Veteran investor and head of BM Equity Basant Maheshwari has answered many questions in his latest YouTube video. These are the questions his viewers ask him on YouTube. Basant Maheshwari said that nowadays a question is often being asked whether to buy Bajaj Housing Finance or IREDA because investors were feeling that regarding these two stocks it is now or never.
One stock will fulfill all your dreams
Regarding Bajaj, it seemed as if a single stock would fulfill all your dreams. Both these stocks have fallen significantly. Even now people are asking questions on these. Basant Maheshwari said that people get many questions regarding these two stocks. IREDA is 7 Times Price to Book. A year ago there were 13 lakh shareholders and now they have become 22 lakh. Retailers seem to be overly excited about these stocks. If we look at Bajaj, the price to book is 7 times. But if we talk about both the stocks then Bajaj Housing is still better than IREDA. However, I would still not buy these stocks as the valuations are not in my framework. Basant Maheshwari said that he does not recommend these two stocks, he is only checking the fundamentals.
Basant Maheshwari said that the bullish market
Basant Sir said that in the bull market, the promoter thoughtfully brought the IPO of Bajaj Housing with low liquidity and then when it gained tremendous momentum, Bajaj Finance sold its 5 percent stake in Bajaj Housing. Overall, this is a bull market in which the promoter feels that he can take advantage of it, so he sells his share and leaves. This was a clear indicator that these stocks had become excessively overbought. But if I still say whose fundamentals are better among these two stocks, then I will still say Bajaj Housing. But I still wouldn’t buy this stock. I will take it at my own price because stocks should not be taken in the madness of the market. If you buy shares at 7 times price to book then it is very difficult to make money from there. Now no one is even talking about Bajaj Housing. Same is the condition of IREDA. Stocks are so expensive that no money will be made in it. However, I (Basant Maheshwari) do not have any opinion on any stocks.
Disclaimer- Business Today Bazaar does not recommend any stocks, if you make any investment then do it at your own discretion.