Investing Basics - Feel free to ask the most basic questions

[Chandragupta]

Please read the book Narrative and Numbers by Prof. Aswath Damodaran. It will give you a framework of how to attempt valuing story stocks. @basumallick wrote about it recently here

[Rushil_Kumar]

Hi everyone…I have been tracking a company for quite a while. Two things I’ve noticed, for which I would like clarification and understanding from this esteemed group…

1. Frequent disposal of shares by trusts… This happens almost every month… Haven’t seen this with other companies that I track…What does this usually signify?
2. Frequent ESOP’s… While good for company and employee morale and income, how well does it bode for other shareholders?

Hope experienced members help me understand… Thank you:)

[lohiyaakshay08]

Generally cost of debt is lower than cost of equity & hence is more prudent to fund the CAPEX from debt than equity raise. However, there should be some level of valuation post which if you do equity raise that’s more prudent, as in if a company do QIP at a price which is 80-100x P/E, cost of equity should be lower than cost of debt? Is that understanding correct? And how we can calculate what’s that level?

[Agrawal_Saurabh_007]

Hello everyone, In Hariom pipes, yesterday, rating agency ( Care ) has rated the company “Issuer Not Cooperating” since 2021-22…, whereas on 5/6/2024 rating agency ( Crisil ) has given rating accordingly. ( Not tagged - Issuer not cooperating ). How can we analyse it?? Thank you.

[Sudhakar_Subramanian]

I have explained here…

Bull therapy 101-thread for technical analysis with the fundamentals

It is definitely not a red flag. In valuepickr you will come across many companies who wouldn’t have cooperated with rating agencies. A company which needs capital (desperately) will co-operate with rating agencies. Otherwise there’s no need to co-operate with them.

[Hemal000]

Hi,
As an existing shareholder of ITC, What would be my cost of acquisition for ITC Hotels?

Thinking about in terms of capital gain/loss which may arise in the future.

[thakurvi]

Update: Applied for HUF PAN card. Received yesterday through mail(e-PAN). Very smooth process. Going to visit Bank branch for opening HUF bank account. Will share my learning experience as things progress. Any experience fellow member who have experience on this can share experience. It will be very helpful for newbie like us.

[mitansh]

Is there any government website or other way to verify, if the company has actually won the order from the government?

[thakurvi]

update: Visited Bank today and got the account opening form for HUF. Will have to visit local kachayri for preparation of HUF deed. Thinking of introducing corpus via gift received by my father for amount of 3.5 lakhs. Basis of 3.5 is 0.5 is tax free amount (gift) and remaining 3 lacs will taxed at HUF hand. HUF being legal entity will be liable to get tax exemption upto 3 lacs similar to individual.

Disclaimer: This is my thinking. Will glad to hear other members views, if my understanding of things are not correct.