TLDR;
This YouTube video by Money Purse addresses various investment-related questions from viewers. It covers topics such as the potential of aerospace and defense stocks, gold and silver investments, the risks of chasing stocks hitting upper circuits, and strategies for income generation. The video also discusses financial planning for individuals in their 40s and 50s, comparing NPS and mutual funds, and analyzing specific investment opportunities like Dam Capital and Protean.
- Aerospace and defense sector growth potential
- Gold and silver investment strategies and risks
- Cautions against chasing upper circuit stocks
- Income generation ideas and financial planning for 40s and 50s
- NPS vs. Mutual Funds comparison
Investment opportunity in this stock for 10years [0:00]
The aerospace and defense sector presents a significant opportunity for Indian companies. Goldman Sachs anticipates substantial growth in this sector, projecting Azad Engineering's top line to increase from Rs 457 crores to Rs 1061 crores by 2028, with EBITA growing from 171 crores to 401 crores. The company has a 6,500 crore order book, which would take 10 years to execute, necessitating continuous capital expenditure. Goldman Sachs expects a consistent CAGR of 30% and EBITA margins above 35% by 2035. Azad Engineering is already showing superior revenue growth and margin improvement compared to its global peers. Free cash flow generation is expected to start by 2035 due to ongoing reinvestments.
Gold and silver-How much will they still grow? [4:23]
Gold prices tend to increase during economic uncertainties and wars. If a major event occurs, such as the US President removing the Fed Chairman, gold prices could rise due to a loss of confidence in the economy, prompting a shift from risky to safer assets. Without such events, gold may only see a further 5-10% increase without significant correction. Gold may experience time corrections, where prices remain stagnant for 4-5 years before rising again. Silver is a riskier commodity compared to gold, requiring careful entry and exit strategies. The gold to silver ratio suggests silver may still have some potential to rise.
This stock is hitting upper circuit. Is it a good time to invest? [8:51]
Span Defence has been consistently hitting the upper circuit since listing, with minimal transaction volume. The promoter holds over 90% of the stock, with the remaining stake held by few investors, resulting in a small float. Chasing such stocks is risky, as early investors may sell, leaving new entrants on the wrong side. Despite the opportunity in shipbuilding and repair, it is not advisable to buy this stock after such a significant increase from its listing price.
Exit Pharma and move money to this theme? [10:14]
The decision to rotate from the Informata Sectoral Fund to a new theme like autos, logistics, and auto accessories depends on the investment horizon. For long-term investments, switching may not be ideal due to the difficulty of perfect timing. However, transport and logistics may offer better returns in the next 2-3 years due to positive developments like potential GST cuts. This theme is cyclical, requiring careful timing for entry and exit. Long-term investors should hold, while short-term investors may consider transport and logistics for better returns.
Income generating Ideas [12:18]
A viewer seeks advice on generating secondary income from a plot of land to repay debts. Tower installation proposals from Indus Towers and Bharti Infratel require significant security deposits, which the viewer cannot afford. Instead, consider building a warehouse or renting space to water treatment plants, which require no capital investment. Selling the land to escape the debt trap is a better option than pursuing investment-heavy ideas.
Sunday Funday [16:22]
The host recommends watching "The Mandela Murders" series.
How to secure your life in your 40's&50's [16:38]
A 48-year-old freelancer and her 51-year-old husband are concerned about job stability and financial security. They have significant savings and investments, including mutual funds, fixed deposits, PPF, ESOPs, EPF, NPS, and stocks. The host advises against panicking and making hasty decisions. If the development idea has low capital expenditure and high confidence, it should be pursued to secure a good platform for the future. The host suggests splitting monthly contributions 60:40 between PPF and NPS for better returns.
NPS Vs Mutual Funds [22:38]
A 27-year-old investor asks for a comparison between NPS and mutual funds for long-term investments. Moving investments from mid and small caps to NPS is not recommended, as these categories have the potential for better returns than index funds. NPS should be part of the portfolio, but not the sole investment. An ideal retirement plan involves allocating 25% to NPS and 75% to mutual funds.
Investment in Dam capital during this IPO season? [25:01]
With IPOs continuously coming, Dam Capital may benefit from managing these IPOs. Numbers from managed IPOs will be added in the coming quarters, which is a positive sign. The stock is good when the primary market is booming, and it's time to exit when the IPO market dries up and bearish scenarios are seen.
Momentum in Protean due to NPS Policy changes? [26:27]
NPS policy changes will not immediately impact Protean's stock. It will take time for awareness and inflows to increase gradually. Protean recently received an order of 1370 crores to open Aadhaar centers in 188 districts, which is positive in the long term. The company is trading at a reasonable valuation after correcting due to not receiving the PAN 2.0 order. Protean is a good company with consistent cash generation, a clean balance sheet, and high return ratios, making it worth studying for long-term investment.