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Sep 22 • 8 tweets • 3 min read
Investing in top-quality stocks with high valuations will only generate average returns. 💰
Creating wealth requires the perfect synergy of EPS growth and PE expansion. 📈
Confused?
Read this 🧵 for clarity!
Let's explore three instances to grasp how wealth has been generated over the past five years:
1️⃣ EPS growth-driven returns.
2️⃣ PE expansion-driven returns.
3️⃣ Combination of PE expansion and EPS growth-driven returns.
Aug 24 • 15 tweets • 5 min read
Profit margins play a pivotal role in the success of B2C businesses. 📈They contribute to its rapid expansion compared to competitors. 🔝
Discover how Metro's strong profit margins set it apart as a top performer, outshining even the footwear giant Relaxo. 👟🏆
A thread 🧵
👉 In FY19, Relaxo did ₹1075cr more sales than Metro. Now, in FY23, gap is ₹655cr.
👉 Initially, Relaxo had higher op. profit. But in FY23, Metro's op. profit is double of Relaxo's.
👉 Since FY19, Relaxo's PAT: -3.13% CAGR, Metro's PAT: 23.68% CAGR.
Why Metro is outperforming?
Jul 22 • 8 tweets • 2 min read
Inventory Turnover Ratio: Simplified⤵️
Ek Dhaga 🧵
#StockMarket #Finance
What is the Inventory Turnover Ratio?
In simple words, the Inventory Turnover Ratio measures how quickly a store sells its inventory and restocks it.
It shows how efficiently a shop manages its goods.
Jul 19 • 8 tweets • 3 min read
When retail investors analyse a company, they usually focus on things like revenue growth, profit margins, ROCE, and ROE. However, they tend to overlook the Balance Sheet.
But why is it important to analyse the Balance Sheet?
Here is a thread 🧵 with an interesting example. 👇
This is the Profit and Loss Statement of RattanIndia Power, a company that generates power through thermal power plants in Maharashtra.
Although their operating profit has been growing steadily at a rate of 9.7% per year, the company is still making losses.
Why?
Think... 🤔
Jul 11 • 15 tweets • 4 min read
JP Morgan warns of a structural ER&D spending slowdown, impacting the valuation of big companies like LTTS, KPIT, and TATA ELXSI. 📉
As an investor, you should have these three questions in your mind.. 🤔
A detailed thread 🧵⤵️
#Quest
What's a structural slowdown?
Does it affect all the sectors?
Are there any other types of slowdowns? 🤔
Let's see ⤵️
▶️ There are several types of slowdowns in companies across sectors, which are,
Jul 4 • 11 tweets • 3 min read
IDFC First Bank board gives approval to the merger of IDFC Ltd, IDFC Financial Holding Company Ltd, and the bank. 🤝
📉 Unexpected twist: IDFC First bank stock fell by 4%, while IDFC Ltd rose by more than 2%. 📈
What's the reason? 🤔
A detailed thread 🧵
The merger is approved only by the bank's board and the approval from RBI, SEBI, NCLT, and stock exchanges is still pending.
IDFC Ltd shareholders will receive 155 shares of IDFC First Bank for every 100 shares of IDFC Ltd.
Jul 3 • 16 tweets • 4 min read
Which is a better measure of Valuation: P/E or EV/EBITDA??? 🤔
Ek dhaaga 🧵⤵️
#stockmarkets #investment
While valuing companies, analysts use different methods to determine if a particular company is undervalued or overvalued.
And two most commonly used ratios are the P/E ratio and EV/EBITDA ratio.
Before understanding which one is better, let’s understand these ratios⤵️
P/E Ratio tells us how much investors are willing to pay for each rupee of earnings generated by the company.
Let’s understand it with an example >>
Jun 13 • 9 tweets • 2 min read
Varun Beverages goes for Stock Split
What is a stock split? Impact & benefits.
A thread 🧵⤵ #Stocksplit#varunbeverages
Varun Beverages got approval for a stock split on 2nd June via postal ballot.
VBL has a face value of Rs. 10, which will now be divided into a ratio of 1:2, making the face value Rs. 5.
Record date: 15th June 2023.
Jun 7 • 14 tweets • 5 min read
IKIO Lightening IPO Alert! 📢🚀
This IPO is making a buzz in the stock market.
A detailed thread on this IPO🧵⤵️
#StockMarket#IPOAlert
The company is coming up with fresh issues along with the OFS.
The borrowed funds will be utilised to repay debts and invest in its own subsidiary, IKIO solutions pvt. Ltd.
The details of the IPO are as follows⤵️
May 20 • 9 tweets • 3 min read
🚨Breaking News: ₹2000 denomination banknote is set to be withdrawn.
However, these notes will retain their status as legal tender.
Let's understand what's going on in a simple way 👇
A. The ₹2000 denomination banknotes were introduced in 2016 to address the currency requirement following the withdrawal of ₹500 and ₹1000 banknotes.
Printing of these notes stopped in 2018-19 as the objective was fulfilled.
May 19 • 9 tweets • 3 min read
Another Bank, another result🚨
SBI Bank's Q4FY23 results are in!
Standalone Net Profit of Rs 16,695 crores beats estimates. 🤑
A detailed thread🧵⤵️
#Q4FY23#StockMarketindia#SBIQ4results
SBI Bank has achieved a remarkable whopping 83% growth in standalone net profit, rising from Rs 9,113 cr YoY to Rs 16,695 cr in Q4.
Similarly, operating profit rose 25% YoY to Rs 24,621 cr
May 1 • 6 tweets • 1 min read
Top 10 Companies by MarketCap:
RIL 16.07
TCS 11.62
HDFC Bank 9.28
ICICI Bank 6.37
HUL 5.85
Banks accept deposits from common people & promise a certain rate of interest in return. It lends this money to borrowers & charges higher interest.
The diff between both is called spread which is bank’s actual profit
Mar 15 • 12 tweets • 3 min read
8 ways to save taxes on your Salary🤑
A Thread🧵⤵️
Hit retweet🔁to reach the maximum taxpayers!
#taxation#investing
Be it taxes on salary, bonus or business income, nobody likes paying a part of their income to govt.
So, here are some of the ways through which you can save your taxes⤵️
Mar 14 • 7 tweets • 2 min read
Another day, another quest!
The Collapse of Silicon Valley Bank - What is happening? 🧵
How do banks operate?
They take deposits from us 💸, lend most of these deposits out to others & earn high interest rate🤑, They make MONEY 💰, They make more money by investing into other things like BONDS
However, these bonds did not work out for - SVB ⚖️
These are company’s accumulated earnings which are converted into free shares that are passed on to the current shareholders by the stake held by each of them without charging any additional cost.
Feb 18 • 13 tweets • 3 min read
10 Financial Terms every investor should know! PART - 3
1. EBIT 2. Asset Turnover Ratio 3. Quick Ratio 4. Operating Leverage 5. PB Ratio 6. PS Ratio 7. Dividend Payout Ratio 8. CFO 9. Capital Employed 10. Net Profit Margin
Let's understand in detail⤵️
Hit retweet fr max reach!
1. EBIT:
Earning before interest & tax is company's net income before income tax.
It is used to analyse performance of company's core operations with tax exp.