Double Income - March 2024 Issue
05 Mar 2024
Making Sense of the BIG Bitcoin Rally and this
Month's New Recommendation
In this Report:
Bitcoin to the moon! 🚀
Why it's a good time to be a crypto investor.
Sell alert on Ambika Cotton.
New buy recommendation for the month.
How to use this month's allocation.
The performance of Double Income in the month gone by.
Summary of all positions.
Dear Valued Subscriber,
Welcome to the March 2024 issue of Double Income.
There's something incredible happening in the crypto markets right now.
I'm sure you would have seen notification popping up saying 'Bitcoin prices near record high'.
The price of the largest cryptocurrency has shot up by 55% in 2024 so far.
With Bitcoin's price touching a new all-time high in as many as 30 countries (including China and India), it sure feels
like the financial world is starting to understand the asset's importance.
Balaji
@balajis · Follow
Bitcoin has passed all-time highs in 30+ countries,
including China and India.
Watch on X
GIF
5:02 PM · Feb 28, 2024
11.8K
Reply
Share
Read 324 replies
Now, there are several factors that have contributed to this rise and more developments keep flowing in, supporting
the bullish sentiment.
At the start of this year, we had mentioned in one of the editorials that Crypto adoption could finally happen in the
coming months, and you should watch out for Bitcoin.
Things are getting interesting in the crypto space as there's clarity, now that the ETF is approved.
Apart from small retail investors, large institutions are also investing hundreds of millions of dollars in bitcoin.
Whether you like bitcoin or hate it, it's important that you spend some time to re-evaluate what is happening here.
It's not for any reason that Bitcoin is one of the best performing assets over the last decade despite all the chaos
and uncertainty surrounding it.
Another reason why I think people are latching on to Bitcoin these days is to protect themselves during inflation.
You see, there are not many places to hide in public markets if you think inflation is coming to make a serious
comeback.
Traders in the US are already betting on substantially stickier inflation for the next few years.
As Bitcoin's price is running aggressively right now, many people are waiting for a pullback.
The ONLY problem is that it can be nearly impossible to time a volatile market.
As we often mention this in our editorials, if you miss the best days of stock returns each year, you're likely to miss
majority of the returns.
This is the ultimate example of time in the market is more important than timing the market, be it cryptos or
stocks.
Which is why my thought process is clear as the sun in the day - be it stocks or cryptos, these assets will go up, they
will go down, and there will even be times where they do nothing and just go sideways.
But over a long period of time (think 5-10 years), stocks (and possibly bitcoin) seems to go up, providing
diversification, and maybe even a hedge against inflation.
On that note, let's look at the buy and sell recommendations for this month and the performance of the service in
the month gone by.
New Buy and Sell Recommendations
Time to Exit Ambika Cotton
We are recommending a SELL on Ambika Cotton, a stock that we recommended more than 2 years ago.
The stock is down 10% from our recommended price, mainly due to earnings pressure.
The company has struggled to record the same profits that it did in FY22 and FY23 and has in fact reverted to its
long-term average of around Rs 60 crores.
Thus, with no visibility on the earnings growth front, investors have given the stock a cold shoulder for the last
couple of years.
We have no idea how long this uncertainty will last and hence, we think it will be a good idea to exit the counter right
now and may be re-enter at a lower price or once the earnings visibility improves.
We are therefore recommending a SELL on Ambika Cotton at the current price.
As mentioned earlier, the loss from our recommended price is in the region of 10%.
We also have a new BUY recommendation for you this month. Given below is the name and the detailed profile of
the stock.
New Buy Recommendation
Stock # 1: UTI Asset Management Company (AMC)
BUY
Maximum Buy Price: Rs 1,027
UTI Asset Management Company (AMC) is primarily engaged in the activities of raising funds for and to render
investment management services to schemes of UTI Mutual Fund.
It's the oldest mutual fund in India and the first one to launch equity mutual funds in the country.
It has a global partnership with T. Rowe Price International.
In the December 2023 quarter, UTI AMC's net profit more than tripled on the back of a steep rise in other income due
to MTM gains.
The current bull run has helped majority of AMCs including UTI AMC to increase market share because they have a
higher allocation of equity AUM in their books.
Annexure for UTI Asset Management Company
Shareholding (%, Dec-23)
Market Data
Category
(%)
Promoters
0.0
Institutions
66.7
Others
33.3
Total
100.0
Stock Price Performance
Stock Price Performance
52 week H/L
965 / 610
BSE code
543238
NSE Symbol
UTIAMC
No. of shares (m)
127.2
Face value (Rs)
10.0
FY23 dividend/share (Rs) (Adjusted)
22.0
Free float (%)
100
113,627
Average 52-week liquidity (Rs m)
UTI AMC
Index#
Over 1-Year
34.3%
22.7%
Over 3-Years
14.1%
13.6%
Since Listing
19.8%
18.7%
#BSE Sensex
Returns over 1 yr are compounded annual
Rs 100 Invested Chart
893.0
Market cap (Rs m)
(as on 5th Mar 2024)
averages
Price on reco. date (Rs)
190.7
Price to sales* (times)
7.0
Price to earnings* (times)
16.5
Price to book^ (times)
2.9
Debt to Equity^ (times)
0.00
Dividend yield (FY23 at current prices)
2.5%
Promoter pledging (% of Total Equity)
NIL
*Based on trailing 12-month consolidated numbers
^Based on Consolidated Balance Sheet as at March 31, 2023
View Updated Chart
Financials at a glance
(Rs m, Consolidated)
FY19
FY20
FY21
FY22
FY23
Net Sales
10,532
8,651
11,687
13,191
12,669
Growth (%)
-10.1%
-17.9%
35.1%
12.9%
-4.0%
Operating Profit
5,153
3,866
6,471
7,062
6,351
Operating Margin (%)
48.9%
44.7%
55.4%
53.5%
50.1%
Net profit
3,568
2,715
4,941
5,343
4,374
Net profit margin (%)
33.9%
31.4%
42.3%
40.5%
34.5%
Fixed assets
2,574
3,630
3,545
3,560
3,683
Investments
22,726
23,665
27,571
29,944
32,479
Other fixed assets
1,382
1,857
1,682
1,973
1,847
Current assets
2,621
2,501
5,325
6,933
6,061
Balance Sheet
(Rs m, Consolidated)
FY19
FY20
FY21
FY22
FY23
Total Assets
29,304
31,653
38,124
42,410
44,069
Net worth
26,158
27,723
32,520
36,202
38,678
Minority Interest
372
108
111
114
-
Non Current Liabilities
429
484
1,286
2,521
2,318
Current liabilities
2,345
3,338
4,206
3,574
3,073
Total liabilities
29,304
31,653
38,124
42,410
44,069
FY19
FY20
FY21
FY22
FY23
Net sales (Rs m)
10,532
8,651
11,687
13,191
12,669
PAT (Rs m)
3,568
2,715
4,941
5,343
4,374
Adj. EPS (Rs)
28.0
21.3
38.8
42.0
34.4
Price to earnings (x)
31.8
41.9
23.0
21.3
26.0
Price to sales (x)
10.8
13.1
9.7
8.6
9.0
Price to book value (x)
4.3
4.1
3.5
3.1
2.9
Source: Company, Equitymaster
Valuations*
(Rs m)
*Adjusted basis
Using this Month's Allocation to Double Income...
As you will be aware, to guide you towards your monthly investments, we are setting aside a notional sum of Rs
50,000 every month.
Out of this Rs 50,000, we recommend you make stock investments of Rs 30,000 each as and when we recommend
them.
The remaining amount is to be invested in either a low-cost index ETF or a fixed deposit/liquid fund.
For this month, of the above notional allocation of Rs 50,000 per month, we are going to notionally allocate Rs
30,000 in the stock recommended today - UTI AMC Ltd - and the rest in an index fund.
So, here's how we have split this month's notional corpus of Rs 50,000.
Rs 30,000 in UTI AMC Ltd.
Rs 20,000 in an index fund - Nippon India ETF Nifty BeES.
Apart from this, we'll also allocate the proceeds from Ambika Cotton to the index fund. This will put the corpus into
a nice, comfortable position.
Action to Take
Buy UTI AMC at the current price or lower. The maximum buy price is Rs
1,027.
Allocate Rs 20,000 in an index fund - Nippon India ETF Nifty BeES.
Allocate proceeds of Rs 27,238 in Nippon India ETF Nifty BeES.
Disclaimer: Target price stated above does not promise or guarantee assured or risk-free return to the investors. Recommendation of
research report is not risk-free and is susceptible to market risks and that it cannot generate returns with any level of assurance.
On that note, let us take a look at the performance of the service in the month gone by.
Month on Month Performance
Looking at the total funds dedicated to Double Income so far (i.e., the money invested in stocks, the low-cost ETF,
and fixed deposit) the overall corpus value rose by 2% over the last one month.
This compares with a monthly gain of 2.5% for the Sensex, and a monthly loss of 0.8% for the BSE Smallcap index.
As for individual stocks, the month gone by was a mixed bag. Three stocks rose in double digits while Kansai
Nerolac share price fell over 15%.
Other stocks remained in the range and moved marginally.
Let's look at the big gainers and losers...
# Godfrey Philips
Godfrey Philips share price gained 19% in the month gone by. The stock is up 87% from our recommended price.
Shares of the cigarette maker have been on an uptrend ever since the company reported robust domestic cigarette
volume growth in the first three quarters of FY24.
In its latest investor presentation, the company highlighted that its topline was supported by higher exports of
unmanufactured tobacco, which rose by 68% YoY.
Similarly, cigarette volumes rose by 10.6% in the most recent quarter of FY24.
As of December 2023, Godfrey Philips operates 150 stores.
Apart from interests spanning in tobacco, Godfrey Philips also operates the 24Seven chain of convenience stores
that offers daily needs groceries, ready-to-eat foods, beverages, cosmetics and personal care products, among
other things.
# Maruti Suzuki
Our latest recommendation Maruti Suzuki India moved up by 11% in the month gone by.
Shares of the automaker are in a fast lane as the street is expecting higher sales going forward as India's economy
improves and as people consider higher expenditure on luxury.
Data from the federation of automobile dealers shows that auto sales have touched record levels in the past few
months.
In the case of Maruti, it was only a matter of time before India's largest car manufacturer wakes up from the
underperformed in recent years.
Maruti recently posted its Q3 numbers, reporting over 33% jump in its consolidated net profit to Rs 32.1 billion (bn)
while revenue came in at Rs 335.1 bn, a 14.5% growth YoY.
Note that Maruti's recent underperformance resulted in Tata Motors racing past Maruti in marketcap race for the
first time in seven years.
Maruti is getting battle ready with 8 new launches being planned over the next 4 years and with most of it being in
the red-hot SUV space.
Also, the pace of adoption of EVs seems to be slowing down in 2024, and Maruti stands to benefit from this as
customer preference shifts towards hybrid vehicles.
Reports suggest that Maruti is developing its own cost-effective 'series' hybrid solution for the small car segment
and will continue to source Toyota's Hybrid technology for larger SUVs and MPVs.
All the above factors indicate that this stock could do well in the medium-term.
# SAIL
SAIL share price rose 11% in the month gone by. With this month's rise, the stock is now back to our original
recommendation price.
Following weak earnings, SAIL shares came under pressure after the Maharatna company reported a loss in the
quarter under review.
However, SAIL shares bounced back in the following trading session as gross domestic product (GDP) growth
boosted sentiment.
SAIL's fortunes are linked to the steel sector, which indirectly benefits as GDP grows at a stable rate.
Also, metals as a sector has been significantly underperforming and it witnessed continuous outflows since 2022
amid volatility in growth in China, the world's largest producer and consumer of metals.
In 2024, most market experts see the metal pack attracting fund inflows with an easing interest rate scenario.
This bodes well for SAIL.
# Coal India
Coal India share price surged 8% in the month gone by. The stock is now up 115% from our recommendation price.
Domestic coal growth is expected to receive a boost from the substitution of imported coal. India's thermal coal
imports have been on the rise, from 135 MT in financial year 2022 to 180 MT in fiscal 2023. This presents a lucrative
opportunity for Coal India to increase sales.
While renewable energy has been the talk of the town, Coal India has defied expectations, consistently reporting its
highest-ever sales and profits.
In the nine months that ended financial year 2024, the world's largest pure play coal producer has reported its
highest-ever production of 531.90 MT (up 11% YoY), revenue of Rs 1.04 trillion (tn) and a net profit of Rs 238 bn.
A large part of this growth was driven by favourable demand expected from key sectors such as power and steel.
Going forward, the company is confident of maintaining the growth in production by ramping up production and
incremental output from existing and new captive mines.
For financial year 2024, the company has guided a total of 780 million MT while for financial year 2025 838 million
MT (7.4% YoY growth in financial year 2025).
Coal India's investments have been diverse, with capex on land acquisition and related rehabilitation accounting for
Rs 24 bn.
Heavy earth moving machinery procurement stands at Rs 19 bn, while diversification into areas like solar power and
joint ventures with Hindustan Urvarak Rasayan Ltd and Talcher Fertilizers Ltd required Rs 10.4 bn.
# Kansai Nerolac
Coming to the top losers...
Kansai Nerolac share price fell 15% in the month gone by. The stock is now down 5% from our recommendation
price.
Shares of the paint maker have been on a downtrend even though the company posted good numbers for Q3.
Kansai Nerolac posted a 39.6% growth in its consolidated net profit to Rs 1.5 bn helped by improvement in margins.
So if not Q3 results, what has affected Kansai?
Growing competition in the sector - the entry of Aditya Birla group firm Grasim Industries in the decorative paints
segment has impacted major paint stocks in recent trading sessions.
Grasim recently entered the paint business by launching Birla Opus range of products and commissioned three fully
automated, global-scale manufacturing plants.
With its entry, experts are concerned about Kansai's market share.
Kansai has a strong client base of automobile OEMs (original equipment manufacturers) led by Maruti Suzuki and
Tata Motors.
Over the past three years, increased private sector capex and euphoria over the new production capacities for EVs
has taken the sentiments around the stock of Kansai to new highs.
Going forward, with general elections approaching soon, rural demand is expected to pick up which could possibly
support overall volume demand.
# ITC
The other big loser during the month gone by was ITC.
ITC shares declined 8% in the month gone by. The stock is up 66% from our recommendation price.
The recent decline in ITC shares can be attributed to British American Tobacco's (BAT) plans to pare its stake in the
company.
The British tobacco seller has held a stake in India's ITC since the early 1,900s and is the largest shareholder in the
company, with more than a 29% stake.
Apart from that, ITC has faced a setback in an operationally weak quarter led by sluggishness in the cigarette, agri
and paperboard businesses.
For the December 2023 quarter, the company reported a 1.8% YoY rise in revenue at Rs 180.3 bn.
The diversified conglomerate reported a 6% growth in its consolidated net profit at Rs 53.4 bn for the December
2023 quarter. The same stood at Rs 50.1 bn in the year-ago period.
The operating environment for agri-business remained challenging due to policy interventions of the government.
ITC is prioritising the utilization of digital technology to optimise its supply chain, ensuring consistent product
quality, and to bolster food security.
Furthermore, there are plans to expand its presence in the Asia-Pacific region, with a specific focus on the
packaging and paperboard sectors.
Apart from the above, here are a few other stocks that moved the most in the month gone by.
Month on Month Performance
Company
Change (%)
Hindustan Aeronautics
8.2%
HDFC AMC
8.1%
CAMS
5.6%
Cheviot
-5.0%
Indraprastha Medical
-4.8%
Exide Industries
-4.1%
Amara Raja
-4.9%
Source: Equitymaster
We would like to remind you here to not attach a lot of weight to the performance during a span as short as a
month.
Also note, we'll keep reminding you of this standard warning during times both favourable and unfavourable.
One must remember that our dynamic fixed income component is as much a part of our overall strategy as is our
stock component.
Thus, the most appropriate way to measure our performance will include its performance along with that of our
collection of stocks.
Since its inception, the service is up 21% after including the value of today's allocation.
From our existing open positions, many stocks are up for grabs at current prices.
Refer to the tables below for all the details.
Summary of the Double Income Positions
Our Double Income Positions
Equity Portfolio
Reco. Date
Reco. Price
(Rs)
Max.
Buy
Price
(Rs)
Nippon India ETF Nifty
BeES
Amount Current Current
Invested
Price
Value
(Rs)
(Rs)
(Rs)
04-Oct-19
118.0
123.9
18,000
248
ITC Ltd.
05-Dec-19
246.9
264.2
16,000
Coal India Ltd.
03-Jan-20
212.2
244.0
Nippon India ETF Nifty
BeES
05-Feb-20
127.9
136.9
%
Change
Current View
37,811
110.1%
Buy at lower prices
409
26,505
65.7%
Buy at lower prices
16,000
455
34,315
114.5%
Buy at lower prices
18,000
248
34,873
93.7%
Buy at lower prices
Equity Portfolio
Reco. Date
Reco. Price
(Rs)
Max.
Buy
Price
(Rs)
Amount Current Current
Invested
Price
Value
(Rs)
(Rs)
(Rs)
Exide Industries Ltd.
05-Nov-20
162.8
187.2
18,000
329
SAIL
05-Aug-21
143.1
164.5
18,000
NMDC Ltd.
05-Oct-21
146.7
168.6
Mahanagar Gas
05-Jan-22
878.7
Nippon India ETF Nifty
BeES
04-Feb-22
Nippon India ETF Nifty
BeES
%
Change
Current View
36,387
102.2%
Buy at lower prices
142
17,868
-0.7%
Buy
30,000
240
49,096
63.7%
Buy at lower prices
1,010.5
30,000
1547
52,817
76.1%
Buy at lower prices
189.5
217.9
38,898
248
50,890
30.8%
Buy at lower prices
04-Mar-22
176.4
202.9
20,000
248
28,102
40.5%
Buy at lower prices
Swaraj Engines
04-Apr-22
1422.8
1,636.2
30,000
2448
51,617
72.1%
Buy at lower prices
Nippon India ETF Nifty
BeES
04-Apr-22
194.4
223.6
20,000
248
25,497
27.5%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-May-22
194.4
223.6
20,000
248
25,497
27.5%
Buy at lower prices
Nippon India ETF Nifty
BeES
03-Jun-22
180.2
207.2
20,000
248
27,512
37.6%
Buy at lower prices
Rallis India
05-Jul-22
194.0
223.1
30,000
262
40,515
35.1%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Jul-22
172.0
197.8
20,000
248
28,820
44.1%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Aug-22
189.2
217.6
20,000
248
26,199
31.0%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Sep-22
192.9
221.8
20,000
248
25,705
28.5%
Buy at lower prices
Hindustan Aeronautics
04-Oct-22
1184.0
1,361.6
30,000
3214
81,436
171.5%
Buy at lower prices
Nippon India ETF Nifty
BeES
04-Oct-22
188.3
216.5
35,554
248
46,802
31.6%
Buy at lower prices
Godfrey Philips
04-Nov-22
1616.1
1,858.5
30,000
3022
56,098
87.0%
Buy at lower prices
Nippon India ETF Nifty
BeES
04-Nov-22
198
227.7
20,000
248
25,037
25.2%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Dec-22
205
235.6
20,000
248
24,203
21.0%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Jan-23
198
227.7
39,791
248
49,963
25.6%
Buy at lower prices
Nippon India ETF Nifty
BeES
03-Feb-23
193
221.9
20,000
248
25,697
28.5%
Buy at lower prices
Nippon India ETF Nifty
BeES
03-Mar-23
193
221.9
31,967
248
41,072
28.5%
Buy at lower prices
HDFC Asset
Management Company
05-Apr-23
1706
1,961.6
30,000
3853
67,767
125.9%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Apr-23
186
213.6
38,298
248
51,111
33.5%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-May-23
199
229.4
40,822
248
50,725
24.3%
Buy at lower prices
Zydus Wellness
05-Jun-23
1460
1,679.1
30,000
1568
32,218
7.4%
Buy
Nippon India ETF Nifty
BeES
05-Jun-23
204
234.3
74,382
248
90,489
21.7%
Buy at lower prices
Cheviot Company
05-Jul-23
1192
1,370.8
30,000
1371
34,505
15.0%
Buy
Nippon India ETF Nifty
BeES
05-Jul-23
213
245.0
35,152
248
40,907
16.4%
Buy
Motilal Oswal
04-Aug-23
828
951.8
30,000
1713
62,091
107.0%
Buy at lower prices
Equity Portfolio
Reco. Date
Reco. Price
(Rs)
Max.
Buy
Price
(Rs)
Amount Current Current
Invested
Price
Value
(Rs)
(Rs)
(Rs)
Nippon India ETF Nifty
BeES
04-Aug-23
214
245.6
20,000
248
23,210
16.0%
Buy
CAMS
05-Sep-23
2433
2,798.4
30,000
3041
37,492
25.0%
Buy at lower prices
Nippon India ETF Nifty
BeES
05-Sep-23
216
248.1
32,008
248
36,777
14.9%
Buy
HDFC Bank
05-Oct-23
1536
1,766.2
30,000
1432
27,971
-6.8%
Buy
Nippon India ETF Nifty
BeES
05-Oct-23
215
246.8
58,399
248
67,453
15.5%
Buy
Kansai Nerolac
03-Nov-23
305
351.1
30,000
289
28,398
-5.3%
Buy
Nippon India ETF Nifty
BeES
03-Nov-23
212
243.8
62,606
248
73,199
16.9%
Buy
Indraprastha Medical
Corp
05-Dec-23
200
229.7
30,000
177
26,590
-11.4%
Buy
Nippon India ETF Nifty
BeES
05-Dec-23
230
264.6
50,250
248
54,142
7.7%
Buy
Amara Raja Energy &
Mobility
08-Jan-24
827
950.8
30,000
848
30,769
2.6%
Buy
Nippon India ETF Nifty
BeES
08-Jan-24
238
273.3
122,940
248
128,232
4.3%
Buy
Maruti Suzuki
05-Feb-24
10416
11,978.5
30,000
11595
33,395
11.3%
Buy
Nippon India ETF Nifty
BeES
05-Feb-24
241
277.5
66,082
248
67,878
2.7%
Buy
UTI Asset Management
Company
05-Mar-24
893
1,027.0
30,000
893
30,000
0.0%
Buy
Nippon India ETF Nifty
BeES
05-Mar-24
248
285.1
47,238
248
47,238
0.0%
Buy
%
Change
Current View
*current prices as on 5th March 2024
Fixed Deposit Investments
Safe Short Term Fixed
Deposit (5.5%p.a.)#
Reco.Date
Amount
Invested
Current Value
(Rs)
Gain/Loss
(Rs)
Gain/Loss
(%)
FD1
05-Nov-19
18,000
23,071
5,071
28.17%
FD2
05-Dec-19
18,000
22,975
4,975
27.64%
FD3
03-Jan-20
18,000
22,882
4,882
27.12%
FD4
05-Mar-20
50,000
61,008
11,008
22.02%
FD5
05-May-20
50,000
60,548
10,548
21.10%
FD6
05-Jun-20
32,000
38,601
6,601
20.6%
FD7
03-Jul-20
50,000
60,103
10,103
20.2%
FD8
05-Aug-20
32,000
38,307
6,307
19.7%
FD9
04-Sep-20
32,000
38,162
6,162
19.3%
FD10
05-Oct-20
32,000
38,013
6,013
18.8%
FD11
05-Nov-20
32,000
37,863
5,863
18.3%
FD12
04-Dec-20
32,000
37,724
5,724
17.9%
FD13
05-Jan-21
32,000
37,569
5,569
17.4%
FD14
05-Feb-21
32,000
37,420
5,420
16.9%
FD15
05-Mar-21
32,000
37,285
5,285
16.5%
Safe Short Term Fixed
Deposit (5.5%p.a.)#
Reco.Date
Amount
Invested
Current Value
(Rs)
Gain/Loss
(Rs)
Gain/Loss
(%)
FD16
05-Apr-21
14,000
16,247
2,247
16.0%
FD17
05-May-21
32,000
36,991
4,991
15.6%
FD18
04-Jun-21
32,000
36,846
4,846
15.1%
FD19
05-Jul-21
32,000
36,697
4,697
14.7%
FD20
05-Aug-21
32,000
36,547
4,547
14.2%
FD21
03-Sep-21
14,000
15,928
1,928
13.8%
FD22
05-Oct-21
40,000
45,316
5,316
13.3%
FD23
03-Nov-21
20,000
22,571
2,571
12.9%
FD24
04-Dec-21
20,000
22,477
2,477
12.4%
FD25
05-Jan-22
20,000
22,381
2,381
11.9%
FD26
04-Feb-22
20,000
22,290
2,290
11.5%
FD27
04-Mar-22
36,000
39,971
3,971
11.0%
FD28
04-Apr-22
34,405
38,039
3,634
10.6%
FD29
05-May-22
43,990
48,431
4,441
10.1%
FD30
05-Aug-22
59,160
64,313
5,153
8.7%
FD31
03-Feb-23
30,186
31,987
1,801
6.0%
971,741
1,128,563
156,822
16.14%
Total
Sale Proceeds Invested in Fixed Deposit
Safe Short Term Fixed Deposit (5.5% p.a.) #
838,579
902,016
63,437
7.6%
Grand Total
Amount Invested (Rs)
Current Value (Rs)
Gain/Loss (Rs)
Gain/Loss (%)
3,418,808
4,143,572
724,764
21.2%
Grand Total
Please note that this data is for representation purpose only. Equitymaster has no corpus dedicated for Double Income stocks. It will not invest in any of the stocks
either before or after the date of their recommendation under this service.
# Interest rate assumption for the fixed income component of the total corpus is 5.5% which is the current rate for a 7-90 days term deposits. This will be shown as
being accumulated daily on a proportionate basis in the allocation set aside for fixed income.
With this, we come to the end of this edition of Double Income. In case you have any queries, please feel free to write
in to us.
Warm regards,
Rahul Shah
Editor, Double Income
Equitymaster Agora Research Private Limited (Research Analyst)
Note: Target price stated above does not promise or guarantee assured or risk free return to the investors.
Recommendation of research report is not risk-free and is susceptible to market risks and that it cannot generate
returns with any level of assurance.
Rahul Shah co-head of research at Equitymaster is the editor of (Research Analyst), Editor, Microcap Millionaires,
Exponential Profits, Double Income, Midcap Value Alert and Momentum Profits. Rahul has over 20 years of
experience in financial markets as an analyst and editor. Rahul first joined
Equitymaster as a Research Analyst, fresh out of university in 2003 but left shortly
after to pursue his dream job with a Swiss investment bank. However, he quickly
became disillusioned working for the 'financial establishment'. He learned first-hand
the greedy stereotype of an investment banker is true and became uncomfortable
working for a company that put profit above everything else. In 2006, Rahul re-joined
Equitymas ter to serve honest, hardworking Indians like his father, who want to take
control of their financial future - and not leave it in the hands of greedy money managers. Following the investment
principles of Benjamin Graham (the bestselling author of The Intelligent Investor) and Warren Buffet (considered
the world's greatest living investor), Rahul has recommended some of the biggest winners in Equitymaster's history.
Frequently Asked Questions
These are some of the Most Frequently Asked Questions on Double Income. Please view the others here.
Does the service have any capital protection measure in place? What will be the
recommendation on dealing with the idle cash?
Capital protection is as important for us in Double Income as maximising returns. To achieve this, in addition to a
stock component, there will also be an index fund component, and a fixed deposit component.
So, when we think the markets are expensive and are due for a significant correction, we will recommend the
allocation to be reduced for stocks and to be increased for a low-cost index fund, and fixed deposits.
Our recommended allocation in this scenario would be only 25% in stocks. The allocation for index fund and fixed
deposits will be recommended to be at 35% and 40% respectively.
We believe that a higher allocation to index fund and fixed deposits in an overheated market could help minimise
loss of capital during periods of deep correction.
Should we buy more if a stock falls below the recommended price?
It is pertinent to remember here that 100% of our recommendations may not go right. In view of this, we would
recommend no single stock to exceed 4%-5% of the overall funds set aside for this service.
This allocation will of course vary from person to person. For something that works best for you, we recommend
you talk to your investment advisor.
How often are the recommendations reviewed and when are the updates expected?
The recommendations are reviewed and results of the open positions surveyed monthly. This aspect is covered in
the monthly Double Income reports sent to subscribers on the 5th of every month.
Where does Double Income fit into the asset allocation pyramid?
We will recommend mostly fundamentally strong mid and small-cap stocks in Double Income.
Therefore, while they have greater growth potential, the risk element is also high as compared to large caps.
Subscribers should note that not all mid and small cap stocks tend to be outperformers. In fact, we have seen these
stocks plunge 60-70% when things turn sour. That is the reason mid and small stocks are not recommendable to
those having a low risk profile. Even for subscribers having an appetite for slightly more risk, we recommend not
more than 7%-10% of one's portfolio be invested in Double Income. This means the corpus one sets aside for Double
Income should not be more than 7%-10% of the total money allocated towards equities.
This allocation will of course vary from person to person. For something that works best for you, we recommend
you talk to your investment advisor.
DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint
venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research
Analysts) Regulations, 2014 with registration number INH000000537.
BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment
opportunities across asset classes.
DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.
GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.
DETAILS OF ASSOCIATES:
Details of Associates are available here.
DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
a. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
b. Equitymaster holds 1 share of Ambika Cotton as per the guidelines prescribed by the Board of Directors of the Company. The investment is made for research
purposes only.
c. Equitymaster has no other financial interest in Ambika Cotton. Equitymaster has no financial interest in any other subject company.
d. Except for UTI Asset Management Company (AMC), Equitymaster's associates does not have any financial interest in any other subject company.
e. Equitymaster's Research Analyst or his/her relatives has no financial interest in any other subject Company forming a part of this report.
f. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company
at the end of the month immediately preceding the date of publication of the research report.
g. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
h. Equitymaster's technical or other services have given a 'Hold' view on Ambika Cotton.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
a. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
b. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
c. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject
company in the past twelve months.
d. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage
services from the subject company in the past twelve months.
e. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research
report.
GENERAL DISCLOSURES:
a. The Research Analyst has not served as an officer, director or employee of the subject company.
b. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
a. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of
the recommendation service.
b. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at
current market price.
c. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations
keeping in mind the tenure and the objective of the service.
d. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation
service.
Other Disclosures:
This Research Report is sent to you pursuant to your subscribing to the services of Equitymaster Agora Research Private Limited (Company). This recommendation is
general in nature and does not create any account based relationship between you and the Company and pursuant to this recommendation the Company is not obligated
to open any account or deal or maintain your securities or funds.
Prior to receiving this Research Report, you have agreed that your use of Equitymaster Services have been conducted at all times in compliance with the applicable antimoney laundering laws or any other similar statute or legislations or applicable laws or notifications, direction issued by any governmental or statutory authority from
time to time.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.
MORE
FEATURES
Should Double Income be 100% Stocks?
MORE DOUBLE INCOME
Booking 3.4x Gains in a Defence Stock and Switching
to Another High Potential EV Play
Double Income
Feb 5, 2024
Double Income
Jan 8, 2024
Time to Book Profits in an EV Beneficiary
StockSelect Special Report
Gold, Bitcoin and Indian Stocks are Surging while
Holders Refuse to Sell
Dec 27, 2023
42% Profits in 6 Months and the Beauty of Investing
in Moats
Double Income
Double Income
Dec 5, 2023
ChatGPT for Picking Stocks, New Recommendations,
and More
Nov 3, 2023
Macro Investing, New Recommendations & More...
Double Income
Double Income
Oct 5, 2023
Aug 5, 2021
Book 51% Profits in this Bluechip Auto Stock at its 52Week High
StockSelect Special Report
Why Enthusiasm is Contagious and New Buy
Recommendation for the Month
Double Income
Sep 5, 2023
Dec 3, 2020
More Views on News on UTI ASSET MANAGEMENT COMPANY
Recommended Reading
Sell Alert on 8 Stocks, New Recommendations, and
Having the Open Mindedness to Change
Double Income
Aug 4, 2023
More Views on News Recommended Reading
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and indepth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why
hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
Hidden Treasure
Trust Equitymaster
The Equitymaster Way
Electric Vehicle Stocks
India
Profit Hunter
Forever Stocks
Multibagger Penny
Stocks
Basics of Value
Investing
Defence Stocks in
India
Benjamin Graham
Renewable Energy
Stocks in India
Equitymaster Venture
Equitymaster FAQ
Microcap Millionaires
How Do We Work
Momentum Profits
Views on News Archive
Double Income
Today's Stock Market
Update
How to Invest in Silver
Semiconductor Stocks
in India
Research a Stock
Best Stocks to Buy
Today
Top 4 Ethanol Stocks
Midcap Value Alert
Exponential Profits
Tactical Wealth Project
Lazy Millionaire
Phase One Alert
StockSelect
Private Briefing
Sector Reports
India Stock Screener
Upcoming IPOs
How to Invest in Gold
Best Small-cap Stocks
to Buy
Current IPOs
Best Bluechip Stocks
to Buy
Portfolio Tracker
Guide to Penny Stocks
Videos
How to Invest in the
Share Market
Indian Drone Stocks
Multibagger Indian
Stocks
Best 5G Stocks in India
Best Indian Fintech
Stocks
The Honest Truth
EQUITYMASTER
SUPPORTS
Mobile
Customer Support
Warren Buffett - The
Value Investor
Consistent
Compounding Stocks
Pick the Best
Multibagger Stocks
Top Indian Dividend
Growth Stocks
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
+91-9136015013
Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407
Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com
LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is
strictly prohibited and shall be deemed to be copyright infringement.
Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent
equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk.
This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or
not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into
account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should
consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by
anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its
affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be
reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or
implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms
and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.