Then how do we calculate the return for shorter term trades, if not the XIRR?
HFT firms, if any, using clients’ money when show their return must be using some metric, and their trades are the shortest possible duration trades.
I think for durations less than 1 year, it is better to look at absolute returns.
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The thoughtful Investor- Basant Maheshwari
Sure, attached is the model. The model accommodates for corporate actions, including dividends, splits, bonuses. However, for buybacks and rights issue, the data needs to be entered manually as these reports are not directly available in Zerodha for extraction. For all the other trades/corporate actions, you would only need to download Zerodha statements and run the model. Please follow the instructions mentioned.
Will be good to know feedback on this.
XIRR Calculator.xlsm (57.8 KB)
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A company is done with capex and from hereon they will be generating good volumes…can we call this as operating leverage?
Yes, you are correct.
Let’s consider a manufacturing company, ABC Corp., that recently completed a major expansion of its production facility.
Before the expansion, ABC Corp. had a capacity of 10,000 units per month with fixed costs of Rs. 100,000 and variable costs of Rs. 10 per unit.
After the capex, the company increased its capacity to 20,000 units per month, but the fixed costs remain Rs. 100,000, and variable costs remain Rs. 10 per unit.
Scenario 1: Before Capex
- Units produced and sold: 10,000
- Revenue (at Rs. 20 per unit): Rs. 200,000
- Total Variable Costs: Rs. 100,000
- Fixed Costs: Rs. 100,000
- Operating Income: Rs. 200,000 - Rs. 100,000 - Rs. 100,000 = Rs. 0
Scenario 2: After Capex (utilizing increased capacity)
- Units produced and sold: 20,000
- Revenue (at Rs. 20 per unit): Rs. 400,000
- Total Variable Costs: Rs. 200,000
- Fixed Costs: Rs. 100,000
- Operating Income: Rs. 400,000 - Rs. 200,000 - Rs. 100,000 = Rs. 100,000
In the second scenario, because the fixed costs remain the same, the increase in production volume directly translates to a significant increase in operating income, demonstrating operating leverage.
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Hi.
how to look for capital allocation in different businesses of a conglomerate business.
review the company’s annual reports and financial statements. Check the management discussion and analysis section. Look at segment-wise revenue and profit breakdowns. Examine capital expenditure details in financial disclosures. Consider investor presentations and earnings calls for additional insights.
sir, couldn’t find it for triveni engineering. kindly help.
regards and thanks
Triveni Engineering & Industries Limited allocates capital across its various business segments, including sugar, power, water, and engineered-to-order (ETO) products. The company recently acquired a 25.43% stake in Sir Shadi Lal Enterprises Limited, reflecting its strategy of diversifying and strengthening its portfolio. Their investment strategy focuses on enhancing business profitability while maintaining inclusive growth for all stakeholders, including customers, farmer associates, and investors
(Triveni Engineering & Industries : INVESTOR PRESENTATIONQ3 FY 24 - MarketScreener) (Triveni Engineering & Industries : INVESTOR PRESENTATIONQ3 FY 24 - MarketScreener). For more detailed information, you can refer to their official website.
How does one arrive with a estimated value of a stock price in the future. Is discounted cash flow the right way to do it?
Hi I have a confusion regarding today’s nifty closing value . On Zerodha nifty value is showing as 23,567 however on the chart closing value is 23,579. Same issue on groww. Can someone please help to explain this discrepancy
The discrepancy could be due to the difference between the actual closing value and the adjusted closing value. The actual closing value is the last traded price. The adjusted closing value may include factors like dividends or stock splits. Different platforms might update their data at slightly different times. Checking the NSE website can provide the most accurate closing value.
Business modelling would help better than anything in future predictions.
DCF relies on accurate forecasts and assumptions, so it’s one of several methods used for valuation. Other methods include Price-to-Earnings (P/E) ratios, Price-to-Book (P/B) ratios, and comparing with industry peers.
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Where can we see monthly change in shareholding pattern?
Mutual funds’ holding changes can be seen here.
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