The Third Eye of Investor

With all the major IT services companies like TCS, Infosys and HCL Tech trading around their All-Time-High, let's discuss key matrices of these companies and see the opportunities in these companies from here for retail investors, if any exist.  Growth prospects Let's start with growth, because in the end, growth will decide the stock price. If company is growing it's revenue, margins are consistent or expanding, net profit is increasing, stock price will have no option but to go up in the long run. As world is moving fast towards digitalization after covid-19, adoption of tech and tech-enabled services are need of the time and is critical for businesses now. And Indian IT services companies have a role to play here, as technology provider and at times technology enabler. Future is looking good from here which we can see in revenue guidance of top companies which is going as high as 20% per annum.   Dividends/ Buybacks/ Bonus Shares These companies are huge cash generatin...

Indian economy was facing a down trend even before the covid-19 pandemic and covid made this even worst as shown in below chart. India's GDP growth was -23.92% and -7.54% for Q1 and Q2 2020-21 respectively. We are in a recession technically.  Image source: www.statisticstimes.com So, why am I saying economic up-cycle? Let's find this out in this blog and what should retail investors should do right now. The economy is growing negatively but we all know that this is due to strict lockdown which India imposed and economic activities were completely shut for months. And as lockdown restrictions were eased out, economic recovery was very sharp and unexpected. Some economists were attributing this recovery to festive season and pent-up demand however, it is very clear now that it is broad base economic recovery. GST collection figures and corporate earnings of December 2020 quarter are clear indicator of consumer spending behavior and economic activities of the country.  Image sour...