How to Analyze A Traditional Business vs. A Banking Business?
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…