I have been Watching Kenneth andrade’s interview. He talks about capacity expansion and demand. He says that demand is not there so no capacity expansion? What does it mean?
Also he talks about industry profit pool. In any specific industry, only few companies take all profit. Let us says if we take Auto industry. How do you find out which company is taking all profit? Do we have to manually compare the profit of all companies?
How do you find out which company has more market share? annual reposts and broker research reports?
Both these combined, means a low Debt/Equity ratio
For the example on ITC, putting money in bonds and debentures is an asset. While, it can be argued that it’s not the core business of the company and either the company should invest the money in the business or return it to the investors, it’s not always that simple. Sometimes, companies don’t have short term need for funds, but need it in the longer run. Hence, for the short period, they put the money into safe bonds to earn interest. Although I have not seen ITC AR to know how much money is being parked and for what reason.
But, in summary, as long as it’s not a huge amount, you should discount it and look at the company’s debt and equity to know how strong it’s BS is.
Does anyone know where we can get access to historical annual reports eg. All AR from 2001 onwards. Screener and other websites give reports till 2008-09. Any place where I can get the older annual reports? Thanks!
Is there any online financial course (paid or otherwise) that teaches basic financial terms and investment/stock trading? I’m aware of Zerodha Varsity but is there any structured course offered? Appreciate some inputs on this to recommend to new investors.
If you want to understand Valuation, there is no better source than Ashwath Damodaran’s lectures (search on Youtube, he shares his entire course)
For a different view of valuation, do go thru lectures of Prof. Bruce Greenwald (again all the lectures are available on Youtube)
Investing is a combination of understanding industries, companies, accounting, finance and behavior. You will need to tackle each of them step by step.
I started investing around 6 months ago. I have read a few books on investing. In order to increase my knowledge further, I am looking for a course to get a better understanding of the markets especially Indian markets as most of the books are written from US perspective.
I evaluated a few courses and SOIC looks like a good one. If anyone has attended this, please let me know your review. Also, please do recommend any other courses which you think are value for money.
Assuming, the same trends continue over the next 5 years or more, Supreme could actually do better than Astral.
However, if Astral can deliver some blockbuster numbers like it had done between 2010 & 2015 (their sales had grown at an outstanding 38% CAGR in those 5-6 years) the stock could actually do better than Supreme’s.
Hence it all depends on which co. can grow faster than its peers and whether or not Astral can sustain its momentum. If it doesn’t, the stock will either have a drawdown or a time correction. I am saying this because Astral’s stock trades at an obese 96 times TTM earnings.
@Mani_Starter A strong balance sheet could mean different things to different people, depending on the industry / context. Here are 2 types I can think of
A strong balance sheet due to no leverage, in an industry which struggles to produce satisfactory ROE. One industry that is notorious for this is textiles. In such an industry one player with a strong balance sheet stands out. That’s Ambika Cotton.
Notice that the amounts that HUL needs to pay its vendors are way higher than the amount due to it from its customers and the amount it has invested in its inventories. This excess cash of 3916 Crs spikes up its return on capital to very high levels.
This kind of a balance sheet is very rare, wherein the co. actually holds cash above and beyond its working capital requirements and an increase in negative capital is generally a very rare and good thing to spot.
What is the approximate transaction cost (including every cost like stt, brokerage, DP charges) for buying and selling shares. Does a round trip of buying and selling a share cost around 1% .
Can any one please tell me when the new shares of meghmani organics after demerger will list again. I have received the new shares in my account but cant see the new shares trading.
Instead of looking at PE, PB in isolation , if we look at a 2x2 matrix with ROE or Growth, then I believe we can get a better understanding of stock valuation. This is quite simple and not as detailed as DCF but approximately does the job. Something like below
This is amazing Sahil. Thanks for a detailed response. On a side note, you’ve mentioned some people are good at turn around- could you name a few people so that I can start looking at those people for me to read up on this and find markers to differentiate such people.
Also when you say they’re good at turn around, have they had to multiple turn around s? I mean are you saying that their company must have fallen enough time for their management to have turned around successfully enough times or do you mean these are banks and other third parties that help companies get out of bankruptcies ?
