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@kalramukesh

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@ETMONEY

Jul 2

Everyone likes Warren Buffett, but only a few apply his teachings.

He believed time rewards great businesses and punishes the weak.

So we built a Buffett-style filter and tested it on Indian stocks.

The result might surprise you. A 🧵

Buffett categorises businesses into Great and Gruesome.

One builds wealth over decades. The other burns capital endlessly.

Understanding the difference is crucial to achieving long-term investment success.

What are Great Businesses?

According to Buffett, these are compounding machines.

They earn high returns on capital, generate strong cash flows, hold pricing power, and stay ahead of competitors for years.

Read 17 tweets

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@ETMONEY

Jun 27

A company barely made ₹42 cr in core profits. But it still reported ₹351 cr in net profit.

That’s an 8x jump. What’s going on?

This Zomato (Eternal) case teaches a crucial investing lesson:

Investors need to look at net profits and EBITDA differently.

Let’s break it down🧵

EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortisation.

It tells you how much a company earns from its core operations.

What are core operations?

These are business activities that generate revenues.

For Zomato, that includes food delivery, groceries, and more.

To get EBITDA, you subtract core expenses from revenue.

In our earlier example, core expenses for Zomato include delivery partner payouts, employee salaries, tech costs, and restaurant commissions, among others.

Check the image to see how you can calculate Zomato’s EBITDA.

Read 15 tweets

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@ETMONEY

Jun 21

Silver recently crossed the ₹1 lakh mark in India.

Is the rally over? Or are we just getting started?

We analysed 7 key drivers of silver prices to find out.

Let’s dive in. A 🧵

1. Supply & Demand

Like any commodity, silver’s price is shaped by the forces of supply & demand.

Its supply comes from mining and recycling.

However, its demand is far more diverse, including jewellery, coins and industrial applications like electronics and solar panels.

Per the Silver Institute, since 2021, silver has consistently seen demand outstrip supply.

In 2025, demand is expected to be 1,148 million oz vs. supply of 1,031 million oz—a deficit of 118 million oz.

It is largely due to booming industrial use, especially in solar panels.

Read 19 tweets

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@ETMONEY

Jun 18

You bought a stock as its profits were rising.

But even after strong earnings, the stock price crashed.

What went wrong? The answer wasn’t in the income statement.

It was hiding in the cash flow statement.

Here’s a breakdown of how to read it the right way. A🧵

A company can post strong profits and still be short on cash.

Reason: The income statement is based on the accrual method. This means sales are recorded as soon as a deal is made, even if the customer hasn’t paid yet.

Check an example.

Let's say a company sold goods worth ₹1 lakh to a customer.

The customer paid ₹50,000 in cash and promised to pay the remaining later.

The income statement will reflect the complete ₹1 lakh.

The actual cash received will be reflected only in the cash flow statement.

Read 15 tweets

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@ETMONEY

Jun 15

PPFAS Flexi Cap vs HDFC Flexi Cap

Both are extremely popular (the two biggest Flex Cap schemes).

Both have created immense wealth for investors.

And both have experienced fund managers with a solid track record.

Which one should you pick? A 🧵

Let’s start with returns.

Over the long haul, the PPFAS scheme comes out on top.

3-year & 5-year returns: HDFC Flexi Cap has beaten PPFAS Flexi Cap.

A key reason for this is the turnaround in HDFC Flexi Cap’s performance post 2020.

The fund’s performance wasn’t stellar before 2020, as it had leaned towards out-of-favour PSU stocks for a long time.

Post-2020, the market cycle turned. PSUs rallied & the fund’s fortunes changed.

Read 17 tweets

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@ETMONEY

Jun 14

Hotel stocks have delivered blockbuster returns over the last 5 years.

If you want to invest in them smartly, you must closely track 5 key metrics.

A 🧵 on how to analyse hotel companies like a pro.

1. Occupancy Rate

Occupancy Rate = Number of occupied rooms / Number of available rooms.

It tells you what % of rooms were filled.

Ideally, a higher occupancy shows stronger demand for the hotel chain.

Let’s check some real-life examples to understand.

We looked at the occupancy rate of the 4 top hotels.

Indian Hotel Company leads with 78% occupancy in FY25.

Lemon Tree, which had the highest occupancy in FY19, is still below pre-COVID levels.

Chalet and EIH remain steady around 75%.

Read 16 tweets

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