The Power of Compounding – Why Starting Early Matters

India stands the second rank in the production of cement in the world. It produces more than 7% of global capacity.

India is now focused on vast potential development in the infrastructure & construction sector and the cement sector is expected to get a large benefit from it. The recent initiatives, such as the development of 98 smart cities, are expected to provide a major booster to the cement industry.

With some suitable Government foreign policies, several foreign players have also invested in India in the past. Another factor that is the growth factor for this sector is the ready availability of raw materials limestone and coal for making cement.

Production of Cement in India reached 329MT in FY20 and is estimated to reach 381 MT by FY22. Whereas, the consumption stands at 327MT in FY20, which will reach 379 MT by FY22. As the country has a high quantity and quality of limestone deposits.

As per the report of CLSA, the Indian cement sector is witnessing huge improved demand. Major players reported by the company are ACC, Dalmia, and UltraTech Cement. In the second quarter of FY21.

Due to sharp recovery in rural areas and unlocking of the country demand for the industry will increase, and the cement companies also reported a sharp rebound in earnings due to rise in demands.

Which can be seen further in upcoming quarters due to unlocking of the country.

The Indian Government has approved investment schemes to help private sector companies:-

In this Union Budget 2021-22, the Government extended benefits, under Sec-80-IBA of the Income Tax Act, until March 31, 2021, to promote affordable rental housing in India.

In the Union Budget 2021-22, the government outlaid Rs. 1,18,101 Cr. for the Ministry of Road Transport and Highways.

In the Union Budget 2021-22, the National Infrastructure Pipeline (NIP) expanded to 7,400 projects from 6,835 projects.

The Union Budget allocated Rs. 13,750 Cr. and Rs. 12,294 Cr. for Urban Rejuvenation Mission: AMRUT and Smart Cities Mission and Swach Bharat Mission, and Rs. 27,500 Cr has been allotted for Pradhan Mantri Awas Yojana.

Some of the eastern States of India are likely to be the new and untapped markets for cement companies and which could contribute to their bottom line shortly. India could become the major exporter of clinker and grey cement to nations like the Middle East, Africa, and other developing parts of the world in the next 10 years.

The cement plants near the ports, like the plants in Gujarat and Visakhapatnam, have an added advantage for export and will logistically be well armed to face stiff competition. The country's cement production capacity is expected to reach 550 MT by 2025.

Due to an increase in the demand in various sectors like housing, commercial construction, and industrial construction, the cement industry is expected to reach 550-600 MTPA by 2025.

The top 5 major players in the Cement Industry in India are as follows:

1. Ultra Tech Cement with a market share of 31% and with a good brand name has given almost 79.82% return even in the conditions of the pandemic. The company has a market cap of Rs 1,97,688.61cr is also termed as the giant of the cement industry.
2. Ambuja Cements has a market share of 21%, is a part of global leader Lafarge Holcim. This company has delivered a 77.33% return at the time of the pandemic. It also holds a market cap of Rs 67,323.30 Cr.
3. ACC Cements holds a 12% market share it is also a leading player in building materials with a presence at the pan India level, With a market cap of Rs 38,418.46 Cr. ACC Ltd has delivered 60.58% returns during the last year.
4. Shree Cement ltd, with a 10% market share in the Indian cement industry it is also termed as a multi-bagger in this space, it holds the second-largest market cap of Rs 1,05,107.37Cr after Ultra tech Ltd. With a high ticket price of Rs 28,982 per share, the company has delivered 36.87% returns during the last 1 year.
5. Dalmia Bharat holds an 8% market share in this industry and stands 5th in terms of market cap among all the cement giants in India. The company holds a market cap of Rs 33,064.60Cr. It has delivered a huge return of 217.94% in the last 1 year.

Note: These figures can be varied according to the market prices.

Many investors are seeking the best funds that not only give them accurate results but also save their taxes to a greater extent.

In India taxation is a major concern and therefore many Indian investors are looking for the equity trading investment that gives them adequate tax benefits. As a result, they opt for ELSS funds.

ELSS is basically an equity-linked saving scheme mutual fund that invests in equity, stocks and equity-related securities across different market segments.

Investment in ELSS mutual funds allow investors to gain outstanding tax benefits under section 80 C of the income tax act. For instance, one can save around 1.5 lakh per year by investing in ELSS funds.

One thing you should be aware of about ELSS mutual funds is that the funds come with a lock-in period of 3 years. The period is less than other schemes such as PPF whose minimum lock-in period is 5 years.

How Much Should You Invest in ELSS?

To invest in ELSS funds, either you can make a lump-sum investment or start a SIP. The minimum amount of SIP starts with Rs 500. Though there is not a maximum limit on the investment amount, investors can enjoy tax benefits up to Rs 1.5 Lakh under section 80 C in the financial year.

Features of the ELSS Funds

ELSS mutual funds are the best investment options to make money through equity markets. This allows investors to save adequate tax amounts from the funds. Since the funds come with a flexible lock-in period, it allows investors to stay invested in the long run and avoid selling.

One interesting thing about ELSS funds is that some of these funds are considered as growth funds as they reinvest the returns and generate outstanding stock trading returns at the end of the lock-in period.

ELSS funds also come with dividend reinvestment options which enable investors to decide if they want to reinvest the dividend amount in the markets.

Taxability

Many investors invest in ELSS funds only because these funds help investors to save tax who have a lock-in period of only three years. For instance, if an investor invests 1.5 Lakh each year, he can save a tax up to 46,800.

After a period of three years, the gains come from ELSS funds considered as a long term gain and are taxed at 10% for the gains occurring above 1 Lakh.

The taxes saved by ELSS funds are via tax deductions, tax exemption and benefit of indexation. If someone invests 1.5 Lakh, it can be deducted by taxable income and the return comes under 1 Lakh and is exempted from the taxation.

Hence by investing in ELSS funds, investors can save tax and generate wealth for a better future.

The Funds are Suitable for.

Investing in ELSS mutual funds is a smart way to save a large amount of money that may go toward taxes. However, it may be noted that ELSS funds may not give expected returns as these funds are mostly dependent on equity and online stock trading markets.

Hence, ELSS mutual funds are apt only for those who want to save their taxes and have a will to take a risk by investing in equities.

Another benefit of investing in ELSS funds is that the investors who are willing to take an adequate risk may earn huge returns as compared to fixed-income investments. Therefore, the ELSS funds are for those whose age comes between 20-35.

People of a large age group such as above 40 should not seek ELSS funds as they are full of risks. Instead, they can invest in other safer schemes such as PPF, NPS, FD and more.

Anyone who can invest for a longer duration without seeking the locking period should invest in ELSS funds.

Advantages of Investing in ELSS Funds

One of the greatest advantages of investing in ELSS mutual funds is that it offers a safer investment medium for investors who have zero knowledge of equity markets.

Secondly, the mutual funds are managed by fund managers who are experts in the equity segment. They invest their money in the top companies as per their knowledge and experience.

This gives investors an opportunity to generate better returns than other tax saving schemes such as PPF, NPS etc.

Thirdly, ELSS funds come with a lock-in period of three years which is less than other closed-ended funds and tax saving schemes.

Last but not the least, ELSS funds also invest in mid-cap companies which allow investors to substantially earn higher returns than large-cap funds. Although the risk factor of mid-cap funds is higher than large-cap funds, you need to analyze your investment aim and risk appetite before making any such decisions.

Let’s discuss the Top 10 Tax Saving Mutual Fund Schemes:

Quant Tax Plan Direct-Growth

The fund has given an annualized return of 30.02% in the past three years. Last year, the scheme's total return was 126.78%.

Why Invest:

This fund has consistently outperformed other funds by giving a whopping 126.78% return in the past year. The minimum lump sum amount required to invest in this scheme is Rs 500.

Mirae Asset Tax Saver Fund Direct-Growth

In the last three years, the fund has given an annualized return of 20.92%. Last year, the returns generated by this fund was 74.49%.

Why Invest

It is considered the most remarkable equity mutual fund in India that has managed to provide a 74.49% return in the last year.

Canara Robeco Equity Tax Saver Direct-Growth

The fund has given an annualized return of 20.36% in the last three years. In the last year, the returns were 67.43%. The fund has continuously hit the benchmark in the equity segment.

Why Invest

The fund has consistently outperformed the other similar funds by generating a 67.43% return in the last year.

DSP Tax Saver Direct Plan-Growth

The fund’s annualized return for the last three year was 17.77%. It’s last year returns were 68.95%.

Why Invest

It is also counted as the remarkable fund in India by giving a 68.95% in the last year. The minimum investment amount required to invest in this scheme is Rs 500.

BOI AXA Tax Advantage Direct-Growth

The fund has given an annualized return of 17.65% in the last three years. The fund’s last year returns were 75.15%.

Why Invest

The minimum investment amount required to invest in this fund is Rs 500. The fund has outperformed other funds by providing 75.15% returns in the last year.

Takeaway

ELSS schemes offer amazing tax benefits compared to other schemes. That’s the reason investors prefer to invest in schemes that generate outstanding returns with tax benefits.

The mutual fund schemes described above are the best schemes to invest in in 2021.

अमेरिकी उपभोक्ता मूल्य सूचकांक में गुरुवार को अगस्त 2008 के बाद से, और इस साल अप्रैल में 4.2 प्रतिशत की वृद्धि के बाद साल-दर-साल की सबसे बड़ी बढ़ोतरी दर्ज की गई है। मुद्रास्फीति बढ़ने के अनुमान पर यूरोप से अमेरिका तक की बांड यील्ड में गिरावट रही, और सोना-चांदी की कीमते चमकती दिखाई दी है। आर्थिक राहत के प्रवाह से सोना-चांदी, निवेशक के बीच लोकप्रिय बना हुआ है।

गुरुवार को यूरोपियन सेंट्रल बैंक ने विकास दर और मुद्रास्फीति में बढ़ोतरी का अनुमान लगाया है जिससे सोने -चांदी मे तेज़ी देखि गई। यूरोप और अमेरिकी केंद्रीय बैंको के अनुसार मुद्रास्फीति में बढ़ोतरी अर्थव्यवस्थाओं के कोरोना महामारी से उबरने के कारण है। और वर्त्तमान परिस्तिथि के लिए राहत पैकेज जारी रहना आवश्यक है। जिससे लम्बी अवधि के लिए मुद्रास्फीति का डर कम होता है। पिछले सप्ताह घरेलु वायदा सोना 200 रुपये प्रति दस ग्राम और चांदी 1000 रुपये प्रति किलो तक तेज़ हुई है। बिटकॉइन और अन्य क्रिप्टो करेंसी से निवेशकों का भरोसा उठने लगा है जिसके कारण क्रिप्टो करेंसी मे बिकवाली का दबाव है और क्रिप्टो करेंसी के निवेशक सोने और चांदी की तरफ आकर्षित हो रहे है।

आर्थिक आंकड़े

इस सप्ताह निवेशको को अमेरिका से जारी होने वाले महत्वपूर्ण आकड़ो पर नज़र रखना चाहिए जिनमे, मंगलवार को रिटेल सेल्स, पीपीआई, बुधवार को फ़ेडरल रिज़र्व बैंक की बैठक और गुरुवार को बेरोज़गारी दावे के आंकड़े प्रमुख है।

तकनीकी विश्लेषण

इस सप्ताह सोने और चांदी में तेज़ी रहने की सम्भावना है। सोने में 49750 रुपये पर प्रतिरोध तथा 48700 रुपये पर सपोर्ट है। चांदी में 73000 रुपये में प्रतिरोध और 70500 रुपये पर सपोर्ट है।

The Liquor industry in India is one of the biggest alcohol industries across the globe stand behind the two major countries such as China and Russia.

The fast-growing demand for alcoholic beverages in India is majorly attributed to the huge population and young base and the consumption of alcohol by everyone &  rising disposable income is strengthening the industry growth & Profits. With the vast population in India, it is one of the largest consumer markets.

Also demographically in India around 50% of its population below the age of 25 and around 65% below the age of 35. The major consumption of alcohol by volume is by the people aged between 18 and 40.

The demographic stats are expected to fuel the growth of the market over the forecast period at a rapid pace. Even the rapid urbanization of tier-II cities is further adding strength to the market growth.

Analyst forecasts that the Indian liquor market to grow at a CAGR of 7.4% during the period 2017-2030. The market is also anticipated to reach USD 39.7 billion by the end, As alcohol consumption is growing in urban areas.

Indian Made Foreign Liquor is accounted for the largest market share of  40% in 2016. Whereas the foreign liquor bottled in origin or imported alcohol shows fast growth in terms of its consumption in the last few years and which is likely to grow with a CAGR of 25% at a faster pace in the forecast period.

In India, the Southern part is accounted for the biggest market with a market share of more than 45% in terms of alcohol consumption, with a significant rise in urban areas and female alcohol consumers in that region.

North India and Western India are expected to be the new fast-growing markets with the growing number of urban cities.

According to the report, the major driver in the Indian market is the fastest-growing consumption of alcohol owing to fast urbanization in the country.

A huge population migrating towards developed cities and exposed to a variety of alcoholic beverages, including IMFL, and contributing to the market growth.

Although India is a young country, more than 55%  of Indians are in the age group of  18-45. This is the target age group for the industry as potential customers.

One challenge in the Indian Liquor market is liquor licensing and sourcing.

For starting a new business and expansion, liquor licensing and sourcing is emerged as the major growth barrier for the industry, as it is the necessity to obtain mandatory licenses and regulation which is related to hours of operation and minimum age of consumption, which is different from state to state.

After the impact of Covid-19, the sales levels are showing sharp growth in this sector the sales reach the previous levels before Covid-19.

In the same manner Unlocking in the country will lead to a sharp increase in sales. Imposing extra taxes also not affected the consumption in the country.

This industry is an untouched segment in the country and is expected to grow at a faster pace. As the competition is very less with limited market players.

Whereas the consumption is increasing day by day. Even at the time of lockdown, the companies manufacture alcohol-based hand sanitizers which were in demand.

On March 13th, 2020 the Pharma index on National Stock Exchange made a low of 6242.85 since from that day the pharmaceutical stock has given a tremendous return. The pharma index made a high of 14282.90 an up move of 8040.05 points with almost 40% returns in 1 year and it has been assumed that the future outlook of the Indian Pharmaceutical industry will have a 3 times growth from till next decade. Indian domestic market is estimated to grow around US$ 41 billion by 2021 and may reach US$ 65 billion by 2024.These growth figures indicate that in long term the pharma sector can be a game-changer for the investors along with a great contribution to the countries economy. We are the major suppliers of generic medicines & drugs across the globe and with new PLI schemes and government intervention for 100% FDI the pharmaceutical industry will witness new growth ahead in the future. The contribution of around 1.72 % to the GDP of the country, makes a significant mark. Earlier it was only 1% in last decade. Lots of research& development programs, FDI inflow opens new avenues for the industry to grow further. The flow of $ 16.5 billion by FDI in April 2000-June 2020, due to 100% FDI is approval in greenfield projects via automatic route & 74 % FDI for brownfield projects. The efforts made by pharmaceutical companies to overcome the current Covid-19 crisis with the help of the Indian government show the robustness itself. We are the largest manufacturer of vaccines across the globe, and the fight against COVID-19 will not be successful without Indian vaccine manufacturers. We were the first to produce the vaccination for Covid-19.With this outperformance, many companies turned out to be multi-baggers for the investors.

Orchid Pharma Ltd

The company manufactures a wide range of APIs for oral cephalosporins, beta-lactams formulation, Special nutraceuticals, etc. The company is also engaged in formulation development for various segments like anti-oxidants, oral anti-diabetics. The return given by the company is 25,770.64% in one year with 52 weekly low of Rs.17.15 & made a high of Rs.2654.25

Bafna Pharmaceuticals Ltd.

The company engaged in the manufacturing of pharmaceutical formulations of Betalactum and Non-Betalactum productsThe return given by the company is 567.32% in one year with 52 weekly low of Rs.20.35 & made a high of Rs.233.55

Kopran Ltd

The company engaged in the manufacturing and supplying of International Quality Formulations and Active Pharmaceutical Ingredients worldwide. The return given by the company is 562.09% in one year with 52 weekly low of Rs.27.05 & made a high of Rs.234

Beta Drugs Ltd

The company manufactures & markets drugs for domestic & international customers, Primarily engaged in the manufacturing of oncology products It includes anti-cancer tablets, Injections & lyophilized injections.The return given by the company is 520.00% in one year with 52 week low of Rs.47. & made a high of Rs.350.20

Laurus Lab Ltd.

The company offers an integrated portfolio of API which includes intermediate, generic finished dosage forms and carries out contract research services. The return given by the company is 476.39% in one year with 52 weekly low of Rs.92.80. & made a high of Rs.544.95

Wanbury Ltd

The company engaged in the business of manufacturing of formulations Active Pharmaceutical Ingredient(API) and Contract Research and Manufacturing Services.The return given by the company is 425% in one year with 52 weekly low of Rs.19.05 & made a high of Rs.114.00

Neuland Laboratories Ltd

The Company is a leading manufacturer of active pharmaceutical ingredients & an end-to-end solution provider for the pharmaceutical industry.The return given by the company is 423.19% in one year with 52 weekly low of Rs.387.75 & made a high of Rs.2844.40

Solara Active Pharma Science Ltd.

The company is pure play for API & engaged in the manufacturing & development of API. It also offers Contract Manufacturing & development services for foreign companies.The return given by the company is 215.97% in one year with 52 week low of Rs.516.35 & made a high of Rs. 1859.95

Aarti Drugs Ltd

The company is one of the major pharmaceutical manufacturers in the country. It is engaged in the manufacturing of pharmaceuticals. It also operates in anti-diarrhoea, anti-inflammatory, and anti-biotic therapeutic segments.The return given by the company is 201.72% in one year with a 52 week low of Rs.227.75 & made a high of Rs. 1026.95

The second wave of Covid-19 is almost near to an end. Where the states had uplifted the lockdown with some major precautions, still in many states the number of cases are coming frequently though the number is in declining ratio.

Tough many states still have not lifted the lockdown rules and extended it till mid or end of June 2021, whereas in some states there are weekend restrictions and at some places, there are restrictions regarding the opening of necessity shops and so on.

The vaccination drive is also increased its pace and getting more & more candidates vaccinated as soon as possible. This show the sign of recovery.

The Economy had suffered huge losses since the rise of covid-19 cases across the nation the country suffers a lockdown in the first wave starting from March 24 2020 which leads to the first nationwide lockdown for the entire 21 days which later on continued till June 2020.

After that, the country started opening up stably and the economy was trying to get back on track again. Since then the economy is trying to recover, Last year we also posted negative GDP data which shows how badly our countries manufacturing & other business units got affected due to the pandemic.

Many startups, small businesses, & professionals lost their earning due to this. Even though some giant business firms confirmed they will pay some portion of salary to them but still that won’t be enough.

Some major steps were taken by big companies like Reliance, TATA sons as they said & agreed to pay to the person family those who lost earning members in this covid-19 cause. This is a great measure taken by these companies and help their family members.

The impact of the 2nd wave was still on and many businesses are still affected by it. The government is trying to overcome the situation and also provided some major monetary reliefs and incentive schemes which later on boost up the market and the economy will soon back on track.

Somehow the Indian government is mainly focusing on Atmanirbhar Bharat which usually wants our companies to produce more and more goods in the domestic market to avoid relying on the Import of it.

Somehow this condition will soon overcome and everything will begin to get normal sooner or later, along with that the vaccination drive is also getting faster which will also boost up to fight against this.

But after this 2nd wave of COVID-19, some sectors will perform well once the lockdown is been lifted totally from all the states and everyone will begin to live a normal & healthy life.

Last year IT and Pharma were the outperformers at the time of the pandemic, even after unlocking the nation the culture of work from home is in the run even the school and colleges are also not opened and all the sessions were conducted online via virtual lectures only.

Which shows the country is moving towards the digitization era. Everything is becoming easier with online mode and will remain continue till 2021-22.

Sectors that will perform once the unlocking is done in the country are as follows:-

1) Entertainment: Due to covid-19 and to avoid vast spreading among everyone the movie theatre was put on shut and will not be allowed to run due to adverse conditions. But now once everyone got vaccinated the sector will reopen again and will show some robust growth. Earlier this year many states started functioning with 50% capacity which actually turns into losses and later on it shut down again due to 2nd wave.

Stocks to Watch: Inox Leisure & PVR

2) Hotel & Restaurants: Once the lockdown is done the hotel industry will again see some good hope, due to the current situation there were no tourist and other persons are visiting or traveling across the nation, which affected the industry and from last 2 years, it is running under losses.

Even the specialty food chains & restaurants are only providing parcel services or take away service.

Stocks to Watch: Lemon Tree Hotels & Indian Hotels

3) Airlines: Once the lockdown is lifted the airline industry will again back into functioning, which shows some improvements & recovery in the economy.

Stocks to Watch: Intergolbe Aviation & Spice Jet

4) Tours & Travels: This sector also witnessed a huge impact during the pandemic but now conditions are getting better, this segment will see some robust change, the major reason is the psychological impact on every individual who is in lockdown will plan out to move and visit some new places for a change.