Falling interest rates and rising stock markets have ensured that investments in the financial space, particularly in stocks and shares, are on the rise in India.
Stock prices of quality brokerages have gone through the roof and are refusing to look back and these keep climbing higher.
IIFL is 618 (FV2, EPS 5), MOSL is 1458 (FV1, EPS 6) — you name it, every quality brokerage stock is available at stratospheric and almost unreasonable valuations. Yet, there are takers for brokerage companies because financialization of savings will ensure that brokerages continue to grow at a healthy pace.
Now, in this scenario, wouldn’t you just love to invest in a quality brokerage stock that has national exposure and is priced between 180 and 190, has an EPS of Rs 22, FV of 10, and is engaged in the following verticals?:
Merchant Banking (company has managed 5 IPOs already)
Insurance (not yet gained traction)
Financial Training Institute (yet to fly)
Online Discount Brokerage Trading (Like Zerodha/SAMCO).
Of course you would. No one would want to miss out on such a stock.
And that stock is Swastika Investmart Ltd
To justify my recommendation I just have one question to ask you:
Suppose Zerodha announces an IPO. Wouldn’t you expect a minimum price of Rs 300-500/share?
I’m sure you would.
Now hear this – Swastika Investmart has already developed an online discount brokerage trading tool – Trading Bells.
The company is spearheaded by a very dynamic individual, Sunil Nyati, who has pulled out stops to ensure that Swastika keeps up with technological changes and becomes a national brand.
Disclosure: I own some stocks that I picked up today (12 Oct).