ValuePickr Forum

Investing Basics - Feel free to ask the most basic questions

“Capital Expenditure” typically means additions to PP&E. I guess you could also include Intangible Assets if you know what they are and know their relevance to the core business.

But I wouldn’t personally include ‘Investments’ (As in, Financial Investments) under Capital Expenditure. Then again, I also exclude income / dividends from Financial Investments from my calculations of Value.

Non-financial Long Term Investments could again be added or removed from Capex based on their relevance to the core business. But as a thumb rule, you can keep them with Capex.

Why would you want to remove that expenditure from Capex? That is also an Expenditure of a Capital nature. Repairing Machinery and Tools directly impact the core business / produce Revenue for the core business.

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Agree with your point regarding financial investment.

Regarding the repairing expenditure, this activity does not result in growth of the business as the capacity will remain same.
I think it would be better to look at expenditure incurred to build new machinery
Is there any way to segregate both ?
I could not found the details in annual report

I don’t think they report it separately. You can sometimes find them in the P&L itself. You can search for it there.

When calculating Owner’s earnings or FCF, you need to remove maintenance capex. Maintenance capex is expenditure used to maintain status quo. It’s not part of owner’s earnings or FCF.

Since companies don’t report Maintenance Capex, the rough thumbrule is to use the annual depreciation amount as Maintenance Capex. For more elaborate calculations, google for Bruce Greenwald & maintenance capex.

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Investing in Bitcoins is worth it or not?

Not sure why your question was flagged. We do have a related thread. Someone could have simply posted the link to that. Anyway, please go through the below thread and post your queries, if any, there:

Hello Dinesh,

Firstly, I was also confused why I got flagged, thanks for answer you quoted, it was quiet informative.

I want to know why it got banned in some countries, and what’s the best way of investing my money in BTC.

Why this stock is only traded in a lot of 2000 shares?

image

for few small caps the market lot is not 1

image

These are SME issues to the best of my knowledge

Thanks,

Total market cap is less then 50Cr, With 2000 lot, each trade become a 1.5 Lakh investment. Who decides the lot size? any other input?

I have no further info.possibly Sebi decides. I know because in case of some IPOs, the minimum lots are in thousands, so each application in generally more than a lac.

How are corporate loans structured? Are they structured like Home loans or differently?

For example, when I take a Home Loan, my EMI component every month has an interest component & a principal component - so if it’s a 15 year loan, then at the end of 15x12 EMIs, I would have paid back everything?

Are corporate loans also structured similarly?

Or do corporates pay only interest every month to the bank & the principal only at the end of the term? If so, then as & when they pack the principal, I assume this principal pay back will not be shown in the P&L statement but only in the Balance sheet - i.e. Cash on assets side will decrease & Debt on liabilities side will decrease.

Alternately, if every term, both interest & principal is paid back, then will only the interest component show up on the P&L as interest expense while the principal component similarly decrease on asset & liabilities on the Balance Sheet?

is Nippon Life Asset Management managed by Anil ambani now?

has anyone analyzed Nippon AMC?

To the best of my knowledge, he has exited and that’s why the name Reliance had been dropped from the CO’s name

Does anyone know what is the XRBL / XML file which gets uploaded on NSE along with results?
Also, can we use these files and easily copy data into excel?

Thanks Vijay for Clarification
Do you have any resource to study Bruce Greenwald’s material
I found his Youtube videos but they are not clear

You can start with this - https://www.oldschoolvalue.com/valuation-methods/calculating-maintenance-capital-expenditure/

Further reference to Greenwald’s book is also there.

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Hello
Please tell me what to look in bse announcement after the market

Hello,
How is the corporate governance record of Sriram group.
According to my very limited knowledge, they have good standards of corporate governance. Would request experienced members to provide their perspective.

Thanks