Best Long-Term Stocks to Buy in India for 2024
Hey guys, here are some quick notes on some fallen stocks:
I still continue to hold these. And, I do not see any major problems:-
[1] SBI Cards:
– Their retail/B2C is doing very well
– With over 24% growth this quarter in their retail segment
– B2B Card business was stopped (as per RBI’s mandate)
– The vendors are not getting set as merchants
– So the firm expects the business to go back to normal by next quarter
– The valuations are very reasonable
– And, on a 2-3 year basis this is a good stock
– I am holding, in fact building more positions
– Don’t forget that Credit Card penetration in India is roughly 6%
– And, everyone in India loves credit 🙂
[2] DreamFolks:
– This is a good firm
– Very scalable business
– You yourself would have witnessed that lounges have now become massively overcrowded
– In India: now the lunges are getting segmented into ‘basic’ and ‘premium’ at many airports
– That is how high the demand is
– There is nothing wrong with business: it is solid
– In fact, the firm is expanding quite aggressively
– They are doing international expansions (Malaysia for example)
– And, are tying up with golf courses, etc (so they are now offering premium memberships)
– This is very similar to the Thai Elite Visa program
– Again, the valuation is good
[3] Ujjivan SFB:
– The results/numbers are good
– The only issue is the recent run-up (in which our community must have booked profits)
– So the stock is pulling back a bit
– But, overall again — unless the Microfinance space blows up
– This stock is likely to do well (on a 2-3 year basis)
– This is likely to go up in the next banking rally.
* Bandhan will fall in the same bucket
[4] PayTM:
– This is too much of a gamble right now
– I have built a little bit of positions
– But, this is a pure gamble
– If you are building positions: be okay with another 50% crash on the stock
– I am building a high-risk portfolio: so this becomes a part of that — but, otherwise: there is no fundamental basis right now for a buy
– So saying this quite clearly
[5] Supriya Lifescience:
– The numbers
– Valuations
– All are good
The only issue I see with most of the above stocks is that Small/Mid-caps have given a very strong rally.
So on an absolute short-term basis, they might not move up.
Otherwise, if you want to buy good businesses— business-wise, I don’t see a challenge.
Another point to be noted (except for PayTM) is that almost all these businesses are sitting on their highest-ever profit & sales numbers. And, yet at a decent discount.
You can also read it What is the difference between income and wealth? Power of owning a business.