I am starting this new series on mutual fund. What I feel is not everyone has the time to analyze and invest directly into stock market. Maybe you would end up investing into a wrong company. So here I will be analyzing different mutual fund scheme and their portfolio so you can earn good returns in a long term.
Invesco India Portfolio
If you look at the top 10 stock holdings of Invesco India Growth Opportunities Fund they are mainly blue chip stocks. So If you look at the list out of 10 we have 6 as one of them so I am not going to waste your time in explaining their fundamentals[Like there is reason they are called as “Blue Chip” stock]. Lets go directly to the last 4 which are
- Apollo Hospital – This is actually a very good pick by the fund manager of Invesco India Growth Opportunities Fund, Since Covid-19 situation is getting worse by the day government has asked private players to step in to fight this virus which is good for Apollo Hospital as it will generate more revenue in coming days for the company. Even this stock is added to the MSCI index of India [ Morgan Stanley Index – they give index solutions to the global investors where they add certain number of stock in their index of a country where global players can invest to gain more returns ] which will bring more FII to investment into the company. More FII investment means? – Stock can go up in coming days.
- Fundamentals of Apollo Hospital – Strengths
- Company’s PEG ratio is 0.56.
- The company has an efficient Cash Conversion Cycle of 24.21 days.
- The company has a good cash flow management; CFO/PAT stands at 3.83.
- Fundamentals of Apollo Hospital – Limtation
- The company has shown a poor profit growth of -1.43% for the Past 3 years.
- Company has a poor ROE of 3.52% over the past 3 years.
- The company is trading at a high PE of 71.96.
- Promoter pledging is high as 67.33%.
Yeah you may be feeling that limitations are more in this company but still I feel it has lot more potential because of the of the developing Covid – 19 situation!
- Sanofi India – The company deals with Pharmaceuticals & Drugs and as mentioned above these companies will be the most profitable in coming days due to Covid-19 situation rising in India. But not only for short term , Sanofi India has good fundamentals for a long term investment as Well. Lets discuss some strengths of the company –
- Company has been maintaining healthy ROCE of 27.55% over the past 3 years.
- Company is virtually debt free.
- Company has a healthy Interest coverage ratio of 872.14.
- The company has an efficient Cash Conversion Cycle of 21.93 days.
- The company has a good cash flow management; CFO/PAT stands at 0.98.
- The company has a high promoter holding of 60.40%.
- The company has shown a poor profit growth of 5.79% for the Past 3 years.
- The company has shown a poor revenue growth of 8.11% for the Past 3 years.
Now lets go to the next company Exide
- Exide– Well Exide is a very old and good reputated company in the sector it works in . You all will be knowing this company as most of the car consist of its battery. Talking about the future Petrol and Diesel cars are decreasing day by day and even our government are encouraging the people to switch over to EV vehicles [battery cars] by reducing taxes on them which may be game changer for this company in coming years. Lets talk about the Fundmentals – Strengths
- The company has shown a good revenue growth of 15.60% for the Past 3 years.
- Company has been maintaining healthy ROCE of 20.43% over the past 3 years.
- Company has a healthy Interest coverage ratio of 166.59.
- Company’s PEG ratio is 0.55.
- The Quick Ratio of the company is less than 1(0.86)
So I hope you guys have followed till now and now move on to the last company in our list which is Hexaware
- Hexaware – In this Lockdown situation, companies which are functioning smoothly without any interruption are the IT companies and delivering their projects on time regardless of their employees “working for home”. A new Trend or maybe a new normal in today’s world is digitalization. The Services provided by the company are – Application Transformation Management (ATM), Business Process Services , Business Intelligence & Analytics Services and many more. You can take look up on their site what are the services offered by the company. Talking about the Fundamental – Strengths
- The Company is Virtually Debt Free.
- The Company has a good ROE track record of 27.37%.
- PEG ratio is 0.63%.
- The company has effective cash conversion ratio of 94.07.
- Company has a healthy FCFF buffer of 4,363.36 Crores.
So you may feel I only mentioned 4 stocks and didn’t talked about the first 6 stocks of their portfolio. In my opinion they are the blue chip stocks of our Nifty 50 and Sensex. There is reason why they are called as “Blue Chip” . I hope you may get my point.
Disclaimer- I suggest you to consult your financial advisor before investing into a mutual fund mentioned in my blog ! Like all securities, mutual funds are subject to market, or systematic, risk. This is because there is no way to predict what will happen in the future or whether a given asset will increase or decrease in value. Because the market cannot be accurately predicted or completely controlled, no investment is risk-free.