company current market cap is around 60K crore = (P/E = 60000/150= 400 that also in future if their bnpl model becomes big hit ).
Now some people say that BNPL will be big hit if paytm does on its book. But Paytm payments banks is 51 % owned by VSS and 49% by one97. So even if paytm payments bank get small finance bank license the majority of profit will be eaten by promoter also with alibaba, ant fin. ( chinese ownership) the chance of them getting SFB license is fringe.
Stock Brokerage ,MF , NPS They are not even 1% of AUM and with leaders in each space like zerodha for stock, Groww for MF, direct NPS ( NSDL, Kfintech) for NPS ( The future of one97 looks gloomy). look at vss interview to cnbc.
Rest of the services – you can get leaders of each space if you look at each place they operate like paytm insurance ( now only 1% insurance is sold online of which policy bazaar is market leader with 50% maket share. most of the remaining 50% online insurnace is sold directly by insurnace companies own portal. Paytmmall ( Flipkart owned by walmart, Amazon is leader)
So from where they are going to make profit is questionable. also at current cash burn rate of 3k Cr per annum ( I am taking cash burn rate of mar 2020 because pre ipo they intentionally got losses down) and at a valuation of 60 k cr they got to dilute 5% equity every year just to sustain ( But that is unlikely because who is going to keep valuation of one97 up at 60k cr if they remain loss making with no focus).
Last is management and leadership is a problem
So, future looks gloomy until they correct things.
Hdfc bank and asian paints
I am bullish on yes bank… It will be a multibagger in future… Even 1000 shares will cost only 13000 but it may give you multifold return in future…. I am expecting this share will go in the same way satyam computers went after it was taken over by govt and sold to Tech mahindra…. Even in this 6000 point fall in market, this share was very strong and remain between 13.25 to 13.75… It’s my gut feeling…
Wardwizard Innovations & Mobility Ltd
This company is working on electric vehicle sector. As everyone knows that EV will be the future, so it can be a good pick.
Talking about fundamentals, the plus points of the company are:
- Quarterly and YearlyRevenue is growing
- Quarterly Yearly Net profit is growing
- Total Asset is growing
- Company is almost debt free
- Cash flow is going positive
- Promoter holding is above 70%
- Sales is growing
- Quick ratio and Current ratio is above 1
ITC: Proven player for more than a decade, fair valuations, present across multiple verticals, excellent ROE and ROCE, no debt, decent dividend, value unlocking yet to happen.
HUL: Has monopoly in FMCG sector, awesome ROCE of 40, Effectively debt free, huge cash flows, Loyal customers.
In my opinion one stock selection is very difficult process. First question in my mind is how much risk you can take.
For high growth stock and best return always risk involve.
If you are ok and ready to risk AFFLE,NAUKRI,TATAPOWER,DMART, DEEPAKNTL,ASTRAL,DIXON can be next multibegger stock.
And if your risk profile is low and want to be a safe investment HDFCBANK,HDFCLTD,RELIANCE,HDFCLIFE,KOTAKBNK, HINDUNILVR,TCS will give consistent return
JSW STEEL
Bharti Airtel
IEX
RIL
Ambani is everywhere.he is also investing high amounts in renewable energy, solar power and ev batteries,which will make him lock horns with Tesla sooner rather than later and considering that he didnt let Starlink in India he will win the Indian territory.
J.K. Ansell Ltd. and Mankind Pharma jab list huyi to jaroor kharidna kabhi ghate me nahi rahoge
Globus spirit
KPIT
AndhrSugar
Tata Motors
Praj Ind
Tata Power
Bajaj Finance
Tata Chemicals
MTartech
Dixon technology.
Reason- Huge demand in electronic and govt have goal to export 300 billion dollar worth electronic. So it can get more incentives. The company is already taking multiple partnership. It will be India Foxconn.
CDSL – Safe
TCS – Trust
RIL- Fast Growth
Asian Paints
Reliance
I feel they are taking all the right steps to safeguard their future growth
They also have enough capital to experiment and find the right winners
Not into share market much, but one query: How does the company gets impacted when the chairman (or ceo, whatever that is) gets retired (or is no more); Lets say tomorrow Mukesh Ambani or Ratan Tata retires (or God forbid, he is no more), then how does this impact that whole of Reliance or Tata share (and it’s subsidiaries) ?
@bikidas2060 @MrKool_JJ @malikcool
I nominate ICICI Lombard (ICICIGI) as a good stock for long term wealth creation. Insurance penetration has been low in India but in the past several years we’ve seen increased sales(double digit growth) YoY. This is because of increased awareness and ease of buying via bancassurance and digital channels.
ICICI is the market leader in terms of books and posts healthy profit every quarter. They have goodwill amongst its clients and hence are able to charge a higher premium than its competitors.