Investing Basics - Feel free to ask the most basic questions

I think management always gives guidance in the tone that something may happen. They never claim that something will definitely happen. For eg - we look forward to our margins going up in the coming 2 quarters vs we will definitely have higher margins in the next quarter.

Can someone tell do we track portfolios of VP, moderators of forum for learning purpose and understanding rationale when they enter or exit any stock?

Positive inventory means that there is a decrease in inventory amount. The amount is reported as positive because reducing inventory usually has a positive impact on the cash balance of a company. When we think about how to evaluate and monitor inventory in a business, we should look at it from two perspectives:

  1. Impact on cash: The first perspective is how much cash is tied up in inventory and how long is that cash being tied up. As a general rule, the lower the inventory balance and the less time we hold that inventory before selling it the better. The focus here is on the time from purchase from the vendor to sale to the customer.
  2. Impact on profitability: The second perspective relates to the impact inventory has on overall profitability as well as the many pitfalls associated with how inventory is accounted for.

thanks a lot for your guidance

hi,

How to check industry group ranking for indian market? kindly elaborate.

Does Increase in inventory mean more stock/ raw material is stored and it affects working capital requirement

yes you seem to be correct however inventory turnover ratio would be an accurate indicator as to analyze the positive/negative effects to working capital as a significant increase may be in normal course if a huge order is received by a company or if it is expected to make a huge quantum of sales in the near future

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Hi. In the Investor Presentation of Shaily Engineering Plastics (slide 15), I saw the following ratio. Can someone explain as a concept what is this ratio supposed to indicate? Especially for a manufacturing company which has been spending a lot of money to put up new capex.

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Hello, How do I know what is the market capture of a particular sector. For example I want to check what is the Footwear market in India. or what is the jewelry market in india? As you can see from the below link it says the slippery market share in india is just 5%. how do I find that information for other sector? Has someone done more research on this will be helpful for my research. thanks

You can find such things in analyst reports, companies’ reports, news articles, from industry bodies etc.

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kindly suggest some books to learn sector analysis ?

CMP 500
If a company has q2 revenue of 100 cr and net profit or bottom line of 10cr with current pe of 40 then assuming next quarter 15 percentage growth in revenue with same net profit margin .
How can I calculate the PE please help

  1. Use the profit margin and revenue to calculate net profit.

  2. If the company is not doing share buybacks or diluting its equity use the same outstanding shares for future. (Outstanding shares should be available in P&L statement else you can calculate it).

  3. Through this calculate EPS (Earnings/outstanding shares).

  4. Now you can calculate forward P/E, current share price i.e., 500 divided by EPS.

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Can someone please clear why is bikaji trading at 70pe and Mrs bectors trading at 58 Max all time.
What is so special about bikaji please anyone

Hi,
How does LIFO valuation strategy reduces the value of invested capital on balance sheet?

This is related to tax. If I gift the money to my wife and invest in buy back. Will the gain be tax free? similar to PPF, and SGB