Investing Basics - Feel free to ask the most basic questions

[Pulak]

It would essentially be the same thing. The idea behind it being that in case of bankruptcy or liquidation (all liabilities are squared off by assets) how much of the value is to be returned to shareholders. Deep value investors compare the marketcap to book value (i.e. P/B) to determine whether there is enough safety of return of capital

As with all ratios, it has to be seen in a context

• BV/share is more relevant for traditional asset heavy businesses. New ages businesses which have a lot of intangibles may not have a high book value
• A stock trading at less than book value might indicate deep value or a value trap depending on how the assets have been valued

Hope this helps

[pgoyal1996]

The title intrigued me and here is my query.

So, I’ve just started investing and I eye short term and long term gains.
I’ve shortlisted stocks from major industries like, Hospitatlity, Power, IT, Power, Entertainment and OMCs.

Is there any other industry I should focus upon?

What should be the fundamentals I should look at while zero downing a stock for investment.

I understand that it is not always about the fundamentals but, in my opinion these build a base for the company which is a near true reflection of their future.

Looking forward to more insights, Thank you!

[ChaitanyaC]

Short term gains are relatively tough to get compared to long term gains. I am not sure without some experience with gains or even with losses, one can straight away trade for short term.

So if you want to focus on long term, considering that you are new, you can look at the topics opened on businesses in the forum, there are hundreds of them. Pick one business on any basis and read about how members go on about the business, how things have changed, what members thought about them, what kind of decisions they took etc.

I guess once you have some learning and experience irrespective or profits or losses, you can venture into short term. Not that we cannot speculate, but it will be tough to understand market movements in short term without some experience, because there are many nuances, there will be many whats, hows and whys. If you want to go the short term route, then visit these threads.

Hitesh portfolio

I am posting my portfolio here for feedback from esteemed fellow boarders. This should also act as one of the transparency measures alluded to by donald and may be considered as my disclosures on my stock picks. Basic theme of late has been concentration of portfolio and hence many of the smaller holdings had to go. This has been due to the results seen in some of my earlier successes like mayur, ajanta etc where a hefty bet made a huge difference to overall portfolio returns. sr no sto…

Bull therapy 101-thread for technical analysis with the fundamentals

One of the most decorated patterns in the chart is Cup and handle pattern, we all know that… This thread serves as a discovery tool for such scrips exhibiting a cup and handle pattern and other breakout patterns or continuation or reversal patterns at present… Also patterns in the charts do not follow a textbook always, so there might be patterns which may be likely to be so, but time will tell… All such cases can be posted, and all can evaluate later … I request all members of valuepicker f…

52 week highs and all time highs strategy

There has always been a lot of debate and acrimony between the value investor guys (who try to find winners closer to all time lows, or 52 week lows or x percentage corrections from top etc) and the momentum guys who get into the ride once the bus is close to take off or has already taken off. “To make money, you must find something that nobody else knows, or do something that others won’t do because they have rigid mind-sets.” – Peter Lynch. There is a lot of hesitation from market parti…

It will be overwhelming, but there are a lot of things that are covered for short term, books, charts, fundamentals etc.

[Siddharth_Goliya]

Hi,

In your experience what are the most important parts of the annual report? e.g Management discussion etc

[sreeram_market]

Hi,

Not sure whether this is the right thread to ask this question.

How to check the EPFO details like employee count, Employee average salary or Month on month addition of new employees in a company.

It would be great to provide the details.

[satish_kumar1]

you can check here

https://unifiedportal-epfo.epfindia.gov.in/publicPortal/no-auth/misReport/home/loadEstSearchHome

Average salary you have to calculate manually from total EPF contributions divide that by total employee count.

Note: Establishment code is not needed. just enter company registered name and captcha

[sreeram_market]

Thanks for this information about EPFO.

Where can we see the Employee contribution?
Is it in the same page?

[satish_kumar1]

Aatmanirbhar investor - Art of Digital Scuttlebutt

check this video 15.30mins that should help you how to get EPFO data.

credits: @sahil_vi

[james_kerala]

This one I felt a very good educational material on detailed review of a sample annual report to get to know what to look for

Annual Report Review: Symphony - Safal Niveshak

[Nitin_Nimkar]

Can anyone please help me to understand that what is inventory in this banking stock.

[Vijay_S]

I was going thorough manapuram Q1FY24 concall. One analyst said the credi cost for this period is 3.8%. How did he areive at this number ?

[mbkv]

PGINVIT impairment of investments in subsidiaries and book value

I have difficulties in understanding the cash flow statement of PGINVIT. The item “Impairment of investments in subsidiary” seems to be extremely high compared to last year. How do we know what led to this and in which subsidiary? Do the numbers inside brackets like (11362.6) mean negative values? In spite of the huge impairment, we still see the cash flow is positive and better than last year. Is my understanding correct that (45938.75) invested last year is an outflow of cash and this…

[Siddharth_Goliya]

Great! Thank you so much!

[royatirek]

If a company presents its industry growth rate in its annual report.
Should we take it at the face value?

Eg From Syngene Annual Report 2023, the growth that they are predicting is in double digit but there are some articles in the web that report it as single digit.

What should be the source of truth and how should we verify it?

[Mudit.Kushalvardhan]

You can see the annual reports of other companies of same sector. If all are saying the same, then its likely to be true. Also if you have any paid research report or free research report about that industry then also you can get some figure.
But to be honest, growth of a particular industry is as good to us as the growth of economy. It just doesnt serve a purpose beyond some chit chat at parties. Nobody can perfectly guess industry growth or economy growth. And even if it comes to be approximate close to the prediction, if your company doesnot grow with the industry , due to any reason ( and such reasons can be many, like misallocation of capital by promoter or faulty succession plan) , then what use to you of that industry growth prediction?

[royatirek]

Thanks @Mudit.Kushalvardhan, will match it with other players.

Do you have any recommendation for paid research or free research company to check industry growth?

Regarding other question
All investments are probalistic in nature and hence I focus on increasing probability. Industry growth plays a important role in helping me form my thesis. I see it in comparison to other industry.

As I am new to the market and hence looking at the industry growth might again prove to be a noob mistake but currently I value it a lot.

As you have been reading books, Is there any things written in books that talk about not looking into industry growth or similar sort of things?

[ChaitanyaC]

My 2 cents.

Industry growth I think can be gauged through various means. If the products are used by crores of people, they are visible everywhere, particularly if the products are sold in the country, and as such, we can see a trend emerging or a trend becoming a norm, then I guess the more established players with more reach are the winners, smaller players may grow faster than the established ones, and this could continue for a few years until there is consolidation. If the products are not industry related, and are not directly used by public, then making inquiries about the products’ movement with the distributors, suppliers etc will help. If the products are of B2B nature, then I guess knowing about the client names of all the players will help, these will be available in the respective reports of the companies. And if the products are imported, then following foreign websites will help, which may need subscription.

Depending upon the sector and industry, and even on the company, there are many ways one could assess sales, and in extension profits. Many such businesses are discussed in VP, Avanti, Relaxo, Nykaa, Drone companies, IT, pharma etc etc.

Look everything in conjunction, if you are looking at an industry, including the quantitative aspects of the business, can trusting the management, if a management is perceived to have integrity by the market, and if they are able too, then their statements can be given more weight, and sometimes managements are conservative and do more than they mention, and some talk more than they can give.

All relative, all connected, particularly if one is focusing on businesses which are of new age, or trends are starting, because these could take time to come to fruition, so patience may also be required.

I don’t do all of the above mentioned things, because I have started focusing more on shorter terms, so take my thoughts with a pinch of salt.

[sarthakkumar19_]

I always felt that balance sheet reduction and increase in interest rates would bring the stock market down atleast somewhat. Increase in interest rate hasn’t (atleast yet) had much impact. Can someone guide me how balance sheet reduction is likely to progress and its likely impact. The increase in Fed’s balance sheet was huge. If fed decides to reduce it to pre-pandemic level, it seems a major headwind to me.

Thank you for your time

[CA_Mitul_Shah]

Can somebody help me to know where can i find list of stocks both for nse & bse whose circult filter limit is changed from 5 to 10 or 5 to 20 and vice versa ??? Can somebody share link for both bse and nse stocks of the same.

Thanks in Advance.

[sandybansal]

I was studying a company and wanted to calculate the ROCE. This company has two segments, so i want to calculate segment wise ROCE. As my understanding,

ROCE = EBIT / Capital Employed.

Below is a snapshot of the Quarterly results. So if i want to calculate ROCE of Cylinder and LPG divisions, what should be the Capital Employed number for each division. Will it be the sum of Segment Assets ad Liabilities or will it be only Assets.