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Financial Advisory Services | Trusted Wealth Management by Centrum Wealth

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Financial Advisory Services | Trusted Wealth Management by Centrum Wealth

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Explore expert financial advisory services with Centrum Wealth. Get personalized investment strategies, wealth management, and financial planning tailored to your long-term goals.

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Financial Advisory Services | Centrum Wealth

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Financial Advisory Services | Centrum Wealth

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Achieve your financial goals with expert financial advisory services from Centrum Wealth. Get personalized wealth management and strategic investment solutions.

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Centrum Wealth: Professional Investment Advisory Services

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Centrum Wealth: Professional Investment Advisory Services

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Centrum Wealth provides expert investment advisory services designed to help you navigate the complexities of the financial markets. Our seasoned advisors work closely with you to develop customized investment strategies that align with your financial objectives and risk tolerance. With a commitment to transparency and informed decision-making, we aim to maximize your investment potential while minimizing risks. Trust Centrum Wealth to be your partner in achieving your investment goals!

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Centrum Wealth: Premier Investment Advisory Services

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Centrum Wealth: Premier Investment Advisory Services

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Centrum Wealth offers expert investment advisory services tailored to help you achieve your financial goals. Our experienced advisors provide personalized strategies, market insights, and comprehensive portfolio management to optimize your investments. Trust Centrum Wealth to guide you through the complexities of the financial landscape and secure your financial future.

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Expert Financial Advisory Services by Centrum Wealth

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Expert Financial Advisory Services by Centrum Wealth

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Centrum Wealth provides comprehensive financial advisory services tailored to your individual needs. Our experienced advisors work closely with you to develop personalized strategies for investment, retirement planning, and wealth preservation. With a focus on understanding your financial goals and risk tolerance, we offer insights and solutions that empower you to make informed decisions. Trust Centrum Wealth to guide you on your financial journey, ensuring a secure and prosperous future.

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Comprehensive Wealth Management Services for Lasting Financial Success

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Comprehensive Wealth Management Services for Lasting Financial Success

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Experience peace of mind with our comprehensive wealth management services designed to help you grow, protect, and manage your assets effectively. Our team of financial experts offers personalized strategies that encompass investment management, retirement planning, tax optimization, and estate planning.

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Centrum Wealth: Your Trusted Wealth Management Company

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Centrum Wealth: Your Trusted Wealth Management Company

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Centrum Wealth is a premier wealth management company dedicated to helping you grow and protect your assets. Our expert team offers personalized investment strategies, financial planning, and risk management solutions tailored to your unique goals. With a commitment to transparency and excellence, we empower you to make informed financial decisions for a secure and prosperous future. Partner with Centrum Wealth to navigate your financial journey with confidence!

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Centrum Wealth: Premier Investment Banking Services

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Centrum Wealth: Premier Investment Banking Services

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Centrum Wealth provides top-tier investment banking services designed to support your business growth and financial objectives. Our expert team offers strategic advisory, capital raising, and mergers and acquisitions services, ensuring tailored solutions that align with your goals. Trust us to navigate the complexities of the financial landscape and drive your success!

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Centrum Wealth’s Financial Planning and Wealth Management

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Centrum Wealth’s Financial Planning and Wealth Management

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Centrum Wealth specializes in comprehensive financial planning and wealth management services designed to help you achieve your financial goals. Our expert advisors offer personalized solutions that encompass everything from investment strategies to retirement planning, ensuring that your wealth is both grown and safeguarded. With a commitment to understanding your unique needs, we provide tailored guidance that empowers you to make informed decisions.

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Offering tailored guidance, investment advisory services help individuals and businesses make informed decisions, optimize portfolios, and achieve financial growth with strategic planning.

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Secure Your Future with Centrum Wealth’s Financial Planning and Wealth Management

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Secure Your Future with Centrum Wealth’s Financial Planning and Wealth Management

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Centrum Wealth specializes in comprehensive financial planning and wealth management services designed to help you achieve your financial goals. From investment strategies to retirement planning, our expert advisors provide personalized solutions to grow and safeguard your wealth. Trust Centrum Wealth to guide you on a path toward long-term financial success.

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 Comprehensive Financial Advisory Services for Informed Decisions

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 Comprehensive Financial Advisory Services for Informed Decisions

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Make confident financial choices with our expert financial advisory services. We offer personalized guidance on investments, wealth management, and financial planning, helping you navigate complex financial landscapes to achieve your goals.

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Expert Financial Planning Services for a Secure Future

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Expert Financial Planning Services for a Secure Future

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Take control of your financial future with professional financial planning services. From budgeting and saving to investment strategies and retirement planning, learn how expert advice can help you create a comprehensive plan tailored to your financial goals and ensure long-term stability.

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Comprehensive Wealth Advisory Services for Financial Growth

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Comprehensive Wealth Advisory Services for Financial Growth

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Our wealth advisory services provide personalized financial planning and investment strategies to help you build, manage, and preserve your wealth. With expert guidance and tailored solutions, we ensure your financial goals are met with precision and care. Discover how our comprehensive approach can enhance your financial well-being.

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Our premier wealth management services are designed to grow, protect, and manage your assets with precision. We offer customized strategies for investment, estate planning, and risk management to ensure your financial well-being. Partner with our expert advisors for a comprehensive approach to achieving and maintaining your wealth goals.

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Maximize your investment potential with our professional investment advisory services. Our dedicated advisors offer expert insights and tailored strategies to help you achieve your financial objectives. Whether you're a seasoned investor or just starting out, we provide comprehensive support in portfolio management, asset allocation, and market analysis. Rely on our expertise to make informed decisions and optimize your investment performance, ensuring long-term growth and financial security.

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Maximizing Returns: The Role of Investment Advisory Services

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Maximizing Returns: The Role of Investment Advisory Services

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Delve into the realm of investment advisory services, where financial experts offer personalized strategies to optimize returns and mitigate risks. From assessing your risk tolerance to designing a diversified portfolio, these services provide invaluable guidance tailored to your financial objectives. Explore how investment advisors leverage their expertise to navigate market fluctuations, seize opportunities, and align investments with your long-term goals. Whether you're planning for retirement, wealth accumulation, or asset preservation, investment advisory services offer a roadmap to financial success, empowering you to make informed decisions and achieve prosperity.

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Building Prosperity: Wealth Management Services

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Building Prosperity: Wealth Management Services

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Delve into the realm of wealth management services, where comprehensive financial planning meets personalized strategies to grow and protect assets. From investment allocation to tax optimization, discover how wealth managers assist high-net-worth individuals and families in securing their financial future with customized solutions and expert guidance.

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Secure Your Financial Future: Expert Financial Advisory Services

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Secure Your Financial Future: Expert Financial Advisory Services

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Our expert financial advisory services are designed to help you secure your financial future with confidence. Our team of seasoned advisors offers strategic guidance on a wide range of financial matters, including investment management, tax planning, retirement strategies, and wealth preservation. Whether you're a seasoned investor or just starting to build your nest egg, we provide personalized solutions tailored to your unique needs and aspirations. With our commitment to integrity, transparency, and client-centric approach, we strive to empower you to make informed decisions and achieve your long-term financial objectives. Trust us to be your partner on the path to financial success.

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Family's Primary Advisor - Centrum Wealth

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Family's Primary Advisor - Centrum Wealth

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At the heart of the Centrum Family Office platform is a firm commitment to improving client convenience and optimising returns on investment. Our ultimate purpose is to direct the family's attention and influence towards all financial matters, including managing potential administrative, tax, and legal complexity as your trusted primary advisor. We bridge the gap between "your side of the table" and your current bankers and financial managers, providing you with the invaluable gift of time to devote to what actually matters in your life.

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Family's Primary Advisor - Centrum Wealth

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Family's Primary Advisor - Centrum Wealth

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At the heart of the Centrum Family Office platform lies a steadfast commitment to enhancing client convenience and optimizing returns on investment. Our overarching goal is to channel the family's focus and influence towards all financial aspects, including navigating potential administrative, tax, and legal complexities, as your trusted primary advisor. We bridge the gap between "your side of the table" and your existing bankers and financial managers, affording you the invaluable gift of time to dedicate to what truly matters in your life.

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Centrum Wealth | Best Wealth Management Company

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Financial, Investment and wealth advisory services | Centrum Wealth

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Centrum Wealth offers comprehensive wealth advisory services, including financial advisory services and investment advisory services. Our expert advisors provide personalized solutions to help you achieve your financial goals.

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By becoming an extension of the family, the 'Your side of the table' strategy that we employ for our Family Office clients relieves the family of investing duties and anxieties. We collaborate closely with your existing network of bankers and investment managers, always keeping the family objectives and investment policy statement at the forefront of our efforts.

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Centrum Wealth | Best Wealth Management Company

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The 'your side of the table' approach begins with the holistic investment solutions we bring to our Family Office. These are:

Portfolio consolidation across wealth service providers enables 'one view', and is backed by risk and return analytics to ensure advice coming from all around is in-line with family objectives.

This includes:

1. A bird's eye view of family level holdings across service providers

2. Comprehensive report on asset distribution across asset classes and products

1. Detailed performance summary across service providers with benchmarking

2. Performance versus benchmark analysis at an asset class and instrument level

Advanced asset class deep dive:

1. Fixed Income analytics including portfolio level credit quality, cash flows, portfolio composition, interest rate sensitivity

2. Equity analytics including consolidated underlying sector/ stock holdings/ market capitalisation metrics

With portfolio consolidation, the family office saves time that is usually required while monitoring large portfolios and facilitates smoother decision-making as performance, risk measures and key action points are available at one glance.

If your investment outlook spans the globe and covers developed as well as emerging global markets, we have the services and expertise that can be advantageous.

Through our global office, you get access to an array of offshore investment opportunities. Our team of domain experts perform the required due diligence, product level evaluation and structuring activities.

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Family Offices | Centrum Wealth | Best Wealth Management Company

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The 'your side of the table' approach begins with the holistic investment solutions we bring to our Family Office. These are: Portfolio consolidation across wealth service providers enables 'one view', and is backed by risk and return analytics to ensure advice coming from all around is in-line with family objectives.

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Centrum's Family Office platform strives to maximize both client convenience and return on investment. As the family's primary advisor, we strive to focus the family's attention and control over all financial affairs, as well as any tax, legal, or administrative issues that may occur. We speak with your present bankers and financial managers from "your side of the table," allowing you to focus on what is most important to you.

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Centrum Wealth | Best Wealth Management Company

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The 'your side of the table' approach begins with the holistic investment solutions we bring to our Family Office. These are:

Portfolio consolidation across wealth service providers enables 'one view', and is backed by risk and return analytics to ensure advice coming from all around is in-line with family objectives.

This includes:

1. A bird's eye view of family level holdings across service providers

2. Comprehensive report on asset distribution across asset classes and products

1. Detailed performance summary across service providers with benchmarking

2. Performance versus benchmark analysis at an asset class and instrument level

Advanced asset class deep dive:

1. Fixed Income analytics including portfolio level credit quality, cash flows, portfolio composition, interest rate sensitivity

2. Equity analytics including consolidated underlying sector/ stock holdings/ market capitalisation metrics

With portfolio consolidation, the family office saves time that is usually required while monitoring large portfolios and facilitates smoother decision-making as performance, risk measures and key action points are available at one glance.

If your investment outlook spans the globe and covers developed as well as emerging global markets, we have the services and expertise that can be advantageous.

Through our global office, you get access to an array of offshore investment opportunities. Our team of domain experts perform the required due diligence, product level evaluation and structuring activities.

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Family Offices | Centrum Wealth | Best Wealth Management Company

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The 'your side of the table' approach begins with the holistic investment solutions we bring to our Family Office. These are: Portfolio consolidation across wealth service providers enables 'one view', and is backed by risk and return analytics to ensure advice coming from all around is in-line with family objectives.

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Making and selling residential homes is a profitable business; long term project level returns are in the range of 20-23% (IRR). But at current prices, valuation of most RE stocks does not adequately discount their strong medium term revenue growth and robust profitability. We’re convinced this will change. Combination of rising earnings and rising valuation will lead to attractive returns.

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Ask any investor to describe his ideal investment scenario and he would very likely paint the following landscape - revenue growth should be healthy, valuation should not be expensive, competitive intensity should be low and a long upcycle should be just beginning. This is what a dream scenario looks like. Under these conditions, investors can comfortably deploy large amounts of capital, without fearing losses in the medium term. They can even increase their capital outlay over time as confidence increases due to results repeatedly meeting their expectations. We believe such a scenario exists - in the shape and form of real estate stocks. After a ~8-year long down cycle, Indian residential real estate market has turned the corner. Unsold inventory is at multi year lows, registrations of home purchase are booming and new home bookings are strong. But bulk of the growth is concentrated amongst a few large and branded players. This cohort has grown its new home bookings at an annualized rate of 33% during the period FY20 to FY22, and 9 month FY23 data indicates continuation of this healthy trend.

Source: Company, Centrum. Note: The graph includes pre-sales of major 7 listed developers viz. Godrej Properties, DLF, Oberoi, Macrotech, Sobha, Brigade & Prestige.

Making and selling residential homes is a profitable business; long term project level returns are in the range of 20-23% (IRR). But at current prices, valuation of most RE stocks does not adequately discount their strong medium term revenue growth and robust profitability. We're convinced this will change. Combination of rising earnings and rising valuation will lead to attractive returns.

Before we move further, some history is in order. The RE industry (making and selling residential homes) of the early 2000s was a bit like the wild west, with hundreds of players catering to strong demand being driven by the twin drivers of rapid urbanization and massive cash dealings. Consistently rising real estate prices gave the impression of RE being a 'safe' investment, and soon even tax paying 'cheque-based' buyers started speculating in housing projects. Indian RE thus became an 'asset class', with three growth drivers. Strong demand by cash based and cheque based investors kept driving RE prices higher and higher even after Indian economy started slowing in the early 2010s. By ~2013, the inventory of unsold houses had become very large, and prices of houses became too rich for a slowing economy to absorb. Money became tight and construction activity slowed. The much delayed regulation of RE industry was promulgated as RERA in June 2016, which was quickly followed by Demonetization, and then by GST. Excess inventory, slowing sales and curbs on cash dealings led to a brutal shake out in the industry, with only a handful of players surviving.

What is different now? Why will the party continue for next 4-5 years? Unlike the past, the RE industry is now well regulated and leading players have strong balance sheets. The average Net Debt to Equity ratio of prominent Resi RE companies is only ~0.5x with interest rates very competitive for major developers. Note that this debt includes loans for asset-heavy commercial real estate projects. Overhang of excess inventory is gone, while urbanization continues to expand. Home loan interest EMIs are much lower now, when adjusted for the increase in average take-home salaries. Families are growing more nuclear, leading to demand. There is also a desire to own larger houses amongst upwardly mobile city dwellers.

These are the sources of DEMAND; what about SUPPLY? This is where the opportunity lies! The savage consolidation of recent years. According to RE research firm PropEquity, over the past 8 years roughly 75% of developers have perished in NCR, Chennai and Bangalore region. This has led to barely 30-40 reputable developers being left alive. These survivors meet all the success conditions of brand, balance sheet, execution and sales engine. It's a classic bull market set-up, with strong demand and weaker supply leading to 'pricing power'. As Charlie Munger once said "If you have a business that has pricing power and if you have a business that can pass on cost increases, then that's a good business to own".

What are the entry barriers, or moats enjoyed by listed RE players? The biggest moat is Trust. This got built when a few players delivered housing apartments as promised, while the vast majority of developers could not or did not. Trust leads to access to 'other people's money', or 'OPM'. Players with access to OPM enjoy a decisive advantage over other developers who have to fund the project from their own balance sheet. Access to interest free OPM leads to higher RoE per project, which the stock market likes. It also enables trusted players to undertake bigger and higher profile projects than non-trusted players even when the balance sheet size is same for both. As this process of higher RoE and higher profile projects plays out over time, trusted players will become far bigger and achieve dominance. This is already leading to brand premium and enhanced funding / collaboration opportunities.

The market likes the notion of 'unorganized to organized'. This theme has led to great stock ideas in industries like Cinema Exhibition, Retail, Paints, Building Materials, Luggage etc. We contend that RE industry is also seeing unorganized to organized transition, but at much greater speed and scale. Rapidly rising revenue and strong profitability should lead to healthy valuation ratios for high quality RE players.

Let's look at the 'pre sales' performance of top rated RE stocks (the survivors). The table shows robust sales momentum in last four years FY19 to FY22.

One might dismiss the above as 'pent up' demand or 'catch up' phase. What about the period beyond FY22? As already mentioned, in the first 9 months of FY23, pre sales value has grown by 33%. Some may argue that the numbers presented above are merely bookings. But the trend of cash collections, which mimic the pace of execution is very strong and we feel reassured that the 'pre-sales' bookings are successfully converting into actual revenue.

However, despite strong upside potential, RE stocks are not hot favorites amongst investors. We can think of the following reasons:

First off, this industry is just emerging from a painful period of losses and insolvencies. Investors are waiting and watching since there's no legacy of this industry having made money for investors in the past. Most RE stocks got listed either at the fag- end of 2003-2008 bull run or thereafter.

Second, unlike regular companies, RE companies account for sales and profits only when flats are handed over to ultimate owners. Direct expenses associated with a project are reflected on the balance sheet as Work in Progress inventory until the project is completed, at which point revenues and profits are recognized. Indirect expenses and overheads (other than those apportioned to project), on the other hand, are recognized immediately. This creates a discrepancy between upfront expenses and back-ended revenues and profits, which can be misleading when evaluating a company's 'reported' financials. Common investors are left unimpressed with the reported numbers, although cash is being collected with each milestone completion. A similar misunderstanding played out in early 2000s when banking stocks were initially valued based on P/E ratio, and only later did investors start using Price/Book ratio as key valuation metric. In the event, early investors who studied banking stocks with the right framework made strong returns. We feel a similar story will play out with early investors who focus on cash flow instead of RE companies.

Third, RE is a cyclical industry. Investors hesitate to give lofty multiples to earnings as they feel these might change drastically in coming years. In this respect RE industry is quite similar to the Auto industry, with an important difference that RE has much longer cycles. We feel that just as investors got comfortable with giving higher multiples to high quality Auto players, top rated RE stocks would also see their valuation multiples rise over time.
Market preference aside, operating characteristics of RE companies are quite attractive. Typical project level return ratios (after accounting for initial outflows, OPM and later inflows) are in the range of 20-22% annualized. Accounting rules prohibit booking of a sale until full completion and certification, as such RE players declare 'pre-sales' on booking of a flat. And as mentioned before, 'pre-sales' growth is quite healthy at plus 30%. While this will surely moderate with a rising base, 16-18% sales growth can be comfortably assumed. RE industry also includes commercial offices and retail malls, each of which has a strong growth impulse. All three segments taken together have a long of runway of growth. We believe high growth, strong profitability and high entry barriers is a potent combination.
Regulations typically lead to re-rating
Regulation and / or consolidation in a sector usually heralds a new dawn, with the survivors enjoying healthy profitability and growth as the sector revives. This was seen in the case with Microfinance industry in 2013 (SKS/Bharat Finance and many other MFIs), Gold finance norms relaxation in 2014 (Muthoot and Manappuram) and more generally in the Steel and Cement industries after long consolidation of those sectors. The same is playing out in the RE industry as well, with leading resi. RE companies showcasing healthy cash accretion and strong margins, announcing aggressive growth plans.
How to value RE stocks?
RE company revenue is booked only on handing over of the property, not on 'percentage completion'. Until then, it sits in the balance sheet as 'work-in-process' inventory. As such in the initial years, project margins appear depressed and working capital seems inflated. This conveys a misleading and negative picture. Thoughtful investors use an assumed percentage completion method for deriving the 'modified' EBITDA and compare it as a ratio with the company's enterprise value. As the apartment/flat bookings are announced by RE players, the 'revenue' and associated costs are apportioned over the years based on percentage completion of the project, and a 'modified EBITDA' is derived, using the trend of past profitability. This results in a 'modified' EV/EBITDA multiple. This makes RE stock valuation comparable to valuation of 'regular' stocks.

For instance - let's take a project with revenue potential of Rs100 cr, to be constructed & sold over 4 years, with potential EBITDA margin of ~20%. The cash flow will be negative in the first year, followed by steady cash inflows for the next 3 years. While reported EBITDA will be mostly negative, 'modified EBITDA' will be positive, spread across the project period. In reality there would be multiple projects running concurrently, and reported EBITDA will depend on maturity profile of different ongoing projects. Modified EBITDA remains positive and well spread out, due to milestone-based cash collections. Investors need to focus on the modified EBITDA to get a firm grip on business economics. Just like banking stocks are best evaluated using book value growth and multiples, RE stocks are best evaluated using growth and margins of modified EBITDA.

This brings us to the most interesting part. Indian investors have historically given lofty multiples to industries that have strong growth and profitability. If the industry falls within a larger narrative like 'China + one', 'unorganized to organized' etc. then valuation multiples go even higher. Hence we see Speciality chemicals, Retail, Cinema Exhibition and Luggage stocks trading at lofty valuations. But due to vagaries of Indian accounting norms, RE stocks offering a long period of above- average growth, attractive return on capital and relatively high barriers to entry (Moat), trade at modest multiples.

Debunking some Myths
Given its short history, there are a lot of misunderstandings around the Resi RE stocks. We attempt some clarifications below:

Myth 1 - RE stocks should trade as per their net asset value (NAV), which is the net value of all their aggregated projects. Since this NAV is realized after 4-5 years, investors need to compute the Net Present Value (NPV) of this value. NPV is computed using a discount rate which is roughly equivalent to interest rates. With rising interest rates, RE stock's NPV would come down, hence their share prices should be market down. Our answer - While accounting revenue is booked on completion of project, the cash is received on milestone completion during the life of the projects. As such there is very little money remaining to be collected at end of project. Therefore, NPV calculation and its link to interest rate is relevant only for future projects and for the land bank that an RE company carries. NAV based approach also ignores future projects, which is at odds with the 'terminal value' concept of valuation.

Myth 2 - Too much supply is coming, prices will fall. Our answer - Real Estate prices typically not determined by supply and demand, but rather by the buildup of unsold inventory. In order for prices to drop, there must be a significant surplus of unsold properties in the market. Currently, the level of unsold inventory is at a 10-year low of around 20-22 months, compared to a peak of approximately 40 months in mid-2017. Recent demand has been strong, and developers are quite disciplined.

Myth 3 - Rising interest rates will reduce attractiveness of residential RE, and will kill the rally in RE stocks. Our Answer - While higher interest rates may affect Real Estate valuation, their impact on pre sales growth has been limited thus far (evidenced by recent 9M pre-sales momentum). Even after a 250 bps rate hikes over last 11 months which has taken home loan rates to 9.5%, rates are only slightly higher than pre-COVID levels of 8.5-9%. Interest rate movements have greater impact on long-term projects such as Commercial Real Estate, rather than Residential Real Estate. We believe rate hike cycle is nearing its peak and hence the already limited impact of interest rate movement on RE stocks should taper off as the demand continues to remain strong.

Experienced investors know that the best returns are made when there is a wide disconnect between attractive fundamentals and poor investor perception. During 2003-2007 road and bridge making EPC companies delivered shareholder returns in multiples of FMCG stocks. Similarly, investors who caught on Speciality Chemicals in FY16 did much better than the market in the following years. We think RE stocks are similarly placed.

One last point - while there is a common perception that real estate stocks are not popular with investors, a cursory look at FII and MF holdings of RE stocks would reveal that roughly 350 institutional investors own ~80% of free float of most RE stocks. Smart money has already moved in, it's time for retail investors to re-evaluate their perceptions.
RE players offer double digit growth, 20%+ EBITDAM, 20%+ project IRRs, market share gains and a strong moat (brand). At ~9-10x FY24 EV/modified EBITDA, the sector offers an attractive investment opportunity.

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A Contrarian's Views on Real Estate Stocks | Centrum Wealth

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Ask any investor to describe his ideal investment scenario and he would very likely paint the following landscape - revenue growth should be healthy, valuation should not be expensive, competitive intensity should be low and a long upcycle should be just beginning. This is what a dream scenario looks like.

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The Family Office platform at Centrum aims to maximize client convenience as well as return on investment. As the family's primary advisor, we work to centralize the family's attention and control over all financial matters as well as any tax, legal, and administrative difficulties that may arise. We communicate with your current bankers and investment managers from "your side of the table," allowing you to devote your time and attention to the things that are most important to you.

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Managing Family Wealth Across Generations | Centrum Wealth

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Family's Primary Advisor - Centrum Wealth

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Family's Primary Advisor - Centrum Wealth

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The Family Office platform at Centrum aims to maximize client convenience as well as return on investment. As the family's primary advisor, we try to centralize the family's attention and control over all financial matters as well as any tax, legal, and administrative difficulties that may arise. We communicate with your current bankers and investment managers from "your side of the table," allowing you to devote your time and attention to the things that are most important to you.

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Hire Centrum Wealth For Financial Advisory Services - Centrum Wealth 

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Hire Centrum Wealth For Financial Advisory Services - Centrum Wealth 

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Financial advising services include things like investment portfolio management, financial planning, tax planning, estate planning, and even financial counseling. Simply said, a financial advisor can help you with any significant or minor financial planning demands. Please get in touch with Centrum Wealth right now.

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Robust Investing Platform

We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly.

Investment Advisory

We curate a portfolio keeping your risk appetite and investment horizon at the fore. Our research teams carefully analyze and recommend investment opportunities which are backed in-depth research and multiple governance checks.

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We understand that everyone has their own specific goals. Our multi-dimensional goal planner helps you manage your finances better. The planner takes into account your risk appetite and investment horizon and suggests an asset allocation to help maximize returns.

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Our platform provides analytical tools and reporting capabilities that allow you to check the status of your investments real-time and analyze your portfolio across multiple dimensions.

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Financial Advisory Services | Centrum Wealth | Financial Services | Centrum Wealth

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Robust Investing Platform We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly. Investment Advisory We curate a portfolio keeping your risk appetite and investment horizon at the fore.

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In conversation with Devang Mehta, Head (Equity Advisory), Centrum Wealth

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In conversation with Devang Mehta, Head (Equity Advisory), Centrum Wealth

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Certain issues, including consumption and formalization, credit growth and financialisation, capex growth and government fiscal expenditure, appear to be interestingly placed for the next half-decade. On the sector front, BFSI appears to be incredibly appealing and poised to be a proxy for the next phase of growth. Other sectors that should be included in long-term wealth creation portfolios include home renovation, discretionary and certain non-discretionary consumption, vehicles, select Technology, automation, capital goods, agriculture, and specialty chemicals.

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The art and science would lie in picking good businesses which are market-leading franchisees and emerging market leader, asserts Devang Mehta, Head (Equity Advisory), Centrum Wealth
What is your outlook on the markets?
There are some potentially important events for the Indian equity markets in the next 12-18 months. The state election results, which may swing the mood to the big 2024 showdown, will arguably be the biggest event to watch. But apart from politics, the uncertainty around interest rates, growth in a slowing world, valuations and flows continue to be the biggest factors for equity market sentiment. Inflation data and the resetting of rate expectations is the reason behind the dull equity sentiment currently. Core inflation for the US and India is high and sticky. There's a reasonably high possibility that the US Federal Reserve and the Reserve Bank of India (RBI) will remain hawkish and raise rates more than expected earlier. However, the market at some point will discount this.

Hence, it is imperative to shift the focus on growth and earnings, especially in India. The most pessimistic guy on the street will also not argue on the growth trajectory that India is getting on to with capital expansion, credit growth and consumption. Corporate profitability along with strong policy continuity ensured by the government and refraining from anything drastically populist in a pre-election year will probably be recognised sooner than later. The key aspect is to look at the timing and quantum of foreign flows. One thing for sure is that, they can't ignore a growth engine like India for a longer period. Also post correction, the markets look reasonably valued, whether on the PE, PBV or market-cap to GDP fronts.
How should an investor deal with underperforming Small-Cap stocks in the portfolio?
Ideally, in an expansionary phase of the economy, good quality Mid-Cap s and small-caps perform really well and reward patient investors handsomely. But of course you can't generalise it for all small-caps. Any duds in the portfolio should be cleaned up. It does not make any sense to hope against hope and carry a bunch of businesses which are junk and do not qualify to be fundamentally sound. One can replace gruesome small-caps or mid-caps with great quality mid-caps and small-caps. It is advisable to deep dive into the fundamentals of these small-cap businesses and source professional help if required.

As a lot of small-caps wouldn't have adequate research coverage as well as data available, it is important to be safe than sorry. Some key parameters to watch out for on a qualitative basis are the promoters' stake, history, integrity and corporate governance. There are a number of good mid and small size companies which qualify as emerging market-leading franchisees. They inherently fit all the parameters like huge size of the opportunity, large and dominant market share and margin of safety. When you buy small-caps, you need to have virtues of patience, conviction and discipline. Market volatility leading to huge fluctuations in quality small-caps should be treated as an opportunity in adversity.
Will the broader markets outperform in 2023?
India seems to be at the cusp of a strong economic revival. In a phase where economic growth along with strong demographic advantages takes centre-stage, the broader markets generally do well. However, it seems that the first half of calendar year 2023 will be marked with narratives of inflation and interest rates. Once the debate around this settles, India needs FII flows which have dried up since long. The Indian investors have been saviours so far but for the overall market to gain momentum, foreign flows are much needed. Also, all instances of drought in India over the last 20 years have been in El Nino years. We need the rural economy to be in good shape for the government to be able to implement its vision of capital expansion and, thereby, the expected job creation.

Hence, the onset and progress of monsoon will be crucial to watch around June - July. Crude and commodities have to behave well as we are clearly dependent on them for at least our manufacturing sector to prosper. Earnings growth for the next two years seems to be expected around mid-teens. With this ongoing correction, valuations for a number of good businesses have started to look reasonable. There are so many businesses which are not part of the key indices but have the power to grow their revenues and profits along with strong return profiles. Out of the broader markets as well, it would be smart to be selective and pick the best of the lot.
What are you advising your HNI clients right now?
Almost all the HNIs are convinced about India being an epicentre of growth. The only question is how to make the most of it or capitalise on the opportunity. We have been advising our clients to invest money in equities in tranches to take advantage of the ongoing volatility in the markets and also stocks. The art and science would lie in picking good businesses which are market-leading franchisees and emerging market leaders. Even though you can't time the markets to perfection, slow and steady nibbling in good businesses should be the logical pathway in an environment where the re-pricing of assets is going on.

Some themes like consumption and formalisation, credit growth along with financialisation, capex growth along with fiscal expenditure by government seem interestingly poised for half a decade. On the sector front, BFSI looks extremely attractive and is ready to be a proxy for the next leg of growth. Home improvement, discretionary and some segments of non-discretionary consumption, automobiles, select IT, automation, capital goods, agro and specialty chemicals are other sectors which merit an addition in long-term wealth creation portfolios. Those who try to skip bad years miss out on good years as well. Being in the game is very important. Buying is also called 'going long' and therefore you are expected to hold long.

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in conversation with devang mehta head (equity advisory) centrum wealth

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In conversation with Devang Mehta, Head (Equity Advisory), Centrum Wealth

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What is your outlook on the markets? There are some potentially important events for the Indian equity markets in the next 12-18 months. The state election results, which may swing the mood to the big 2024 showdown, will arguably be the biggest event to watch.

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Hire Centrum Wealth For Financial Consulting Services 

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Hire Centrum Wealth For Financial Consulting Services 

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Financial consulting services include investment portfolio management, financial planning, tax planning, estate planning, and even financial counseling. Simply said, a financial advisor can help you regardless of how broad or narrow your financial planning objectives are. Contact Centrum Wealth directly at this time.

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Robust Investing Platform

We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly.

Investment Advisory

We curate a portfolio keeping your risk appetite and investment horizon at the fore. Our research teams carefully analyze and recommend investment opportunities which are backed in-depth research and multiple governance checks.

Goal Planner

We understand that everyone has their own specific goals. Our multi-dimensional goal planner helps you manage your finances better. The planner takes into account your risk appetite and investment horizon and suggests an asset allocation to help maximize returns.

Portfolio Tracking and Analysis

Our platform provides analytical tools and reporting capabilities that allow you to check the status of your investments real-time and analyze your portfolio across multiple dimensions.

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Financial Advisory Services | Centrum Wealth | Financial Services | Centrum Wealth

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Robust Investing Platform We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly. Investment Advisory We curate a portfolio keeping your risk appetite and investment horizon at the fore.

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The fundamental principle of value investing is based on the idea that investors usually overpay for popular stocks. As a result, value investors underperform when markets are rising, but when markets begin to collapse, value investing returns to favor. Having said that, serious value investors must be more scientific and learn from the great value investors of the past. Benjamin Graham, known as the "Father of Value Investing," was both an investor and a Columbia University professor. For continuing reading visit our blog and let’s continue reading.

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The basic tenet of value investing is tethered to the notion that investors frequently overpay stocks that are popular. Which is why Value investors underperform when markets are rallying, but when they start falling, value investing comes back into fashion. That being said, serious disciples of Value investing need to be more scientific and learn from the great value investors of the past. Benjamin Graham, widely regarded as the Father of Value Investing, was an investor and a professor at Columbia University. He was also Warren Buffet's mentor and a staunch proponent of fundamental analysis for stock-picking. Graham developed the Margin of Safety approach which posited that the value of a stock is independent of its price. As such, a stock should be purchased when it is trading at a significant discount to its fundamental value and sold when it becomes overvalued. From that perspective, what one needs to focus on is not the absolute price of the stock but the price of a stock relative to its fundamental value.
Back to fundamentals
The fundamental tenet of value investing guides investors to buy undervalued stocks and sell overvalued stocks. The value of this approach has been underscored in the aftermath of several stock market crises. Over 1000 listed entities on the Bombay Stock Exchange (BSE) saw their stock prices at least double during the COVID-19 pandemic, between 2020-21; which is second only to the post-Global Financial Crises (GFC) period which saw the stock prices of over 1300 entities at least double. While fiscal stimulus and government interventions do play a large role in improving market sentiment across the globe, it nonetheless validates the importance placed upon identifying value over price.
Value vs growth
No narrative on investing styles is complete without addressing the growth vs value argument. Adherents of these approaches seem to operate as two parallel lines, never meeting at a common point. Growth investors primarily seek to invest in companies that offer strong earnings growth while value investors seek to invest in companies that are available at a discount to their fundamental value. The differentiating factors here is the valuation and the investment period. Relative to growth investing, value investors take lower risk, but they need to be invested for the longer term. Historically, value investing has created great wealth for investors across the globe. However, this process can take very long, during which one might run out of patience. It might make sense to allocate a portion of ones capital to a professional investment manager executing a Value investing mandate. This brings us to another interesting feature of value investing. It is usually a lonely road because it requires a contrarian approach, something we humans are not programmed to do. At an overarching level, value investing seeks to exploit the irrational behaviour of stock market participants. In the short-term, due to the whims and fancies of the market, value investing can lead to losses. However, in the long-term, sanity prevails and the true fundamental value of a stock emerges. Benjamin Graham once explained that in the short run, the market is like a voting machine but in the long run it's like a weighing machine.

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Value Investing Always in fashion | Centrum Wealth

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Value Investing - Always in fashion The basic tenet of value investing is tethered to the notion that investors frequently overpay stocks that are popular. Which is why Value investors underperform when markets are rallying, but when they start falling, value investing comes back into fashion.

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Get Wealth Management Services - Centrum Wealth 

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Get Wealth Management Services - Centrum Wealth 

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We provide HNIs and Family Offices a full range of wealth management services. We also offer cheap housing financing in tier 2 and tier 3 cities, as well as life, general, and health insurance products. Our asset management area provides funds for real estate, venture capital, private debt, and public equity. Visit our official website to learn more.

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Hire Centrum Wealth For Financial Advisory Services - Centrum Wealth 

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Hire Centrum Wealth For Financial Advisory Services - Centrum Wealth 

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Investment portfolio management, financial planning, tax planning, estate planning, and even financial counseling are all examples of financial advising services. Simply put, a financial advisor can assist you with all of your financial planning needs, large or little. Contact Centrum Wealth as soon as possible.

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Robust Investing Platform

We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly.

Investment Advisory

We curate a portfolio keeping your risk appetite and investment horizon at the fore. Our research teams carefully analyze and recommend investment opportunities which are backed in-depth research and multiple governance checks.

Goal Planner

We understand that everyone has their own specific goals. Our multi-dimensional goal planner helps you manage your finances better. The planner takes into account your risk appetite and investment horizon and suggests an asset allocation to help maximize returns.

Portfolio Tracking and Analysis

Our platform provides analytical tools and reporting capabilities that allow you to check the status of your investments real-time and analyze your portfolio across multiple dimensions.

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Financial Advisory Services | Centrum Wealth | Financial Services | Centrum Wealth

# data[].attributes.attachment_link.description
Robust Investing Platform We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly. Investment Advisory We curate a portfolio keeping your risk appetite and investment horizon at the fore.

# data[].attributes.headline
Hire Centrum Wealth For Financial Advisory Services 

# data[].attributes.subject
Hire Centrum Wealth For Financial Advisory Services 

# data[].attributes.body
Financial advice services include investment portfolio management, financial planning, tax planning, estate planning, and even financial counseling. Simply put, a financial advisor can help you with your financial planning needs, no matter how broad or specific they are. Contact Centrum Wealth right away.

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Robust Investing Platform

We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly.

Investment Advisory

We curate a portfolio keeping your risk appetite and investment horizon at the fore. Our research teams carefully analyze and recommend investment opportunities which are backed in-depth research and multiple governance checks.

Goal Planner

We understand that everyone has their own specific goals. Our multi-dimensional goal planner helps you manage your finances better. The planner takes into account your risk appetite and investment horizon and suggests an asset allocation to help maximize returns.

Portfolio Tracking and Analysis

Our platform provides analytical tools and reporting capabilities that allow you to check the status of your investments real-time and analyze your portfolio across multiple dimensions.

# data[].attributes.attachment_link.title
Financial Advisory Services | Centrum Wealth | Financial Services | Centrum Wealth

# data[].attributes.attachment_link.description
Robust Investing Platform We offer mobile and desktop based platforms for transacting across equities and mutual funds. These platforms seamlessly integrate with your bank account and help you invest smoothly. Investment Advisory We curate a portfolio keeping your risk appetite and investment horizon at the fore.

# data[].attributes.headline
Hire Centrum Wealth For Financial Advisory Services 

# data[].attributes.subject
Hire Centrum Wealth For Financial Advisory Services 

# data[].attributes.body
Investment portfolio management, financial planning, tax planning, estate planning, and even financial coaching are examples of financial advisory services. Simply put, a financial advisor can assist you with your financial planning requirements, regardless of how general or focused they are. Reach out to Centrum Wealth straight now.

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Get Wealth Management Services - Centrum Wealth 

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Get Wealth Management Services - Centrum Wealth 

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Our comprehensive wealth management services are available to HNIs and Family Offices. We also provide life, general, and health insurance products, as well as financing for affordable housing in tier 2 and tier 3 cities. Our asset management section offers funds for venture capital, private debt, public equity, and real estate. To learn more, please visit our official website.

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Get Complete Wealth Management Services - Centrum Wealth 

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Get Complete Wealth Management Services - Centrum Wealth 

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To HNIs and Family Offices, we offer complete wealth management services. We also finance low-cost housing in tier 2 and 3 cities and offer insurance plans for life, general, and health insurance. Our asset management division provides funds for real estate, venture capital, private debt, and public equity. Visit our official website to know more.

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Centrum Wealth Ltd, Office address No. 90, Ganesh towers, 2nd floor, Dr Radhakrishna Salai, Opp. Raja Rajeswari towers, near PNB Chennai - 600004 Tel: (+91) 9841047691