swapnilkabra Profile picture
Chartered Accountant | Quora Top Writer 2017 & 18 | Medium Top Writer in Finance, Economics and Investing | Tutor to CA aspirants | Amit Trivedi, AR Rahman ❤️
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21 Jul
My latest blog on 'Rajratan Global Wire' and how this can be a perfect proxy to tyre industry.

swapnilkabra.medium.com/rajratan-globa…
Do retweet for maximum reach 🙏
Read 5 tweets
8 Jul
A thread to understand the business of 'Clean Science and Technology Limited' and the reasons as to why it is number 1 in many of its products. 👇🧵
#cleanscience #cleanscienceipo
First, let us understand the products the company makes.
The company has MEHQ, BHA, Guaiacol, Anisole, 4-MAP, DCC and L-ascorbyl in its portfolio.
Before you yawn reading the unpronounceable chemical names, let me cut the mumbo jumbo and simplify this.
Read 28 tweets
4 Jul
A thread on how Rajratan Global Wire ltd, a small company in a niche segment, can be a perfect proxy play to the ‘Tyre industry’. 🧵👇
(1/n)
Let us first understand the business of the company. Company makes just two products:
1. Tyre bead wire
2. High carbon steel wire.
It derives major revenue from ‘Tyre bead wire’ which accounts for 89% of total capacity and 91% of revenues. (2/n)
For the uninitiated, Tyre bead wire is the soul of every tyre. It is core to the safety of tyre use; it holds the tyre to the rim, enhancing product safety. The product is mature and its application has been unchanged for more than five decades. (3/n) Company website
Read 24 tweets
29 Jun
A thread on how Nelco ltd, a Tata group company is well poised to reap the benefit of development in space industry and telecommunication. 👇🧵(1/n)
Nelco is a micro cap company from the Tata group which derives all its revenues from the business of Satellite Communication (SATCOM). (2/n)
For us to know what Nelco does, we must first know few technicalities of the Satellite business. So, let us first understand how a satellite works. (3/n)
Read 22 tweets
12 Apr
In India, 'RBI' is responsible for 'Monetary Policy' through which it controls 'Inflation' and Economic Growth'.

In this thread, I am going to focus mainly on the role of RBI and how it uses ‘CRR’ and ‘SLR’ as two major tools to control economy. 🧵👇
(1/n)
Let us first understand few basics before we dig into the details. (2/n)
👉The Businesses:
They are the producers of the goods and services. Any business would be happy if it is growing and the prices of the goods and services sold are ever rising. They would be more interested in ‘Economic growth’. (3/n)
Read 32 tweets
6 Apr
As there is so much confusion wrt the AGR saga and all the differences between 'Department of Telecommunication' and 'Telecom Companies', I tried to create a timeline of important events that happened till date.
A small thread 🧵👇🏻

Image sourced from: @barandbench Image Sourced from: https:/...
1/
1994
With National Telecom Policy (NTP), Government started allocating the telecom licenses. The deal was to pay a fixed fee for license and the spectrum per year.
But, the telecos failed to pay the amount as they were struggling even to break even.
2/
1999
New Telecom Policy was introduced which made changes in the way the telecom companies were required to pay for the license and the spectrum.
The deal was to pay a percentage of the AGR (Adjusted Gross Revenue).
Read 10 tweets
2 Apr
While learning accountancy a student is taught to
👉Debit all expenses, credit all income.
👉Debit all assets, credit all liabilities.
👉Debit the receiver, credit the giver.
Why is it so?
Let us find out the rationale behind three golden rules of accounts. 👇🧵 (1/n)
'Balance Sheet' and 'Profit & Loss Account' are two important aspects to learn accountancy.
Let us first understand how to interpret a Balance Sheet. (2/n)
Balance sheet is a simple snapshot of ‘Sources of funds’ (‘Liabilities’) and ‘Application of funds’ (‘Assets’) as on a ‘particular’ day. (3/n)
Read 12 tweets
29 Mar
Here's a collection of my posts on Medium I wrote since 2020!
RT if you find any value in them. 🧵👇
2. Why I am bullish on Bharti Airtel

medium.datadriveninvestor.com/bharti-airtel-…
Read 9 tweets
25 Mar
As the earnings season will begin soon, I decided to write a simplified yet detailed thread on ‘How to read and understand the quarterly result of a company’.
Read patiently.
Bookmark if required.
RT if found useful. 👇🧵 (1/n)
1⃣Why are quarterly results important?
The shareholders have put their hard earned money in the company.
So, they must know about the affairs of the company. But, they can not have access to the books of accounts. (2/n)
Only and only the management of any company can access the books.
Hence, to give a snapshot of company’s financial performance, listed companies are required to publish ‘Quarterly Results’, which are available in public domain. (3/n)
Read 35 tweets
22 Mar
‘Why don’t central banks like RBI mint more money and pump in the economy to speed up the growth and solve nation’s basic problems?’
As a teacher, I have been asked this many times.
Here’s a simple thread to explain the basic economics behind why this is not so ideal. 🧵👇 (1/n)
RBI is not against the increasing demand and the growth. All RBI wants is 𝑠𝑢𝑠𝑡𝑎𝑖𝑛𝑒𝑑 𝑎𝑛𝑑 𝑐𝑜𝑛𝑡𝑟𝑜𝑙𝑙𝑒𝑑 growth.
Let us understand how things work from the very beginning, shall we? (2/n)
𝐑𝐁𝐈 𝐦𝐢𝐧𝐭𝐬 𝐦𝐨𝐫𝐞 𝐦𝐨𝐧𝐞𝐲
So, RBI decides to mint more money and increase the money supply in the economy. (3/n)
Read 25 tweets
19 Mar
I have seen people who are scared of the subject ‘Economics’. There are many others who find it boring!
But, I am sure everyone knows the basics of ‘Economics’. In our practical life, we apply them, unaware of the fact that it is ‘Economics’.
Here’s a thread. Read on. 👇🧵(1/n)
You go to a vegetable market, ask the vendor for the price of vegetable.
He says, he is willing to sell you at Rs.20/kg but you are adamant to buy at Rs.15/kg. You bargain and finally settle at Rs.18/kg. (2/n) Image
Hence, you both settle at Rs.18/kg where both are satisfied.
You have applied here the concept of 𝐞𝐪𝐮𝐢𝐥𝐢𝐛𝐫𝐢𝐮𝐦 𝐩𝐫𝐢𝐜𝐞 which is the intersection of demand and supply curve and it is the level where buyer and seller both are satisfied. (3/n)
Read 16 tweets
17 Mar
One of the many misconceptions people have about investing in stock market is that it is a zero-sum-game. They have this misunderstanding that one’s income is someone else’s loss.
But no, that is not how things work.
Here’s a simple thread to explain this🧵👇
(1/n)
To begin with, let us get this clear as to how a zero sum game theory works. (2/n)
Say, there are 7 people playing a simple game. Their names are Red, Purple, Royal blue, Sky blue, Sea green, Green and Yellow.
They all chip in Rs.100 and keep the money (Rs.700) on the table. (3/n)
Read 16 tweets
15 Mar
Have you ever wondered in case of stock market crash, where does the money go?
We often read and hear that investors lost crores of rupees whenever market falls, but where has the money gone?
Here’s a thread explaining the economics behind it 🧵👇
Read on (1/n)
Firstly, let us understand something fundamental.
‘Price’ of anything is actually more of a perception.
Yes, you read it right, ‘Price’ of a commodity is influenced by how it is perceived by the interested people. (2/n)
Let me explain this with these four cases. Let us observe them bit by bit. (3/n)
Read 19 tweets
13 Mar
As the FY 2020-21 is closing, I decided to write a simple thread on how equities are taxed in India and how you can save income tax by following simple logical steps.
Here’s a thread for the same. 🧵👇
Do retweet for better reach and help others save taxes.
#taxplanning
Firstly, let us understand the types of capital gains that are taxed in equities. These are,
a.Short term capital gains
b.Long term capital gains (1/n)
If an investor is holding shares listed on a recognized stock exchange (NSE, BSE) for more than 12 months, the gain/loss arising from the sale shall be ‘Long’ term. Else, it shall be ‘Short’ term. (2/n)
Read 25 tweets
8 Mar
Before you see the high subscription numbers or the grey market premium for Easy Trip Planners, you must go through these red flags 🚩
A thread 👇🧵
Hit retweet to help aware more retail participants. (1/n)
#EasyTripPlanners #IPO
The company is not in profits as per SEBI guidelines in 3 of the past 5 years. Hence, the IPO shall have 75% reservation for QIP and just 10% for retail participants. This would mean more retail subscription (read trap). (2/n)
The promoters, Nishant Pitti and Rikant Pitte draw salary and reimbursement of close to 10cr. That’s huge against a profit of just 40cr. (3/n)
Read 11 tweets
5 Mar
A thread to explain how Reliance Industries Limited can lose the premium valuations in years to come. 🧵👇 (1/n)
Recently Reliance decided to hive off its O2C (O to C) business which is nothing but its Refinery and Petrochemical business. For starters O2C is when a company performs all the functions from order of a customer to payment of cash by him. (2/n)
business-standard.com/article/compan…
The main reason for hiving off this business is to monetize it just like it did with Jio and Retail. Hence, now RIL will become purely a holding company. (3/n) Image
Read 8 tweets
27 Feb
A simple thread to explain the current fall in the stock market and how rising bond yield is responsible for it.👇
Do retweet for better reach.
#bondyields #investing #markets (1/n)
What is bond?
Bonds are the financial instrument used by governments to raise money. However, there are no free lunches. So, whenever govts issue bonds to raise money it needs to pay the interest on it. (2/n)
What is face value of a bond?
The face value of a bond is the basic value on which the govt pays interest. Say, if the face value is Rs.1000 and the coupon rate of interest is 10% then the govt will be paying Rs.100 p.a on a bond of face value Rs.1000. (3/n)
Read 13 tweets
28 Jan
A simple thread to explain the ongoing rally in the US listed company #GME (#GameStop) and the massive #shortsqueeze 👇🧵 (1/n)
Before we get into the details, let us understand few concepts first.
A. What is free float?
B. What is short selling? (2/n)
A. What is free float?
The total shares held by all the shareholders of a company are called as outstanding shares.
Now, of the total outstanding shares, there are few shares which are not traded actively. (3/n)
Read 21 tweets
13 Jan
An extensive yet super simple thread to understand the role of @RBI and how it uses 'Repo Rate' and 'Reverse Repo Rate' 👇🧵

You may bookmark this for further use.

#economy #RBI #financialliteracy
1. Let us first understand the role of Reserve Bank of India in managing the Indian economy.
There are two major elements of the Indian economy.
👉The Businesses:
They are the producers of the goods and services. Any business would be happy if it is growing and the prices of the goods and services sold are ever rising. They would be more interested in ‘Economic growth’.
Read 31 tweets
12 Jan
So, shares of #BurgerKingindia were trading at lower circuit yesterday and today too are in the negative territory.
A small thread to aware retail gullible investors who were keen to buy the shares are listing 👇🧵

#investing #investors
1. On 10th December 2020, the anchor investors were allotted shares of Burger King. These shares had a lock-in of 1 month and yesterday the lock-in ended.
2. The so called anchor investors who were just to make money in a short span of time tried to sell the shares as soon as the lock-in ended. Total 1.1 crore shares on NSE and BSE were delivered yesterday which is double the average of past two weeks.
Read 10 tweets
11 Jan
A simple thread for beginners on 'How the price of a stock is decided?' 🧵👇
This can be helpful to understand the basic economics behind the stock price fluctuations.

#economics #financialliteracy
1. Let us first understand how the prices are decided! or to start with, let us know who decides the price? The buyer or the seller? Let us find out.
2. So, you enter a shoe shop and like a pair of shoe. You see the price tag which displays Rs.3000. You try to negotiate and then ultimately the seller agrees to sell you the shoe pair at Rs.2500. Image
Read 22 tweets