Business Quality: Refining our thinking on "Great Businesses"
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Like you, I am also a new member. In my understanding, it would not be fair to seek stock specific advice from any member without doing one’s own diligence. To share my own experience, I am presently studying the basics of investing, and once I can read the annual reports, P/L & Balance Sheet statements with some confidence, I would try my on hand at trying to analyse a particular stock, and then seek advice from the senior boarders here. I do hope that you benefit from the shared learning here. All the best.
In case my interpretation is wrong, seniors may wish to correct me. Thanks
Regards
Sandeep
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Thanks a lot Hitesh for your detailed reply.
Just one basic question, I might be missing something on this
If i see it says TTQ is 5817 and in chart if i try to see it may way more than 20K kind off if i start adding all the charts values in different price.
just thinking… how to find out Total trading quantity? till now i was reading TTQ but always thought it would be matching with chart only.
Sorry to bother you for very basic question.
Regards,
Milind
Love this line 
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Dear Hitesh,
Your posts are gems for novice investors. My Q is do you follow a DCF model as well for stock valuation? And what are the kind of risk percentages do you use? I see many people using the range 12-18% for Indian cos. I do understand that it will be a function of the co size, financial leverage, management quality, cyclicality ,etc. Would be great to hear from a practitioner.
Thanks
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I dont use DCF model. I mainly look at the bigger picture and investment triggers besides checking most of the boxes in my standard checklist. I dont have a well defined checklist as most investors do but have some basic parameters I look at before going deeper into any company’s analysis.
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Dear Hitesh Bhai,
Does the launch of Pharma funds mean there will be increasing demand esp for big pharma cos like Sun and Cipla. Not looking for buy sell recommendations. Trying to understand how the launch of new funds works in terms of demand for particular stocks. I mean how does a new fund build up its portfolio.
Thanks
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@sarthakkumar19_, Launch of pharma funds will create some demand for pharma stocks esp the larger cap companies like sun, lupin, dr reddys etc. But at the end of the day the returns are determined by earnings and thats where I think one needs to be choosy in pharma space.
Hii hiteshbhai
Excellent research and very mature advices !
Please share your views on repro india …
Thanks
Hello Hitesh Ji…I have studying about Eris Lifesciences and their different buisness model…being a doctor and from the Promoter’s place, i request your views on the following points -
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The business model focuses upon the patients in tier I and II cities by pushing their products via Key Opinion Leaders (specialists and super specialists)…they expect to gain major growth from chronic segment…the proposition sounds logical in theory and they have achieved outstanding growth in past too…
But will marketing products by targeting doctors as the main strategy sustain in the long term…can it be considered as a moat in their business model…in their DRHP, they have specifically mentioned the increase in no. of doctors recommending their products…
is it a normal practice followed by other pharma companies or a viable business model… -
Do you have any input on the reputation of the promoter Mr Amit Bakshi…i couldnt find any red flag except that before launching IPO, they declared hefty dividends and promoters enjoyed grand perks…but they have been honest in giving the details of the remuneration…
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How to gauze the correct valuation for such companies with high PAT margins and expected CAGR of 20+ in next 2-3 years…what should be the range of PE multiple for such a pharma company…
regards
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Dear Hitesh Bhai,
Any update on Magma fincorp. Chart is looking quite horrible.
Magma has corrected a lot. Almost a breakdown. Previous top of 2015 was in the region of 142 and that area needs to be watched now.
Fundamentally would like to see how the company pans out over next few quarters.
Small-midcaps is in panic selling mode and a lot of stocks are getting butchered. Could be a chance to pick up good companies which are also beaten up along with the garbage group.
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Dear Hiteshbhai ,Is there any hope for BHEL ,holding since long time.
Thanks
Dear Hitesh @hitesh2710,
Can you share your inputs about investing in HDFC AMC IPO? It’s a good brand for sure but how does the AMC business as such looks in general given that stock markets are at all time high now…
Thanks Hitesh Bhai, could you please few names apart from magma, where business outlook remains positive for long term and market is pricing them incorrectly after the recent corrections in mid/small caps… Regards
Thanks Hiteshbhai. Your knowledge on technical as well as fundamental is terrific. Its quite inspiring for we budding investors.
@RAYMOND, I dont track Bhel and so no idea about its prospects.
@newone, Not much idea about HDFC AMC IPO as well.
@Rits, I have enlisted multibase, tci, etc in another thread as companies to watch out. But the way there is divergence in the markets in terms of selling in small-midcaps and strength in select large caps, one needs to be patient in buying or atleast have a staggered approach to buying. I hadnt expected this kind of divergence in market movement, and hence feel it might make sense to be patient in buying as well.
Markets have hit new highs but market breadth has been pathetic. So either fancied large caps could correct and take the whole market down in an ugly downmove or small-midcaps can stage a comeback and have a semblance of a rally. Difficult call to make out so currently I am in a watchful mode and see how things unfold.
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In case of small caps, we need to believe we are in bear market and invest accordingly without rushing in unless and until proven otherwise by the market.
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Sir
Please share ur views on repro india… …
You have started the thread of repro india so u might have indepth analysis on that…