Secular growth stocks with 5+ year horizon suitable for 10%+ of PF

OK I understand my english created confusion.
You are my friend. I dont have any issue with you and expect good learning from you in future.

 

Learning is never ending exercise

 

yes @darth that'd be a prudent step at this point in time

have already been alleged of certain unkindly acts

 

Some connections of DCB Bank promoters Aga Khan Fund for economic development AKFED with HDFC. Aga Khan is original promoter of HDFC.

1. HDFC promoted as a ‘development finance institution’ by the Industrial Credit and Investment Corporation of India Limited, the International Finance Corporation, Washington [IFC(W)] and His Royal Highness The Aga Khan.
2. Mr. H. T. Parekh appointed as Chairman.

Check it here
https://hdfc.com/our-story
AKFED and HDFC were original promoter of GRUH Finance too.
check it here
https://www.gruh.com/about-us.html
At the time of public issue in 2006 HDFC had 5% stake in DCB Bank.
Even today DCB Bank chairman Nasser Munjee is also the director of HDFC.
Nasser Munjee was instrumental in establishing HDFC with HT Parekh. He rose to the post of executive director of HDFC.
These are the factors we see the similarities in business model of DCB Bank, Gruh Finance and HDFC Bank

 

`Hi,
Is it good to buy sbi share for long term? the stock is hammered and looks good for long term.
I am worried about the bad debts and loans it has, can we hold this stock for longer run?

 

SBI is the largest Bank in India. SBI also has branches abroad. It may have NPA problems at present. Also the stock has been beaten down. Still, it has potential to recover. So, if you are looking for long term investment, you can invest in SBI. Buy SBI and hold for at least 3 years. SBI will surely give you good returns. You may see good recovery in SBI from May or June 2016.

 

Key points to note:

• There is still a lot of pain left in the PSU banking sector. RBI has given a deadline of March 17th for the banks to declare their NPA's. Some of them have been forthcoming like BOB while others are doing it on almost a installment mode. You will get more clarity by next month on the proposed bankruptcy act, on whether RBI/Banks are serious about going after defaulters
• Now all the PSU's have to go for refinancing by the Govt. Provisioning is expected to reach Rs. 70,000 crore. From where is our govt going to bring the refinancing money from?
• Immediate future is also bleak as the borrowers - Indian corporates have not been delivering great results over the last two quarters. This is only going to compound the problem of NPA's
• Currently we are in the midst of a global devaluation of stocks. In this environment there a lot of good stocks with simple products and services with little or no leverage. It is better to go for them. I was a early investor in SBA at higher levels but i am now forced to remain invested waiting for a brighter day which should be at least 2-3 years away. I was a nostalgic investor when i got in but i realized the dangers in investing in banks where the shareholder has no clarity on their books or on their borrowers

If you sill want to invest in SBI (agree PBV of SBI is tempting), I would advice you to wait for more clarity on NPA disclosures and Govt's plans for refinancing before getting in the field

 

I have bought lots of share of sbi as the price looked attractive~~ 160rs average price.
My aim is to hold for 5 years, after which i want to liquify and buy a flat.

Hopefully SBI will help me to reach this object~~ Ramu

 

sbi is definitely hammered a lot. down to 160 from 315. but it is meant only for very long term investors. like say 10 years. the good part with sbi is prestigoius projects of the govt will be funded by sbi.

 

The good thing is your entry point is good and this is a bank whose management has been pretty good & one which the govt. will never allow to fail. You cant really time the bottom. There might be still some pain left in the SBI stock, but i think the bottom is not too far off and if you hold on for a couple of years, you will get a good return on your investment.

 

Sir,
Any idea about the dividend history? I tended to avoid PSU institutions, but SBI is a banker to every indian.
I aim to hold on for about 6 years or more, planning to buy truck loads if it bottoms out even more

 

Dividend

Year Month Dividend (%)
2015 May 350
2014 May 150
2014 Mar 150
2013 May 415
2012 May 350
2011 May 300
2010 May 200
2010 Jan 100
2009 May 290
2008 May 215
2007 May 140
2006 May 140
2005 May 125
2004 May 110
2003 Jun 85
2002 May 60
2001 May 50
2000 Jun 25
2000 Feb 25
1999 Jun 40
1998 Jun 40
1997 Jun 40

at current rate 3.5 rs dividend , yield comes around 2%

 

Their dividend history is good.


I am more interested in companies which grow than just dividend givers. I am happy as long as the dividend is plugged in for growth purposes if it not is not given out as dividend...

 

Advantage of dividend stock is cushion from fall of stock price. If price falls dividend yield goes up and there is buying pressure. So investors looking for safety should buy high yield stocks. But disadvantage is low growth is there in such stocks. So in bull market capital appreciation is low for such stocks as growth is low.

 

Although I am trading from few years, I consider myself as newbie to stock market. I request you to comment on my current PF. whhich stocks you want me to remove from PF. feel free to comment.

axis bank
HDFC bank
LIC houseing
DCB
TVS motor
Amara Raja Battaries
Infosys
TCS
RS software
Jindal steel
Supreme Ind
Vguard
alembic pharma
Unichem
aurobindo pharma
Dishman pharma
JB chem
Strore One

 

I like Aurobindo Pharma at current levels after recent correction of ~25%. And trading at 40% discount to peers.
But I would like other to pitch in as well...

 

I think Glenmark is a terrific value buy as well... I dont have it but I intend to.

And JB chemicals looked great until the RGT ban on their important plant. The supreme Court has stayed the ban but then asked it to be reviewed once again by RGT, the very same organisation that called for the ban

Could be risky. If that plant is banned, JB will drop like a rock! Just watch it closely and ensure they are clear before buying.

 

DCB stood tall in this bear onslaught. This is the power of a stock which is already corrected. Corrected ones are always safe bet. Moving in a range of 70 to 78. No hope to run fast in short time but good for next five years bet. December quarter profits did not come down as expected despite company added 28 branches.Here they beat the guidance. I think they can achieve the target of 150 branches well before time if they are able to keep cost of operation low.
Important point to be noted in business model is DCB philosophy to expand in tier 4,5, 6 cities with 10-20000 families. Here cost of operation is low, competition among banks is almost nil so gestation period of branch is low i.e. 10-18 months. This way DCB Bank can grow faster. "Grab the power from below". Lending is like commodity business so keeping cost of operation low is main USP of any finance company. If they continue to keep it low, they can turn it like secular growth company.
I hope management can beat the guidance continuously. Gestation period of branch in cities is 3 years which is difficult to small banks like DCB to afford.

 

Experts,

Is it a good idea to accumulate SBI after the budget? I am very worried about the N.P.A it has Especially from King of Bad times Vijay Mallya.
Also, i am invested in JB chemicals at about 150 shares? Good to sell or can i buy more?
IMHO, Pharma stocks are defensive and are good wealth generators over 5 to 10 years term

Ramu

 

Unlikely that pharma will give the kind of returns it has in the last 6-8 years.