Buy These 5 Stocks Every Month For LONG Term Investing? Rahul Jain Analysis #profit #sipstocks

Summary

This video offers insights on five diverse, non-cyclic stocks with promising prospects for the next 5-7 years. The script discusses growth in sectors like semiconductors, healthcare, auto, power, and banking, emphasizing the importance of analyzing historical performance, fundamentals, and future potential. It also touches on the complexities of calculating capital gains tax for SIP investments and recommends using ClearTax for an efficient tax filing experience.

Takeaways

• 😀 The video discusses five stocks from different sectors with potential for growth over the next 5 to 7 years, emphasizing these are not direct recommendations but should be part of one's analysis.
• 💡 Stock one, CG Power and Industrial Solutions, has shown significant SIP returns over the last five years, moving from a 6,000 rupee investment to 1,124,000 rupees, with a 147% XIRR.
• 🌐 CG Power's growth is attributed to its involvement in the semiconductor sector, with the Indian government investing heavily in this area, including a partnership with companies from Thailand and Japan.
• 📈 The company's fundamentals show strong sales and profit growth over the last three years, with 68% of revenues from Industrial Systems and Power Systems, both sectors expected to grow due to increased capex.
• 💼 CG Power's balance sheet is nearly debt-free, and it has a healthy unexecuted order book, indicating good revenue visibility for the upcoming year.
• 🏥 Stock two, Naran Rudal, a hospital stock, has also shown impressive SIP returns, with a 36% XIRR over the last five years, and is valued below industry averages.
• 🛠️ Naran Rudal plans significant capex for building new hospitals and infrastructure, which is expected to enhance revenue and profit visibility in the long term.
• 🚗 Stock three, Mahindra & Mahindra Limited, has a 52% XIRR over the last five years, with a focus on the SUV segment, which has been gaining market share rapidly.
• 💹 Mahindra & Mahindra's valuation is considered reasonable, with plans for substantial capex and new model launches, positioning it as a long-term investment.
• ⚡ Stock four, REC Limited, from the power sector, has a 64% XIRR over five years, and is poised to benefit from the government's ambitious power sector expansion plans.
• 🏦 The fifth stock, SBI, India's largest bank, has a 32% XIRR over five years, with a strong loan book growth and improving asset quality, trading at an attractive valuation.
• 📊 The presenter highlights the importance of analyzing non-cyclic, evergreen sector stocks with strong revenue and profitability visibility for SIP investments.

Q & A

What is the main topic of the video?

The main topic of the video is discussing five stocks from different sectors that are considered good for long-term investment using the SIP (Systematic Investment Plan) methodology.

What is the significance of the SIP methodology in stock investment?

The SIP methodology is significant for stock investment as it allows investors to invest a fixed amount regularly, which can average out the cost of acquisition over time and reduce the impact of market volatility.

What is the first stock mentioned in the video and which sector does it belong to?

The first stock mentioned in the video is CG Power and Industrial Solutions, which belongs to the semiconductor sector.

What is the potential of the semiconductor sector in India according to the video?

According to the video, the semiconductor sector in India has a bright future due to the Indian government's significant investment in this space, including the approval of three semiconductor units with an outlay of around 76,000 crores.

How has the stock of CG Power performed in the last 5 years in terms of SIP returns?

In the last 5 years, if someone invested 100 rupees every month in CG Power, a total investment of 6,000 rupees would have grown to 1,124,000 rupees, with an XIRR of 147%.

What is the importance of non-cyclic stocks for SIP investments?

Non-cyclic stocks are important for SIP investments because they tend to show consistent growth over time, providing better chances of earning profits in the long run.

What is the second stock discussed in the video and which sector does it belong to?

The second stock discussed in the video is Naran Rudal, which belongs to the hospital sector.

What is the potential risk that hospital stocks like Naran Rudal are facing as mentioned in the video?

The potential risk that hospital stocks like Naran Rudal are facing is the Supreme Court's directive to the Indian government to standardize hospital charges, which has put pressure on hospital stocks.

What is the third stock mentioned in the video and which sector does it belong to?

The third stock mentioned in the video is Mahindra & Mahindra Limited, which belongs to the auto sector.

Why is the SUV segment important for Mahindra & Mahindra Limited's growth?

The SUV segment is important for Mahindra & Mahindra Limited's growth because SUVs have been gaining significant market share from the passenger vehicle segment, with a rise from 34% in FY20 to 60% in FY24.

What is the fourth stock discussed in the video and which sector does it belong to?

The fourth stock discussed in the video is REC Limited, which belongs to the power sector.

What is the significance of the Indian government's plan to add 517 GW of power capacity by 2031-2032 for REC Limited?

The significance of the Indian government's plan to add 517 GW of power capacity by 2031-2032 for REC Limited is that it presents a huge opportunity for the company, as REC is a major financier of power sector companies, which will need capital for this expansion.

What is the fifth stock mentioned in the video and which sector does it belong to?

The fifth stock mentioned in the video is State Bank of India (SBI), which belongs to the banking sector.

Why is SBI considered a good long-term investment according to the video?

SBI is considered a good long-term investment because of its large scale, serving one out of three Indians, having a significant market share in both customer deposits and loan books, and showing consistent improvement in the quality of its loan book.

What is the importance of diversification across different sectors when choosing stocks for SIP investments?

Diversification across different sectors is important when choosing stocks for SIP investments as it helps spread risk and ensures exposure to various market opportunities, enhancing the potential for long-term growth.

What is the role of Clear Tax in the context of this video?

Clear Tax is mentioned as a partner in the video, providing a service to make capital gain tax calculations easier for investors, especially for those who have built a significant corpus through SIP investments.