Nooresh Merani Profile picture
Aug 16, 2019 3 tweets 3 min read Read on X
The Curious Case Of #VardhmanAcrylics ( VAL ) & #VardhmanTextiles ( VTL) Merger .
The merger ratio at 1 share of #VTL for every 24.1 shares of #VAL gives a valuation of 38 rs or 300 cr market cap approximately.
#VAL holds 285 cr of investments and some more cash added this quarter. The gross block of #VAL used to be 200 cr plus pre 2017. The plant does a topline of 400 cr plus and an average operating profit of 40cr over the years. 40-50% of the sales of #VAL are to #VTL.
#VAL also has acres of land in Bharuch. So at 300 cr market cap the merger implies #VTL gets the plant and the land for free. How is this fair deal for #VAL minority shareholders? Plant and Land worth = 100-300 cr ? Disclosure -No Holdings. Was a shareholder a few years back.

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More from @nooreshtech

Sep 28
Nifty50 RSI at 80. Sell Everything and Run Away

Did you all get this Forward/Post of how #Nifty of how 80 RSI was followed by a Correction !!

A Thread.
Image
Image
A) March 1992.

Nifty50 index started in 1996 with a 1-2 year backdated data. NSE started operations in 1994.

So I have no clue where the 1992 data came from. Sensex monthly RSI was 92 in 1992 in 1985. So that also does not match
B) Dec 2003.

My data shows 78.5. But fits the Curve and Narrative.

The next 4 months are sideways. May 2004 elections led to the 30% correction.

So now we start with the actual 80 + RSI instances.
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Sep 23
#SEBI - Profit Loss Analysis of #Individuals in #Derivatives

Total Traders = 1.13 cr

93% of #individuals made losses.

Total Loss = 1.8 lakh crores.

Transaction Cost = 50k cr

Only 1% of Traders managed to earn more than 1 lakh!!

A THREAD
1) #Futures Profit But #Options Losses

FY 24 all Individuals

Individuals made losses in Options to the tune of ~ ₹55,000 crore in FY24, they made profits to the tune of about ~ ₹13,400 crore in Futures.
2) But Everyone wants to trade only #Options

FY24

94.2% traded only Options
5.1% traded both Futures as well as Options.
0.7% of the F&O traders traded only Futures.
Read 10 tweets
Aug 6
The Rotational Bull Market !!

This Bull Market has been Unique in terms of No Single Theme being the Leader for a long period.

Read PDF
rb.gy/mo19dw
If we go back in History.

> 1992 was about Cements and other cos driven by Harshad Mehta.

> 2000 was about IT & Telecom – K10 stocks of Ketan Parekh

> 2008 was about Real Estate, Infra etc.
Bear Markets after that saw 60% drawdowns.

Post this period  we have seen more and more Rotational Bull Markets in Sectors/Themes but no Central Leadership.
Read 17 tweets
Jul 10
#Snippets

A few interesting snippets from different notes.

1) DIIs narrowing the gap with FIIs.

Can we see DIIs>FIIs in coming years ? Image
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Valuations Expensive or Justified? Image
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Dec 31, 2023
Setting the Stage: World Indices Setup for 2024

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Dec 1, 2023
10 Most Interesting Videos on the CFA Society India Channel.

Take your time and go through them. Would recommend attending the physical events too.

@CFASocietyIndia
1) Brave New World | Ritesh Jain, Co-founder, Pinetree Macro.
He spoke about the liquidity way of investing, Tracking the global liquidity flow across past decades, how liquidity impacts economies, market returns based on liquidity.
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Read 11 tweets

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