Summary Points: Traditional businesses (like TCS, RIL, Britannia) focus on making and selling—revenue growth and margins are king. Banks (like HDFC or SBI) thrive on managing money: loans, deposits, and interest spreads drive them. Key differences lie in risks, metrics, and economic triggers: competition for one, bad loans for the other. Mixing up their analysis…
P/E ratio in its basic form (trailing P/E) may not be as useful. But there can be multiple derivaties of it. P/E ratio seen through the lens of ‘earning yield’ or ‘PEG ratio’ gives good insights into price valuation. I personally love valuing high P/E stocks using the ‘forward P/E’ method.
To perform a Discounted Cash Flow (DCF) analysis for Aarti Industries Ltd, I’ll use the financial data I could get from my Stock Engine to outline the process and estimate the intrinsic value. Here’s a simplified approach: 1. Input Values for Discounted Cash Flow (DCF) analysis: 2. Steps for DCF Step 1: Forecast Free Cash…
Ambuja Cements, under the expansive umbrella of the Adani Group, has announced the acquisition of Orient Cement. This acquisition is done for a sum of Rs 8,100 crore. It is not just a financial transaction but is seen as a strategic to boost Ambuja Cements’ market presence and capacity enhancement across India. Orient Cement will…
Aarti Industries is one of the prominent players in India’s growing specialty chemicals sector. As an investor focused on long-term potential, I’ve been following the company closely for a while. Over the years, Aarti has expanded its footprint in various chemical segments. It is a part of several industries like pharmaceuticals, agrochemicals, and polymers. But…
Evaluating Company profitability can be complex. It is especially true when we are comparing different-sized companies. In this article I’ll give you a peep inside the algorithm of my Stock Engine. The article will introduce you to a refined scoring system that considers average profitability, consistency, and company size. By normalizing and weighting key factors,…
The Indian Hotels Company Limited (IH) is a major player in the hospitality industry. Founded in 1903, it operates under the famous brand “Taj Hotels.” The company is well-known for its luxurious hotels and exceptional service. It has a significant presence in India and overseas. This article on The Indian Hotels (IH) is crucial for…
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…
