Buying stocks is easy.

Buying the 'right' stocks is where the game begins.

Here's how you can pick great stocks in India 🧵 1) Financials

The first place to start is by analyzing the company's financial statements.

◦ Revenue
◦ Profit margins
◦ Debt-to-equity ratio
◦ Return on equity

If you don't understand these terms, start by reading up on financial statements.

ROE of Major Companies for FY23💰

51.8% • TCS
34.3% • Infosys
28.4% • Asian Paints
20.1% • HUL
15.8% • Wipro
12.9% • Tata Motors

Just seeing ROE figures doesn't tell the whole story.

DuPont Analysis is the ultimate which can save investors thousands (even millions). ROE measures a company's profitability.

It shows how much profit they generate with shareholder's money.

But it doesn't tell the whole story.

A high ROE can be due to:

↳ High leverage
↳ Operating efficiency
↳ Better pricing strategy
↳ Effective use of assets

Indian govt. Mandates AC in All Truck Cabins from 2025!

➕Positive for Manufacturers like Tata Motors, Mahindra, Ashok Leyland, etc.
➖Negative for Consumers

Let's discuss the details in this thread 🧵

#business #vehicle Benefits for manufacturers:

1. Increased sales
2. Higher profit margins
3. Improved brand image

Drawbacks for tractor drivers:

1. Higher upfront cost
2. Increased fuel consumption
3. Increased maintenance costs

Block deals growing in 2023 🚀

• Jan 7086 Cr
• Feb 15366 Cr
• Mar 36062 Cr
• Apr 7266 Cr
• May 15286 Cr
• upto 20th Jun 26152 Cr

Do you track this?🤔

Let's discuss how Block Deal creates profitable stock market opportunities 😎

A thread 🧵 ▣ What is Block Deal?

They are large trades of shares or securities that are executed between two parties.

The minimum number of shares or securities that must be traded in a block deal is typically 500,000 shares or a value of Rs. 5 crores.

High debt stocks can either make you a fortune or leave you bankrupt.

Let's understand why:

A thread on why high debt stocks you should avoid as an investor: ◈ Debt magnifies gains and losses.

When you're right about a company, being able to borrow money to amplify gains can generate massive profits.

But when you're wrong, it's easy to wipe out your entire investment.

#finance

How to find out if the stock is Undervalued or Overvalued?

One method is DCF valuation.

Let's understand it. 🧵 The Discounted Cash Flow (DCF) valuation method is a way to estimate the intrinsic value of an investment by calculating its future cash flows and discounting them back to the present.

Sounds complicated?

We have built it for you in ticker. 💙

The value of loans disbursed by Paytm is increasing consistently 📈

• Q1FY22 632 Cr
• Q2FY22 1257 Cr
• Q3FY22 2181 Cr
• Q4FY22 3553 Cr
• Q1FY23 5554 Cr
• Q2FY23 7313 Cr
• Q3FY23 9958 Cr

Let's check out other metrics growth 📊

#stocks Paytm has sold 0.58 Cr soundbox till December 2022. Users have to pay Rs 125 monthly for it.

That is a probable 72.5 Cr revenue per month and 870 Cr per year.

Research spends of top pharma companies 💊

FY21 FY22
Sun Pharma 1037.4 Cr 1631.7 Cr
Dr Reddy 1310.4 Cr 1424.4 Cr
Lupin 1347.8 Cr 1399.7 Cr
Aurobindo 840.5 Cr 896.1 Cr
Torrent Pharma 371.1 Cr 430.0 Cr The spending is in the range of 5 to 10% of their respective net turnover.

The central government is rolling out Research Linked Incentive (RLI) scheme to promote R&D in the pharmaceutical industry.

#StockMarket #stocks

Share of EV sales in Auto sales was 4.7% in 2022 🚗

• Jan 50158
• Feb 50562
• Mar 80848
• Apr 75829
• May 68122
• Jun 74110
• Jul 79228
• Aug 87547
• Sep 92996
• Oct 115994
• Nov 119419
• Dec 102208

What will be impact of use of EV? 🤔 The sale of more electric vehicles (EVs) has a number of implications, both positive and negative.

Everyone is giving stock analysis. But how to do stock analysis on your own?

Let's find out 🤔 Stock analysis is the process of evaluating the performance and potential of a company's stock.

In India, this process typically involves reviewing the company's financial statements, analyzing its market position, and studying its management and competitive landscape.

Performance of top family-owned groups in 2022 🪙

Market Cap Growth%
• Tata Group 21.19 Trn -9.4%
• Adani Group 19.66 Trn 104.3%
• Ambani Group 17.54 Trn 6.9%
• Bajaj Group 8.35 Trn -2.6%
• Bharti Group 5.17 Trn 13.3% The Ambani group consists data of companies led by Mukesh Ambani.

Market cap is combined market cap of all listed companies of groups as on Dec 30, 2022.

#stockmarketcrash

The RBI has hiked the repo rate by 35 bps to 6.25% 🤯

But 1st let’s understand what Repo rate is? And what does it mean for investors, borrowers & customers?

-- A Thread 🧵--

#RBIPolicy
#RepoRate Repo rate is a type of interest rate! 🏦💵

It is the rate at which the central bank of a country (Reserve Bank of India) lends money to commercial banks in the event of any shortfall of funds.

Repo rate is used by monetary authorities to control inflation.

PM launched 600 Kisan Samridhi Kendras & One Nation One Fertilizer Scheme today.

Changes in fertilizer stocks:

• Deepak Fertilisers +7.07%
• Shiva Global Agro +2.6%
• GNFC +1.49%
• Krishana Phoschem-2.04%
• Rama Phosphates-1.77%

Do you own any?⤵️ The Samridhi Kendras will modernize agriculture and will function as helping centres for farmers.

PM said the fertilizers will be rebranded as "Bharat" to help farmers and it will decrease the prices of major fertilizers as transportation costs will be regulated.

Quarterly profit (Q4FY22) ⤵️

• Hindustan Unilever = 2327 Cr
• Godrej Consumer = 417 Cr

By seeing this number, we would think HUL is better 🤷

But that's not true. Let's find out ⤵️

#stocks #business The Profit Margin for the same period is

• Hindustan Unilever = 17.29%
• Godrej Consumer = 25.53%

In this Godrej looks attractive.

So, what should we check: Profit or Profit margin? ⤵️

The growth in stock price of BAJAJ FINANCE over the years. 🏆

• 2002 5.75
• 2007 37.65
• 2012 90.76
• 2017 1376
• 2022 6075
• 52-wk high: 8050

What makes consistent compounding stocks like these?

Let's Find out. ⤵ Criteria 1️⃣ : ROCE > CoE

ROCE: Return on Capital Employed
COE: Cost of Equity

✅10-15% ROCE every year for decades is ideal.

Confused about which stock to buy this #stockmarketcrash?

Here are 9+ ideas to start ⤵️ Requirement:

• Interest in analysis
• Basic signup on ticker.finology.in/bundles
• Finology one subscription (optional).

#StockMarket

How do NSE and BSE earn?

A thread. 🧵 The majority of their revenue comes from Transaction charges which are 0.003% of the total transaction amount.

They charge fees from companies at IPO listing

- listing charge
- book building fee
- rectification fee
- wrong claim fee, etc.

Biggest companies in the world 🏆

◆ Saudi Aramco $2.33 Trillion
◆ Apple $2.22 Trillion
◆ Microsoft Corp. $1.89 Trillion
◆ Alphabet $1.46 Trillion
◆ Amazon .com $1.09 Trillion
◆ Tesla $0.73 Trillion

(By Mcap)

#DowJones Biggest Indian companies 🏆

◆ Reliance Ind. 17.67 Lakh Cr
◆ TCS 11.69 Lakh Cr
◆ HDFC Bank 7.37 Lakh Cr
◆ Infosys 5.95 Lakh Cr
◆ HUL 5.40 Lakh Cr
◆ LIC 5.24 Lakh Cr
◆ ICICI bank 4.98 Lakh Cr

#stocks

Value comparison of Major Business group of India 🇮🇳

PE Ratio PB Ratio
• Tata Group 27.5x 6.21x
• Reliance Ind. 29.2x 2.30x
• Adani Group 105.3x 15.30x

▣ Sensex 22.03x 3.14x

Which group is your favourite?⤵️ Data as of May 24 and the company's result for FY22.

➡️ Adani group is trading at a high valuation compared to others.

But what are PE and PB?

Largest Stock Market of the World 🌍

🇺🇸 USA $42.59 trn
🇨🇳 China $9.99 trn
🇯🇵 Japan $5.50 trn
🇭🇰 Hongkong $5.28 trn
🇸🇦 S. Arabia $3.25 trn
🇺🇸 UK $3.14 trn
🇮🇳 India $3.14 trn
🇨🇦 Canada $2.96 trn

(By Mcap)

#Nifty In the next few years, India will definitely be in the Top 3 positions 🏆

Do you believe it too? ⤵️

#USDT #tuesdayvibe

Top countries where FII have invested📊

🇺🇸 USA 39%
🇲🇺 Mauritius 11%
🇱🇺 Luxembourg 7%
🇸🇬 Singapore 7%
🇬🇧 UK 5%
🇮🇪 Ireland 5%
🇨🇦 Canada 3%
🇯🇵 Japan 3%
🇳🇴 Norway 2%
🇳🇱 Netherlands 2%

#FII The data is taken from CDSL for April 2022 based on Equity Assets under custody of FPI (FPIs include FIIs, Sub Accounts & QFIs)

Indian market is volatile because of FIIs selling.

But Why do FIIs investments impact the stock market?🤔