CMPFO
Need to have one, strong brand or big market size: 4 midcap stocks with right levels of RoE and upside potential of up to 21%
In all market conditions investing in mid-cap stocks is always a challenge for any investor. This challenge gets much bigger when the valuations are extremely high but at the same time the market is in a strong bullish trend. A choice has to be made between taking risk or losing the opportunity of making returns in a short period of time. In such times, it would be better that investors should be cautious in selecting the stocks, better to go with buying in smaller quantities and keep some cash allocated for the stocks, but only to be used on the day when there is absolutely chaos on the street. Why this strategy is likely to work, because it will take care of volatility which is bound to happen when valuations are not on the side of bulls. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy".
Own midcaps? Do a check & balance exercise to avoid decision of haste: 7 midcaps from different sectors with an upside potential of upto 49%
Every now and then the market goes through phases, where it prefers a certain set of stocks, not based on sector but based on the overall market cap. So, sometimes it is large caps, at other mid-caps. Now this partially happens, due to the flows which are coming to markets. For example, if more flows are coming to mid-cap or multicap schemes there is bound to be out performance in the mid-cap space. Now what it does is that it tends to create a sudden surge in mid-cap. Similarly when there is an outflow like the kind of one which we saw in March this year, midcap stocks tend to decline sharply. Essentially, it is the flows which impact the broader matrix of how midcaps behave. So there are phases not owning a midcap stocks appeared to sin and then there phase, where owning them appears to be sin. But if one focuses on the underlying business and some critical parameters, there is a possibility of getting rid of these phases of anxiety which keep coming to the street and create long term wealth.
From medium term perspective : 5 midcap stocks from different sectors with potential upside of up to 35% in one year
But it is times like this when an event is about to take place and narratives are floating in the market that one ends up making the wrong decision. So, one will have to do two things, one be bullish but be more selective and focus on managing risks.
For medium to long term investors: 4 midcap stocks with right ratio matrix and upside potential of up to 30%
It is never easy to find a good stock. Not for any other reason, but the fact of “ good stock” is an open ended term. For some consideration of calling something a “good stock” is largely how the price of the stock behaves in different market conditions. Like does it fall less in bearish markets and moves up faster in bullish markets. For some a stock which is available at cheaper valuations, could be a good stock. So, each to its own. But when it comes to business and management , there is only one thing “good business” and “ good management” which has no open ended interpretation. A business which generates good cash flows and has large market size to grow and for management a clean balance sheet and good corporate governance.
Opportunity in short term headwinds? 4 AMC stocks with upside potential of up to 37%
While there is always a talk about how many new demat accounts have been opened every few months. But how many folios have got added in the mutual fund industry is something which does not make it to headlines. What makes a headline is just the headwinds, about new rules and regulations or a new competition coming up. But in reality, this fact is that for mutual funds houses or AMC companies, these headwinds are very minor things to handle, because they have the biggest macro tailwind of financialisation of saving, a trend which got really strong post demonetisation. Let's look at the different headwinds and some narratives around them which the AMC industry has dealt with over many years and still come out strong.
One macro tailwind is stronger than short-term headwind: 4 listed mutual fund houses with upside potential of up to 32%
As a sector, asset management companies (AMC) or commonly known as mutual funds houses have been facing multiple headwinds. Some real ones and some which are more of narrative born out of fear of the unknown. Despite all the headwinds, these companies have grown their asset under management (AUM) along with it their bottom lines have also grown over the years. Now the latest headwind is the SBEI order of stress test and the AMFI advisory to go slow on mid and small cap mutual funds schemes, both in terms of launches or adding money to the existing schemes. Why did this lead to some correction in the stocks? Because it was mid and small cap schemes were getting maximum share of the new money which was coming to the mutual funds. So, the fear is that this part of the AUM will not grow at the same pace at which it has been growing. But this is a short term headwind, in the past also there have been multiple times when fund houses have voluntarily stopped accepting money in their mid and small cap schemes. But did it stop their overall growth, the answer is no.
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Relative safety in a volatile market with a reasonable growth premium: 4 largecaps and 1 midcap stock with right PEG ratio
When a sector gets discovered we see a sudden rush of money getting into that sector. The reason is that the earnings of the companies in that sector are likely to grow faster and it makes sense to pay more for a stock whose earnings grow at a faster rate. Now, how much more should be paid is the question. One of the ways is to determine by dividing a company’s PE multiple by its growth ratio. Look carefully at the PEG ratio which in the long-term indicates many things in a better manner than most other alternatives like PE which tend to create a mirage of value. By focusing on the PEG ratio, investors can better differentiate between genuinely valuable growth opportunities and those stocks that appear cheap but are cheap for a reason.
For high risk averse: 5 midcap stocks from different sectors with potential upside of up to 20%
In the last two months of the market, while the midcaps have done well, though the pace at which the outperformance was taking place has slowed down. So, there is a profit booking taking place in different parts and sectors. Part of this profit booking is due to the fact the valuations are high and probability that it would continue. At this point of time one should also focus on reducing risk.In reducing market risks, investors should integrate both quantitative and qualitative criteria to assess stocks, aligning expectations with realistic market performances and avoiding impulsive shifts based on short-term fluctuations. This involves a disciplined approach to examining fundamentals, particularly focusing on crucial financial ratios such as Return on Equity (ROE) and Return on Capital Employed (ROCE). These measures help in evaluating a company's efficiency and profitability, guiding investors away from making hasty decisions which are mostly done in a bullish market.
Looking for safety with a reasonable growth premium? 4 midcap stocks with right PEG ratio
One of the biggest challenges which companies face is the right allocation of capital. Over a long term it is the right allocation of capital which determines whether a business is able to create shareholder returns or not. This becomes even more pronounced in the case of the mid-cap companies where resources are even more limited. When looking at mid-cap companies, look carefully at PEG ratio which in the long-term indicates many things in a better manner than most other alternatives like PE which tend to create a mirage of value.
For long-term investors looking for midcap exposure: 4 stocks with right PEG ratio
The problem with PE ratio is that it not only creates a mirage in terms of buying of a stock. But even selling stocks just because P/E is high is also something which leads to selling wealth creators early and then regretting or buying them at a point when they are expensive in real terms. So it is better to use peg ratio, which comes with its own challenges, which are still worth taking.
This ratio gives better guidance for long-term investors; 3 mid-cap stocks which fit the bill
It makes sense to pay more for a stock whose earnings grow at a faster rate. Now, how much more should be paid would be determined by dividing a company’s PE multiple with its growth ratio. But growth is a function of many variables and that is the challenge which one needs to navigate. But the effort saves trouble which many may face later on. Especially in sectors like banking and financial services which have large numbers of stocks which on face of it appear cheap but are actually not.
Fintech threat might be overrated. Is it better to own both the mutual fund and their parent company?
Some time back, the entry of a well known startup founder into the mutual fund space led to lots of chatter on the street about how he would be able to use technology to change the face of the mutual fund industry. The reality is very different, the mutual fund house hardly has any significant AUM after being in business for some time. The narrative was based on the experience which Street had in the broking industry, where the startup and tech led discount brokers were able to become the largest brokers in a short span. But in mutual space, the operating matrix is very different and fin-tech might be overrated.
For long-term wealth creation: 4 stocks with right PEG ratio
PEG ratio is a complex process and comes with its own set of challenges. The challenge with PEG ratio is the quality of the earning forecast and given that in an ever changing macro environment , even the best of the forecast for any business can go wrong which may impact other elements which lead to some unexpected changes. However, even with these challenges, it is worth looking at PEG ratio before taking a long term investment decision.
Will the entry of Jio Financial impact bottomline of listed mutual fund players or will it be business as usual?
If one looks at the history of the Indian mutual fund industry, it has faced multiple challenges. The next big challenge would be the entry of Jio financial services in the mutual funds space. The newest entrant has made its intent clear, digital first, schemes with lower load and expense ratio. Will this make players have a look at their expense ratio and impact the bottomline?
Challenges are sometimes reforms? 4 AMC stocks with “buy” recos with upside potential up to 54 %
From being a must have in portfolio, AMC stocks have seen a long phase of underperformance and now clean out block trades. A headline which says that SEBi has delayed making changes in TER makes AMC stocks move up sharply. A delay in what appears to be a challenge, is enough to bring back interest on the counters. Is it an indication that once the “ challenge” is out of the way, these stocks will again regain their valuations back.
Will AMC stocks prove analysts wrong? 4 bets with “buy” recos with up to 17% upside scope
From being a must have in portfolio to a long phase of underperformance and now clean out block trades and re-bidding for stakes have brought AMC stocks back into limelight. Is this correction a buying opportunity or will the analyst be right this time.
Will AMC make a comeback? 4 stock with “buy” recos with up to 21% upside potential
However if one looks at the history of financial markets, there are phases where multiple challenges have come up for the sector at the sametime. But given the savings matrix which Indian’s have, despite all that may have happened, on an overall basis the financial services industry has grown and some select stocks have given decent returns to their shareholders.
Coal Ministry sets up monitoring cell to help officials tested positive for COVID
The COVID Monitoring Cell, set up by the Coal Ministry on Friday, will also help the family members of the officials found to be tested positive for the deadly virus.
Coal ministry hasn't taken due responsibility as watchdog for CMPFO: Parliamentary panel
The PAC, it said, is "aghast to note that it is only after CAG report No. 12 of 2017 that brought out the financial irregularities, the issues of financial impropriety by CMPFO came to the notice of the officials of Ministry of Coal."
CMPFO dismantles panel studying EPFO merger
Late last month, CMPFO had in a letter informed that a three-member panel was formed to examine the merger following a letter from the ministry in early March. In a statement issued last week, CMPFO said that its letter, by which the panel to examine the issue of merger was constituted, has been withdrawn by the competent authority since presently there was no such proposal under consideration.
EPFO, CMPFO merger on cards
CMPFO’s payments have started exceeding inflow since 2016-17.
'Coal companies must make extra voluntary contribution to staff pension fund'
Coal Mines Provident Fund Organisation commissioner Animesh Bharti told ET: “Following a recent resolution by the trustee board of the CMPFO, coal companies will soon be asked to make voluntary contribution of Rs 10 per tonne of coal produced.
Seven funds keen to manage CMPFO’s over Rs 1 lakh crore corpus
Consultancy Brickwork India was recently appointed to guide the organisation through the selection process.
Panel suggests pension cap for coal workers at Rs 45,000/Month
A panel set up by the Coal Mines Provident Fund Organisation has recommended that the monthly pension for retired workers be capped at ₹45,000 because the poorly managed fund is running out of money.
Cash crunch keeps 5 lakh CIL pensioners in lurch
The company’s pension and provident funds are managed by Coal Mines Provident Fund Organisation (CMPFO), a body which takes care of social security of coal mines workers.
Drama in Coal Ministry over pension fund chief’s post
BK Panda, commissioner, CMPFO, has been put on compulsory waiting by the coal ministry but he has filed a petition in the central administrative tribunal challenging the ministry’s order.
Now, a PF app for Coal Mines Provident Fund Organisation members
CMPF's existing web portal had been given a facelift with improved facilities for viewing claim status, account status, downloading self-certified life certificate format and status of grievance.
Reliance Capital, ICICI Securities to manage Rs 60,000 crore coal PF Fund
Decision was taken by the board of trustees (BOT) of the Coal Mines Provident Fund Organisation (CMPFO) in its meeting, chaired by Coal Secy Anil Swarup.
Three fund houses in race to manage Rs 69,000 crore coal miners' PF corpus
The total investible funds being administered by CMPFO is worth Rs 69,421 crore, which includes Special Deposit Scheme, 1975 funds to the tune of Rs 16,522 crore, as on March 31, 2014.
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