Tag: Complete Circle Consultants

Fintech vs banking stocks: Where should you invest?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Are fintech shares the next big thing for investors? This despite a not-so-great start, especially by the poster-boy of digital payments apps, Paytm in November. More importantly, will banks that have hitherto enjoyed a strong weightage on benchmark indices lose to fintechs?

While experts see fintech as a promising space in the long term, banks remain the preferred option for the short-to-medium term.

Paytm and Paisabazaar set foot on Dalal street in November and more fintech companies like Mobikwik are likely to launch their initial public offering (IPO) soon. While PB Fintech, the parent company of PolicyBazaar and PaisaBazaar, made a strong debut, the response to Paytm was only lukewarm and below expectations but the digital payments stock seems to be on a gradual recovery path.

So what does the future hold for investors in fintech vs banking space?

Arun Malhotra, founding partner, and portfolio manager, CapGrow Capital Advisors, says the future lies in digitalisation and investors should definitely have a pie of fintech and digital platforms in their portfolio.

“We may not see the profitability right now. But few of these business models will become very big. And the nonlinear nature of revenue and profitability is something that is difficult to comprehend for analysts,” Malhotra told CNBCTV18.com.

Also Read: Ways in which fintech is transforming banking in India

Earlier this month, Dolat Capital Market Pvt. Ltd, gave Paytm shares a ‘buy’ rating despite its weak debut. It is the only brokerage to do so, out of the three that have initiated coverage on the digital payments platform. Similar to CapGrow Capital’s view, Dolat analysts see Paytm as sustainable as they think it is the most impactful and real-economy internet business.

Nonetheless, Malhotra noted that traditional banking stocks are not going to go away, especially the ones that are technology savvy. Large private sector banks like ICICI, HDFC Bank and Kotak have been heavily investing in technology and their relationships with high net-worth individuals (HNIs) and wealthy clients place them in an advantageous position, he said.

Such past relationships are existing based on trust, which will drive business volume and transactions for them, he said, adding that the newer fintech companies will cater to youngsters where the relationship (value-wise) may be smaller, to begin with, and establishing trust will take some time.

Also Read: Taking loans from fintech? Here’s how to be aware of frauds

Gurmeet Chadha, co-founder and chief executive officer (CEO) at Complete Circle Consultants finds the debate fintech versus traditional players a little overrated. According to him, we are the entering age of more collaboration.

“If you can call Paytm as fintech play, Bajaj Finance originally is the fintech play. I always call this a consumption company in the NBFC space. I think the valuations have been a little stretched. So, if I were to prefer, if I were to pick banking and financials, I think ICICI Bank takes the cake,” he told CNBC-TV18.

According to him, on a risk-reward basis considering the market is still at higher levels, some of the private banks at around one and a half to book value make more sense from an incremental capital.

While fintech companies are becoming increasingly popular, Hemali Dhame, Associate Vice-President Research, Kotak Securities, says the familiarity of fintech names is on account of the advertisement spend for customer acquisition and brand building, which may not be directly aimed at markets.

She is of the view that in stock markets, the company’s performance is likely to depend on the investor’s belief in their business models and successful fundamental achievement. Even the traditional banks are held to the same expectations. The markets will reward successful execution and profitability for any company, she said.

Most experts believe investors with a higher risk appetite must invest in fintechs while safe capital is likely to stay with traditional banks.

Vinit Bolinjkar, Head of Research, Ventura Securities Ltd said the fintech ecosystem is currently in the developing stage and hence risk-averse investors should continue to stick with marquee private banks while investors who can take extra risks can definitely look to invest in fintech companies but with a long term horizon in mind.

“While the business model for fintechs promise scale and we do not discount the success of an enterprise that serves a customer proposition that may be disruptive, the mainstay product for most of them – payments – despite convenient and enabling financial inclusion is not profitable. There is, therefore, a longer timeline to profitability from allied services, implying lower profit visibility in near years and higher risks to assumptions,” Dhambe of Kotak Securities said.

Disclaimer: The CNBCTV18.com editorial team does not engage in speculative or active trading in stock markets and follows its Code of Conduct on securities trading and investment. Any investor/ viewer is advised to carry out necessary diligence on their own or through a certified registered financial advisor for investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Smart Money: Best themes and stocks to own in Samvat 2078

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a CNBC-TV18 special Smart Money, Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants shared all the top stocks and themes that one needs to own between this Diwali and the next.

Chadha spoke about the stocks and sectors that one can invest into this Diwali and reap the benefits for years. He is bullish on various themes – changing energy theme, housing revival theme, financialisation of savings theme, speciality chemicals space and digital platform plays.

Also Read: Muhurat trading 2021: Key tips you should know before investing

Gurmeet has been extremely positive about the way the energy mix and the entire ecosystem is changing.

He likes Reliance, Indian Energy Exchange and Tata Power in this green energy theme.

“The energy mix of Reliance makes me very optimistic for the long run. They are building an entire ecosystem around it. They have a roadmap of 100 gigawatts of green electricity portfolio, which they want to convert into carbon-free green hydrogen, very bullish on that. That is something I would look at. It makes me very constructive on Reliance,” he said.

Tata Power’s focus on renewable portfolio impresses Chadha the most. He believes it is an integrated power play that gives access to solar, EV and the way this entire transition is working out

“The solar EPC order book continues to grow, so does their solar panel and solar rooftop projects,” he stated.

Also Read: Larsen & Toubro, State Bank of India, Trent and more: Key stocks that moved the most on Nov 3

Real estate and housing is a very broad sector and this theme will continue to play probably for a few more samvats, not just from this Diwali to next.

According to him, there are multiple ways to play this sector, he is betting on the entire building material play.

“Since it is a long theme, I will restrict myself to companies which are into wires and cables and fast moving electrical goods,” he said.

He picks Polycab. It is a clear leader in wires and cables.

“Between Havells and Polycab, probably Polycab looks more reasonable in valuation,” he said.

Housing finance is the other play he is betting on.

“HDFC is relatively underperformer vis-à-vis other financials, great value in all subsidiaries including life insurance, asset management business etc and now individual loans almost make up 78-79 percent of the book. My sense is this entity can deliver 2 percent RoA and 14-15 percent RoE for probably next three-four years,” he said.

Chadha likes Central Depository Services Ltd (CDSL), Computer Age Management Services (CAMS) from the financialisation of savings theme.

Deepak Nitrite and PI Industries are two stocks he likes from specialty chemical space.

He also likes Mindtree from the digital platform plays.

Advertising tech as a theme will play up. “Excluding Google and Facebook, Affle India has 10 percent market share. I like its proprietary model which is an RoE centric model where they only charge on deliverables,” he mentioned.

For the full interview, watch the accompanying video.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Money Money Money: Is it a good time to invest in NFOs?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Rs 50,000 crore and counting. That has been the new fund offering (NFO) blitzkrieg so far this year in 2021. With equity markets in a buoyant mood and investors looking for more interesting money-making ideas, asset managers have been queueing up with new fund launches cutting across categories and themes.

This week, Money Money Money looks at the key trends with respect to new mutual fund (MF) schemes.

Also Read: Women tend to focus on putting money aside, not growing it, says expert

Kaustubh Belapurkar of Morningstar Investment Adviser and Kshitiz Mahajan of Complete Circle Consultants discussed are NFOs really worth one’s money and patience.

“It has been an incredible year in terms of NFO money flowing in. the large part has been attributed to because the equity markets have been so buoyant, investors have seen the kind of rally post the crash that we have in 2020. The other thing that must be spoken about is that there are fairly interesting products that we have not necessarily seen in the past. That is helping expand the fold of money coming into the markets into MFs,” said Belapurkar.

Also Read: 5 retirement mutual fund SIPs to consider in 2021

“We have seen a lot of positivity among investors. That is how many of the AMCs after the new regulation, which has kicked in about Securities and Exchange Board of India (SEBI) about various product categorisation have started coming out with various categories which were not there with them. So we have seen lot of money coming in, more than 65 NFOs, Rs 50,000 crore is what we have gathered in NFOs in this calendar year, so seems like that is what is playing out,” Mahajan added.

For the entire discussion, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Investment Guide: Which IPOs to invest in?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

There is an initial public offering (IPO) rush – dozens of issues that have already come to the market and many more are awaiting. According to estimates, issues worth more than Rs 24,000 crore are awaiting to hit the markets in the month of July alone. It is a good time to step back, think about the way to invest in an IPO without getting burnt.

This episode of Investment Guide is about the big IPO gold rush. Gurmeet Chadha, co-founder and CEThis episode of Investment Guide is about the big IPO gold rush. Gurmeet Chadha, co-founder and CEO of Complete Circle Consultants, shared his views.O of Complete Circle Consultants, shared his views.

For the entire show, watch the accompanying video.

To watch other videos in this series, click on the CNBC-TV18 Investment Guide tab below.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IPO watch: Complete Circle’s Gurmeet Chadha assesses the debutants

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Four fresh initial public offerings (IPOs) hit the market this week and they will collectively raise around Rs 9,100 crore. Shyam Metalics and Sona Comstar opened for subscription on Monday, and Krishna Institute of Medical Sciences and Dodla Dairy will also open in the next few days. Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants, shared his assessment.

“If you have a clear view that electrification is going to be the future, Sona Comstar could be the one,” he said.

“You need to have a long-term view, and maybe build over it over a period of time. The environment is such that the listing is likely to be good. We need to have a more staggered buying approach over the long-term,” he added.

When asked for his order of priority among these four IPOs, he replied, “For long-term, it would be Sona Comstar. Whenever you go for an IPO, you are either on the long side or on the tactical or listing side – tactically speaking, Shyam Metalics looks good if you want to play the larger side.”

On Krishna Institute of Medical Sciences, he shared, “Being a regional player, it gives you a lot of strength in terms of the retention as far as the doctors and staff go, but hospital is a very gruesome business, it is a long cycle, and you need a player that has better agile formats – it should be like a capital goods stock in a healthcare sector. So, I agree health infra will go up. I think better opportunities will come in APIs, in diagnostics, even in some of the medical devices and equipment players.”

For the full interview, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Add HDFC or Can Fin Homes; accumulate PNB Housing Finance if you get opportunity, says Complete Circle Consultants

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

PNB Housing Finance is locked in 20 percent upper circuit post its fundraising plans.

Gurmeet Chadha, co-founder and CEO, Complete Circle Consultants, shared his views.

“I am in general positive. The entire space will grow. The entire space looks pretty exciting over the medium-term to long-term,” he said in an interview with CNBC-TV18.

“If you get an opportunity to accumulate this over the next three-six months, it is something you can add after HDFC or Can Fin Homes,” he shared.

“There is a housing revival, they will be focused on the affordable housing segment and you have something like PNB with change in management, with great valuations,” he added.

PNB has a great presence. They are in nearly 65 cities, 105 branches and they have the muscle power to scale the home loan business, he said.

For the full interview, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Positive on Mindtree, Cyient, says Complete Circle’s Gurmeet Chadha

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Gurmeet Chadha, Co-Founder and CEO, Complete Circle Consultants likes Mindtree and Cyient from midcap IT space.

In an interview with CNBC-TV18, he said that buying on dips is a better strategy at this time for metals sector.

Chadha also stated that one should stick to tier-I private sector banks in banking and NBFC space.

Watch the video for more…

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Positive on Tata Steel, Hindalco; like Infosys, HCL Tech in IT space: Complete Circle’s Gurmeet Chadha

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Gurmeet Chadha, Co-Founder & CEO at Complete Circle Consultants, is positive on Tata Steel while he says Hindalco looks very good for the long run.

“We have discussed Tata Steel earlier, Hindalco looks very good to me for the long run,” said Chadha in an interview with CNBC-TV18.

While sharing his views on the PLI schemes for air-conditioners and LEDs, he said, “Voltas is one of the preferred plays, Havells continues to do well, Polycab is much more reasonable vis-à-vis some of the more expensive plays in this space.”

Chadha likes Infosys, HCL Technologies in largecap IT names and Persistent Systems, Happiest Minds in midcap IT names.

“I would play other commodity names than Vedanta,” he said.

For more, watch the video…

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Positive on Deepak Nitrite, Aarti Ind; buy Adani Ports on dips: Complete Circle’s Chadha

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants, is more constructive on Deepak Nitrite and Aarti Industries from the specialty chemical sector.

He believes all specialty chemical names are making news. “We do track most of them. More constructive on Deepak Nitrite and Aarti Industries,” he said.

According to him, the diagnostic business may see some consolidation because of rising COVID-19 cases. Chadha likes Dr Lal Pathlabs in the diagnostic sector.

Buy on dips could be a better strategy for Adani Ports, he said.

For more, watch the video.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow