Bajaj Finance & CAMS- Undervalued now? [and 3 other stocks] | Akshat Shrivastava

Summary

In this video, investor Akshat Shrivastava discusses strategic shifts in his portfolio due to market risks. He has sold his small cap index fund, citing high valuations and market conditions, and is now focusing on US stocks and mid to large-cap companies. Akshat shares insights on companies like CAMS and Aavas, emphasizing the importance of fundamental analysis and avoiding overvalued stocks. He also touches on the potential impact of interest rate cuts on various sectors and provides a macro view of the market's future direction.

Takeaways

• 📉 Akshat Shrivastava has repositioned his portfolio due to perceived market risks, selling his entire small cap 250 Index fund.
• 🧐 He is moving towards US stocks and mid-cap to large-cap companies, aiming to rebalance and reposition his portfolio in response to market conditions.
• 🤔 Akshat has shared insights from his experiences as a full-time investor and hedge fund manager, emphasizing the importance of adapting to market changes.
• 💰 He has exited his small cap position with a 40% gain, reasoning that the small cap index has seen significant run-ups and is now fairly valued with high market risk.
• 📊 The small cap index has provided substantial returns over the last four years, but Akshat suggests that the returns may average out to a 24-25% CAGR, indicating a potential slowdown.
• 🇮🇳 The video discusses the dynamics of the Indian market, where domestic institutional investors (DIIs) have been buying mid-cap and small-cap stocks, affecting market trends.
• 📈 CAMPs is highlighted as a case study for investment, with Akshat noting its potential as the stock market is expected to stabilize or move sideways, benefiting such companies.
• 🏘️ Aavas Financial Services is still considered a good investment due to its strong revenue and profit, and the potential for lower interest rates to boost its business.
• 💡 Akshat predicts that companies like Bajaj Finance and consumer durables stocks like Voltas and Whirlpool will benefit from expected interest rate cuts.
• ❌ He warns against high-risk stocks involved in pump-and-dump schemes and advises caution with overvalued companies like Zomato compared to its peers.
• 📚 The importance of fundamental analysis, patience, and avoiding overvalued stocks is emphasized for long-term investment success.

Q & A

What is the main topic of the video?

The main topic of the video is discussing critical changes in the speaker's investment portfolio due to perceived market risks.

Why did the speaker sell his small cap 250 Index fund?

The speaker sold his small cap 250 Index fund because he believes there is a lot of risk in the markets currently and he is repositioning his portfolio to mitigate this risk.

What types of companies is the speaker adding to his portfolio?

The speaker is adding US stocks and certain types of mid-cap to large-cap companies to his portfolio.

What is Akshat Shrivastava's current occupation?

Akshat Shrivastava is a full-time investor who travels across the globe, gains insights, works with high net worth individuals (HNIs), and runs his hedge fund.

Why did the speaker decide to cut his entire small cap position?

The speaker decided to cut his entire small cap position because the small cap index has seen a significant run-up and currently appears fairly valued, with the market risk looking a bit high from an India investing viewpoint.

What is the speaker's view on the future of the stock market in India?

The speaker's prognosis as an investor is that the market can be taken sideways with unlikely deep corrections, as stock market returns have become a political issue between two parties.

What is the speaker's strategy regarding CAMS and CDSL stocks?

The speaker is aggregating CAMS and CDSL stocks, trying to buy them at dips, as he believes these companies are less likely to be hurt unless the stock market is going down significantly.

What are the speaker's thoughts on Aavas Financial stock?

The speaker believes Aavas Financial is still available at a discount and is a lower-risk investment due to its high revenues and profits, and the potential for interest rate cuts benefiting the housing finance sector.

What is the speaker's view on Bajaj Finance and the impact of interest rate cuts?

The speaker sees Bajaj Finance as a good investment level currently, expecting the consumer lending space to improve with the anticipated interest rate cuts, which would benefit companies like Bajaj Finance.

What are the two themes the speaker has been discussing on his YouTube channel?

The two themes the speaker has been discussing are the potential benefit of interest rate cuts on certain stocks, and the performance of consumer durables companies like Voltas and Whirlpool.

What is the speaker's advice on high-risk stocks and pump-and-dump schemes?

The speaker advises to avoid high-risk stocks and pump-and-dump schemes, as they can be detrimental to investors, especially in the current market conditions.

How does the speaker approach the valuation of Zomato compared to its peer Swiggy?

The speaker has reduced his position in Zomato due to its higher valuation compared to Swiggy, which he sees as available at a significantly lower price, indicating a potential overvaluation of Zomato.

What is the speaker's final advice for investors regarding portfolio management?

The speaker's final advice is to study the fundamentals of stocks, avoid overvalued investments, have patience with good stocks, and sell or reduce positions when they become overvalued compared to their peers.