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@itsTarH

10 Jul

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is Dupont Method for ROE?
2. What is the difference between ROE, ROCE and ROIC?
3. How to identify companies that will improve their ROCE in future?

Lets dive right in.

Believe it or not, DuPont method for ROE was introduced to capital markets by the chemical company, DuPont (duh) in the 1920s.

A DuPont explosives salesman called Donaldson Brown invented formula for an internal DuPont efficiency report in 1912.
en.wikipedia.org/wiki/DuPont_an…

Read 41 tweets

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@itsTarH

8 Jul

Lot of IPOs hitting the market. As a general rule, I stay away from applying for IPOs. Here are a few reasons why 👇🏼

1️⃣ Companies are dressed up a year or so before IPO to allure investors

2️⃣ Insiders get an opportunity after waiting for years to liquidate their investment

3️⃣ Most IPOs are aimed at giving insiders an exit rather than raising growth capital for a company

4️⃣ I look at IPOs 3 to 4 quarters out, this gives me enough clarity on what the company has done post raising funds. By this time insiders had liquidated whatever they wanted to.

5️⃣ The initial exuberance dies down post 3 to 4 quarters and price action settles down

This strategy has worked out for me quite well and has prevented me from sucking into the euphoria of market.

Read 4 tweets

Tar ⚡

@itsTarH

6 Jul

Read all these books in the first half of 2021 📖📚

Recommending all of them 👇🏼

Billion Dollar Whale is a fascinating story about how one mastermind was able to rob billions of dollars from Malaysian Sovereign Fund and use that money to finance everything from parties with Paris Hilton to the movie Wolf of Wall Street.

Thrilling and Insightful 💰

@Gautam__Baid

Joys of Compounding by @Gautam__Baid teaches you various aspects of the magic that is compounding.

From finance to more importantly how compounding lessons in life play an important role.

This one has both lessons in life and investing packed into one.

Highly recommended 🌱

Read 8 tweets

Tar ⚡

@itsTarH

3 Jul

Lesson from Super Investors 👇🏼

@LuckyInvest_AK

Case Study #1
Company: Mastek
Super Investor: Ashish Kacholia aka @LuckyInvest_AK

@LuckyInvest_AK is praised for his stock picks in a bull market.

Very few realize the patience and temperament required to hold through a stock position in a bear market.

@Mastekltd

As per public filings, we know Ashish sir, picked up a 1.73% stake in @Mastekltd sometime between Jun and Sep of 2018.

Read 19 tweets

Tar ⚡

@itsTarH

30 Jun

So many updates on #SequentScientific Results, almost none focus on the most important metric

Net profit before tax and exceptional items (True Cash earned by the company) increase by ~55% YoY

ROCE now above 20% and PAT increase by 36.5% are signs of Operating Leverage

Before Op Leverage kicked in for Laurus, its ROCE was in ~14%

The Advisor onboarded created the animal healthcare business for Boehringer Ingelheim (~2nd largest animal healthcare business in the world with net sales of ~4.5 Billion+ and presence in over 150 countries

Read 4 tweets

Tar ⚡

@itsTarH

24 Jun

The Oil drop in Reliance Logo has been replaced with a leaf #RelianceAGM

Okay, that's the foundations logo.
Moving on.

50% of EBITDA came from consumer business. Reliance is no longer an oil and chemical company.

Reliance Retail is 6x the size of next competitor in organized retail.

It's a shame that Walmart and not Reliance acquired Flipkart.

Read 15 tweets

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