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…
If you are new to investing and are curious about mutual fund tax rules, this article will help. The tax landscape can be overwhelming for beginners as different types of investments are taxed diversly. In this blog post, let’s break down mutual fund taxation in India with simple explanations and real-world examples. My approach to…
Many people dream of owning their own home. But when it comes to buying a house, there are many hurdles, especially regarding finances. Most of us do not have the capital to buy a house in India (especially in tier-1 cities of India like Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Pune, and Ahmedabad). Hence, we…
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…
The stock market is like a busy marketplace where people buy and sell ownership in companies. It’s where we can become part-owners of big names like Nestle, TCS, HDFC Bank, etc. Imagine it as a giant auction where shares of companies are traded, and the prices constantly go up and down. There is a correlation…
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,…
The Indian stock market is influenced by various factors influencing investor sentiment and hence the market trends. The Indian stock market has witnessed significant historical transformations, reflecting the nation’s economic evolution. Economic indicators like GDP growth and inflation rates play pivotal roles, impacting the stock metrics and hence the overall market. For instance, during periods…
