With no place to hide in the current market situation, can MNC stocks prove to be ‘most profitable’ investments for long term investors? Geyatee Deshpande explores……
With equity returns dwindling for a majority of investors, most investors are wondering what needs to be done not only to protect the portfolio returns but also to outperform the key benchmark indices. After testing investors' patience for more than 18 months now, markets are testing investors' conviction in the asset class itself even as experts believe this is the right time to accumulate stocks as the valuations are getting cheaper, especially for the broader markets.
While the broader consensus is that the valuations have become attractive for very many small-caps and mid-caps, the larger concern amongst the investors seems to be the corporate governance issue and lack of quality in listed stocks. Indeed, the downgrading of the rating of some of the reputed corporate groups and corporate governance issues have shifted the focus on the listed MNC stocks.
We can find all the qualities listed below in the MNC stocks:
Proven business model and strong parentage
Superior technology leading to technology moat
Capital adequacy and lower leverage (asset-light business model)
Strong products and brands
Decent to large market shares
Esta historia es de la edición August 5, 2019 de Dalal Street Investment Journal.
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Esta historia es de la edición August 5, 2019 de Dalal Street Investment Journal.
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