Rajeev ji,
I admire crisp writing style and the way you analyze smallcaps with a 3-year horizon. Reading about your journey is both inspiring and educational.
As a relatively new investor, I tend to follow narratives beyond my core competencies in electric power and polymer conversion. Buying feels easier hence i remain 100%invested, but I often find myself selling after a correction when most of the gains are wiped out.
The recent small-cap sell-off was unsettling. How did you navigate it? Do you focus purely on value, or do you also consider sectoral trends? In such scenarios, how do you approach new picks—sector first, value first, or a mix of both?
Additionally, how do you assess whether a sell-off has run its course? What signals help you gauge if the worst is over?
Also, curious to know—how have you positioned your portfolio recently? What looks interesting to you right now, or what new picks have you been tracking in this environment?
Looking forward to your insights !
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@RajeevJ Sir, Please guide us for the key monitorable which can be tracked to visualize the story of ABM
Aditya Birla Money Limited raises Commercial Paper (CPs) to build a wholesale debt market (WDM) book (holding duration of seven-to-10 days) and carries out margin trade financing(MTF), which are short-term products (average 30 days) and can be liquidated at a short notice for repayments during a challenging operating environment.https://www.nseindia.com/market-data/debt-private-placement/corporate-filings?company_name=Aditya%20Birla%20Money%20Limited
| (in Crores) |
31-Dec-24 |
30-Sep-24 |
30-Jun-24 |
31-Mar-24 |
31-Dec-23 |
30-Sep-23 |
30-Jun-23 |
31-Mar-23 |
| CP Sanction |
₹ 2,000 |
₹ 1,750 |
₹ 1,750 |
₹ 1,750 |
₹ 1,500 |
₹ 1,500 |
₹ 1,000 |
₹ 1,000 |
| Total Borrowings o/s |
₹ 1,753 |
₹ 1,508 |
₹ 1,382 |
₹ 1,375 |
₹ 1,185 |
₹ 1,087 |
₹ 1,004 |
₹ 876 |
| a) Wholesale Debt Market |
677 |
₹ 517 |
₹ 590 |
₹ 449 |
₹ 455 |
₹ 395 |
₹ 449 |
₹ 407 |
| b) Margin Trade Financing |
₹ 1,075 |
₹ 991 |
₹ 791 |
₹ 926 |
₹ 729 |
₹ 692 |
₹ 555 |
₹ 469 |
ABML is active in the wholesale debt market where it has tie-ups with over 1,000 provident funds generally holding ‘AAA’ rated and sovereign securities. ABML intends to maintain this book with ‘AA’ and above rated securities at around 80% of portfolio and below ‘AA’ rated securities at 20% with rating floor of ‘A’ and a marked to market loss cut-off of INR10 million on the wholesale debt market portfolio as a prudent internal risk management policy.
| a) Wholesale Debt Market |
31-Dec-24 |
30-Sep-24 |
30-Jun-24 |
31-Mar-24 |
31-Dec-23 |
30-Sep-23 |
30-Jun-23 |
31-Mar-23 |
| Sales |
₹ 18 |
₹ 23 |
₹ 19 |
₹ 13 |
₹ 11 |
₹ 12 |
₹ 15 |
₹ 12 |
| Profit before tax |
₹ 5 |
₹ 11 |
₹ 7 |
₹ 3 |
₹ 2 |
₹ 4 |
₹ 6 |
₹ 4 |
| % Margin |
30% |
48% |
37% |
23% |
18% |
33% |
40% |
33% |
ABML maintains adequate filters for its margin trading business with a pre-defined limit monitoring on a real-time basis, and customer-based risk limits are set to monitor the customers’ online trading executions, with the monitoring of the availability of adequate margin cover for each trade executed by them. The securities selected for margin trade financing are highly regulated for the extent the securities purchase could be funded, along with a collateral cover which needs to be maintained. The company is likely to increase the share of revenues from its margin trade financing book, given the pricing pressures in the brokerage business.
| b) Broking (inc MTF) |
31-Dec-24 |
30-Sep-24 |
30-Jun-24 |
31-Mar-24 |
31-Dec-23 |
30-Sep-23 |
30-Jun-23 |
31-Mar-23 |
| Sales |
₹ 98 |
₹ 104 |
₹ 101 |
₹ 103 |
₹ 91 |
₹ 86 |
₹ 64 |
₹ 58 |
| Profit before tax |
₹ 25 |
₹ 25 |
₹ 15 |
₹ 17 |
₹ 17 |
₹ 13 |
₹ 7 |
₹ 6 |
| % Margin |
26% |
24% |
15% |
17% |
18% |
15% |
11% |
10% |
1 Like
There are many great books which are not as difficult read. Psychology of Money, for one. Then Little Book that Beats the Market. Parag Parikh’s books. Richer, Wiser, Happier is the best of them to me.
I have some soft copies, which I can send you on email/whatsapp.
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