Brilliant macro & micro advice from Hiren Ved has profited us immensely
Hiren Ved has been giving us very valuable advice over the past several years.
During the depths of the CoronaVirus crash in March 2020, when there was sheer panic on Dalal Street and everyone was running helter-skelter, he was one of the few brave hearts who had held our hands and comforted us.
“This crisis is once-in-a-lifetime opportunity for investors … If you invest in good quality companies, you will definitely make good returns,” he had said, looking us straight in the eye.
This crisis is once-in-a-lifetime opportunity for investors, says Hiren Ved.
— BloombergQuint (@BloombergQuint) March 23, 2020
Hiren also recommended numerous stocks for us such as Tata Elxsi and LTTS (see Hiren Ved Of Alchemy Recommends 3 Mid-Cap Stocks With Significant Upside To Buy).
“Tata Elxsi has shown industry leading topline growth and industry leading margins. LTTS results are also expected to be very strong … There is still significant upside left in these stocks over the next 12-24 months even after the recent run up,” he had advised.
Both stocks have performed exceedingly well, with Tata Elxsi having given a mind-boggling return of 345% over just the past 12 months.
Bajaj Finance, favourite of the cognoscenti
It is notable that while the hoi polloi steers clear of Bajaj Finance owing to its alleged nose-bleed valuations, the cognoscenti misses no opportunity to add more of the stock during every dip.
Hiren Ved had recommended Bajaj Finance to us as far back as in 2013, when it was quoting at a laughable throwaway valuation.
“Bajaj Finance is actually a no. 1 financial bet,” he had said.
“It is one of the best management teams in terms of execution … we got earnings growth, multiple expansion … I see no reason why Bajaj Finance cannot trade at three times book,” he had added in memorable words.
The best part is that though several years have gone by and Bajaj Finance has now blossomed into a magnificent multibagger, it is still a good buy for Hiren Ved.
“Amongst all the financial services companies that are listed today, Bajaj Finance is way ahead of everybody,” he said in a firm tone in his latest interview.
“The opportunity is significantly big and they have shown that they have been able to execute on that opportunity very well over the last few years,” he added.
Hiren also explained that the Financial Services sector is undergoing a very silent revolution and is likely to be impacted by technology the most owing to the digital infrastructure that India has laid out in terms of the UPI, payment companies etc.
He also gave ICICI Bank a clean chit and opined that it would stand neck to neck with Bajaj Finance in delighting investors.
“Opening up trade” stocks (QSR, Retail, Banks, Retail) will sparkle now
It is elementary that the stocks which are now in the doldrums owing to the Covid imposed lockdowns will sparkle once Covid becomes a distant memory.
“We firmly believe that there is significant upside in the so called opening up trade or consumer discretionary stocks,” Hiren confirmed.
He explained that there are several ways to play the theme including Banks which have been underperforming through the Covid period.
Real estate and big grocery retailers like Trent, V-Mart are also good plays, he said.
“We are also very bullish on the QSR opportunity. We believe that all these opening up opportunities are significant. Many of these businesses have gotten more agile on the cost side; they have become more digital and their economics will only improve as things open up,” he advised.
According to Karunya Rao, the charming editor of moneycontrol.com, Indian Hotels is also a good play on the recovery theme. She has given convincing reasons for her analysis.
— Karunya Rao (@RaoKarunya) August 10, 2021