Using this medium to document my investment learnings, stock picks, investment psychology in a structured manner.
Why Investing?
Goal is to be financial independent through investing and generate returns such that passive income (investment) becomes larger than my active source of income.
I don’t have any particular figure in my mind but i started investing just for fun, but i have developed keen interest in investing by making lots of mistakes; i.e. picking stocks just by looking technical charts/froth in market/fomo.
Learning:
I have started researching on my own, not getting caught up in FOMO, staying away from hot picks across social media, investing in my research and learning. I have started to write blog for making my thoughts bit structured and my picks more intelligent.
Do provide your invaluable insights what all i can do to start making good bets
Can you also post how are you analysing the companies fundamentally. What are the things you look for and why?
Also what is your current portfolio and thesis behind buying them?
Currently reading “The making of a value investor” by Gautam baid. He has shared his experience and learning from 2017 to 2020 bear market. It’s a great read with a lot of learnings. You can give it a try.
Can Visit my portfolio and provide some reviews.
All or your mentioned names are new for me so u don’t have any view on them will add them to my watchlist.
It is very difficult to create a moat in a commodity business, as differentiation is limited.
Transparency & Communication
The company does not conduct earnings conference calls (concall), which may impact investor communication and transparency.
In a microcap illiquid company with no track record of business and management, if something goes wrong with results or execution, quarterly concalls provide crucial clarity to investors. And gives strength to hold the company if nothing has changed fundamentally.
Financial Health
The interest coverage ratio is modest at 5.7, indicating a reasonable ability to cover interest expenses, but it’s crucial to monitor any potential risks.
Only concern I could see is how will they manage healthy cash flow from operations. Generally contracting/B2G companies find it difficult to generate healthy cashflows from operations as a lot of money is stuck in receivables.
Analysis of Tolins Tire
Financial Health
Cash flow from operations is negative, raising concerns about liquidity and sustainability. Monitoring future cash flows is essential.
Growth & Profitability
Growth has slowed down, indicating potential challenges in expanding market presence.
Margins have shown softness, which may signal pricing pressure, higher costs, or competitive challenges.
Industry & Competitive Landscape
Operates in a highly competitive industry dominated by big and branded players with strong market presence.
Key Question: What is Tolins Tire doing differently to carve out a niche or build a competitive advantage?
Threat from Larger Competitors
If large players feel threatened, they have the financial strength to take a temporary hit in profitability to undercut pricing and capture market share, potentially putting pressure on smaller players like Tolins Tire.
