🤑 ఇంతకన్నా Cheap గా మీకు ఏ Defence Stock దొరకదు | నాకు ఈ stock బాగా నచ్చింది

0:02 Please note this. [Music] Good morning, Money Persons, welcome to Ask Money Per Show. Today's first question is being sent by Vaidehi. And can you please talk about DCM Shriram Industries Companies into multiple business verticals and the stock looks very attractive at this valuation and is definitely very interesting in terms of valuations . Infact, there are also many interesting things happening at the company. How did this stock come to my notice? One of our subscribers, Sudheer, said that a month ago, I made a video saying that I am bullish on the themes I prefer to invest in for the next five years. In that video,

0:48 many of our viewers wrote in the comments section that the companies were related. If anyone has n't seen it, please watch it. In fact, not only that, but in yesterday's video, many people also wrote about various companies and which ones they are bullish on. Actually, most of our interesting company ideas come from our own people. So this came to me from Sudhir. I'll show you his comment here . After he wrote this comment, I started studying the company . Let's first talk about their existing business, if any . After that, let's talk in detail about what part of what's going on in the company actually makes your company interesting. Now, when it comes to DCM Shriram Industries, if you look at their major business present, you will see that their sugar business is called Dorala Sugars and they have a company called that.

1:33 They are currently earning a revenue of Rs 1049 crores from this company, but they delivered a net profit of Rs 77 crores last year . They are maintaining a margin of approximately 7% . In this business, they are all focused on sugar and now we have a government focus on ethanol related products. Look at ethanol and we have cheap liquor. Country liquor, country liquor, sugar companies have also made everything. So, they would be getting revenue there too . This is part of business. Now, coming to the second part of the business, in this segment, they are focusing on the auto industry. Shriram Rayan tells us that nylon fabrics are used in tires, but they are also used in manufacturing and they manufacture products that are used in the auto industry . So, as the growth of the auto industry is related, the business growth of this segment will depend on them . If we look at the present,

2:19 they have delivered a top line of 574 crores in this business and a bottom line of 108 crores and are maintaining a very good margin. Their margin in the sugar business is in the single digits at 7%. In the ware business, their margin is 19%. They are maintaining a healthy margin. Whatever their products are, their products are also in demand. The only thing is that the auto industry has grown. This segment would have grown a lot. Their third segment, the chemical segment, is where they generated a revenue of Rs 429 crores last year, and delivered a net profit of Rs 39 crores. They are generating a margin of 9% here, but if you look at the margins, you can see the pressure. The reason for that is that two of their competitors have added capacities for whatever chemical they manufacture. What will happen if new competitors come in?

3:05 Margins will increase, which means we will see competition and margins fall. A similar thing will be seen in this segment if it has an impact. In fact, this is one of the reasons why we are seeing pressure on stock prices recently . Just like when there is volatility in the sugar business, we also have that volatility in the stock price . Not only that, but one of the reasons for the recent overall stock price pressure is the entry of new competitors related to the chemical segment. This is not an existing part of the business, but an interesting part of the business in this company. They are working on very good developments in terms of the future . One of them is that they are manufacturing defense-related products in whatever industrial vertical they are in. These defense-related products are now

3:51 moving from the RND prototype stage to the commercialization stage . I will show you on the screen here that they have collaborated with Ford Motors to make light bulletproof vehicles. If you go directly to the GadiCM Srimam Industries website, you wo n't see it. Actually, if you went into this vertical, another page would open for you. There you will find the details of these vehicles . No, they have developed these products in a tie-up with US-based Force Motors and their commercialization is going to start soon because they have received very good appreciation from the Defense Forces, as they write in their annual report. Now, if this segment comes into operation, then this is one segment which can contribute really well and maintain very good margins. Now Defense is the only company that makes these bulletproof light commercial vehicles,

4:38 so it's not actually related to DCM Shriram Industries. If you've ever heard drone-related news, you'll automatically think of DCM Shriram Industries and tag them on social media . But many people may not have any idea what drones they manufacture, how they sell them, and what parts they have. What they do is tie up with a company called Jairoma Dynamics and claim to be developing the variable volume concept that they have. This variable volume concept means that it can actually change the shape and size of its wings during flight, which is said to result in much better speed and handling of the actual payload . They wrote in handle reports that this product, which is in a very advanced stage, is going to be launched in a couple of months

5:23 . But my only doubt is that this Siren Dynamics is a Turkey-based company . Well, after this Operation Sindoor, our relationship with Turkey is not good, so we have to see what its impact will be on them. And this defense-related segment, that is, one of the products in the engineering-related segment, which is tied up with Force Motors, is going well. That's the only thing I have doubts about related to this segment. Not only this, they are also saying that they have set up a full-fledged manufacturing facility and fabrication facility in Kota, Rajasthan, in this segment . And this setup is actually related to one of the US-based companies, Western Global, whose team visited their facility and appreciated it very much, that is, the quality of the facility and everything

6:09 related to it, as they write in the Yaml report. And also, they are saying that they have received an order for FCP range fuel containers from this Western. If they have received an order for seven loads, they are already exporting four loads of the order, as written in the handel report. They are saying that they are going to use this quota facility for the manufacturing of armored vehicles and containers . And not only this, they have already mentioned in their annual report that the assembly vertical of the Israeli-based company Tabiran Telecom, which has a tie-up with IP-based phones, has started, and that its commissioning has also started . That is also another thing, another business, we can expect revenues related to this company. So basically, whatever their engineering vertical is, they are working in multiple segments, not

6:55 just one segment in this vertical, and we understand that they are moving from the RND stage to the commercialization stage in each segment . But if we look at the current stock, their sugar business is their major business, so we can see the valuation based on that sugar business . The market reads like a sugar company. I think they are also getting good revenues from the engineering business in the future . Obviously, we can expect that re-rating . This is what I actually found interesting about this stock . In fact, management is also talking about demerger-related issues . So even if there is a business demerger, there is a possibility that value unlocking will also occur. At the time I recorded this video, the stock was trading at a price-to-earnings multiple of 14 times . They have a good balance sheet, generating healthy return ratios. The debt we actually see on their balance sheet is

7:41 predominantly working capital debt. Very old company with very good management and business in terms of commodities business and engineering business. We know what valuations engineering related defense related companies are trading at. However, the current market does not see this stock as such, so we have it at this valuation. Hopefully, the numbers coming from here will start to commercialize all of this, but I'm definitely keeping an eye on it and tracking it. So if there is activity, it is definitely attractive in terms of valuations, so I am actively tracking whatever activities are happening in the company . If you find it interesting, try to do your research thoroughly. The only concern I have with this company is that they don't release quarterly presentations, they conduct conference calls. So, we

8:27 have to depend on the annual report for information. Information is scarce. That too, in a way, is not noise without advantage. But the only thing we need is that whenever there is a quarter-to-quarter traction, if there are presentations or conference calls conducted, we get a little more information. That's the only question. If everything looks interesting, before answering the next question you sent, how did you find the information shared so far? If it was helpful, we ask the same thing. Don't forget to like the video and if you also have any questions you want to ask us, write your question in the comment section below. Ask Many Person Continuously. Your questions will reach us . And if this is your first time visiting the channel, don't forget to subscribe to the channel and activate all notifications by clicking the bell icon next to it . Our next question is from Jeevan Kumar, what is your view on Armus

9:13 Medicare Hospital stock? Good and current. I have also recently seen the portfolio of one of the well-repeated PMS Fun Managers. If I ask that person, are hospitals minting money? Well, repeated hospitals are full of patients, so if you observe, they are making a lot of money. The only thing is that some hospital stocks have gone to very expensive valuations . But there are few hospital stocks that we find to be reasonably valued. This is one Healthcare Global, one Yadhartha Hospital, and one Infact. Actually, one year back, Yadhartha still seemed very cheap . But with a slight increase in the last year, we still have a reasonable valuation. These three seem reasonable to me in hospital stocks. If anyone has not studied this theme, please try to study it. Definitely, it

10:00 could be because of insurance, or it could be because of increased capacity. We have multi-specialty hospitals, that is, well- rehearsed hospitals, but we don't really have any space. So it looks fully crowded. So automatically, it shows up in the numbers too, so it's worth studying this thing . Our next question is being asked by Satish Kumar. Hi team, I am confused between rights issue and rights entitlement. Can you please explain with an example? Last time some shares were credited in my Demat account ID. I sold them later. They disappeared. I was supposed to sell them. What is the benefit in this case? Can I buy these rights entitlement shares and I will try to explain it in a simple way . Many retail shareholders are unknowingly losing money like this . Listen to it yourself and try to spread the word to your friends and family, if

10:46 they are even a little bit aware of this . Suppose the companies are already listed and the people in the stock market want to raise fresh capital to grow the business. Then they raise through a follow-on public offering or approach institutions and raise through QIPA. One of the processes involved in raising capital is the rights issue. Now, through this rights issue, they are saying, "Let's reward the existing shareholders, whoever they are," and they are raising capital from them. No, how do they reward us? Suppose the stock price is trading at 100 in the stock market, and they announce their rights issue at 70 rupees or 60 rupees . So you can subscribe to these shares at a price even lower than the price they are trading at in the stock market . Now,

11:36 based on the ratio announced by them as of the record date, the rights entitlements in your demat account will be credited. Now as a shareholder it is your choice whether to participate or not because if we want to participate in the rights issue we have to pay additional money. What happens if we don't put it in? After the record is made, the price adjustment will be done. So, if the existing shareholders are not to suffer any losses, these rights entitlements will be created in our demat account. If we do n't want to participate in these, we can sell them in the stock market. This means that those who are interested will buy their rights entitlements, participate in their rights issue, and convert their rights entitlements into full shares. Okay, let's say we don't participate, I 'm saying that many people will lose out here because whoever doesn't participate,

12:23 whatever rights entitlements they have, in that case normally I would get a credit of let's say 100 rights entitlements in my deposit account . Okay, what I'll do is I'll apply for 150 rights entitlement when I participate in the rights issue instead of 100. Okay, let's say 100 subscribed, I can get to 150 or 130 or 140. When I pay the actual price, which is the rights issue price, I can subscribe more than the rights entitlements I have. Even promoters also participate. Existing shareholders also participate. They get benefited. But those who are unknown investors, unfortunately, they lose. Suppose you have a right entitlement credited to your deposit account. It has a particular

13:09 number of trading dates. If you do not want to participate within those dates, sell them. If you hold them like that, they will not be in your deposit account. They will disappear. So remember, if you don't sell, you will lose. Our next question is being asked by Shriram. This is a continuation question to the actual last asked money per show. I have picked this question as it may be helpful to many people. And monthly ₹4000 RD 7.1% 1% is the best, if not 4000 SIP in arbitrate funds is the best for 15 months time period I am planning for children's school fees . Okay, the answer to this is very simple, if you are in the 30% tax bracket, then arbitrage funds are the best. If you are in the less than 20% tax bracket, then you will not get much difference. In that case, I prefer

13:54 RDO or arbitrage funds. So, if you decide based on the tax slab, then take it. For those who are in the higher slab, arbitrage funds are the best solution. Our next question comes from the handle Telugu Entertainment. Hi Sanna, thanks for teaching us. Could you please explain about Indostar Capital Finance Company. Okay, I will share my view. Before that, I just want to understand from you. Okay, why did you pick this company? There should be some reason and how did you identify it? Write these too. Actually, it seemed very good because normally, many companies come related, so when they come, you just think that the name is there. Sometimes, if I haven't heard of the name of the company, I ignore it. But this question came to me randomly and as I started working, the

14:40 company seemed very good to me. I wanted to know how you actually identified yourself . Because why didn't some of my notices come in? This is an NBFC promoted by Brookfield. Brookfield is one of the largest private equity firms and there are also some interesting things happening in the company . In business terms, they offer auto loans and small business loans. Auto loans are also used vehicles, 99% of their loan books are the same. And the interesting thing is that they also had a housing finance company, Nivas Housing Finance Company, which they sold to a private equity firm. An exchange filing was also recently released stating that they received 1700 crores from there. So a company trading at a market cap of Rs 3000 crores will receive Rs 1700 crores in cash. And

15:26 in terms of valuations, one-time impact actually means that most of the NBFCs are also trading at a valuation, but still valuations are also one of the factors. I found it very interesting and Madhu Kelagar is one of the investors. So I found it interesting when I studied it. The only risk is that these auto finance companies, especially the companies that finance used vehicles, have a risk that the economy slows down. If NPS increases, then that risk will be there. If the economy grows, their business will grow rapidly. So that's a risk you need to remember. Overall, what I studied was interesting to me, and definitely the cash that comes to them is also helpful in growing the business very well. This is a company held by promoters with a very strong pedigree in terms of both the founders and the promoters

16:15 . When it comes to my Sunday Finde suggestion, I'll try to suggest something a little different. How many of you like the movie 12th Fail? Personally, I think it's one of the best movies I've seen in recent times. Now, whatever that movie is, whatever the process of making that movie is, it is also very beautiful. Vinod Chopra released it in the form of a documentary, saying that Zero is a restart, and it is being streamed on Prime. This is something. It is a unique experience, but for those who like that movie, they should watch it. And if the movie is not a documentary, then it

17:01 will be streamed on Hotstar. It 's a little boring, but the movie is interesting as it goes on. Our next question is from Nagendra sir, please explain about IOB now available at an attractive valuation, where is the attractive valuation and what is the euphoric zone, which is five times the price to book multiple, but it has been corrected two times . But still, banks that have delivered better REs than this are Canara Bank, Bank of Baroda, Bank of Maharashtra, Union Bank, Indian Bank. All such banks generate higher RE and are traded at cheaper valuations. Try to study them properly. Not only the stock price, but also the price book multiple and RE play a very critical role in terms of banks. Try to track their NPI numbers as well. Yes,

17:47 we definitely have a lot of PC banks at attractive valuations. Otherwise, try to participate in well-managed public sector banks, but don't go based on stock price alone. For almost two years, many people have been running around saying that IOBs are too expensive and are only going to go based on price . And they would also manipulate the stock when liquidity was low . But now the whole scenario has changed, so we have two times out of that five times book. Still I feel it is not cheap. There are many better banks trading at cheaper valuations than this. Our next question comes from the handle Yugender Teju . This is a financial planning related question. My age is 41 years. Coming to my assets, I bought an apartment in Bangalore for 50 lakhs in 2022 and I

18:33 also bought a plot in Bangalore for 25 lakhs in 2021. I bought Agriland in my hometown in 2014 with 15 locks . I also bought a plot of 8 lakhs in my home town in 2013 and invested 10 lakhs in NPS. I have invested 25 lakhs in EPF. I have invested Rs 10 lakh in gold and Rs 3 lakh in Sukanya Samriddhi Yojana and I have Rs 1 lakh in PPF. There are 16 lakhs in mutual funds. I invested 10 lakh rupees in equity shares. And there is 11 lakhs in FD . Out of this, I have parked Rs 5 lakh as an emergency fund and Rs 6 lakh in an FD for the next six years in SBI Smart Wealth Builder Plan with a premium of Rs 1,00,000 per year . When it comes to liabilities, I have a home loan of 35 lakhs, a gold loan of 3 lakhs, and a term insurance of 1 crore for me and 50 lakhs for my wife, a term

19:22 insurance of 1 crore, a group insurance of 25 lakhs for me and my family, and a health insurance cover of 20 lakhs. The employer is also providing health insurance cover, including covering my father, who is 74 years old . And also, there is a ₹10 lakh LIC policy . The premium for it is ₹4,000 per year and the maturity is in 2038 . When it comes to my income, I earn around ₹2 lakh per month. When it comes to spending, ₹45,000 goes towards home loan EMI. And additionally, I am saying that I will make an extra EMI payment of ₹5000 for each year . ₹30,000 is going into a mutual fund SIP. The names of the funds were mentioned . ₹40,000 will go towards a gold loan. ₹40,000 goes towards house maintenance expenses . And 15,000

20:08 will go to Sukanya Samriddhi Yojana and PVF. I am putting ₹5,000 towards apartment maintenance and ₹20,000 towards rent. You are planning very well for the annual requirement of 2.3 lakhs, out of which 45,000 is for LIC premium, 60,000 is for health insurance premium, 30,000 is for bike insurance and service maintenance cost, 1.3 lakh is for baby girl's school fees, but if you look at all your income and expenses, it seems like they are completely exhausted. Coming to the question of whether I have an income of 2 lakhs, I want to buy a car and travel in an Active with my baby . My financial condition is that I don't have any down payment with no free cash flow so how should I plan? Second, should I need to change my financial savings and

20:54 investment strategy? You definitely need to change it. Let's talk about that. Third, I want to become financially free in the next 15 years, five years early to normal retirement. So what do I need to do for this plan? And not only this, he asked a question related to mutual funds and also asked what the exit strategy should be from mutual funds. Let's talk about these too. And also, second source of income present. I have invested in real estate but the second source of income is not being generated. Recently I heard about managed farm land where they will take care of farm land with crop and long term plantation like sandalwood and crop they are committing to give only 2.3 to 3 lakhs per annum based on the crop yield and long term plantation yield

21:40 50 lakhs to 1 crore with land depreciation is it a good investment to take as a second source of income first your cash flow related as investment related and then let's talk about this because first there is a correction to be done. First, before we get into these numbers, I want to ask you a question. First of all, why do you want to take the SBI Smart Wealth Builder policy and again, you are also making provisions for it . Do n't get stuck in such a policy. You have term insurance, that is good enough, so whatever other insurance policies you have, you won't get much benefit from it . Don't get trapped. If you plan it the right way, it can actually create good wealth for you . And if you plan properly what you are putting money into an FD, it will

22:27 be very helpful in achieving your financial freedom. Not only is it financially free, but if you want to purchase a car, it will also help you with the down payment to purchase that car . And also, if you have any of these policies, one is an LIC policy, one is for 10 lakhs, why are you writing that? Okay, if the name of that policy is not mentioned, then it will not work out much for you. Try calculating the yield once and see if we have talked about many of those policies related to our previous article. Okay, assuming you don't get a yield that works out, you're getting a return of anything below inflation or anything below 8%, then there's no point in continuing such policies because they cause us more wealth destruction than wealth creation . And in fact, instead of dumping that money into wealth-destroying products again in the future, if you plan that fresh

23:14 capital in the right way, you will get even better appreciation. The EMI on your car is also sufficient for all of this . When I tell you to buy a car, some people might think that why am I telling you to buy a car? Actually, a car, which was previously a luxury, has now become a necessity. When you're in those cities, it has definitely become a necessity, no matter what you think in terms of safety . So, there is no need to compromise on necessity and if your cash flow is also supported, it is enough to plan the only thing properly and if you say that you are currently spending Rs 45,000 per month on household expenses related to your early retirement, then based on those household expenses, if you look at how much your retirement corpus should be at the age of 55, it will be Rs 2.8 crores. If you plan on products that give you a 12% return, you

24:00 should be able to save 67,740 per month. You are already doing a mutual fund SIP of ₹30,000 and if you look at the value price of the equities you are holding, it is 26 lakhs. So if you take a 12% return, you will be able to build approximately this corpus . The only thing I would suggest is to not fall into the trap of junk products, whatever they may be . And the second thing you asked about is the second source of income generation related. Look, I personally believe that there could be one or two cases that might be good for you, but in the majority of the cases, what we should sell for Rs. 1,000 is increased by a premium of Rs. 10,000 and that is one of the strategies to sell real estate. I am not saying anywhere here that real estate is a bad asset class. I am

24:48 only saying that we are selling sandalwood related farming and all these things with stories are somewhere in the forest. And even if we actually want to buy it there, we won't buy it if we go there normally. It's like we're falling for these stories . It fell and the price was around ₹1000, so we bought it for ₹10,000 or ₹20,000 . So don't get trapped, okay, that and see, that sandalwood in the long term will come, how true is it, what happens, is there really a money-generating crop there, or not, and even if it comes for a year, tomorrow morning, after 10 years, okay, someone has beaten it and left, okay, thieves have come and robbed it, you can also hear such stories, such things are already appearing in the news. So be careful, okay, don't get trapped and

25:37 check if the price you are really buying is worth it. Do a survey around. Okay, you mean, you can get 1200 for 1000 rupees, fine, you can get 10,000 for 1000 rupees, then you are getting trapped and so instead of planning to generate a second source of income, you plan it in the right way in some mutual funds or equities. If it builds wealth for you in the long term and in the future, how will it work for you when you retire and have cash flow? So, what do you do with it by generating a second source of income now? Okay, go for spending or go for wrong allocation. Think about investing and there's no need to worry about a second source of investment. It's a long- term plan, so you plan it after your retirement. Everything else will be fine, just make these small corrections

26:23 . If you make major corrections related to these policies, you will be able to comfortably achieve your goals. Last but not least, there is a small correction: if there are 10 funds, there are no 10 funds, try to trim it down to six funds . Our next question is asked by Ranjit. Hi Sanna, is it good to invest in BSC and Indigo stocks for long term or short term? Indigo is related to positive. I will tell you why. Let's talk about BS first. Take a look at the valuations and also understand the market cycles related to the stocks that are not CBSA but market linked. What happens when the market is in a euphoric stage and everything is positive in that market is that their numbers come out well. Let's say the market turns out to be bearish for us and our long- term bearishness continues. We don't have any real margin of safety at this valuation . The risk is very high.

27:09 It's a very good business, no doubt, but the valuations are not in that comfortable zone, so my view is that I might be wrong, so if it's personal to me, I'll enter as a fresher now, which means I'll be a bit careful on the valuation side now. As far as Indigo is concerned, it would be better if we understand our business in this way. Try it once, try to study. How many companies do we have that manufacture flights as majors worldwide? The only two names that come to mind are Airbus and Boeing. Both have full capacities and full order books. And it's not that easy for anyone new to enter the aviation industry because they can't find first-class carriers . Okay, IndiGo and Air India have all placed orders related to a large number of flights from time to time. Okay, let's

27:57 say you searched for news related to orders, previous news, last two years, you'll understand. It's been done before, so for those who are new to ordering now, delivery will also take a long time. So it's not that easy for new competitors to enter and grab the business. Now, if we talk about the current business, then the spending of the Indian economy is moving from the middle class to the upper middle class. Our spending is moving towards premiumization. Now, one of the parts of premiumization spending is aviation. So, the number of people traveling through airlines is increasing significantly. We can see that the traffic at airports has increased tremendously and airports are expanding. Look at Hyderabad Airport. Earlier, we had very few gates at Hyderabad Airport. Now, if we look at Hyderabad Airport itself, it would

28:43 take a long time to reach the last gate. So, they are expanding because the number of people traveling through those airlines is increasing. This number will continue to grow steadily, but not decrease. So obviously, when we have an increase in consumers and less competition, then that business is really a very good business. That's why if we look at DS's shareholding, we see that the pattern continues and we see that IndiGo is increasing. That's why institutions are buying. So this is the advantage of indigo. At some point, valuations will also become expensive. But at this moment, we can see that Indigo has that advantage, but it would be right to try to understand the BC related market cycles and make our investment related decisions based on the cycle . Our

29:29 next question viewer did not mention his name. Coming to the subject of his question, Hello Sayana, I need your expected advice. I have purchased Axis Kids Technology at ₹1500. The share price is continuously following. Please advise me whether I need to sell and exit or hold it for it to increase. Also, how much do you think the share will grow by December 2025. Nice question. Before I answer this question, let me ask you a question. Do you regularly go to the office, go to college, or travel somewhere? Do you regularly watch Sunday videos today? When you go tomorrow, how many minutes will it take you to get from your home to the office using a bike, car, or any other mode of transportation? Can you guess how many minutes it will take you to get there? How can you guess? It depends on the traffic.

30:15 How many minutes will it take us to get to the place we go to regularly? When you can't guess the next day, many dynamics move. Who can guess the stock price? If I were at a stage where I could guess, I would be a god. So what I've been saying since I started my channel is that if anyone tells you that a stock will increase this much in the next one month, three months, or six months, first stay away from them. What no one knows is what the only thing we know is whether the business will grow or whether we are seeing positive things in terms of business or whether the management is not only good management but also whether the present balance sheet, PML, cash flow statement, all these are good. We can analyze these things but we cannot analyze or guess what will happen tomorrow. And don't ask anyone. If someone answers your question, run away from them.

31:01 And nobody can predict. Personally, I'm holding the stock even though it's at a much lower price . I have been holding so if I am continuing my holding there is no difference and I see positive traction in terms of business . So that's it for today's Ask Money Per Show guys, I'm sorry sir, if anyone missed the video, it's a very good video, definitely try watching it. And if you haven't liked today's Ask Money Paksha video yet, do n't forget to like the video and share it with your friends and family if it's helpful to them. And if this is your first time visiting the channel, subscribe to our Money Purse channel and activate all notifications on the bell icon next to it. I, Sai Krishna Patri, come to you with another good video . Till then, bye bye, take care.