Golden Opportunity to BUY these 5 Stocks in this Market CORRECTION? Rahul Jain #marketcrash

Summary

In this video, the speaker discusses five stocks they plan to buy during market dips, offering detailed analysis and reasoning. They begin with Natco Pharma, emphasizing its attractive valuation and strong growth potential. Next, they cover a company from the power sector, highlighting its profit growth and low PE ratio. They also discuss PolicyBazaar, which has recently become profitable, and Motilal Oswal, praised for its wealth management potential. Finally, they review Zomato, explaining its profit turnaround and future growth potential. The video encourages viewers to invest with a long-term perspective.

Takeaways

• 💊 Natco Pharma has seen a 17% dip recently, making its valuation attractive with a PE ratio of 14 compared to the industry average of 37.
• 📊 Natco Pharma’s profit growth has compounded at 30% over the last 10 years, and the company aims for a future CAGR of 20-30%.
• ⚡ Stock number two, from the power sector, is REC Limited. It has shown strong historical growth, with a loan book target to double by FY 2030, and a low PE ratio of 9.43.
• 📉 The presenter emphasizes buying stocks on dips and holding them for long-term growth without panicking over short-term corrections.
• 🏥 PolicyBazaar (PB Fintech) is now profitable after years of losses, with a 135% profit growth in the last 12 months. Its future growth is tied to India's under-penetrated insurance market.
• 💸 The wealth management space in India is expected to grow significantly, with Motilal Oswal highlighted as a top stock with a 42% profit CAGR over the last 10 years.
• 💼 Motilal Oswal is described as a 'double-engine compounding machine' similar to Berkshire Hathaway, with strong financial metrics and growth potential.
• 🍽 Zomato has rallied 150% since listing and is positioned as a solid stock, though short-term corrections are possible. Investors are advised to hold for future growth.
• 📉 Zomato's financial ratios are skewed due to historical losses, but the company is now profitable, with opportunities for long-term investment growth.
• 📢 The presenter encourages viewers to join his YouTube membership for deeper stock analysis and emphasizes that these insights are not direct stock recommendations but investing principles.

Q & A

What is the main theme of the video?

The video discusses five stocks that the speaker plans to buy during market dips. The speaker explains why these stocks present good buying opportunities based on their past performance, current valuations, and growth potential.

Why does the speaker find Natco Pharma an attractive investment?

The speaker highlights Natco Pharma's 17% price dip, its attractive P/E ratio of 14 compared to the industry average of 37, and its historical profit growth of 30% CAGR over the last 10 years. The company has also doubled its sales in the last two years, and the speaker believes it can achieve 20-30% growth in the next 5-10 years.

What are the key financial metrics mentioned for Natco Pharma?

Key metrics include a P/E ratio of 14 (industry average of 37), a strong PEG ratio indicating high earnings growth, and a compound profit growth rate of 30% CAGR over the past decade.

What is the speaker's investment strategy for buying on dips?

The speaker emphasizes not panicking when stock prices fall after the first purchase. The strategy is to accumulate more of the stock during dips if there is conviction in the company's future growth, rather than selling during declines.

What potential does the speaker see in stock number two, R Power?

R Power has shown consistent profit growth of 20% over the past five years. The company is expected to double its loan book by FY2030, which represents an annual growth of 16%. The speaker also notes that the stock is trading at a low P/E ratio of 9.43.

What is the risk associated with R Power according to the speaker?

The speaker points out that R Power is a PSU (Public Sector Undertaking), which may discourage some investors. Additionally, there is the risk of exposure to various energy sectors, but the speaker notes that the company’s diversified lending strategy helps mitigate this risk.

Why is PB Fintech (Policybazaar) considered a long-term investment by the speaker?

PB Fintech recently became profitable, and its future growth potential is supported by the low penetration of health insurance in India. As the insurance market grows, the company, being the top insurance policy aggregator, is expected to benefit.

Why has PB Fintech's stock been volatile recently?

The stock recently experienced a 13% dip after announcing its entry into the healthcare and hospital sectors, which caused concern among investors. However, the speaker sees this as a short-term reaction, with the long-term growth outlook remaining positive.

What does the speaker admire about Motilal Oswal as an investment?

The speaker appreciates Motilal Oswal's strong profit growth, with revenues compounding at 31% and profits at 42% CAGR over the past 10 years. The speaker also highlights that the company has demonstrated operational excellence, generating more profits from the same level of sales.

What are the speaker's thoughts on Zomato as a stock to watch?

The speaker views Zomato as having strong growth potential, despite its previous losses. The company became profitable only in the past year, and the speaker believes that Zomato’s growth in the food delivery market will continue. However, the stock might experience short-term pressures, providing buy-on-dip opportunities.