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Time of India
07-07-2025
- Business
- Time of India
One Jane Street does not mean Sebi will throw baby out with bathwater; wealth management stocks in, brokerage out: Ajay Srivastava
Ajay Shrivastava of Dimensions Corporate believes the Indian market will continue to grow. He says penalizing wrongdoers is important. However, overregulation could hurt growth. He suggests wealth management firms are better investments than pure brokerages. He advises investors to be cautious and buy wealth management stocks at cheaper valuations. The F&O market provides depth, and its potential is vast. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , CEO,, says despite market misconduct concerns and the rise of algo trading, the speaker believes the Indian market will persist. Penalizing wrongdoers is crucial, but overregulation could stifle growth and depth. F&Os provide market depth, benefiting wealth management, while pure brokerages face challenges. The market's potential remains vast, and volatility is an inherent aspect to us be honest, every market in the world including the US market, had these problems of having these bad guys like Milken. At the end of the day, every market will have its bad apples. We still do not know what is going to happen legally. But we are in an era of algo trading. Like it or not, machines trade faster than humans, they decide faster than humans, they analyse faster than humans, that is the fact, the question remains that did a player become so dominant that he could influence the market and if it did and whatever comes out, he should be penalised. I do not think it is going to impact the market, barring temporarily affecting F&O volumes by and large because there are different institutions. There are 150-200 people who want to play in this market, large institutions, a couple of million individuals, HNIs, and portfolio offices. It is not that people are going to run away from issue comes back to what happens to the SEBI regulators. If they want to come down heavily on F&O trading, algo trading, sure the volumes will go down. Long term, I do not see a reason for them to do this. Let them open the market. It has given you depth in the Indian market. We have been able to trade and become a global trading destination. Why do you want to destroy it? You saw what the previous Sebi chief did was destroying volumes left, right, and centre. We need to open it up. Temporarily, yes, there could be a shortfall. But broadly speaking, F&Os give depth to the still have to rein in the bad guys, and that is a job for SEBI. But dealing with bad guys does not mean you throw the baby out of the bath water at the end of the day. Just because the plane crashed, does not mean you stop flying. Similarly, just catch the bad guy, penalise him, find the brokerages which are part of the issue and penalise them heavily, make an example of them so that no one dares to do it again. But that does not mean the market is going to die down. Market is much bigger than all of us and all of the do not worry, the party will continue and it has just started. How many people actually participate in the F&O market in this country of 1.3 billion people? It is a very-very long way to have to differentiate between brokerage stocks and wealth management stocks because some of them have become quasi brokerage and wealth managers. You would tend to invest on the side of wealth managers because that is the business which is growing and growing leaps and bound. It is going to get competitive, margins are going to go down but the volumes are growing it becomes more difficult to make money in the market, like right now, people are going to go to the professionals and park my money. The PE industry has shown globally that returns upwards of 25% per annum are a norm in the PE industry in equity is not an exception. Therefore, people who are doing wealth management will keep growing. But pure brokerages is a no-go because that is a no-way street to make money. You cannot make money in brokerages anymore. So, standalone brokerages are not going to work for you. We are not going to invest for wealth management companies, the answer is yes. But learn to live with volatility. One of the stocks you named was down almost 40% in September after the bad result and in the December quarter and since then has recovered back almost everything. Now the question is when were you the buyers? Were you buying at Rs 900, 600, 700, or did you buy at Rs 900, sell at Rs 600 and wait till Rs 900 to buy back? Wealth management companies are very interesting buys, but do not buy them at a market peak. You will get a chance to buy these companies at a much cheaper valuation. Wealth management is in, brokerage is out.
Economic Times
23-05-2025
- Business
- Economic Times
REITs are the new blue-chips for passive income seekers: Ajay Srivastava
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "Yes, PSU, the problem is PSU. As I keep saying again and again, as a consumer do I go to bank with the nationalised bank, I do not think most of us do," says Ajay Srivastava , CEO, Dimensions Corporate Oh, yes, because I tell you, we get obsolete if we start investing in cement and steel again, that is the worst thing because we knew cement, we knew steel, does not mean we need to invest in should not have a portfolio investment in anything called cement or steel in our view. They are not growth industries. It does not take genius to put up a keel and start producing cement. Anybody can do it literally speaking. I am not saying buy, the stock like a Zomato , you cannot put up an infrastructure like Swiggy overnight, that needs innovation and you need to keep innovating in the companies, some are doing phenomenal job in terms of turbine, blades, etc, that everybody cannot go and make it tomorrow differentiation is when we grew up, our paradigm was asset building, steel, cement, and all those things were the favourites at that point time, those should be shunned from the portfolio, do not listen to anybody, they may have the best prospect, price may go up but those are not the stocks for you, that is not the future lies somewhere else and therefore, I say, with age, people who are still with cement and seal have retired from life, you have got to embrace what is the new and that is where you rejuvenate yourself.I am still holding Vedanta. For years I have been holding and I keep holding it because the dividend itself has made like equity zero at this point of time and again, I do not believe you can duplicate this company because if you have the mines you cannot go and open another mine overnight, it takes you 10 years to activate a prices will go, fluctuate up and down, and so on and so forth, but the returns have been absolutely phenomenal. And the beauty is not only just equity, if you look at the REITs that India has, power transmission REIT, one of them which is a private sector, that has done a phenomenal job, the price at 100, it is at 150 and it has given dividend every year and it keeps going up year on dividend yielding stocks, REIT equivalents have given phenomenal return through thick and thin and they are great investment as you go forward because they take away the volatility and whether you like it or not once you have the mine, you have to just go and dig and just sell it, price may be up and down but you do not need to buy a new mine every morning unlike plants and innovation and so on and so yes, I hold those dividend stocks. They have done well, and I will keep holding them because that is a good income which comes and these guys are going to generate income for not two, three, four years, they will generate cash for 25, 40 years in a guaranteed way. It can go up and down, but guaranteed cash flow for 30 years, 40 years. Show me a business like that and I would love to buy it India is another business. Show me a business, I mean 5% dividend yield. Mines, which cannot be Srivastava: PSU. Yes, PSU, the problem is PSU. As I keep saying again and again, as a consumer do I go to bank with the nationalised bank, I do not think most of us I go buy a PSU product, most of us do not do it, alright. There is the separate niche for defence, leave it aside for a minute, that is a monopoly. But really speaking, do you have a BSNL connection, I do not think I have one right. So, nobody I know has a BSNL fundamentally investing in a PSU is putting faith that the government can give you incremental shareholder value when the government does not know how to run a business. It should not be running a business at the end of the therefore, it does not really matter. It is in a department. Look at oil marketing companies. What has happened to them? They are no more companies. They are departments. They do not change pricing. Oil can go down for $20. They do not change the pricing. Government comes and takes excise and takes it really speaking, if you ask me, PSU commodity companies are not companies, they are extension of government departments and you do not want to invest in government department at the end of the day. If they were freely floating companies and they could price how they wanted, our OMCs would be at their price to book, it is 1 or 1.2 and the asset they have created is phenomenal. The patrol pump, the real estate value, the refineries, etc. Privatise it, they will be quoting at five to six times what they are intrinsically quoted today. But being departments, how do your shareholder going to make money out of it? You the company does not increase the price or reduce the price when the demand falls, how do you make money? So, I it is the PSU tag which is a problem and I stay away from it most of the time.I think it is good, definitely it is good because government allocation will also go up. Defence has to go up given what has happened to the borders of ours. It is good for Indian companies. Again, they are not so cheap are PEs of 80, 90, and 100 at this point of time. But they have a path to catch up. Perhaps they will catch up in three to four years' time. You may go wrong with investing now and repent in a year's time. But the fact is they have a good the drone thing which is going on in this industry, I have, at least on my desk, I can tell you 100 prospectuses are lying of companies who make drones or want to make I am not sure who is going to be the winner or loser, but I can certainly say that the existing private listed companies of defence sector have a clear edge in the market and that is the place to be. But as I said, there are so many new players coming in, on top of that there is a global are not the best globally in terms of the product at this point of time. So, locally, yes, we can buy some. So, I would temper down to say only one that the hoopla comes before you commit your cash and therefore be careful of what the cash will end up of companies will do well, but the results are not showing so far. It is a long process in government to be empanelled, to get a product certified, to get it tested, get an order, get delivery, and book revenues. The cycle is seven years' be careful, defence timelines are very long and very complex in terms of buying behaviour. So, short-term, yes, uplift but long-term be reasonable, these orders do not come overnight.
Time of India
23-05-2025
- Business
- Time of India
REITs are the new blue-chips for passive income seekers: Ajay Srivastava
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "Yes, PSU, the problem is PSU. As I keep saying again and again, as a consumer do I go to bank with the nationalised bank, I do not think most of us do," says Ajay Srivastava , CEO, Dimensions Corporate Oh, yes, because I tell you, we get obsolete if we start investing in cement and steel again, that is the worst thing because we knew cement, we knew steel, does not mean we need to invest in should not have a portfolio investment in anything called cement or steel in our view. They are not growth industries. It does not take genius to put up a keel and start producing cement. Anybody can do it literally speaking. I am not saying buy, the stock like a Zomato , you cannot put up an infrastructure like Swiggy overnight, that needs innovation and you need to keep innovating in the companies, some are doing phenomenal job in terms of turbine, blades, etc, that everybody cannot go and make it tomorrow differentiation is when we grew up, our paradigm was asset building, steel, cement, and all those things were the favourites at that point time, those should be shunned from the portfolio, do not listen to anybody, they may have the best prospect, price may go up but those are not the stocks for you, that is not the future lies somewhere else and therefore, I say, with age, people who are still with cement and seal have retired from life, you have got to embrace what is the new and that is where you rejuvenate yourself.I am still holding Vedanta. For years I have been holding and I keep holding it because the dividend itself has made like equity zero at this point of time and again, I do not believe you can duplicate this company because if you have the mines you cannot go and open another mine overnight, it takes you 10 years to activate a prices will go, fluctuate up and down, and so on and so forth, but the returns have been absolutely phenomenal. And the beauty is not only just equity, if you look at the REITs that India has, power transmission REIT, one of them which is a private sector, that has done a phenomenal job, the price at 100, it is at 150 and it has given dividend every year and it keeps going up year on dividend yielding stocks, REIT equivalents have given phenomenal return through thick and thin and they are great investment as you go forward because they take away the volatility and whether you like it or not once you have the mine, you have to just go and dig and just sell it, price may be up and down but you do not need to buy a new mine every morning unlike plants and innovation and so on and so yes, I hold those dividend stocks. They have done well, and I will keep holding them because that is a good income which comes and these guys are going to generate income for not two, three, four years, they will generate cash for 25, 40 years in a guaranteed way. It can go up and down, but guaranteed cash flow for 30 years, 40 years. Show me a business like that and I would love to buy it India is another business. Show me a business, I mean 5% dividend yield. Mines, which cannot be Srivastava: PSU. Yes, PSU, the problem is PSU. As I keep saying again and again, as a consumer do I go to bank with the nationalised bank, I do not think most of us I go buy a PSU product, most of us do not do it, alright. There is the separate niche for defence, leave it aside for a minute, that is a monopoly. But really speaking, do you have a BSNL connection, I do not think I have one right. So, nobody I know has a BSNL fundamentally investing in a PSU is putting faith that the government can give you incremental shareholder value when the government does not know how to run a business. It should not be running a business at the end of the therefore, it does not really matter. It is in a department. Look at oil marketing companies. What has happened to them? They are no more companies. They are departments. They do not change pricing. Oil can go down for $20. They do not change the pricing. Government comes and takes excise and takes it really speaking, if you ask me, PSU commodity companies are not companies, they are extension of government departments and you do not want to invest in government department at the end of the day. If they were freely floating companies and they could price how they wanted, our OMCs would be at their price to book, it is 1 or 1.2 and the asset they have created is phenomenal. The patrol pump, the real estate value, the refineries, etc. Privatise it, they will be quoting at five to six times what they are intrinsically quoted today. But being departments, how do your shareholder going to make money out of it? You the company does not increase the price or reduce the price when the demand falls, how do you make money? So, I it is the PSU tag which is a problem and I stay away from it most of the time.I think it is good, definitely it is good because government allocation will also go up. Defence has to go up given what has happened to the borders of ours. It is good for Indian companies. Again, they are not so cheap are PEs of 80, 90, and 100 at this point of time. But they have a path to catch up. Perhaps they will catch up in three to four years' time. You may go wrong with investing now and repent in a year's time. But the fact is they have a good the drone thing which is going on in this industry, I have, at least on my desk, I can tell you 100 prospectuses are lying of companies who make drones or want to make I am not sure who is going to be the winner or loser, but I can certainly say that the existing private listed companies of defence sector have a clear edge in the market and that is the place to be. But as I said, there are so many new players coming in, on top of that there is a global are not the best globally in terms of the product at this point of time. So, locally, yes, we can buy some. So, I would temper down to say only one that the hoopla comes before you commit your cash and therefore be careful of what the cash will end up of companies will do well, but the results are not showing so far. It is a long process in government to be empanelled, to get a product certified, to get it tested, get an order, get delivery, and book revenues. The cycle is seven years' be careful, defence timelines are very long and very complex in terms of buying behaviour. So, short-term, yes, uplift but long-term be reasonable, these orders do not come overnight.
