SEBI Registered Investment Advisory
July 2018 Recommendation: Proxy Play to the Indian Financial Markets and a Brand Driven Business
Salient features of July 2018 WealthBuilder Recommendation
1. The company has been consistently growing from several decades. Indian financial markets are going to grow further and this will give good impetus for this company.
2. The company is very comfortable in terms of financial health with zero debt and lots of cash in its balance sheet. The company does not need any capital to grow its business because of which most of the earnings are given out as dividend.
3. Their return on equity is one of the best among almost all the listed companies. This kind of return on equity is generally not seen in most of the sectors.
4. The operating profit margins are consistent and as per the management this is going to sustain going forward.
6. The valuations at which the company is trading provides good comfort. The stock is very reasonably valued and seems to be safe bet for someone who want to invest for long term.
7. The company operates in a sector where only few players dominate the industry. This leads to high market share for every player in the industry.
Our July 2018 stock recommendation is a brand driven business in the financial markets. The company is a beneficiary of credit off-take and improving financial markets. The sector in which the company operates has only few players and entire market is captured only by those few players. The return rations are exceptional and company does not need any capital to grow its business which leads to high dividend payout.