Check if the trading view chart missed price adjustment for the BONUS shares declared by the company in FY07.
Management tone/confidence in concalls:
Was listening to concalls of Kfintech, Affle and Iris. The one thing that stood out was the extreme confidence of the management(s). Without going into too much detail all of them were very confident of growth, very bullish on Indian market, even more so on international markets, and not too worried about competition. Holy quadrafecta?
My question/feeling: All three are software companies that deal with international clients and hence their leaders have a good command of English. Which made it sound amazing and rosy.
For reference listened to Astralâs recent call. It was optimistic but the âperformanceâ was nowhere near what I felt from Affle/Kfin/Iris. Especially Affle.
Maybe its the accent, or maybe its the quality of the audio(very clear for affle/kfin), I donât know, but I am sold on Kfintech and Affle.
Perhaps reading the transcript is a better way to assess tone of management. Any thoughts are welcome.
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How can i check that , if you can explain please.
I donât follow the companies you have mentioned, but still expressing my views w.r.t the question alone.
Have you been following the businesses and their stories? If combined with what has happened till now, these conference calls may sound normal.
Reading a transcript provides with the details of the business, but not the tone of the people who give those details. Not to mention the errors with sentences which sometimes miss certain important words. So in this sense listening helps, but what you have said is true too.
So, watching old interviews can help, accents will be the same but body language and the expressions (not that they cannot be hidden) accompanying words can provide a better understanding, some inferences can be made if they always talk like that, be it video or call, or they talk differently. I remember an interview of DHFLâs management after their fiasco, when asked a question, it was frustrating for them I guess, they expressed it visibly.
As you have said, they deal with international clients, so maybe such vibrant answering is expected, as opposed to a mundane, mechanical session, even if it provides the answers. Not that those international clients cannot ascertain what is what.
So if looked at conjunction with business, I guess more picture emerges, and one can draw any inferences, as we hear about a view of investors that some managements overstate and under deliver.
Just some thoughts, not invested in any of the names mentioned.
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Hereâs how I did:
AR of FY08 mentions split and bonus action in FY07. Historical stock price on the BSE [Stock Prices] shows a price drop from ~2000 (on 28-Jul-06) to 500 (on 31-Jul-06).
Trading viewâs chart shows a big gap down b/w these 2 days. Hence, I infer that their database did not scale down the stock prices before 28-Jul-06 to reflect the action of the split and bonus.
P.S: I have seen similar situation for few other names [for e.g. Nestle Daily chart on 04-Jan-2024] while referring charts on Trading View, which is integrated with ICICIDirect.
I have a question related to most used term in investing, That is PE.
I want to know how does PE affects buying or selling decision when you have a growth vision for an XYZ company?
Secondly, I remember people mentioning BSE is very overvalued when it was at a price of 1600. Now it has CMP of 2800. So what does usually drive these stocks?
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hi,
how to keep the cash savings not burnt by inflation and still safe and liquid?
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You want safety, liquidity and returns that beat inflation? For shorter term, inflation is not a problem. For longer term we can go for equity, but this has to be managed as it is volatile. For longer term debt products and schemes, liquidity may not exist if we want to sell in the middle of the tenure. Gold is volatile too, it may not grow YoY.
You cant have your cake and eat it too. You have to take a chance with something, sacrifice something to get something else.
I wanted to know how the implied growth rate is beind derived from current market price and PE ratio "
Below is the excerpt from current article .Can somone explain how is the implid growth rate being derived for the same
Performing a reverse discounted cash flow (DCF) for Jubilant FoodWorks (Dominoâs) using a 3-year average Price-to-Earnings (PE) ratio as the exit PE after 10 years reveals an implied earnings growth of ~16%?"
Please do explain by example for easy understanding
You will find the answer for your question in Google or chat gpt. What it cannot tell you is when to apply which ratio, it comes with reading and understanding itâs value chain. Company specific challenges, etc. Learning ratio and applying it are two totally different things. DCF veteran Ashwath Narayanan seldom makes it right.
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Jubilant Foodworks -
CMP 434
TTM EPS 3.34
P/E 130
3-year avg PE 98
Discount rate 13% (since this is giving me 16% implied growth that you mentioned)
At 13% cagr, expected price = 434*1.13^10 = 1473
If exit PE is 98 (3 yr avg as you mentioned), exit EPS must be 1473/98 ~ 15
EPS needs to grow at 16% cagr to reach 15 from 3.34 hence implied earnings growth rate is 16%.
ButâŚ
In my view, it is not wise to expect 3 year avg PE as exit PE at year10. You can look for Gordon Growth model and check the math for yourself. Basically what it says is that after 10 years, youâre expecting the company to grow at 12% forever. Even if I believe it can grow at 8-9% in perpetuity, at 13% discount rate, it does not warrant an exit PE of more than 20-25.
Once you do that, implied earnings growth is 33%
Check out Mauboussinâs base rate book to see how many companies have grown at that rate.
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Good evening everyone. Can anyone please explain the concept of T2T category stocks?
- Why are stocks put in trade to trade category?
- â How long go stocks stay in T2T category?
Stocks where serious speculation activities are observed are put in trade to trade category by the exchange and SEBI. Typically such stocks will have low public float and very low market caps which make them attractive prey for the operators who can move prices up and down single handedly.
If you buy a stock in t2t category you canât sell it on the same day which you can do with the other stocks. In other words intraday trading not allowed. You will have to take delivery of the stocks into your demat account and once shares are credited to your demat account you can sell them.
Exchange does periodic review of stocks in t2t category and based on fulfilment of certain criteria moves them out of t2t. Itâs hard to say how long, though. Sometimes it can be a few weeks and sometimes a few months.
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Where is search button?
After new version weâre is search button?
In nse under BE series
Bse under T group
go through respective website spend some time, after wards ask in this forum.
sir anyone tell me about how can i invest in unlisted universe and also tell me some offshore and electrolysers players in india.
i was hearing it from many of friends and did some thinking.
Multiple ways to look at it right ?
- When the promotors is biased that he can do this much and that much but he really not aware of future possibilitiesâŚ
- When i feel over confidence i leave the odds against me and talk like i know everything that am talking about - Without looking at Risk or maybe weighting my risk lower and Mainly the uncertainty.
Uncertainty is something i never cared about. Keep that in risk as 1% but what if that comes as 99% bcs of n number of reasons.
Just sharing my opinion.