IPO Advantages and Disadvantages
An initial public offering (IPO) is the process through which a company goes public by selling its stock to retail and institutional investors. Looki…
29 Apr, 2022
7 min read
978 Views
Understand what some of the good stocks for 2022 are and learn where you ought to direct your money.
A Brief Overview
It is imperative to understand where to direct your investments as they hold the potential to bring you returns provided that they are invested with caution and foresight. The past few months have seen the coronavirus pandemic wane as cases have begun to decline. This has given the economy a chance to return to its pre-pandemic levels. That being said, the Russia-Ukraine war has been worrisome and has had an impact on the markets as is evident from the price of gold experiencing a sharp upward hike along with the price of crude oil. With uncertainty plaguing the markets, it is worth noting some of the good stocks to invest in 2022. These suggestions have been grouped together by Angel One’s Research.
- Amber Ltd. - Amber Enterprises India is currently the market leader in the air conditioner manufacturing space. Revenue is expected to rise with additional customers in the summer. The company is exploring new geographies and is expected to benefit from the PLI scheme of the Central Government. This gives it a positive outlook.
- Ashok Leyland Ltd.– The company holds 28% market share in the medium and heavy commercial vehicle space. They are also seeing growing traction in the light commercial vehicle space. Although the second wave of Covid has delayed the resumption of business as usual, we are expecting the bus segment to boost revenue. Also, the new scrappage policy is expected to benefit the company and make it an exciting prospect for investors.
- AU Small Finance Bank – AU SFB is currently one of the leading SFBs with total assets under management of 42 thousand crores as of the 3rd quarter of this year. Its geographical presence is spread out across the nation. 37% of the assets under management are in the automobile sector, while 39% are in the MSME sector. The bank has reported an increase in advances in the last quarter along with reduction in gross and net NPAs. The bank is all set to report close to 21.7% CAGR in the net profit between 2020 and 2023.
- Federal Bank – Federal Bank is currently one of India’s biggest “old generation” private banks. After the first half of the current financial year, the bank had assets worth Rs 2.06 trillion of which 1.72 trillion were in deposits. The recent quarter results were also positive with net interest income and advances also increased. Similar to AU Small Finance Bank, Federal Bank also has an outlook of falling NPAs. We expect the bank to increase the net income at 23.2% CAGR for the coming years.
- HDFC Bank – India’s biggest private sector bank had loans worth 12 lakh crore in the first half of the year and deposits worth 14 lakh crore. The loans are spread out across different sectors with 46% of them being retail loans and 54% of them being wholesale loans. The Q3 reports have been healthy wherein the banks have reported reduced NPAs. The track record of the bank and continuously improving asset quality keeps the valuation of HDFC attractive.
- Ramakrishna Forging – RKFL is currently one of the leading forging companies in India and will benefit from the upcoming rise in demand for medium and heavy commercial vehicles in the domestic and foreign markets. The company has phased out capital expenditure and this has caused volumes to rise for the past 2 financial years as the capex cycle ends. Introduction of new products and improving operating leverage are likely to increase the EBITDA margins.
- Suprajit Engineering – Suprajit Engineering is India’s largest automotive cable supplier among two-wheelers. From a single product company, the company has gone on to diversify exposure. As the products are cost competitive, they’ve been able to gain more wallet share from their existing customers. The company has outperformed the Indian auto sector by posting positive growth when the industry was in the negative. It has a strong balance sheet which has been boosted by addition of new clients. The company’s valuation has been at a premium due to top grade earnings and is justified.
- Carborundum Universal – CUMI produces abrasives, ceramics and electro minerals and is a leading manufacturer with its products being used in diversified industries. The improving demand scenarios combined with the company’s recent performance give it a positive outlook. The recent quarters have shown that management has played an important role in its financial performance. With improving overseas performance, CUMI is set to deliver enhanced cash flows and better profits.
- Stove Kraft – SKL has its business in the kitchen and home appliances sector. It’s business is mainly under the brands of Pigeon and Gilma which are household essentials. Post Covid, SKL has outperformed its competitors and has gained market share. Going forward, sales and net income are expected to increase.
- Sobha Ltd. – The company is a major player in the commercial real estate market and also operates on a contractual abscess. The company boasts seventy percent residential pre-sales with demand and supply mostly based in Bangalore. With rising IT recruitment, the demand for residential needs are expected to pick up. Also, reduced inventory of ready to move and under-construction flats give Sobha Developers a decisive advantage. The company plans to launch 17 projects in the coming years and has a land bank of 200 million square feet which will be very important for new launches in the medium term.
Wrapping Up
The aforementioned list seeks to walk you through possible investments that you can make. It is important to note that these are simply suggestions, and you must always take into account how deep your pockets are and what amount of money you can afford to lose. Further, it is of paramount importance that you take stock of your threshold for risk prior to directing your money towards any investment.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
How would you rate this blog?
Related Blogs
Translate the power of knowledge into action. Open Free* Demat Account
Latest Blog
-
20 Jul, 2021
8 min read
What is CMP in the Stock Market?
In previous times, the stock market was a physical space that traders set up offices and desks at, and stocks, shares and bonds were traded in physic…
-
29 May, 2022
5 min read
Why Elon Musk Bought Twitter: Impact on Investors
Understand what the implications of Elon Musk’s Twitter purchase are.
-
18 Feb, 2022
7 min read
LIC IPO: Benefits for Policyholders
All policyholders must ensure that their PAN data are updated in their policy records in order to be regarded as an eligible policyholder for the nex…
-
03 Aug, 2022
7 min read
How To Diversify Your Portfolio
Understand how to diversify your portfolio and the benefits associated with this diversification.
-
11 Nov, 2021
8 min read
Is Google a Good Investment?
Some analysts feel that Google is a relatively secure stock to buy both qualitatively and quantitatively. The soundness of Google's balance sheet con…
-
13 May, 2022
5 min read
Why Gold Rate is Increasing Day by Day?
There are a number of factors contributing to the rising price of gold. This article seeks to shed light on the same.
-
08 Nov, 2021
7 min read
Paytm IPO
Paytm is one of the biggest fintech platforms in India today, and is one of the latest IPOs in the Indian market. Read on to know more about the Payt…
-
21 Aug, 2021
8 min read
Margin Trade Funding (MTF)
Those seeking to invest in the stock market have the opportunity to take advantage of a wide range of financial tools with which they can potentially…
-
14 Aug, 2022
7 min read
What is Back Stop?
Backstop refers to the last type of support provided for unsubscribed shares or securities offered in the sale of unsubscribed shares in the stock an…
-
03 Dec, 2021
7 min read
IRCTC Stock and Share Split
A beginner investor's guide to stock split, the headline-making IRCTC stock split and its dramatic stock price spike and dip.
-
28 Jun, 2021
8 min read
Upcoming Healthcare Industry IPOs in 2021
All eyes are on the healthcare sector. Not just expectantly waiting for it to save the world for Covid-19, but also as an investment avenue.
-
09 Jul, 2022
5 min read
Benefits of Holding Stocks for Long Term
Understand the boons associated with long-term investments such that you too can consider availing them.
-
25 Jul, 2021
12 min read
All About Commodity Market In India
Commodity markets are platforms that enable trading, buying and selling of commodities such as raw materials or primary products.
-
31 Jul, 2021
9 min read
Should you invest in the Paytm IPO?
The Paytm IPO has been making headlines for over a month now, so you have undoubtedly heard about it too.
-
14 Jun, 2021
8 min read
All you need to know about SIP
Everyone has heard of SIP by now because it has become quite a commonly quoted term – even if it isn’t always used correctly.
-
07 May, 2021
8 min read
Shadow investing - how reliable is it?
If your tyre went bust on the roadside, and you had all the material to repair your tyre, but no idea about how to do it, what would you do?
-
17 Mar, 2022
6 min read
Preference Shares: Meaning, Types and Advantages
This article helps shed light on all that preferred stock entails including its definition, types, advantages and disadvantages.
-
27 Jun, 2021
8 min read
The buy-and-never-sell type of investor
Broadly, there are two types of participants in the stock market – long-term investors and traders.
-
14 May, 2021
9 min read
Exploring the Telecom Sector as an...
Investing and trading on the Indian stock markets has the potential to bring in large returns.
-
28 Jan, 2022
7 min read
Long-Term Investments
Confused about what is meant by long term investments, under assets on a company’s balance sheet? Here’s all you need to know about this component of…
-
01 Aug, 2021
9 min read
Why companies are choosing the IPO route
You're hearing about all of these upcoming IPOs from brands that you know of and probably also use - Zomato, where you place your food orders; Paytm …
-
29 May, 2021
8 min read
Over-diversification of your portfolio is...
One of the foremost pieces of risk-management advice given to a stock market investor is: diversify your portfolio.
-
05 Jul, 2022
5 min read
Earnings Before Interest and Taxes (EBTA)
It's difficult to assess your company's financial health. There are a lot of numbers to think about, and they don't always add up. Accountants and fi…
-
26 Jun, 2021
9 min read
Warren Buffett's Portfolio 2021: Top 5...
When it comes to investing, the seasoned trader and the novice alike look up to the holy grail of investors - Warren Buffett.
-
10 Mar, 2022
7 min read
Russia vs Ukraine War: Impact On Indian...
The markets have reacted adversely to the Russia vs Ukraine war. Understand how the Indian stock market has been impacted.
-
25 Oct, 2021
6 min read
Blue Chips Fuel Record
Blue-chip firms are noted for weathering economic downturns and operating financially in the face of adversity, which contributes to their long track…
-
30 Jun, 2021
9 min read
Things to know before Investing in any IPO
IPOs are exciting to stock market investors in the same way that a big-ticket film release is exciting to the general population.
-
12 May, 2021
7 min read
What is the endgame for the...
With vaccinations in full swing despite the onset of the COVID pandemic, Indian stock markets seem to be taking a rather relaxed approach to COVID 2.…
-
27 Mar, 2021
7 min read
Twitter as a market forecasting tool
Most of us use one or more social media platforms in today's digital age. Remember the days when Facebook came into existence, and how everyone was f…
-
19 Mar, 2021
8 min read
Lessons on financial planning from IPL Auctions
Cricket and finance - sounds like polar opposites given the history of betting on each and every move that cricket fanatics in India track on their s…
-
05 May, 2021
7 min read
Understanding the impact of COVID 2.0 on...
When the COVID pandemic struck India last year, Sensex plunged from the 45,000+ levels right to sub-30,000 levels within a matter of five weeks.
-
16 May, 2021
7 min read
Is it Possible to Identify Moat Stocks?...
The impregnability of a fortress is defined by the effectiveness of its battlements, moats, barbican, towers, turrets and portcullis.
-
29 Jun, 2021
9 min read
How to make money in the Stock Market in 2021?
The idea of investing is to enable your capital to grow. In fact, capital growth is in the very definition of the verb “to invest”.
-
15 Jun, 2021
8 min read
All you need to know about Lump sum investment
The term lump sum has become more relevant because of the rise of SIP investment or Systematic Investment Plans for mutual funds.
-
26 Mar, 2021
8 min read
A closer look at the Blue Economic Policy
You might have heard about the Blue Economic Policy in the news. Have you been wondering what it is all about, and what the implications will be for …
-
16 Jun, 2021
8 min read
All you need to know about term insurance
Insurance is one of the oldest forms of investment that exists on the investment landscape and as such you have definitely heard about it.
-
29 Dec, 2021
5 min read
Stocks to Watch: Reliance Industries,...
Reliance Industries Share Price: A subsidiary of the Indian conglomerate Reliance Industries Limited, Reliance Industries Limited works in the refin…
-
01 Feb, 2022
6 min read
Top 5 IPOs of 2021
Here's a rundown of the top IPOs in 2021. Continue reading to know more about it!.
-
29 Mar, 2021
7 min read
ESG Funds: The numbers behind the new...
Over the last few years, investing through funds has gained considerable popularity, and investors across the globe are looking to give their savings…
-
18 Feb, 2022
6 min read
LIC IPO Details: Should You Subscribe or Not?
The public offering, according to the LIC DRHP (Draft Red Herring Prospectus), is entirely an offer for sale, with the government selling a 5 percent…
-
29 Jun, 2022
5 min read
Top 5 Best Trading Technical Indicators
Understanding the fundamentals of technical trading indicators may be quite beneficial if you monitor stock market activity on a regular basis. One m…
-
08 Mar, 2021
8 min read
Raghuram Rajan's polarizing stance on Bitcoin
Bitcoin has been in news ever since its inception around the global financial crisis of 2008, but this year, bitcoin hasn’t only been in news.
-
03 Jul, 2022
5 min read
Invest in Inflation: 5 Ways to Invest...
Understand inflation’s meaning and what assets to invest in that are protected against it.
-
10 May, 2021
8 min read
How do IPOs help economic recovery?
IPOs are an exciting investment opportunity for experienced and amateur investors and also a key ingredient in the cocktail that it takes to enable e…
-
30 Nov, 2021
8 min read
10 Ways to Profit in a Bear Market
A bear market need not be the worst thing if you have a couple of tricks up your sleeve. Here are a bunch of strategies that call for varying levels …
-
31 May, 2021
8 min read
A throwback to the biggest rises and...
There are countless proverbs that are employed to offer caution and comfort to stock market investors: This includes “what goes up, must come down” …
-
05 Jan, 2022
8 min read
5 Stocks to Watch Out for Amid the...
Keep a watch on these stocks once the new Omicron version appears. Read on to know more!
-
06 Jul, 2022
5 min read
Top 9 Upcoming Dividend Paying Stocks in...
The upcoming dividend stocks will be mentioned in this post, along with other crucial dividend-related concepts.
-
11 May, 2022
8 min read
Top 7 Types of Investment Strategies in 2022
Take a look at the investment strategies provided below such that you can grow your wealth in 2022.
-
13 Feb, 2023
None min read
Warren Buffett's Investment Portfolio:...
Explore Warren Buffett's portfolio and learn how he became the world's sixth richest person. Follow his buy-and-hold investment strategy and discover…
-
10 Jun, 2021
10 min read
Tax Exemptions in India: Simplified
The Income Tax Act, 1961 provides numerous exemptions to taxpayers under sections 80C to 80U of the Act.
-
02 Jun, 2021
8 min read
Crypto, The Volatility Hook, FOMO, and...
The democratization of the internet and access to world news has been a game-changer in how people choose to invest their money.
-
11 May, 2021
7 min read
The most expensive shares in India
The stock market has something to offer for everyone who is looking to invest. Some stocks can cost you a few hundred rupees, while others might be s…
-
05 Aug, 2022
5 min read
What is a Terminal Value?
If you’ve ever asked yourself “what is terminal value?”, you’ve come to the right place. Understand its definition, scope, and the forms it takes.
-
23 Jan, 2023
None min read
Know About Hindsight Bias
Want to know a secret mistake that all of us make but do not realise? Hindsight bias is a folly that makes people waste their money, time and effort …
-
18 Feb, 2022
7 min read
LIC IPO: Expected Date, Price, DRHP
The mammoth LIC IPO might be valued at about Rs 15 trillion. Here's all you need to know about the LIC initial public offering.
-
27 Oct, 2021
7 min read
Investors Walk Away from ViacomCBS Stock
Shares of ViacomCBS Inc. have been in the news recently for all reasons. It can be helpful for investors to understand what’s happening with this sto…
-
13 May, 2021
9 min read
What EV stocks are available and should...
EV stocks or stocks related to electric vehicles (hence the acronym EV) becoming increasingly popular as the world becomes more conscious of its carb…
-
08 Nov, 2021
8 min read
Upcoming IPO in Nov-2021
A number of companies have gone public this year and have successfully launched their IPOs in the market. Read on to find out more about the upcoming…
-
09 Mar, 2022
8 min read
Understanding Different Types of Stocks
This article makes clear the varied forms of stocks available in the stock markets today.
-
28 Mar, 2021
7 min read
Fund of Funds: Should these be in your portfolio
Imagine that you wanted to install a new switch board in your room when the work from home craze started after the lockdowns.
-
08 Oct, 2021
7 min read
Exploring top Retirement Savings Strategies
Saving for retirement is a smart financial strategy for anyone, whether they are 25 or 55. Here are the best strategies for retirement savings that w…
-
29 Jul, 2022
5 min read
Buy and Sell Strategy
Understand the merits associated with the “buy low, sell high” adage and determine whether or not it is actually easy to implement this buy and sell …
Ready To Trade? Start with
Subscribe to #SmartSauda Newsletter
CONTINUE WITH GOOGLE
CONTINUE WITH FACEBOOK
