People new in stock market, please make consistent money first from Short/long term trading. Instead of going for Intraday / Future and Options / SME etc. Make money for few years with patience .
Once you have big pool of money even 20%-30% return will be enough to live a life you want then and thereafter.
Treat stock market like a test match. You have to remain Not Out throughout your innings.
Can someone guide me in understanding forward PE and DCF?
How attending AGM helped in your investment journey? I have tuned in (live/recorded) a few after the VC facility was made available, but most of them turn out to be a waste of time due to behavior of the management as well as minority shareholders. Do you have any good experiences about the AGMs? Request your views covering the name of the company, likables and decision worthy moments, & others. Thanks.
If any company acquires 100% shares of promoter controlled entity during the year, where can I find price(amount) paid by the company to acquire that entity? I expected to see line item entry in Cash flow but did not see any. Now since this entity has become Wholly Owned Subsidiary of the company, it is reported under AOC-1 where it provides date of acquisition and financial details like assets, liabilities, turnover , PBT PAT etc. But could not find at what price company purchased that entity from promoters. Can any CAs on this forum throw light on this?
The amount will go to the owners of the acquired entity and normally you will find it in Part 2 of the Cash Flow Statement. Check both Standalone and Consolidated statements. If it is not there, it is possible that the acquisition was done as a share swap or some other non cash basis. If you provide the name of the company, we can probe more.
Company name is Vasa Denticity Ltd (Dentalkart) They have acquired Waldent Innovations Pvt Ltd on 23rd Aug 23. Thanks for your help
Varun Beverages announced stock split from face value 5 to 2 and record date is tomorrow i.e. 12/9/24. As per my understanding, for every 1 share 2.5 shares will be issued. So, If one holds even number of shares no problem. But if I hold odd number - say 101 share - what happens. I am eligible to get 252.5 shares but company cannot issue 252.5 shares. So anyone holding odd number of shares will he lose value of 0.5 shares?
Disc. I held odd number and today I bought 1 share to make it even because of fear of losing value of 1/2 share 
Amount paid for acquisition of subsidiary will not be reflected in consolidated cash flow statement since it will be accounted as investment in sub and so will be eliminated on consolidation. You can see the amount in parent standalone cashflow. The acquisition price should also be mentioned in the disclosure along with other details. The other way to calculate this is to take the amount of net assets acquired from the disclosure and add movement in goodwill to it and that should be the acquisition amount although not necessarily cash paid. This will also include any non cash consideration (if any).
Those partial shares will be turned into cash and returned to the investors in such situations.
Thanks for your response. Its not acquisition of subsidiary but acquisition of promoter owned entity which became wholly owned subsidiary post acquisition. Will the accounting treatment remain same as you mentioned above?
Yes. From companys point of view this does not change anything.
They have purchased it for Rs.10 lacs. In Schedule 14 of Consolidated, they have shown Investment in Waldent at Rs.10 lacs to calculate the Goodwill amount. The acquisition amount is also mentioned in clause (iii) of Annexure A of the Audit Report of Standalone Financials. In Standalone Balance Sheet, it is given as Non Current Investment but Schedule 14 is missing which should have ideally mentioned the details. It is also mentioned in Standalone Cash Flow Statement Part B as “Investment in Equity Share (Related Party)” but the name Waldent is not mentioned.
Question on LTCG / STCG:
Assume I have 100 shares of TCS, purchased in Yr 2020 (Long term) - never sold in 4 yrs.
In same demate account, suppose I had purchased 10 share a week ago (So I have 110 shares) and had sold 10 today, say with gain of 2%.
In account this 10 share is considered LTCG - mean to say 10 will deduct from the 100 older share or 10 will deduct from new purchase of 10 and considered as STCG?
Hope am clear in my question. Thanks.
AFAIK, first in first out will be applicable, with the price the shares are bought at. So the sold 10 shares are the from the 100 shares bought at the beginning, so LTCG.
Someone can confirm.
Yes first in first out
It will be a LTCG as your older shares will be sold out first as @ChaitanyaC mentioned.
FIFO is applied.
But, I feel the liberty of choosing shares for selling needed to be given to the investor.
Hi, Anyway to know exact return of portfolio? I have zerodha account, the xirr it shows is accurate? It has note as “If the majority of the investments are less than a year, the XIRR would be greater than the actual percentage.”
Other note says, Zerodha has partnered with Mprofit through its fintech incubator, - anyone have checked it?
Also for comparision, where to check nifty 50, nifty 500 return in xirr? Any website etc?
Thanks.
This is an important question which I too have been thinking about in recent times. So, penning down a few thoughts on AGMs in general. Writing about individual events and experiences will make this too long a post.
Indeed, in some cases the answer to your question is quite straightforward. When a company does not hold quarterly concalls, AGM provides the only formal opportunity to interact with the management and learn more about the business. The utility of AGM in such instances is unquestioned. Some managements are very forthcoming, even appreciate others taking interest in their business. Others may not speak on their own, but we as investors need to ask relevant questions and make them speak. Some may not speak even then, but we have to take our chances.
From that perspective, life was much better in the era of physical AGMs. Investors & managements could meet face to face, interact and even know each other. Besides the formal Q & A sessions, a lot could be gained by meeting the managements on the sidelines of the event – over high tea or lunch, or simply by walking up to the stage after the event and starting a conversation. I attended several AGMs during the period 2017-19 and most of them were fruitful. On several occasions I had long – even 30-to-45-minute conversations with promoters / managements of companies which gave deep insights into the business and the industry in general – the kind of opportunity I would never have got otherwise. Some notable names I remember are Vinati Organics, Ambika Cotton and Orient Refractories.
Your personality and style of investing also matters. I like to get a “feel” of the management, use my intuition and instinct. In doing so, there is nothing like meeting the management in person and talking to them. Of course, friendliness and niceties can be faked but the key lies in not losing your objectivity, being able to link confirming & contradictory evidence and join the dots. I have many occasions where such intuition has helped – not just to invest, but even to stay away from or exit the stock.
With AGMs going online, this opportunity is unfortunately gone forever. AGMs are short and crisp, more structured, and formal. But even here, it is upto the investors to put managements to test. Many of them do respond in the right spirit – see this, for example. But yes, the power equation is now decisively in favour of managements.
Managements can reduce the AGMs to a farce, if they want to. Some do not let shareholders speak, while many others avoid answering select questions. But there is a learning in this too. It still tells you something about the management, and so I would rather have an AGM than not. After all, not every management is like that. For every Indiamart, there is a Pricol out there.
So, for companies holding quarterly concalls, the utility of an AGM is less but not entirely zero. You can always have some questions to ask, you never know everything that is there to know.
Unfortunately, I find serious investors shying away from attending AGMs, leaving the field open for Yusuf Rangwalas and Lekha Shahs of the world. This has given the managements an excuse to belittle the event and reduce it to mere formality. I personally don’t think spending an hour or two with your shareholders (partner owners) once a year is too much to ask for. But the onus to prove the relevance of the AGM lies with the investors, not with the managements. I therefore try to attend as many AGMs as possible, and ask questions wherever I have some. I wish others did the same.
For the AGMs you attended, what was your contribution - that is what you should think of.
What are the elements which can tell if a company is scaling up or not? Some companies have been there for decades and they dont cerate any value. is it because they are not able to scale?
