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stock-99 · 1 year
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Why is it necessary to invest in stock market for long-term wealth generation?
India, the returns from traditional investments such as fixed deposits and regular deposits are no longer giving inflation-beat returns. So, Indian people are turning towards the equity market to earn decent returns. And this is where the stock market comes into the limelight to achieve your long-term goals. In this article, we are going to learn about Why is it necessary to invest in the stock market for long-term wealth generation?
Why is it necessary to invest in the stock market for long-term wealth generation?
Nifty has given 14.18% CAGR (Compounded annual growth rate) returns over the past 20 years. On the other hand, the average CAGR return of fixed deposits is 7.1%. So, even if you opt to invest in the Nifty 50 index fund, you will achieve your goal. Compounding will show its magic only when you stay invested for a long period of time. It requires patience and determination to stay invested. If you are not investing in the share market you are missing out on the opportunity.
 Steps to build long term wealth
The first     step is to identify your financial goals and plan your investment     strategy. If you are a beginner in the stock market, you can take courses,     or read books to improve your knowledge of the stock market or you can     take the advice of your financial advisor to plan your investment.
Prepare your     budget and decide how much you can invest every month. Stick to your     budget.
Diversify     your portfolio to save your portfolio from sudden changes in the market.
Asset     allocation is an important part of investing. Allocate your investment in     various asset classes such as equity, fixed-income instruments, real     estate, mutual funds, and gold. It minimizes the risk. However, asset     allocation is determined by various factors such as risk tolerance,     income, financial goals, and age. Also, it is suggested that you should     invest in stocks that have strong fundamentals.
 For example, suppose you are a conservative investor. In that case, you can allocate 80% of your investment to fixed-income instruments such as government and corporate bonds and the remaining 20% to domestic and international equities. Or if you are an aggressive investor, you can allocate most of your investments to equity and the remaining to fixed-income instruments.
Review your     portfolio from time to time to evaluate the performance of your     investment. After reviewing, make the necessary changes you need to make     to maximize the returns.
 To conclude, investing in the stock market helps you achieve your long-term goals. However, it is also associated with risks. So, make sure to do adequate research before investing in any financial instruments. Also, you should opt for investing in the stock market after considering your investment objective, risk appetite, and timeline of your investment.
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stock-99 · 1 year
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Top reasons to invest in Jai Corp share for 2023
Jai Corp Ltd. is a listed company and is engaged in the manufacturing industry. It is listed on both the leading stock exchanges of India: NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). In this article, we are going to learn about Jai Corp Ltd shares, the top reasons to invest in their shares and fundamentals of Jai Corp Ltd. stock, and know how to check Jai Corp share price
About Jai Corp Ltd
The company was founded in 1985 and the MD/CEO is Shri. Gaurav Jain. It manufactures steel and processes plastic and spin yarn. They also provide investment advisory services and focus on venture capital and real estate business. 73.01% of shares of the company are held by promoters, 24.66% of shares are held by the public, 0.73% shares are held by foreign investors, and 1.61% shares are held by domestic investors. Some of the top peers of Jai Corp are GKW, Godawari power, Good Luck, Gopal Iron, Gyscoal Alloys, Hariom Pipe, Nilkamal, Cosmo First, and Jindal Poly Films.
Top reasons to invest in Jai Corp shares
●     The revenue of the company has grown to Rs. 195 Crores in June 2022 from Rs. 168 Crores in March 2022.
●     The company has reduced debt by Rs. 91.87 crores and is almost debt free.
●     The company has delivered healthy profit growth of 65.6% CAGR in the last 5 years.
●     The company has maintained a good dividend payout of 17.8%.
●     The stock price CAGR in the last 10 years is 11% and has a healthy interest coverage ratio of 20.40.
●     The net profit of the company is growing by 28.35% in the last 3 years.
 Fundamentals of Jai Corp Ltd share (Data as of 11 November 2022)
Market price
Rs. 161.45
Market cap
Rs. 2,922 Cr.
52 week low
Rs. 95.85
52 week high
Rs. 218.25
Return on equity (ROE)
4.35%
P/E ratio
2.41
P/B ratio
2.41
Sector P/E
52.29
Debt to equity ratio
0.01
Earnings per share
3.10
Dividend yield
0.31%
Book value
81.27
Face value
1
Beta
1.57
 Conclusion
Investing in Jai corp Ltd shares can give you good returns as the stock price is likely to rise in the future. However, investing in the share market is risky. So, understand the fundamentals metrics, study the financials, balance sheet, cash flow statement, management, and business model and check whether the Jai Corp share price is overvalued or undervalued before investing in any shares. Also, it is important to analyze your expected returns from the market, and investment objective and have an understanding of the brokerage calculator.
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stock-99 · 1 year
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India Pesticides share: Should you invest in 2023?
India Pesticides is a growing agro-chemical company based on volumes. It has two manufacturing facilities located in Lucknow & Sandila, Hardoi. You can consider investing in its shares because the demand for agriculture will increase. If you are a fundamental investor, you should research the fundamentals of the company before investing in its shares. On the other hand, if you are a short term trader, obtain knowledge of technical analysis and understand what is derivatives before trading in futures and options. In this article, we are going to learn about India pesticide shares, its fundamentals ratios, and financials, and why you should invest in India pesticide shares in 2023 in India.
About India Pesticides
The company was founded in 1984 and manufactures agro-chemical. They manufacture herbicide, captan, Thiocarbamate Herbicide and APIs (Active pharmaceutical ingredients).  The 67.20% shares are held by promoters of the company, 30.59% shares are held by mutual funds, 1.59% shares are held by foreign institutions. The top peers of the company are Rallis India, Astec Lifesciences, Best Agrolife, Sharda Cropchem, and Dhanuka Agritech. IPLDOLLAR, IPLGURU, IPL SOLDIER, IPL ZIRAM27, IPLDIFEN, and TAKATVAR are the brands of India Pesticides Ltd. Moreover, the company is listed in 7 indices.
Financials of India pesticides share
The revenue of the company has grown to Rs. 218 crore in June 2022 from Rs. 177 Crore in March 2022.
The profit of the company has grown to Rs. 41 crores in June 2022 from Rs. Rs. 31 crores in March 2022.
The net worth of the company has grown to Rs. 638 Crores in March 2022 from Rs. 565 Crores in September 2021.
The company has reduced its debt and it is almost debt free.
The company has a healthy profit growth of 34.8% CAGR over the last 5 years.
The company has maintained an ROE of 34.78% and ROCE of 43.27% in the last 3 years.
Fundamentals of India Pesticides (Data as of 11 November 2022)
Market cap
Rs. 3,089 Cr.
Market price
Rs. 271.45
52 week low
Rs. 200.75
52 week high
Rs. 273.00
P/E ratio
Rs. 3,089 Cr.
P/B ratio
4.84
Industry P/E
14.00
Debt to equity ratio
0.04
Return on equity (ROE)
30.75%
Earnings per share (EPS)
13.62
Dividend yield
0.28%
Book value
55.39
Face value
1
Conclusion
Investing in India pesticides is a good investment if you hold the shares for the long term. However, investing in any shares without doing proper research is risky. So, make sure to do a careful analysis of the company’s financials, check fundamental ratios, management, and business model, and check India pesticide share price to make an informed decision.
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stock-99 · 1 year
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How to buy M&M shares?
Mahindra & Mahindra was incorporated in 1945 and the MD/CEO of the company is Dr. Anish Shah.  It is an automobile company that manufactures 2-wheelers, 3-wheelers, tractors, PVs, CVs, and earthmovers. The popular brands are KUV 100, Bolero, Scorpio, TUV 300, Xylo, Verito, Jawa, Yuvo, and Arjun Novo. in this article, we are going to learn about fundamentals of M&M stock and what are the steps to buy M&M shares
 About Mahindra & Mahindra
●     The company is a large-cap stock and it is listed in 40 indices.
●     The company is among the top largest auto industries in the world. Also, it is the world's largest tractor company in terms of volume in the world.
●     The company has maintained a good dividend payout of 92.7% and the compounded profit growth in the last 10 years is 8%.
●     In the last 10 years, the stock price CAGR (compounded annual growth rate) is 11%, and the return on equity is 11%.
●     The revenue of M & M company has increased to Rs. 28,412 Cr. In June 2022 from Rs. 25,934 Cr. in March 2022.
 Fundamentals of M&M company’s stock (Data as of 10 November 2022)
 Market cap
Rs. 161,360 Cr.
Current market price
Rs. 1,298
Stock P/E
20.1
Book value
Rs. 379
Dividend yield
0.87%
ROCE
11.3%
ROE
14.2%
Face value
Rs. 5.00
52 week low
671.15
52 week high
1,366.55
Earning per share
74.83%
Industry P/E ratio
12.50%
P/B ratio
3.16
Face value
5
2-year return
119.24%
 How to buy M&M shares?
The first     step to buying shares is to open a Demat account from a brokerage firm or     online investment platform.
After     deciding on the broker, fill out the account opening form and provide all     the personal information such as name, email address, phone number, etc.
You will be     asked to provide identity proof, address proof, income proof, bank     details, and PAN card details to complete the KYC (Know your customer).
Once the KYC     is completed, your Demat will be activated and you are all set to invest     in shares.
Before     buying M&M shares, analyze the fundamentals of the company, check     whether the M&M share price is     overvalued or not, and management and business model to make an informed     decision.
 Conclusion
You can consider investing in M&M shares as the stock is not in an overbought zone. However, investing in the share market is associated with high risk. So, before investing in shares or any financial instrument, decide the investment duration, investment objective, and your ability to take risks and analyze the market condition by checking Sensex today.
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stock-99 · 2 years
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What Is A Demat Account?
Demat accounts or dematerialization of a trading account was first launched in India in 1996, and in the two decades afterwards, they have considerably broadened the availability of stocks ownership to a far broader spectrum of Indian investors. Any investor in India who wants to hold or trade in assets such as stocks, bonds, or mutual funds must create a Demat account.
Demat is an abbreviation for dematerialised accounts, which are electronic records that document your ownership of marketable items. When you make a stock purchase order, the shares are credited to the demat account. Similarly, when you trade your shares, the proceeds are deducted from the demat trading account.  This allows you to trade without having to transfer physical share certificates. Not only does it serve as a safe haven for the investment opportunities, it also accelerates transactions and lowers costs. Let's look at why you need a demat account to invest in India and how you can open a demat account with the help of a third-party share market app.    
Types of Demat Account
There are a number of types of demat accounts that one can open based on their residential status. Let us consider the following types of demat accounts that are available in India.
Standard Demat Account: It is only available to Indian people who live in the country.
Repatriable Demat Account: For NRIs (Non - resident Individuals), this type of Demat Account allows money to be moved overseas. This sort of Demat Account, however, must be connected to an NRE bank account.
Non-Repatriable Demat Account: It is also for NRIs, however fund transfers abroad are not feasible with this form of Demat Account. It must also be connected to that of an NRO account.
Benefits of a Demat Account
One obvious advantage of internet purchases is cost savings. Similarly, opening a demat online account can save you money on expenditures like stamp duty as well as other handling fees that are required for physical bonds.
It always minimizes the work required to maintain sight of each one of them. As a result, you are not required to keep a manual record. All of your papers, as well as a record of each investment, are securely stored.
You can access different bank loans using the assets held in your demat account, in addition to utilizing it as a deposit for your funds.
Storing shares online is a lot better and safer choice since it provides you with a perpetual digital record of the investment.
Through these demat accounts, foreign investors are also offered simple access to the country’s stock market, which ultimately helps India's economy.
How to Open a Demat Account in India
Creating an investor profile and opening a demat account is one of the initial and most crucial steps in buying shares. An investor should follow the steps listed below to create a demat account:
A demat account must first be created and opened by an investor, who needs a pan card.
Then, in order to complete the capital market transaction, he must select a stock market broker or third-party app.
The next step is for him to choose a Depository Participant (DP) who offers Demat services.
A Unique Identification Number, or UIN, is also required for investors who want to make sizable investments.
Following the completion of this process, users will be able to watchlist the chosen shares and start investing sequentially after receiving an activation email with the user id and an automatic password.
A demat account is similar to a bank account. The difference is that it holds electronic share certificates as well as other securities instead of cash or deposits. Your demat number is required for automated settlements of trades and transactions that you do. Opening a demat account is now easy and convenient, without the hassle of physical documentation and you can easily select any third-party share market app to do the same.
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stock-99 · 2 years
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Market Indices: All You Need To Know
India has a population of 138 crores out of which 1.2 crore Indians are investing in the stock market as per the data of the National Stock Exchange. To invest in the market, these investors are relying on something known as market indices. Market indices help them identify the performance of the market. Based on the market indices, investors decide when and where to invest.
Definition of Stock Market Indices
The stock market indices are also known as the share market index. This index is a statistical measure which shows the changes happening in the market.
By grouping a few companies an index is created. Based on stocks of such few companies the performance of the market is calculated. Accordingly, if the prices of stocks rise, the index value will also rise and if anytime the price of stocks falls, then the value of the index will also start falling.
Types of Market Indices
Market Indices are broadly classified into four types which are as follows:
Benchmark indices - Benchmark indices include BSE Sensex and NSE Nifty.
Market capitalization indices - In this index, companies are included according to their market capitalisation. BSE midcap and BSE smallcap are examples.
Broad-based indices - BSE 100 and Nifty 50 are a few examples of this sector.
Sectoral indices - Companies are selected according to the specific sector in these indices. Nifty FMCG and Nifty bank index are a few examples of these indices.
Thematic indices - These indices show the performance of broad-based investment themes.
Above we have discussed some key concepts such as Sensex, Nifty, BSE and NSE. These are the terms everyone should be aware of if they want to be an investor in the market. So let's discuss all this terminology to give you a clear picture.
What are SENSEX and NIFTY?
Sensex is an index which includes the top 30 companies of BSE. The sensex share price is used to measure the performance of BSE.
Just like Sensex, Nifty is also a type of index which includes the top 50 companies of NSE. The nifty index value is used to measure the performance of NSE.
What are BSE and NSE?
BSE and NSE are nothing but the type of stock exchange. In India, there are two types of stock exchanges through which you can invest in the stock market which are BSE and NSE. BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. BSE is the oldest stock exchange in Asia established in 1875. Whereas NSE was founded in 1992.
How the Value of the Indices is Calculated?
https://www.5paisa.com/share-market-today/sp-bse-midcap
Have you ever thought about how the value of indices such as midcap sensex today or BSE smallcaps calculated?
The value of these indices is calculated by a method known as the free-float capitalization method. The base value taken in the case of Sensex is 100. Whereas the base value in the case of Nifty is 1000.
The formula of the free float method :
(Current market value / Base market capital) × Base index value
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stock-99 · 2 years
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What Are Nifty And SENSEX?
Whoever is investing in the market must come through these two words known as nifty and sensex. When investors are investing in the market, they have the option of investing through two exchanges, whether BSE which is the Bombay Stock Exchange or NSE which is National Stock Exchange. And here the term nifty and sensex comes into the picture.
Meaning of Nifty and SENSEX
Let's understand the meaning of nifty and sensex. Nifty and SENSEX both are indices which measure the performance of BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). Nifty is also known as nifty 50 which includes the stocks of the top 50 companies of the NSE (National Stock Exchange). Based on these 50 stocks, the nifty index shows the nifty share price and the performance of the NSE. Whereas SENSEX includes the stocks of the top 30 companies of the BSE. Based on these 30 stocks sensex shows the sensex share price and the performance of BSE. Nifty and Sensex both are the benchmark indices of NSE as well as BSE. The full form of nifty is National Stock Exchange Fifty, whereas sensex stands for Stock Exchange Sensitive Index.
Apart from these benchmark indexes (Nifty and SENSEX), there are also some other indexes through which you can measure the performance of the market. They are as follows:
Industry-based or sectoral index - This index shows the performance of a particular industry or sector such as pharmaceutical, technology, energy, etc.
Broad market index - This index shows the performance of broad markets such as BSE100 (Performance of top 100 companies of Bombay Stock Exchange)
Market capitalisation index - This index shows the performance based on the market cap of the company. NSE midcap and BSE small-cap are some of the few examples of market capitalisation index.
Difference between Nifty and SENSEX
Nifty was incorporated in 1996, formerly known as CNX fifty. Whereas sensex was incorporated in 1986 and formerly known as S&P BSE SENSEX.
Nifty is operated by National Stock Exchange (NSE) whereas sensex is operated by the Bombay Stock Exchange (BSE)
The liquidity and volume are high in nifty compared to sensex. In the case of sensex, the volume and liquidity are low.
Nifty includes the top 50 companies of NSE and this index covers around 24 sectors whereas sensex includes the top 30 companies of BSE and this index covers around 13 sectors.
The value of both nifty and sensex is calculated by the free-float calculation method.
The base value for the calculation of nifty is 1000 whereas it is taken as 100 in the case of nifty.
Factor That Affects the Performance of Nifty and SENSEX
There are some factors which can affect the performance of the indices (Nifty and Sensex) which are as follows -
Inflation - High inflation affects the performance of the stock markets. Inflation leads to rising in overall cost and due to this the company suffers as well as the value of the stock gets affected.
Rate of interest - Due to changes in interest rate stock market gets affected because the stock market and interest rate move in the opposite direction.
The stock market is a great place through which you can maximize your returns and grow your wealth. But before picking any kind of stock from nifty or sensex. You need to do the research and analysis because the stock market is subjected to market risk.
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stock-99 · 2 years
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Best Midcap SENSEX Stocks You Can Invest In 2022
Mid-cap stocks are the most attractive investment options for investors who are looking to gain good returns without exposing themselves to the risks involved in the stock market. For those who don't know, mid-cap stocks are issued by companies with higher growth potential. These stocks offer a lot less risk than the small-cap stocks and a little higher risk than the large-cap stocks. In this blog, we will discuss the best midcap stocks along with the Sensex share price. Let's get started!
Why Invest in Mid-cap Sensex Stocks?
If you want to have a well-balanced and healthy investment portfolio, then you should invest in good midcap Sensex stocks. Following are some other good reasons to purchase midcap Sensex today:
1.  Gain Better Returns
As we have already mentioned above, mid-cap stocks are offered by companies with stable growth and high growth potential. These stocks offer a much higher rate of return than the other stocks listed on the stock exchange.
2.  Medium Risks Involved
Mid-cap stocks don't involve as high risk as small-cap stocks. They offer much higher returns than the large-cap stocks without exposing your funds to higher market risks. These companies have a higher ability to raise funds and stay strong during the opposite market conditions.
3. Budget Friendly
Another good thing about midcap stocks is that they are very affordable. They are not as expensive as large-cap stocks. This means you can easily buy them even if you have a small budget and still enjoy great returns.
4. Higher Market Reputation
Mid-cap companies gain a remarkable reputation over time. They secure a stable position in the market and are named among the best-performing companies in the country. Further, they have stable growth, positive past performance, and timely dividend payouts to their investors.
Best Mid Cap Sensex Stocks for 2022
Now that we have discussed what mid-cap stocks are, let's move on to the list of best mid-cap stocks for investing in 2022:
MPHASIS: The first stock in our list of best midcap stocks is MPhasis. It is an IT company with a remarkable market cap of 43,012 crores and a P/E value of 30.5.
COLPAL: The next best midcap stock for 2022 is COLPAL. This is a renowned FMCG company in the personal care sector. It has a market cap of 40,490 crores and a PE ratio of 37.55.
GLAND: Gland Pharma Limited is another mid-cap company to invest in 2022. It has shown stable growth and performance over the last 5 years. Further, it has a market capitalization value of 42,368 crores and a PE value of 34.9.
MUTHOOTFIN: Muthoot Finance has gained massive popularity as a consumer finance company. They have a market cap of 39,699 crores and a price-to-equity ratio of 9.88.
HDFC AMC: The asset management company has a PE ratio of 28 and a market cap of 39,001. It is another option for investors who want to gain the best returns without dealing with a lot of risk.
Note: Details as of 28 July 2022. The Sensex share price today is 56,684🔝.
Bottom Line
Mid-cap stocks are those stocks that are issued by medium-sized companies. These stocks are preferred by most investors because they don't involve higher risk and still offer good returns over time. Also, these companies have a much higher growth potential than others. This is all about the best midcap Sensex index and stocks.
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