• Free Webinar: Fundamental Analysis and Valuation DEMO of Ganesha Ecosphere

    𝗧𝗮𝗶𝗹𝘄𝗶𝗻𝗱: As per the Extended Producer Responsibility (EPR) norms, brand owners and manufacturers are required to have a minimum of 30% recycled content in their plastic packaging (incl. PET bottles) in FY26. The requirement increases by 10% every year to 60% in FY29.This is a huge demand driver for companies making recycled chips by using…

  • Concept of Operating (De) Leverage explained through movies!

    Companies with relatively low incremental cost of serving additional customers typically have high 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲. Such companies have a higher proportion of their overall costs as fixed (and have lower variable costs). 𝗡𝗲𝘁𝗳𝗹𝗶𝘅 incurs large fixed costs such as content, licensing and tech infrastructure, however the cost of serving additional subscribers is very low.As the…

  • How to estimate market size–top-down and bottom-up?

    P.S: I have done ~30 work trips to Chicago over the last 2 years. Never got a chance to explore the city. However, this morning, I took a halt to see The Bean on my way back to New York. Market sizing is a key step in equity research and investing. It is very useful in…

  • Resources for Investors, Equity Analysts, and Strategy Consultants

    In Strategy Consulting, life comes really fast at you and so do the learnings. Drawing from more than a decade of diverse industry experience, interacting with senior executives, and witnessing the impact of tech and business transformation decisions, I believe I have gained invaluable insights. Whenever I craved exposure to other industries / businesses, I…

  • How to do Fundamental Analysis of General/Health/Property & Casualty Insurers?

    Insurance can seem to be daunting business to understand. It may sound weird to know that the business model of General insurance and Banks is pretty similar. So let me simplify this for you. If you are a young investor or an experienced oneoran aspiring equity research analystora strategy consultantwho wishes to learn how to…

  • Resources to help investors, aspiring equity research analysts and finance focused strategy consultants

    70+ videos on my YouTube channel https://www.youtube.com/@investandrise — how to analyze and value businesses from different industries?Insurance, Banking, NBFC, Asset Management, Healthcare, Retail, Infra & Industrial, Dairy, Technology etc.— how to do equity research?— learn business valuation— learn financial statement analysis— how to read annual reports, earning con calls? It is my honest endeavor to…

  • Masterclass on how to do Fundamental Analysis of Financial Services – Insurance, Banks, NBFCs and Asset Management Companies

    The best investment you can make is in yourself. If you are an investor, an aspiring equity analyst or an aspiring strategy consultant and you want to learn how to analyze Financial Services then take out 90 mins for my masterclass! Unlike retail or manufacturing business, FS – Insurance, Banking, NBFCs, AMC – can seem…

  • How to analyze a Dairy business?

    India has the largest % of vegetarian population in the world. Milk🥛 and dairy products are the primary source of protein in the country. India 🇮🇳 is the largest producer of milk and accounts for more than 20% of global milk production.India’s milk production reached a record high of 240 million tonnes in 2024 and…

  • Allison Transmission: Equity Research and Valuation

    Research and Valuation is a very time-intensive process. Although, I believe I can do thorough research on a business, but I have struggled with identifying a filtered list of names that I should be spending time on. Initially, I had a fixed criteria of financial metrics but overtime I have become more flexible. Moreover, having…

  • Reverse DCF is a quick and dirty way to assess if a company is over or undervalued

    It is a very popular tool used by analysts and investors alike. It largely is a plug and play tool. The user is saved from taking dozens of assumptions as in a traditional DCF model. It is one tool that can be adopted relatively easily by people with limited knowledge of Finance. However, this tool…

  • ICICI Lombard, HDFC Ergo Vs Star Health, Niva Bupa

    i.e., Diversified general insurers Vs Standalone health insurers Which type of insurer will do better? Someone asked me this question on YouTube. Typically, both diversified and focused businesses have their merits and de-merits. While I don’t know which type of general insurer will do better, but the odds seem to be stacked up in favor…

  • How to analyze company earnings con call?

    Seen a lot people jumping to valuation without developing a reasonable business understanding. A valuation model is as good as its inputs.Garbage in garbage out. A great source to understand a business is earnings conference calls or con calls in short.They are a phenomenal source of industry insights, understanding competitive advantage besides business performance and…

  • How to analyze a general insurance business using Warren Buffett’s method?Learn to spot 🍋

    Putting Buffett wisdom in action — in simple lang Combined Ratio       FY23  FY24  FY25New India Assurance   117.2% 120.9% 119.1%GoDigit          107.4% 108.7% 108.6%ICICI Lombard      104.5% 103.3% 102.8%Star Health       95.3% 96.7% 101.1%Niva Bupa 97.1% 98.8% 101.2% The 𝗰𝗼𝗺𝗯𝗶𝗻𝗲𝗱 𝗿𝗮𝘁𝗶𝗼 𝗖𝗼𝗥 for general insurers is a simple way to measure how profitable an insurer is from its core business i.e underwriting policies CoR = claim…

  • “𝙄 𝙨𝙥𝙚𝙣𝙙 𝙢𝙤𝙧𝙚 𝙩𝙞𝙢𝙚 𝙡𝙤𝙤𝙠𝙞𝙣𝙜 𝙖𝙩 𝙗𝙖𝙡𝙖𝙣𝙘𝙚 𝙨𝙝𝙚𝙚𝙩𝙨 𝙩𝙝𝙖𝙣 𝙄 𝙙𝙤 𝙞𝙣𝙘𝙤𝙢𝙚 𝙨𝙩𝙖𝙩𝙚𝙢𝙚𝙣𝙩𝙨. 𝘼𝙣𝙙 𝙒𝙖𝙡𝙡𝙨𝙩𝙧𝙚𝙚𝙩 𝙙𝙤𝙚𝙨 𝙣𝙤𝙩 𝙧𝙚𝙖𝙡𝙡𝙮 𝙥𝙖𝙮 𝙖𝙩𝙩𝙚𝙣𝙩𝙞𝙤𝙣 𝙩𝙤 𝙗𝙖𝙡𝙖𝙣𝙘𝙚 𝙨𝙝𝙚𝙚𝙩𝙨,

    𝘣𝘶𝘵 𝘐’𝘥 𝘭𝘪𝘬𝘦 𝘵𝘰 𝘭𝘰𝘰𝘬 𝘰𝘷𝘦𝘳 𝘣𝘢𝘭𝘢𝘯𝘤𝘦 𝘴𝘩𝘦𝘦𝘵𝘴 𝘰𝘷𝘦𝘳 𝘢𝘯 8-10 𝘺𝘦𝘢𝘳 𝘱𝘦𝘳𝘪𝘰𝘥 𝘣𝘦𝘧𝘰𝘳𝘦 𝘐 𝘦𝘷𝘦𝘯 𝘭𝘰𝘰𝘬 𝘢𝘵 𝘵𝘩𝘦 𝘪𝘯𝘤𝘰𝘮𝘦 𝘢𝘤𝘤𝘰𝘶𝘯𝘵” — 𝗪𝗮𝗿𝗿𝗲𝗻 𝗕𝘂𝗳𝗳𝗲𝘁𝘁 in his last annual shareholder meeting as the Chief Exec. He further goes on to say that“𝘵𝘩𝘦𝘳𝘦 𝘢𝘳𝘦 𝘤𝘦𝘳𝘵𝘢𝘪𝘯 𝘵𝘩𝘪𝘯𝘨𝘴 𝘵𝘩𝘢𝘵 𝘢𝘳𝘦 𝘩𝘢𝘳𝘥𝘦𝘳 𝘵𝘰 𝘩𝘪𝘥𝘦 𝘢𝘯𝘥 𝘱𝘭𝘢𝘺 𝘨𝘢𝘮𝘦𝘴 𝘸𝘪𝘵𝘩 𝘰𝘯 𝘵𝘩𝘦…

  • 𝗘𝗻𝗱 𝗼𝗳 𝗮𝗻 𝗲𝗿𝗮!

    The Oracle of Omaha is stepping down as the chief of Berkshire Hathaway by end of this year. All of us have learnt so much from him.A key learning that stands out in my mind is𝗵𝗼𝘄 𝘁𝗼 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝘆 𝗮 𝘁𝗿𝘂𝗹𝘆 𝗴𝗿𝗲𝗮𝘁 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 In one of this shareholder letters, Buffettsays that “𝘼 𝙩𝙧𝙪𝙡𝙮 𝙜𝙧𝙚𝙖𝙩 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙢𝙪𝙨𝙩…

  • 𝗪𝗵𝘆 𝗶𝘀 𝗣/𝗕 𝗮 𝗯𝗲𝘁𝘁𝗲𝗿 𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝘁𝗿𝗶𝗰 𝘁𝗵𝗮𝗻 𝗣/𝗘 𝗳𝗼𝗿 𝗕𝗮𝗻𝗸𝘀?

    P = Price = Market Value of EquityB = Book Value = Book Value of Equity Book Value of Equity = Assets (loans given out) – Liabilities (deposits)i.e., Book Value of Equity = Net Assets P/B compares a bank’s market value (price) to its book value (net assets) 𝟯 𝗸𝗲𝘆 𝗿𝗲𝗮𝘀𝗼𝗻𝘀 why P/B is a…

  • Why EV and EV multiples are not a good fit for banks

    ✅ ICICI Bank crossed ₹10 Tn in Market Capitalization❌ ICICI Bank is inching towards ₹30 Tn in Enterprise Value (EV) 𝗘𝗩 = 𝗠𝗮𝗿𝗸𝗲𝘁 𝗩𝗮𝗹𝘂𝗲 + 𝗗𝗲𝗯𝘁 – 𝗖𝗮𝘀𝗵 𝗘𝗩 𝗮𝗻𝗱 𝗘𝗩 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲𝘀 𝗮𝗿𝗲 𝗻𝗼𝘁 𝗮 𝗴𝗼𝗼𝗱 𝗳𝗶𝘁 𝗳𝗼𝗿 𝗯𝗮𝗻𝗸𝘀 and other financial services because of 2 reasons: 𝟭. 𝗗𝗲𝗯𝘁 𝗶𝘀 𝗿𝗮𝘄 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹 𝗳𝗼𝗿 𝗯𝗮𝗻𝗸𝘀For non…

  • 𝗟𝗲𝗮𝗿𝗻 𝗾𝘂𝗶𝗰𝗸 𝗗𝗖𝗙 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝘂𝘀𝗶𝗻𝗴 𝗶𝗻𝗳𝗼 𝗳𝗿𝗼𝗺 𝘀𝗰𝗿𝗲𝗲𝗻𝗲𝗿.𝗶𝗻

    You like researching equities You like studying different businesses You attempt to understand business fundamentals But… You are not into Finance You didn’t have Finance subjects Even if you understand Finance well, you don’t have the time to VALUE a business… While you can do relative valuation i.e., use peer company multiples to value (or…

  • 𝗡𝗲𝘄 𝗬𝗼𝗿𝗸 🌆 𝗶𝘀 𝗼𝗳𝘁𝗲𝗻 𝗿𝗲𝗳𝗲𝗿𝗿𝗲𝗱 𝘁𝗼 𝗮𝘀 𝘁𝗵𝗲 𝗖𝗼𝗻𝗰𝗿𝗲𝘁𝗲 𝗝𝘂𝗻𝗴𝗹𝗲!

    Concrete Jungle is one of the many colorful nicknames of the City. Not just New York, any urban city with towering buildings gets this nickname. But this post is not about cities and nicknames. It’s about the rapid urbanization, real estate and infrastructure development theme. Concrete is used to make buildings, roads, highways Concrete in…

  • 𝗛𝗼𝘄 𝘁𝗼 𝗮𝗻𝗮𝗹𝘆𝘇𝗲 𝗮 𝗗𝗔𝗜𝗥𝗬 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?

    𝗛𝗼𝘄 𝘁𝗼 𝗮𝗻𝗮𝗹𝘆𝘇𝗲 𝗮 𝗗𝗔𝗜𝗥𝗬 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀? India has the largest % of vegetarian population in the world. Milk🥛 and dairy products are the primary source of protein in the country. India 🇮🇳 is the largest producer of milk and accounts for more than 20% of global milk production.India’s milk production reached a record high of…

  • 𝗨𝗻𝗿𝗮𝘃𝗲𝗹𝗶𝗻𝗴 𝗥𝗢𝗜𝗖 (𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗜𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗖𝗮𝗽𝗶𝘁𝗮l)

    𝗪𝗵𝗮𝘁 𝗶𝘀 𝗥𝗢𝗜𝗖 𝗮𝗻𝗱 𝗮𝗻𝗱 𝘄𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝗥𝗢𝗜𝗖 𝗯𝗿𝗲𝗮𝗸𝗱𝗼𝘄𝗻 𝘁𝗲𝗹𝗹𝘀 𝘂𝘀 𝗮𝗯𝗼𝘂𝘁 𝗮 𝘀𝗲𝗰𝘁𝗼𝗿? — a common interview question. A business creates value when the Returns on Invested Capital exceed the Cost of raising that Capital.Consistently high ROIC (>> Cost of Capital) is a recipe of enormous shareholder value.ROIC — also referred to as the…

  • US retailer with an unrivaled value proposition!

    Retail is a very competitive industry.Per spglobal, 300 US retailers have gone bankrupt over the last 10 years — avg 2.5 retailers a month.Some of the prominent ones include Sears, JCPenny, Bed Bath & Beyond. Many other retailers are reducing their store footprint significantly and trying to stay afloat. But there is a mass retailer…

  • What is ROIC and what does ROIC breakdown tell us about a sector?

    A business creates value when the Returns on Invested Capital exceed the Cost of raising that Capital.Consistently high ROIC (>> Cost of Capital) is a recipe of enormous shareholder value. ROIC — also referred to as the measure of Quality of investment — is a function ofa. how efficiently capital is deployed ( measured as…

  • Want to learn some Powerplay and “Good Will” from Reliance? 

     I mean Goodwill in Finance! 🙂 On 28th Aug, Wed, the Competition Commission of India approved the merger of Reliance and Walt Disney’s India media assets. Earlier this year, Walt Disney had reported a ~70% drop in earnings due to a $2B dent in Disney’s India business. Reason:Walt Disney had a $2B “𝗴𝗼𝗼𝗱𝘄𝗶𝗹𝗹 𝗶𝗺𝗽𝗮𝗶𝗿𝗺𝗲𝗻𝘁” charge…

  • PVR INOX Equity Research and Valuation DEMO

    Pre pandemic — China sold 170 Cr movie tickets. India sold 100 Cr tickets.2023 — The admissions (ticket volume sale) has almost fully recovered in India. China has some catching up to do, but is still a lot higher than India. Despite producing ~50% less movies than India, China box office collection is 5x that…

  • What do Airlines, Utilities, Telecom, Hotels, Resorts, Movie theaters and Technology companies have in common?

    All of them have high Operating Leverage! Companies which incur relatively low incremental cost of serving additional customers have high operating leverage. Such companies have a higher proportion of their overall costs as fixed (and have lower variable costs). e.g., NetflixAfter paying for large fixed costs such as content, licensing and tech infrastructure, the cost…

  • What do Airlines, Telecom, Hotels, Resorts, Movie theaters have in common besides Operating Leverage?

    All of them have high leases i.e., rental payment obligations! For instance, movie exhibition companies (e.g., AMC Theatres in the US and PVR INOX in India) do not own the space in which they run their business within the shopping malls. They pay rent for using that space over a contracted period. Until 2019, these…

  • Interested in learning equity research and valuation step by step – through practical examples?

    In the past, I have put out videos teaching detailed analysis and valuation of companies across different industries.In almost all of them, I cover– [ ] 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸: how to systematically analyze a business and asset business moat?– [ ] 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗔𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁– [ ] 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 — beyond textbooks– [ ] 𝗠𝗮𝗿𝗸𝗲𝘁…

  • Standalone health insurer Niva Bupa IPO

    Health insurance (and broadly general insurance) is not a very easy business to understand. There any many news articles and videos that merely state Niva Bupa’s key financials, talk of the huge growth runway ahead, but do not go far at all in analyzing the underlying story. 𝗜𝗻 𝘁𝗵𝗲 𝗯𝗲𝗹𝗼𝘄 𝘀𝗵𝗼𝗿𝘁 𝗽𝗹𝗮𝘆𝗹𝗶𝘀𝘁, 𝗜 𝗵𝗮𝘃𝗲 𝗮𝘁𝘁𝗲𝗺𝗽𝘁𝗲𝗱…

  • Is the Indian stock market overvalued? Will the correction continue?

    Let’s look at a few indicators: 𝟭. 𝗕𝘂𝗳𝗳𝗲𝘁 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿Market Cap to GDP is over 130% i.e., Market Cap exceeds GDP by 30%Up until 2020, this indicator was below 100% (except in 2007). Over the last 3 years,, this indicator has been rising and is now above 130%. 𝟮. 𝗚𝘀𝗲𝗰 𝗮𝗻𝗱 𝗜𝗻𝗱𝗲𝘅 𝗘𝗮𝗿𝗻𝗶𝗻𝗴 𝗬𝗶𝗲𝗹𝗱Earnings yield =…

  • Unraveling GDP growth rates!

    Lot of clamor about India’s abysmal 5.4% GDP growth rate in Q2 FY25. People were expecting a much higher growth. But, is the 5.4% GDP growth real or nominal? What is the difference between real and nominal GDP growth rate at the first place? Moreover, is this reported GDP growth rate in ₹ terms or…

  • How to estimate market size, top-down and bottom-up?

    Market sizing is a key step in equity research and investing.In fact, market sizing is a favorite topic for Strategy & Consulting recruiters (I was asked to estimate the 2-wheeler market size in my case interview for my present firm almost a decade ago) Now, let’s understand market sizing for a few industries.Let’s understand 𝘁𝗼𝗽-𝗱𝗼𝘄𝗻…

  • How to analyze con calls?

    Seen a lot people jumping to valuation without developing a reasonable business understanding. A valuation model is as good as its inputs.Garbage in garbage out. A great source to understand a business is earnings conference calls or con calls in short.They are a phenomenal source of industry insights, understanding competitive advantage besides business performance and…

  • What are some of the other sources of moat?

    “𝙉𝙤 𝙛𝙤𝙧𝙢𝙪𝙡𝙖 𝙞𝙣 𝙛𝙞𝙣𝙖𝙣𝙘𝙚 𝙩𝙚𝙡𝙡𝙨 𝙮𝙤𝙪 𝙩𝙝𝙖𝙩 𝙩𝙝𝙚 𝙢𝙤𝙖𝙩 𝙞𝙨 28 𝙛𝙚𝙚𝙩 𝙬𝙞𝙙𝙚 𝙖𝙣𝙙 16 𝙛𝙚𝙚𝙩 𝙙𝙚𝙚𝙥. 𝙏𝙝𝙖𝙩’𝙨 𝙬𝙝𝙖𝙩 𝙙𝙧𝙞𝙫𝙚𝙨 𝙩𝙝𝙚 𝙖𝙘𝙖𝙙𝙚𝙢𝙞𝙘𝙨 𝙘𝙧𝙖𝙯𝙮. 𝙏𝙝𝙚𝙮 𝙘𝙖𝙣 𝙘𝙤𝙢𝙥𝙪𝙩𝙚 𝙨𝙩𝙖𝙣𝙙𝙖𝙧𝙙 𝙙𝙚𝙫𝙞𝙖𝙩𝙞𝙤𝙣𝙨 𝙖𝙣𝙙 𝙗𝙚𝙩𝙖𝙨, 𝙗𝙪𝙩 𝙩𝙝𝙚𝙮 𝙘𝙖𝙣’𝙩 𝙪𝙣𝙙𝙚𝙧𝙨𝙩𝙖𝙣𝙙 𝙢𝙤𝙖𝙩𝙨” — Warren Buffett Buffett also says that “A truly great business must have an enduring moat that protects excellent returns…

  • “Secured Lending to MSME” is an attractive industry

    Analysis of an industry, market (incl. size of the market) and the key metrics in that industry is a starting point in equity research, strategy, consulting and business analysis. In this enclosed document, I discuss an interesting credit/lending industry catering to a specific market — Secured Lending to the Self-Employed / MSME segments. I have…

  • Decoding a general / non-/ property & casualty insurance business model

    General Insurance business makes money largely the same way as a traditional bank.Sounds weird, right? But, it’s true. Read on please! A bank gives us an interest on our deposits, which the bank uses to give out loans at a higher interest rate. The bank makes money on the interest rate differential.A well-run general insurer…

  • Learn to analyze a bank in 5 mins?

    This is a click bait!5 mins are usually not enough unless of course you have analyzed the business before and you know what exactly you are looking for. But if you give me 5 mins, I will help you understand one of the most important financial metric that investors use to evaluate banks / financial…

  • Balance sheets are forgotten during Bull markets!

    … and remembered when BEARS start showing up. If you give me 35 mins of your time then I’d make an honest effort to help you understand a Balance Sheet and the various line items that make a Balance Sheet. Can I have that time commitment? Are you ready? Link to the video playlist in…

  • Equity Research | Narayana Hrudayalaya

    Narayana Hrudayalaya (NSE: NH) is an Indian multi-specialty hospital chain with ~6,000 operational beds. NH was set up in the year 2000 by Dr Devi Shetty, a well known cardiologist. It has a strong foothold in Bengaluru and Kolkata. It has gradually added hospitals in other parts of the country such as Mumbai, Delhi, Gurugram…

  • Valuation and Equity Research – Interview Questions

    This linked document has the list of topics/questions that I have covered in my LinkedIn posts. A snapshot of the document is presented below

  • Financial Statement Analysis

    If you want to learn Valuation and Equity Research, please subscribe to my YT channel and follow me on LinkedIn:   / gautamrastogi1 . Feel free to email me at gautamrastogi.investandrise@gmail.com or PM me on linkedin This education video series has 3 videos: Understanding the three Financial Statements | How the three statements are linked? Learning Objectives: Link…

  • Equity Research | Agarwal Industrial Corp Ltd

    This blog post has links to my 3-video equity research series on Agarwal Industrial, an infra ancillary, which seems to be uniquely positioned to capture the road construction led bitumen import demand in India. If you want to learn Valuation and Equity Research, please subscribe to my YT channel and follow me on LinkedIn:   / gautamrastogi1   Feel…

  • Equity Research | Radiant Cash Management

    This blog post has links to my 3-video equity research series on Radiant Cash Management, a valuable logistics company in India. If you want to learn Valuation and Equity Research, please subscribe to my YT channel and follow me on LinkedIn:   / gautamrastogi1   Feel free to email me at gautamrastogi.investandrise@gmail.com or PM me on linkedin Video 1…

  • My notes on Rajshree Polypack, a company that makes packaging for F&B industry

    As I have understood, there are two packaging types – rigid and flexible. In rigid packaging, there are broadly two methods to make packaging – Thermoforming and Injection Molding. In thermoforming, plastic rigid sheets are subjected to heat for molding into a desired shape. IM on the other hand, converts plastic pellets into molten material,…

  • My notes on Tinna Rubber, a company that recycles tyres

    When you come across a growth story with powerful powerful (yes used the word twice!) tailwinds, you may be inclined to overpay for growth. But then you hit on too many red flags relating to quality of reported financials — then you pause, you think shall I leave it and go find another company or…

  • My notes on Macpower, a company that makes CNC Machines

    Image Credit: https://www.thecrucible.org/guides/machining/lathes/ I came across CNC machines through a post in LinkedIn. Up until that time, I had never heard of CNC. CNC stands for Computer Numerical Control. CNC machines are software driven machine tools used in manufacturing plants for metal cutting. My wife, who has an automotive engineering background, explained to me the…

  • My notes on Sealmatic, a company that makes mechanical seals

    For any questions or comments, feel free to email me at gautamrastogi.investandrise@gmail.com or PM me on linkedin

  • Oriental Carbon and Chemicals – Indian company operating in an Oligopoly

    Image credits: tirehub.com OCCL makes Insoluble Sulphur, which is used as a vulcanizer in the manufacturing of tires. There are 4 companies – Eastman / Flexsys (US), Shikoku (Japan), Chinese Sunsine and OCCL – that make a major chunk of the IS in the world. High capital intensity and long IS approval cycles by tire…

  • Vardhman Textiles – playing the commodity game

    image credits: moneylife.in In my quest to find honest, well run and moated undervalued securities, I chanced upon the Cotton Textiles sector. I quickly realized that most of the companies (more specifically companies that spin cotton yarn and make fabrics) in this sector are trading at high single digit / low double digit PE due…

  • FIIs raise stake in 6 Indian PSU banks for 3 straight quarters; do you own any?

    Well, to each their own, but here are some metrics that one may want to consider looking 𝐁𝐕𝐏𝐒 𝐜𝐨𝐦𝐩𝐨𝐮𝐧𝐝𝐢𝐧𝐠: Long term stock price compounding for banks follow Book Value / Share compounding, which in turn depends on𝐑𝐎𝐄 = ROA * Leverage𝐑𝐞-𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 (incl equity raises) a. 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐬𝐬𝐞𝐭𝐬:(Net Interest Inc + Fees + Treasury Inc –…

  • Equity Research – Aditya Birla Sun Life (ABSL) Asset Management Company (AMC)

    ** I will be creating an equity research report for ABSL AMC. For now, I am sharing the summary of my analysis and valuation (long-term return expectations) of ABSL AMC ** ** Analysis and Valuation dated 29/7/2022 ** 2 months ago, I had put out an equity research report on HDFC AMC, in which I…

  • Equity Research Report – Micron Technology

    Please use the below gdrive link to access the pdf reports: FY22-Q3: https://drive.google.com/file/d/1lrhCqXfn1uBp20taLtysahhk7ImiRmUE/view?usp=sharing FY22-Q2: https://drive.google.com/file/d/1yod8T7z8Q6ed9_LxLS4QSPzVO3kesbsl/view?usp=sharing . FY22-Q2 report is also published on Seeking Alpha. Here is the video link to the FY22-Q2 report:

  • HDFC AMC – Equity Research Reports

    Please use the below gdrive link to access the pdf report document: 2022 Q3: https://drive.google.com/file/d/1kQdvxuFlmzaI9Vx0ZT3dnadndoS95Hjw/view?usp=sharing Here is the video link to the 2022 Q3 report: In the video, I give a quick walk through of my report on the company. I primarily focus on the industry and my investment thesis. You would find more details…

  • UTI AMC Valuation 2021

    Mutual Fund AUM penetration in India is 12% of GDP vs the global average of ~60%. Emerging markets such as Brazil and SA are at ~50%. Overall MF in India has crossed INR 30 Trillion in FY21 by growing just under 20% over the last 5 years. As per estimates, overall MF in India will…

  • Zomato IPO Valuation 2021

    After coming across so many polarized views, I couldn’t stop myself from valuing this much talked about IPO. While I had originally intended to value the entire business, I had to contend myself with valuing their major business segment of “food delivery”. I have not valued “dining out” and B2B “hyperpure” (which is into suppling…

  • Invisible leverage is no longer invisible: Is investor risk perception impacted?

    In 2019, accounting rules regarding treatment of operating leases were changed. Under old accounting operating leases were expensed. As per new accounting, operating leases have finally found the place where they long belonged, the balance sheet. Retail, restaurants, airlines, logistics and telecom companies have significant operating lease obligations. With lease liabilities becoming visible as debt (and…

  • Zuora – bet on subscription economy?

    Zuora was founded by Tien Tzuo (ex-chief strategy officer at Salesforce) in 2007. Tien coined the term subscription economy to define the shift taking place from product ownership to service consumption (Uber and Netflix are very relatable examples of companies that helped enhance the movement form car and dvd ownership to “as a service”). He…

  • Lyft Valuation Update – 2020

    In this writing, I dive into Lyft’s numbers again and value the firm as it battles the pandemic. Valuation is built on the expectation that after mobility levels recover, economies of scale will start taking effect in the mid-long term. Using rider based economics in my DCF valuation, I value existing active riders at ~$15…

  • Costco Equity Valuation

    Costco Wholesale Corporation (Costco) has a solid business model with a predictable stream of subscription revenue, which constitutes 90% of the net profit. In the video (embedded below), I have projected out Costco’s financial statements and valued its equity. Although, Costco trades at a P/E of ~36 (amongst the highest in the retail business it…

  • Value in Facebook

    Facebook earns close to 99% of its revenue by advertising. Marketers pay for ad products based on the number of impressions delivered or the number of clicks done by users. The business continues to impress me given that my friends, family and colleagues are so hooked to the platform and most of them (albeit to…