As you know, in the coming time, the country is moving towards green energy and in such a situation, the green energy sector is sure to move ahead. For example, the company NTPC Green Energy got listed yesterday i.e. on 29th November and disappointed the investors in its listing gain but immediately put an upper circuit of 10% within half to 1 hour.
Now what to do, take or keep the listing gains
If you applied only for listing gains and you have got one or two lots then it is better to exit it between 120 and 125 and if you want to be a part of your portfolio then you can hold it for the long term.
This stock may or may not give you profit on listing gains but it can make those who invest for the long term rich.
Profit
Its parent company NTPC has given a return of up to 46% in the last 1 year and a return of 217.25% in 5 years.
And till now this company has given a return of 403.59%. It would not be wrong to say that in the coming time you can become rich by investing for 5 or 10 years but before investing in any stock it is very important to do its fundamental analysis like that of that company.
Fundamentals
| Mkt Cap | ₹1,02,892Cr | ROE | 3.82% |
| P/E Ratio(TTM) | 297.80 | EPS(TTM) | 0.41 |
| P/B Ratio | 5.71 | Div Yield | 0.00% |
| Industry P/E | 22.02 | Book Value | 21.39 |
| Debt to Equity | 2.20 | Face Value | 10 |
It is very important to do some analysis of every company’s market cap, PE ratio, PB ratio and it is also important to see how much debt the company has. The most important thing is which sector you are investing in.
In the coming time, some sectors can perform very well, such as green energy, IT sector, artificial intelligence, electric vehicles, some sectors can give very good returns.
How much to invest
Before investing, keep this thing in mind that do not invest the entire money at once. Invest up to 25% or 50% of your total money and keep the rest of the money in your demat account or you can also keep it in your bank account and why is it important to keep this money, it is important because if you invest all your money at once then you will not have money for averaging and if you do not average then you may incur loss.
And why is averaging necessary? Averaging is necessary because if you bought any share at Rs. 300 and the price of that share becomes Rs. 250, then you will have money with you and you can buy more shares with 10% of your money and your average will decrease from 300 to 270 or 280 anything and your loss will also be less and by not buying any share at once, by buying little by little you will have more shares and if you keep it for a long time then you can get very good profit.
(Disclaimer: Please note Stockbhoomi never advises you to invest. Stock market is full of risk. Please consult your advisor before making any investment. The views expressed on Stockbhoomi may be the personal views of Stockbhoomi)
