Float Businesses in India

Hello guys, I am starting this thread to find what are some Float businesses in India.

It will be very helpful if you guys could share some name here.

Let me start with some:

  1. All insurance business
  2. Info Edge
  3. Club Mahindra

If you are not sure what are float businesses, you read this article of Sanjay Bakshi:

I am interested in knowing more of such businesses.


Titan- Golden Harvest Scheme at Tanishq can be categorised under float. It generats significant revenue for Titan.


Just a guess…
Isn’t IndiaMart a float business.

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It would be great if you could explain why. :slight_smile:

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Another such kind of Business is NESCO ltd. It takes advance as security deposit for the commercial spaces which it rents out + the fee for exhibition is also taken in advance.

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Float according to Prof. Sanjay Bakshi is whatever liability not funded by equity and debt.
Float = Total liabilities - Debt - Equity

Operating assets are the assets which have to be financed.
Operating assets = Total assets - Financial assets (Investment + Cash)

Companies with float should have Float greater than Operating assets.
Float > Operating assets AND
Debt to equity < 0.2

Other query can be
(Payables + Advance from customers > Receivable + Inventory)
Query can’t be made out of it in screener.in


Industries with float structure are:

  1. Household and personal products
  2. Tobacco
  3. Packaged food
  4. Information technology
  5. Insurance
  6. Capital markets

Companies with float have moat and trade at high valuation mostly.

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Im using Tijori nowadays. I ran this query that you stated

Float > Operating assets AND
Debt to equity < 0.2

Float = Total liabilities - Debt - Equity
Operating assets = Total assets - Financial assets (Investment + Cash)

I got 175 companies

https://tijorifinance.com/filter/?q=Debt%20to%20Equity%20Ratio%20<%200.2%20and%20 (Liabilities%20-%20Debt%20-%20Shareholders%20Funds)%20>%20Assets%20-%20Investments%20-%20Cash%20%26%20Bank%20Balances&qb=

If I take 5 yr averages of all fields I get 150 companies

https://tijorifinance.com/filter/?q=5yr%20Avg%20Debt%20to%20Equity%20Ratio%20<%200.2%20and%20 (%205yr%20Avg%20Liabilities%20-%205yr%20Avg%20Debt%20-%205yr%20Avg%20Shareholders%20Funds)%20>%205yr%20Avg%20Assets%20-%205yr%20Avg%20Investments%20-%205yr%20Growth%20Cash%20%26%20Bank%20Balances&qb=

Am I doing it right ?

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Iex is another example of the same

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I further filtered by companies with mcap > 100Crs

https://tijorifinance.com/filter/?q=Debt%20to%20Equity%20Ratio%20<%200.2%20and%20 (Liabilities%20-%20Debt%20-%20Shareholders%20Funds)%20>%20Assets%20-%20Investments%20-%20Cash%20%26%20Bank%20Balances%20and%20 Market%20Capitalization%20>%20100&qb=

and for gen insurance companies


  1. Issue is not with Floats but what the management decides to do with it. Sometimes, the use of Float is restricted i.e. like refundable Security Deposits that can be kept in FDs etc. Sometimes, it may be customer advances and if those are not utilized correctly, they may end up becoming solid liabilities - So plz take note of that. The Nature of float matters

  2. A measure of Floats must be made against the fixed costs of a business. If fixed costs are high, then during business downturn the expenses will spiral up and the Float wont build\become liability quickly as mentioned in (1) above

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Looks good but don’t know why FMCG are not visible.

found 6

https://tijorifinance.com/filter/?q=Debt%20to%20Equity%20Ratio%20<%200.2%20and%20 (Liabilities%20-%20Debt%20-%20Shareholders%20Funds)%20>%20Assets%20-%20Investments%20-%20Cash%20%26%20Bank%20Balances%20and%20 Market%20Capitalization%20>%20100&qb=fmcg

Indiamart can be explained here…:

Disc: Invested in core portfolio.

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No doubts it used to command a premium for this.
The concern now is with work from home becoming the norm, going back to the levels of revenue in foreseeable future looks difficult.

Disc: Used to hold earlier. sold out.

The problem which I am having with the stock is the new Reliance center, which can give huge competition to Nesco.

What are your thoughts on it?

(Thanks for the twitter link on Indiamart!)

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Just for context, The new convention center land was allotted to Reliance in 2006 and it was supposed to be finished by 2010, it is still incomplete!

Are you sure about that? Because then why am I getting news regarding the use of the center for covid patients.

It might be useful to also understand the historical context. The land was allotted to Reliance in December 2006, was supposed to finish in 2010, then got delayed and keeps on getting delayed. I am not trying to belittle the fact that Reliance convention centre may take away business from NESCO, but its also important to understand a bit of history. Some articles below might be useful :slight_smile:. Again I dont want to take away the main focus of discussion

Ril Told To Comply With Building Rules | Mint

I think its quite old article and now the construction is completed.