In recent news, global consumer goods giant Unilever has announced plans to spin off its $8.6 billion ice cream business, a move aimed at streamlining its operations and focusing on core businesses. This decision has raised questions about its implications for Hindustan Unilever Limited (HUL), its Indian subsidiary. Let’s delve into the details and analyze…
Power Grid Corporation of India, is a publicly traded “Maharatna” company. The company comes under India’s Ministry of Power. It is a company that transmits nearly half the nation’s electricity. It was incorporated in 1989, it owns and maintains India’s interstate transmission system. Power Grid also offers consultancy services in power transmission as well. Power…
Agrochemical companies in general, including UPL Limited, have recently encountered several challenges. Their biggest problem is global channel destocking. Channel destocking refers to the reduction of inventory levels across distribution channels. Agrochemical companies like UPL have witnessed this trend, impacting their revenue and sales. Almost all companies operating in the agrochemical space are seeing tough times….
In the world of stock investing, two names that come first in mind are Warren Buffett and his partner the legendary Charlie Munger. Charlie Munger, born in 1924, is a renowned American investor, businessman, and long-time business partner of Warren Buffett. He was the Vice Chairman of Berkshire Hathaway. Charlie Munger had a degree from…
In the last six months, the shares of Bajaj Finance have seen a price correction of about 10%. I have always found the business of Bajaj Finance exciting, but I could not invest in it due to valuation concerns. I use my Stock Engine to estimate the intrinsic value of my stocks. From the peak…
The Nifty 50 is the most observed index of the Indian stock market. It is a barometer for market performance in India. For investors in Indian stocks, understanding the weightage of stocks in the Nifty 50 Index is crucial. In this article, we delve into the intricacies of Nifty Weightage. We’ll explore the methodology behind…
It’s an introduction to the Discounted Cash Flow (DCF) method as a tool for estimating the intrinsic value of stocks. Here is a free online DCF Calculator that can be used to estimate the intrinsic value of stocks. I feel DCF is a powerful technique that goes beyond stock price. It allows us to assess…
Deciphering the factors that influence company valuations is crucial for investors. Two key metrics that play a pivotal role in valuations are profitability and growth rate. We’ll understand how profitability and growth collectively affect the valuations of companies. We’ll use examples to get a hold of this correlation. Effect of Profitability (Example #1) Suppose there…
I received a message from one of my readers. He wanted to get more clarity about the concept of working capital, and also about the ‘change in working capital.’ He is a person from a manufacturing background hence I thought to explain the topic using a related example. We’ll try to first understand the concept…
Embarking on the stock market journey? Discover the essential principles with our “9 Golden Rules of Investing in Stocks.” Learn to navigate market uncertainties, avoid common pitfalls, and make informed decisions. Whether one is a beginner or seeking to refine strategy, these rules offer valuable insights to better our investment journey. You are ready to…
Since HDFC Bank has faced a noticeable decline in its share prices. This decline has caught the attention of investors and market enthusiasts. The stock witnessed a 14% slide, leaving many wondering about the reasons behind this sudden drop. In this article, we’ll try to understand the reasons for the fall and future risks and…
Dividends are a golden stream of passive income. Hence dividends represent itself as a rewarding aspect of stock ownership. Dividends are the portion of a company’s profits distributed to its shareholders. It is the measure of a tangible return on investment. Dividends are financial rewards, distributed regularly by mature and profitable companies. In this way,…
