AltG Opinion

Religare - The Deal of the Decade: The recent offer of INR 2,116 Crores ($254 Million) for a 26% stake in REL, can potentially become the "deal of the decade" if specific AltG recommendations (listed below) are put into action. Read our detailed analysis here: Why Are The Burman’s Bidding $250 Million For Dabur - Religare Deal?

Here's a breakdown of AltG's key recommendations to unlock significant value:

Future Value Creation Levers: To unlock maximum returns, consider focusing on four key value creation levers:
Spinning off non-core businesses to reduce conglomerate discount and concentrate on growing the primary business, especially Health Insurance.
Implementing technological and operational enhancements to lower operating expenses in the insurance business and compete effectively in the market.
Allocating capital into high-growth adjacent businesses, such as Insurance TPA businesses.
Exploring asset recycling strategies by leveraging re-insurers to pursue

Please don’t trade, that is my humble request. If you know what you’re doing then it’s fine otherwise you will lose your hard-earned money.

Now coming to your question, you could easily make 1 cr from an investment of 10 lakh in 8–10 years (Sorry 5–7 years is a short horizon).

If you have invested 10 lakh in any of these companies in 2009, then let’s try to calculate the profits.

Now investing 10 lakh in a single company can be dangerous, but if you could have just invested 2–3 lakh in any of these companies then also you could have generated 1 cr.

So my advice is always to diversify because I know 32 cr profit sounds too good to be true but again no one could have predicted that 1 rs stock would go to 570 rs. So always diversify your stock holdings and you can use 30% of your money for risky stocks which have the potential of becoming multi-bagger.

#stocks #longterm #investments #sharemarket #returns #profits #story #india

Can Trident become a multibagger stock in 2 years?

To become a multi-bagger at least one of the conditions (listed conditions not exhaustive) should be satisfied:

1/ The stock is trading at a very cheap valuation.

2/ A lot of growth can happen with good ROIC.

We see that neither of the conditions appears to be met. The stock is expensive and the returns are abysmal.

Using the Simple Valuation tool at MarginValue, I have calculated the fair value of Trident, the margin of safety, and the probability that the stock will trade above the valuation given under the margin of safety. You can attempt your own valuation.

#Trident #value #multibagger #investments #Stock

Question: Which are the highest return stocks in the last 10 years in India?

These are the stocks that have given the highest returns in the last 5 years on a consistent basis!

We noticed 1 thing that most of the pharma-related sectors have given the highest returns in the last 5 years.

The pharma sector never got enough importance for a decade.

The only importance the sector got is when we are into this pandemic.

Pharma stocks will be the biggest multi-baggers in India in the next decade.

#Stock #longterm #Investment #Stockmarket #Stocks #multibaggers

Question: Which is a better share for the long term in India, RIL, or Tata Steel?

Both RIL & Tata steel has good management & strong business.

RIL - is having more revenue drivers like Jio, Retail, etc. Now they have collected huge money from many institutions & other strategic partners and become debt-free.

The current valuation is a bit high but considering long-term potential, it is OK to start accumulate it in small portions.

Tatasteel - Age-old proven business in metal and subject to cyclical in nature. If you just see the chart, it has not delivered great returns to investors.

See the last 5 yr data: RIL appreciated about 381% & Tata steel is about 63% only.