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Free Webinar: Fundamental Analysis and Valuation DEMO of Ganesha Ecosphere
๐ง๐ฎ๐ถ๐น๐๐ถ๐ป๐ฑ: 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…
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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.ย It is very useful in…
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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…
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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…
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How to analyze a Dairy business?
India has the largest % of vegetarian population in the world. Milk๐ฅ and dairy products are the primary source of protein in the country. India ๐ฎ๐ณ 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…
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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…
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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…
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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…
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How to analyze a general insurance business using Warren Buffett’s method?Learn to spot ๐
Putting Buffett wisdom in action โ in simple lang Combined Ratioย ย ย ย ย ย FY23ย ย FY24ย ย FY25New India Assuranceย ย ย 117.2% 120.9% 119.1%GoDigitย ย ย ย ย ย ย ย ย 107.4% 108.7% 108.6%ICICI Lombardย ย ย ย ย ย 104.5% 103.3% 102.8%Star Healthย ย ย ย ย ย ย 95.3%ย 96.7%ย 101.1%Niva Bupa 97.1% 98.8% 101.2% The ๐ฐ๐ผ๐บ๐ฏ๐ถ๐ป๐ฒ๐ฑ ๐ฟ๐ฎ๐๐ถ๐ผ ๐๐ผ๐ฅ for general insurers is a simple way to measure how profitable an insurer is from its core business i.e underwriting policies CoR = claim…
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โ๐ ๐จ๐ฅ๐๐ฃ๐ ๐ข๐ค๐ง๐ ๐ฉ๐๐ข๐ ๐ก๐ค๐ค๐ ๐๐ฃ๐ ๐๐ฉ ๐๐๐ก๐๐ฃ๐๐ ๐จ๐๐๐๐ฉ๐จ ๐ฉ๐๐๐ฃ ๐ ๐๐ค ๐๐ฃ๐๐ค๐ข๐ ๐จ๐ฉ๐๐ฉ๐๐ข๐๐ฃ๐ฉ๐จ. ๐ผ๐ฃ๐ ๐๐๐ก๐ก๐จ๐ฉ๐ง๐๐๐ฉ ๐๐ค๐๐จ ๐ฃ๐ค๐ฉ ๐ง๐๐๐ก๐ก๐ฎ ๐ฅ๐๐ฎ ๐๐ฉ๐ฉ๐๐ฃ๐ฉ๐๐ค๐ฃ ๐ฉ๐ค ๐๐๐ก๐๐ฃ๐๐ ๐จ๐๐๐๐ฉ๐จ,
๐ฃ๐ถ๐ต ๐โ๐ฅ ๐ญ๐ช๐ฌ๐ฆ ๐ต๐ฐ ๐ญ๐ฐ๐ฐ๐ฌ ๐ฐ๐ท๐ฆ๐ณ ๐ฃ๐ข๐ญ๐ข๐ฏ๐ค๐ฆ ๐ด๐ฉ๐ฆ๐ฆ๐ต๐ด ๐ฐ๐ท๐ฆ๐ณ ๐ข๐ฏ 8-10 ๐บ๐ฆ๐ข๐ณ ๐ฑ๐ฆ๐ณ๐ช๐ฐ๐ฅ ๐ฃ๐ฆ๐ง๐ฐ๐ณ๐ฆ ๐ ๐ฆ๐ท๐ฆ๐ฏ ๐ญ๐ฐ๐ฐ๐ฌ ๐ข๐ต ๐ต๐ฉ๐ฆ ๐ช๐ฏ๐ค๐ฐ๐ฎ๐ฆ ๐ข๐ค๐ค๐ฐ๐ถ๐ฏ๐ตโ โ ๐ช๐ฎ๐ฟ๐ฟ๐ฒ๐ป ๐๐๐ณ๐ณ๐ฒ๐๐ in his last annual shareholder meeting as the Chief Exec. He further goes on to say thatโ๐ต๐ฉ๐ฆ๐ณ๐ฆ ๐ข๐ณ๐ฆ ๐ค๐ฆ๐ณ๐ต๐ข๐ช๐ฏ ๐ต๐ฉ๐ช๐ฏ๐จ๐ด ๐ต๐ฉ๐ข๐ต ๐ข๐ณ๐ฆ ๐ฉ๐ข๐ณ๐ฅ๐ฆ๐ณ ๐ต๐ฐ ๐ฉ๐ช๐ฅ๐ฆ ๐ข๐ฏ๐ฅ ๐ฑ๐ญ๐ข๐บ ๐จ๐ข๐ฎ๐ฆ๐ด ๐ธ๐ช๐ต๐ฉ ๐ฐ๐ฏ ๐ต๐ฉ๐ฆ…
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๐๐ป๐ฑ ๐ผ๐ณ ๐ฎ๐ป ๐ฒ๐ฟ๐ฎ!
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 is๐ต๐ผ๐ ๐๐ผ ๐ถ๐ฑ๐ฒ๐ป๐๐ถ๐ณ๐ ๐ฎ ๐๐ฟ๐๐น๐ ๐ด๐ฟ๐ฒ๐ฎ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ In one of this shareholder letters, Buffettsays that โ๐ผ ๐ฉ๐ง๐ช๐ก๐ฎ ๐๐ง๐๐๐ฉ ๐๐ช๐จ๐๐ฃ๐๐จ๐จ ๐ข๐ช๐จ๐ฉ…
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๐ช๐ต๐ ๐ถ๐ ๐ฃ/๐ ๐ฎ ๐ฏ๐ฒ๐๐๐ฒ๐ฟ ๐๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป ๐บ๐ฒ๐๐ฟ๐ถ๐ฐ ๐๐ต๐ฎ๐ป ๐ฃ/๐ ๐ณ๐ผ๐ฟ ๐๐ฎ๐ป๐ธ๐?
P = Price = Market Value of EquityB = Book Value = Book Value of Equity Book Value of Equity = Assets (loans given out) โ Liabilities (deposits)i.e., Book Value of Equity = Net Assets P/B compares a bankโs market value (price) to its book value (net assets) ๐ฏ ๐ธ๐ฒ๐ ๐ฟ๐ฒ๐ฎ๐๐ผ๐ป๐ why P/B is a…
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Why EV and EV multiples are not a good fit for banks
โ ICICI Bank crossed โน10 Tn in Market Capitalizationโ ICICI Bank is inching towards โน30 Tn in Enterprise Value (EV) ๐๐ฉ = ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฉ๐ฎ๐น๐๐ฒ + ๐๐ฒ๐ฏ๐ – ๐๐ฎ๐๐ต ๐๐ฉ ๐ฎ๐ป๐ฑ ๐๐ฉ ๐บ๐๐น๐๐ถ๐ฝ๐น๐ฒ๐ ๐ฎ๐ฟ๐ฒ ๐ป๐ผ๐ ๐ฎ ๐ด๐ผ๐ผ๐ฑ ๐ณ๐ถ๐ ๐ณ๐ผ๐ฟ ๐ฏ๐ฎ๐ป๐ธ๐ and other financial services because of 2 reasons: ๐ญ. ๐๐ฒ๐ฏ๐ ๐ถ๐ ๐ฟ๐ฎ๐ ๐บ๐ฎ๐๐ฒ๐ฟ๐ถ๐ฎ๐น ๐ณ๐ผ๐ฟ ๐ฏ๐ฎ๐ป๐ธ๐For non…
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๐๐ฒ๐ฎ๐ฟ๐ป ๐พ๐๐ถ๐ฐ๐ธ ๐๐๐ ๐ฉ๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป ๐๐๐ถ๐ป๐ด ๐ถ๐ป๐ณ๐ผ ๐ณ๐ฟ๐ผ๐บ ๐๐ฐ๐ฟ๐ฒ๐ฒ๐ป๐ฒ๐ฟ.๐ถ๐ป
You like researching equities You like studying different businesses You attempt to understand business fundamentals Butโฆ You are not into Finance You didnโt have Finance subjects Even if you understand Finance well, you donโt have the time to VALUE a businessโฆ While you can do relative valuation i.e., use peer company multiples to value (or…
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๐ก๐ฒ๐ ๐ฌ๐ผ๐ฟ๐ธ ๐ ๐ถ๐ ๐ผ๐ณ๐๐ฒ๐ป ๐ฟ๐ฒ๐ณ๐ฒ๐ฟ๐ฟ๐ฒ๐ฑ ๐๐ผ ๐ฎ๐ ๐๐ต๐ฒ ๐๐ผ๐ป๐ฐ๐ฟ๐ฒ๐๐ฒ ๐๐๐ป๐ด๐น๐ฒ!
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. Itโs about the rapid urbanization, real estate and infrastructure development theme. Concrete is used to make buildings, roads, highways Concrete in…
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๐๐ผ๐ ๐๐ผ ๐ฎ๐ป๐ฎ๐น๐๐๐ฒ ๐ฎ ๐๐๐๐ฅ๐ฌ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐?
๐๐ผ๐ ๐๐ผ ๐ฎ๐ป๐ฎ๐น๐๐๐ฒ ๐ฎ ๐๐๐๐ฅ๐ฌ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐? India has the largest % of vegetarian population in the world. Milk๐ฅ and dairy products are the primary source of protein in the country. India ๐ฎ๐ณ 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…
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๐จ๐ป๐ฟ๐ฎ๐๐ฒ๐น๐ถ๐ป๐ด ๐ฅ๐ข๐๐ (๐ฅ๐ฒ๐๐๐ฟ๐ป ๐ผ๐ป ๐๐ป๐๐ฒ๐๐๐ฒ๐ฑ ๐๐ฎ๐ฝ๐ถ๐๐ฎl)
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ฅ๐ข๐๐ ๐ฎ๐ป๐ฑ ๐ฎ๐ป๐ฑ ๐๐ต๐ฎ๐ ๐ฑ๐ผ๐ฒ๐ ๐ฅ๐ข๐๐ ๐ฏ๐ฟ๐ฒ๐ฎ๐ธ๐ฑ๐ผ๐๐ป ๐๐ฒ๐น๐น๐ ๐๐ ๐ฎ๐ฏ๐ผ๐๐ ๐ฎ ๐๐ฒ๐ฐ๐๐ผ๐ฟ? โ 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 โ also referred to as the…
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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 โ 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…
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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 โ also referred to as the measure of Quality of investment โ is a function ofa. how efficiently capital is deployed ( measured as…
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Want to learn some Powerplay and “Good Will” from Reliance?ย
ย I mean Goodwill in Finance! ๐ 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 “๐ด๐ผ๐ผ๐ฑ๐๐ถ๐น๐น ๐ถ๐บ๐ฝ๐ฎ๐ถ๐ฟ๐บ๐ฒ๐ป๐” charge…
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PVR INOX Equity Research and Valuation DEMO
Pre pandemic โ China sold 170 Cr movie tickets. India sold 100 Cr tickets.2023 โ 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…
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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– [ ] ๐๐๐๐ถ๐ป๐ฒ๐๐ ๐๐ป๐ฎ๐น๐๐๐ถ๐ ๐๐ฟ๐ฎ๐บ๐ฒ๐๐ผ๐ฟ๐ธ: how to systematically analyze a business and asset business moat?– [ ] ๐ ๐ฎ๐ป๐ฎ๐ด๐ฒ๐บ๐ฒ๐ป๐ ๐ค๐๐ฎ๐น๐ถ๐๐ ๐๐๐๐ฒ๐๐๐บ๐ฒ๐ป๐– [ ] ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ถ๐ฎ๐น ๐ฆ๐๐ฎ๐๐ฒ๐บ๐ฒ๐ป๐ ๐๐ป๐ฎ๐น๐๐๐ถ๐ โ beyond textbooks– [ ] ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐…
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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. ๐๐ป ๐๐ต๐ฒ ๐ฏ๐ฒ๐น๐ผ๐ ๐๐ต๐ผ๐ฟ๐ ๐ฝ๐น๐ฎ๐๐น๐ถ๐๐, ๐ ๐ต๐ฎ๐๐ฒ ๐ฎ๐๐๐ฒ๐บ๐ฝ๐๐ฒ๐ฑ…
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Is the Indian stock market overvalued? Will the correction continue?
Let’s look at a few indicators: ๐ญ. ๐๐๐ณ๐ณ๐ฒ๐ ๐๐ป๐ฑ๐ถ๐ฐ๐ฎ๐๐ผ๐ฟMarket 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%. ๐ฎ. ๐๐๐ฒ๐ฐ ๐ฎ๐ป๐ฑ ๐๐ป๐ฑ๐ฒ๐ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด ๐ฌ๐ถ๐ฒ๐น๐ฑEarnings yield =…
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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 โน terms or…
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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, letโs understand market sizing for a few industries.Letโs understand ๐๐ผ๐ฝ-๐ฑ๐ผ๐๐ป…
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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…
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What are some of the other sources of moat?
โ๐๐ค ๐๐ค๐ง๐ข๐ช๐ก๐ ๐๐ฃ ๐๐๐ฃ๐๐ฃ๐๐ ๐ฉ๐๐ก๐ก๐จ ๐ฎ๐ค๐ช ๐ฉ๐๐๐ฉ ๐ฉ๐๐ ๐ข๐ค๐๐ฉ ๐๐จ 28 ๐๐๐๐ฉ ๐ฌ๐๐๐ ๐๐ฃ๐ 16 ๐๐๐๐ฉ ๐๐๐๐ฅ. ๐๐๐๐ฉโ๐จ ๐ฌ๐๐๐ฉ ๐๐ง๐๐ซ๐๐จ ๐ฉ๐๐ ๐๐๐๐๐๐ข๐๐๐จ ๐๐ง๐๐ฏ๐ฎ. ๐๐๐๐ฎ ๐๐๐ฃ ๐๐ค๐ข๐ฅ๐ช๐ฉ๐ ๐จ๐ฉ๐๐ฃ๐๐๐ง๐ ๐๐๐ซ๐๐๐ฉ๐๐ค๐ฃ๐จ ๐๐ฃ๐ ๐๐๐ฉ๐๐จ, ๐๐ช๐ฉ ๐ฉ๐๐๐ฎ ๐๐๐ฃโ๐ฉ ๐ช๐ฃ๐๐๐ง๐จ๐ฉ๐๐ฃ๐ ๐ข๐ค๐๐ฉ๐จโ โ Warren Buffett Buffett also says that “A truly great business must have an enduring moat that protects excellent returns…
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“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…
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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…
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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…
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Balance sheets are forgotten during Bull markets!
โฆ 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…
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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…
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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
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Financial Statement Analysis
If you want to learn Valuation and Equity Research, please subscribe to my YT channel and follow me on LinkedIn: ย ย /ย gautamrastogi1 . Feel free to email me at gautamrastogi.investandrise@gmail.com or PM me onย linkedin This education video series has 3 videos: Understanding the three Financial Statements | How the three statements are linked? Learning Objectives: Link…
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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:ย ย ย /ย gautamrastogi1ย ย Feel…
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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: ย ย /ย gautamrastogi1ย ย Feel free to email me at gautamrastogi.investandrise@gmail.com or PM me on linkedin Video 1…
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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,…
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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…
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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…
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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 onย linkedin
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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…
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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…
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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 ๐๐๐๐ ๐๐จ๐ฆ๐ฉ๐จ๐ฎ๐ง๐๐ข๐ง๐ : Long term stock price compounding for banks follow Bookย Value / Share compounding, which in turn depends on๐๐๐ = ROA * Leverage๐๐-๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ๐ฌ (incl equity raises) a. ๐๐๐ญ๐ฎ๐ซ๐ง ๐จ๐ง ๐๐ฌ๐ฌ๐๐ญ๐ฌ:(Net Interest Inc + Fees + Treasury Inc –…
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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…
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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:
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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…
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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…
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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…
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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…
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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 โas a serviceโ). He…
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Lyft Valuation Update – 2020
In this writing, I dive into Lyftโs 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…
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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…
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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…
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