So crypto as an asset class is growing as long as the entire asset class grows. it is a world-dominated asset class then definitely companies in India that are benefiting from this crypto ecosystem. They will also grow quite aggressively. Maybe 5, 10, 15, 20 years in the future there may be companies like Vazirex that may get listed on Indian exchanges. plus you would say Akshat we have gone crazy. take a look at Coinbase. There is a US-based listed crypto exchange already trading in the US economy.
So a similar situation may play out Dia 100 Third and finally, I think the banks still have some steam left so I can go to the banks. So I’m pretty excited about these three specific areas. I think as more and more people start using more banking products, the bank will become even more profitable. their profitability will increase because not only Of volume growth but also because of the number of products that banks are selling now.
3 Industries to Invest Now for Good Returns in Future
EV Based Ecosystem
Three industries where I think PE contraction will be the number one traditional automobile. it’s almost a traditional automobile in the coming a few decades now. Will shift to EVs. as the price point of EVs comes down to traditional automobiles their PE will be contracted and they will now lose a lot of market share. if there are companies for example Maruti for example if it is able to successfully build an EV-based ecosystem. If they migrate to the traditional automotive sector then the situation will not improve. they will struggle and the PE contraction will be 100%.
PSU banks
The second major industry is PSU banks. I think the PE multiple of PSU banks will keep shrinking. it is very easy to understand why they are getting less and less support from the government. earlier a lot of budgets were earmarked for support and PSUs Subsidize the inefficiencies of the banks now. unfortunately when the PSU banks are not even efficient in terms of securing or building their business, as compared to the private banks. the PSU banks are going to suffer even more in the next two to three decades. And that will certainly take the PE contraction to the third position.
Airline Industry
finally, I think is the airline industry. airlines are also shrinking for the simple fact that now we are moving towards a world where any industry that has a lot to do with Taxes can be levied. it will fluctuate. Profitability Now airlines are one of the highest tax industries. it is completely under the control of the government. so to say they decide the airport or the fee they decide the hangar fee they decide the amount of air traffic. they do various different things A group sets up and it becomes really difficult for airlines companies to stay profitable. so I don’t see any major airlines coming to India and booming with more than one profit.
Having made this comment, I want to give a brief disclaimer that these are my views. This is how I see the world moving forward. you don’t have to agree with me. each of us can have our own views. But the important message I want to drive home is to use this PE framework as an indicator to do your own analysis. PE Standalone is a wasted ratio, you will not be able to understand if a stock is undervalued Or is rated higher from that particular perspective. which is a better way to underestimate. more valuable nature of any stock using PE in conjunction with a business development framework. I just helped you understand.
This was all about the PE ratio and how you can apply it to find out undervalued stocks. also, we have given a brief of the 3 major industries which can grow in the future. I hope you liked the article please hit the like button and I will see you in the next article.
Also Read,
- What is PE Ratio for Stocks | Price-to-Earnings Ratio
- How to Pick Undervalued Stocks