PrimeInvestor - Articles and Reports

Stocks
Vidya Bala

Prime Stock recommendation: A capital goods player taking the inorganic route

Apart from corporate capex, production linked incentive (PLI) of the government and China-plus-one strategy, the manufacturing space is also undergoing a transition. Companies that have already invested or are now investing to meet the above demand triggers are readying themselves for future growth. This capital goods stock is one such superior player.

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Prime Recommendation: How to play the cyclical space now
Recommendations
Vidya Bala

Prime Recommendation: How to play the cyclical space now

Manufacturing is back in favour in the stock market, largely driven by cyclicals such as auto, auto components, industrials and capital goods. In this report, we discuss in detail the prospects for the manufacturing space and how to play it through a thematic fund that we added a month ago in Prime Funds.

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All your debt fund doubts, answered
Commentary
Vidya Bala

All your debt fund doubts, answered

It is true that debt funds have been a washout in the past 3 years. For an investment of 1-2 years, FDs would have marginally (although not significantly enough) returned higher than liquid and ultra short duration funds.

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Prime Stock recommendation: An averaging call
Stocks
Vidya Bala

Prime Stock recommendation: An averaging call

This stock had corrected 30% since our recommendation. We initiated our call after the Q1FY22 results, in September 2021. You can consider averaging the stock now (Rs 267.5 at the time of this call). We explain the rationale below. 

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Book profits on this equity fund
Recommendations
Vidya Bala

Prime recommendation: Book profits on this equity fund

We had taken a positive view on commodities early on, and added the theme through our ‘Economic Revival’ category under Thematic Investing since our inception in January 2020. But we added a commodity fund as part of the Strategic/thematic section in Prime Funds later in March 2021. The call was a bit late but yielded good results. Now we would like to alert you to book profits on this equity fund (NOT sell) and prune it back to your original capital. 

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niche capital goods pick
Stocks
Vidya Bala

Stock update: Results analysis on our niche capital goods pick

In September last year, we had given a Buy call on a unique capital goods player that has delivered in a tough market, that has picked up newer opportunities and has the potential to grow well. With the March 2022 quarter results out, markets have reacted.

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Our response to your comments on our Axis fund call
Commentary
Vidya Bala

Our response to your comments on our Axis fund call

We upset a few of you with our call on some of the Axis funds last week 😊 Some of you commented on the blog and others raised tickets. We thought it would be better for us to respond through an article for the benefit of others as well. 

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Axis mutual funds; What should you do?
Commentary
Vidya Bala

What to do with your Axis mutual funds?

Axis Mutual Fund issued a public notice removing and replacing two of its fund managers, Viresh Joshi and Deepak Agarwal, from seven of its schemes — Banking, Technology, Consumption, and Nifty ETFs and Axis Value, Quant and Arbitrage Funds. This move was accompanied by speculation that the managers were suspended on front-running charges. Axis Mutual Fund hasn’t explicitly mentioned front-running charges, but it has confirmed that it has been investigating “potential irregularities” with the help of external advisors.

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Prime Fund Recommendation: A fund for the opportunist in you
Recommendations
Vidya Bala

Prime Fund Recommendation: A fund for the opportunist in you

Some funds have a clear fundamental strategy that shows in their portfolio construct. When that strategy pays off, they deliver. But many good-to-hear strategies have failed for many mutual funds in recent years. This is partly due to fast-shuffling sector preferences in the market and partly due to high stock weights in the index that funds struggle to replicate. As a result, you see them underperforming key indices. 

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duplication in debt funds
Strategies
Vidya Bala

How to use each debt fund category in your portfolio

As a result of having many categories, many of you end up having duplication in debt funds in your portfolio inadvertently – by believing that spreading across different categories, you’re diversifying. However, funds that may be in different categories but not necessarily doing anything different for your portfolio. 

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A privately placed bond with attractive risk-return pay off
Bonds & Deposits
Vidya Bala

Prime Bonds: A privately placed bond with attractive risk-return pay off

Last week, we announced the beginning of our coverage of privately placed bonds. Today, we’re issuing the first of such calls. The private issuance of this unlisted bond was done on March 4, 2022 and it is now available as a secondary sale of privately placed bonds. Our report and recommendation here is on this secondary sale.

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