Hi , I am looking to start investing in US market. Which brokerage platforms are most suitable for Indian investors wanting to access US stocks? Also, how can I find equity research reports published by Morgan Stanley, Bank of America, JP Morgan, and Nomura etc?
Which is the best platform for retail to invest in bonds and debentures. I am using wint but not satisfied with the spread it provides . Even checked out grip but same issue there also. Want to invest in debentures of big companies without much hassle since amount is small . Pls guide with other alternatives
Good to know this point about deferred tax.
When referring to the following
You can refer to the income tax note in the Financials to get a better understanding in terms of numbers and calculations
I am trying to understand if this disclosure is a mandatory part of the statutory declaration or companies have a choice if they want to publish or not reveal it?
Or is this something the auditor is required to disclose before signing off on the audited results?
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How do brand tackle below issue?
As a vendor, I look for more profit margin. I sell a product to customer for Rs.10. Product A gives me margin 20% and product B gives me 35%. Now vendor always tries to sell product B.
Product A - Asian paint
Product B - Birla paint
It happens that sometimes customer asks for product A instead B. But if the customer is innocent, vendor take profit and avoids selling asian paint.
You ask for gum, vendor gives you other than Fevi stick. etc.
If customer is asking for any paints, AP is losing here, this shows AP doesnât have enough brand power,
AP needs to spend more on Marketing for brand recall,
or
AP needs to increase its dealer margin to match with other product.
Question is:
Is giving out product B at a margin of 35% feasible in the long run? Thatâs the bet AP might be playing, at certain point of time, product B has to reduce its margin. AP will start gaining market share again then.
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Good Questions @Mani_Starter
In real world, itâs not easy to dislodge brands. Birla opus gives absolute insane margin to retailer (As per some reports itâs 10% higher than AP, Say ap is 3-8%, they give 13-18%).
Retailer may think this is not sustainable hence even if it requires, they sell both, but surely old retailer wonât spoil their relationship with AP.
Besides margin, asset turn is more important. Retailer value their spaces and for them ROCE is more imp than absolute margin.
How to analyze EPS growth in Microcaps? Can we ignore negative EPS growth against 20% or more Topline, bottom line & ROE? Request your views.
That would mean equity dilution has taken place. Many fast-growing small caps require frequent external funding for working capital or capex purposes if the business internally is not generating the required cash. So occasional external fund raising is fine in such cases, if the funds are getting used for right purposes. One has to combine it with other governance checks and take a call.
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Thank you for reply. If business is generating 5-10 times CFO over its Net profit but there is no YOY or QOQ EPS growth then does it mean that business is generating cash but its not sufficient for its overall growth? Whether can we ignore negative EPS for newly listed IPOs, since they might have diluted while listing gain? Where can I get information about right usage of equity dilution? No one have asked the same in concalls,
Firstly, no business generates cash 5 to 10 times its Net Profit. It can happen due to one off factors in a year, but you should consider long term averages (minimum 3 years) to judge the cash generating capacity of the business.
For the rest of your question, dilution due to IPO is natural since the company is issuing new shares. When the company files for IPO with SEBI, it releases a Red Herring Prospectus which contains all the information about the business & the issue. Google for <Company name + RHP or DRHP> and you will find it. It contains a section âObjects of the Offerâ which will contain the intended usage of the fund raise. But the purpose of listing can also be beyond what the company wants to do with the money. Listing provides several other benefits too to the business & its promoters.
Lastly, remember that smaller the company and newer the listing, more is the caution you must exercise while investing in it. Risk is the highest in such companies.
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Request someone to clarify on CFO analysis please.
I am interested in investing Semiconductor, Anti-drone, Solar, Transformer, Cloud based infrastructure, Defense small cap stocks but I observe many leading business are not converting profits into cash. Ideally in 5 years, there must be min 70-75% CFO against Net profits.
Am I missing something? Can we ignore cash generation during growth phase of new/smaller/capex intensive companies?
Or should I continue to ignore if any business is not generating cash over 5 years?