Kalkine’s Inflation Report is designed to provide insights on the companies that may have the potential to sail well amid heightened inflationary pressure and surpass the current inflation rate in terms of capital appreciation and dividends if any. Also, the report might cater to regular income-seeking customers in the form of dividends and capital appreciation. Also during low inflation times, growth stocks may remain in focus in the market, so the report aims to cover both the scenarios.
1. Diverse Universe- Wide coverage of the sectors such as commodities, utilities, energy, etc. which may perform well during the rising inflationary environment.
2. Business Model Strength- Typically the report selects companies that have the power to pass on the increased cost on the back of rising inflationary pressure to the customers and safeguard their margins.
3. Shareholder Return Profile- Companies generating higher ROCE (Return on Capital Employed) and positive Free Cash Flows, which can provide returns and support the working capital requirements during the inflationary times.
4. Detailed Technical Analysis: To improve the entry timing & price, a detailed technical analysis is undertaken via technical tools such as price action, indicators, support level, resistance level, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc.
Value stocks typically gain traction and have the ability to sustain and perform during the rising inflationary scenario. Sectors such as metals, consumer staples, banking, etc. Growth Stocks may perform better during low inflation scenario.
This report is focused to reduce the impact of volatility, especially during the uncertain economic environment, when shock fluctuation is frequent.
Diversification of investment in multiple sectors and across the market categorization so that investors could benefit from sector tailwinds.
The report is a play on the inflation. Typically high inflation is directly correlated with lower returns on equities. Value stocks perform better during high inflation time, and growth stocks may perform during low inflation.
Market risks, macro-economic risks, geopolitical risks, and company specific risks, The report caters to a mix of large capitalization, mid-capitalization and small-capitalization stocks that may help to reduce the Beta (Volatility) of overall basket of stocks selected.