Sharing a few that I know of
https://www.icicidirect.com/mailimages/Co_reports.htm
https://simplehai.axisdirect.in/research/reports/fundamental
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Naive query but still curious to know why promoter are allowed to buy / sell in their own company when they are in possession of UPSI?
agree. for hidden gems and multibaggar the numeric game in most cases might not fit. You need to know the business and as rightly said dig deep. I recently got negligible tracking pos in PTCIL on june 4 fiasco but sold off. Started tracking again. Was looking for thread and info on the forum which landed me here 
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I need to understand how accounting works in below cases
When a brand manufacturer like Jockey send it goods to its franchise stores, will this good is considered as a sale and amount is added to trade receivables? Or it will still reflected as inventory in companyâs balance sheet?
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Genrally in these companies, stores work on three formats,
CoFo: Company owned franchisee operated: - Here Inventory is owned by the company and store staff etc is managed by franchisee. (Certain International Brands run on this format)
FoFo: Franchisee Owned Franchisee Operated:- Here, inventory is sold to the franchisee, and you have fixed days to collect the trade receivables. Of course, you will have a deposit covering almost 70-90% of the average inventory cost.(ABFRL & Jockey are predominantly this)
FoCo: Franchisee Owned Company Operated: Here inventory is owned by the franchisee and store staff etc is operated thorugh the company. (More prevelant in restuarants and jewellery stores.)
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Can we calculate company sales growth by using sector CAGR.
@hardik_shah1 so if I see a company having FOCO stores, I should not simply take sales alone, because if any goods sent to franchisee store, that is treated as sale from the company side and in reality this is not a sale, Am i getting it right.
Itâs not necessary. Most companies will not take back as returns more than 3-5% of merchandise sold except in extraordinary circumstances, such as COVID-19 or a natural disaster that completely stops the sale.
Also, excess stock is always liquidated through direct consumer sales. Any leftover stock is moved to tier 2/ tier 3 cities, liquidated through second-sale stores, or at discounted prices at MBO stores.
Under normal circumstances, the company will not have more than 3-5% general liability. This figure is generally regarded as COGS in practical parlance but not in accounting. So, it will be included in wholesale prices at which stock is sold to franchisees/mboâs
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How the intrinsic value of shares is calculated? Also please explain what factors to consider for calculation of intrinsic value of BFSI sector?
hi
where to find industry specific reports?
What is the difference between cash balance and cash reserves?
I am not sure if this is a basic question, but is there a calculation/formula to determine whatâs the implied growth rate based on PE? I understand that reverse dcf is one way of finding this by trial and error but i wanted to understand if there is a direct method/formula to know this
If you are asking how much of future growth is embedded in the current price, then in my limited understanding, P/E does not reflect that. Even with businesses with proven business models and success, P/E can give wrong signals. Visible growth, TAM huge, P/E reaches great heights, sustains for a few quarters, defying all logic, but it comes down, for reasons pertaining to the business of course. The aspects that are not excluded before, or overlooked, are visible, and P/E crashes, even if there is earnings growth. So, better to have an eye on the price too, before having bigger positions, if the stock is trading at very high valuations.
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1. Cash Balance:
⢠Definition: The cash balance refers to the amount of cash a company, individual, or financial institution has available at a specific point in time. This balance includes the actual money in the bank, on hand, or in easily accessible forms like cash equivalents.
⢠Usage: The cash balance is used for day-to-day operations, paying bills, and meeting immediate financial obligations. It is a dynamic figure that can change frequently as money is received or spent.
2. Cash Reserves:
⢠Definition: Cash reserves are funds that a company or individual sets aside specifically for emergencies or unexpected expenses. These reserves are typically kept separate from the general cash balance and are often held in highly liquid, low-risk assets to ensure they are readily available when needed.
⢠Usage: Cash reserves are used as a safety net, ensuring that an organization or individual can cover unforeseen expenses, such as sudden business downturns, repairs, or other unexpected financial needs. They are part of a broader financial strategy to maintain stability and solvency.
Key Differences:
⢠Purpose: Cash balance is for regular, immediate use; cash reserves are set aside for emergencies.
⢠Liquidity: Cash reserves are typically held in very liquid forms to ensure quick access, while cash balance might be in both liquid and slightly less liquid forms depending on immediate needs.
⢠Management: Cash balance is actively managed to ensure sufficient funds are available for daily operations, while cash reserves are more passively managed, focusing on preservation and security.
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hi,
what is significance of security premium reserve?
What are its uses?
The Securities Premium Reserve (also known as the Share Premium Account) is an account that represents the amount received by a company over and above the face value of its shares when it issues them. This premium is recorded in the balance sheet under the shareholdersâ equity section.
Significance of Securities Premium Reserve:
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Capital Cushion: It acts as a financial buffer or cushion for the company. Since itâs a part of shareholdersâ equity, it can be used to absorb losses or support the company during financial stress.
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Reflects Investor Confidence: A high securities premium reserve indicates that investors are willing to pay more than the nominal value of the shares, reflecting their confidence in the companyâs prospects.
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Non-Dilutive Capital: The premium is a source of funds without diluting the ownership stake of existing shareholders, as it doesnât involve issuing new shares but rather a premium on the existing ones.
Uses of Securities Premium Reserve:
The Companies Act, 2013 in India, specifies that the securities premium reserve can only be used for specific purposes:
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Issuance of Fully Paid Bonus Shares: The securities premium can be used to issue fully paid-up bonus shares to the shareholders. This increases the share capital of the company without requiring additional investment from the shareholders.
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Writing Off Preliminary Expenses: Preliminary expenses incurred during the formation of the company, such as legal fees, registration fees, and promotional costs, can be written off against the securities premium reserve.
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Writing Off Debentures or Preference Shares Issue Expenses: The securities premium reserve can be used to write off expenses, discounts, or commissions incurred during the issue of debentures or preference shares.
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Redemption of Redeemable Preference Shares or Debentures: The securities premium reserve can be utilized to pay off premium amounts payable on the redemption of redeemable preference shares or debentures.
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Buy-Back of Own Shares: The reserve can be used to finance the buy-back of the companyâs own shares, subject to compliance with the relevant regulations.
Restrictions on Use:
⢠Dividend Payments: The securities premium reserve cannot be used for paying dividends to shareholders.
⢠General Purposes: It cannot be used for general corporate expenses or to cover losses, except under specific conditions such as writing off capital expenses.
Accounting Treatment:
The securities premium reserve is recorded under the âReserves and Surplusâ section of the shareholdersâ equity in the balance sheet. It is not considered part of the free reserves and hence, cannot be freely distributed as dividends.
Conclusion:
The Securities Premium Reserve is a crucial part of a companyâs financial structure, providing flexibility for specific strategic financial activities. Its restricted uses ensure that the funds are preserved for enhancing shareholder value or strengthening the companyâs financial position rather than being utilized for operational or non-strategic purposes.
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Can someone just brief up on capacity utilizations in various sectors?
I was looking into some companies and they have various capacity utilizations going on for them.
All the three examples below are from concalls and investor presentations.
- Garware Hi Tech Films - they setup a new line capex as the current plant was running at 120-125% capacity
- Marksans Pharma - they have a new plant and was said in concall that utilization of the existing plant cannot go over 85%
- Sanghvi Movers - in the cranes business cannot go over 85% capacity utilization.
How does capacity utilization depend from business to business and in sectors? And is there a means to know the percentage?
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Hi All,
How do you look at companies that have prices going up but very less delivery volume. For eg., Caplin Point has very less delivery volume but there has been a significant up move in the stock prices.
Why does a company with decent fundamentals and decent guidance not attracting long term buyers?
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which app or service have you got this info? good presentation
w.r.t your question, we might have to look relatively. from this pic the delivery volume is increasing when overall volume is increasing. Also in the current bull run the speculators are significantly high which is a known fact!