Decoding the Sovereign Gold Bond Saga: A Comprehensive Thread on India's Gold Investment Evolution🪙

Launched in 2015 by the Government of India, the Sovereign Gold Bond (SGB) scheme provides a novel way for investors to own gold without the hassle of physical possession. The scheme aims to channelize idle gold into productive avenues and reduce the dependency on physical gold. #sgb

If you're looking for a comprehensive comparison of various gold investments (GOLD ETFs vs PHYSICAL GOLD vs SGB) before delving into this detailed thread on Sovereign Gold Bonds, you can check out the previous post on - GOLD INVESTMENT OPTIONS () Let’s unroll the thread 🧵🧵

🌟 Key Features of SGB:⭐

1. Issued by RBI for the Government of India :
SGBs are issued by the Reserve Bank of India (RBI) on behalf of the Government of India, ensuring credibility and government backing.

2. Denominated in Grams, Flexible Investment :
SGBs are denominated in grams of gold, allowing investors to start with a minimum investment of 1 gram and go up to a maximum of 4 kg per fiscal year for individuals and Hindu Undivided Families (HUFs).

3. Fixed Interest Rate - 2.5% Per Annum 📈:
SGBs carry a fixed annual interest rate of 2.5%, payable semi-annually on the nominal value of the bond. Taxable as the slab rate of individuals.

4. Maturity and Exit Options 📅:
SGBs have a maturity period of 8 years, but investors can opt to exit after the fifth year on the interest payment dates.

5. Secondary Market Trading and Loan Collateral :
SGBs can be traded in the secondary market through stock exchanges, providing liquidity. Additionally, they can be used as collateral for loans, offering a unique dimension to their utility.

https://x.com/soicfinance/status/1748619046608843155?s=20

Let's dive into the performance of SGB (Sovereign Gold Bonds) over the years! 📈 The inaugural SGB came into existence in 2015, reaching maturity in 2023, completing a 8-year cycle. 🎉

When it was first issued in 2015, the rate stood at ₹2684/1gm. Fast forward to November 2023, and the issue rate had climbed to ₹6199/1gm. As an illustrative example, let's consider a gold purchase of 5 grams, equivalent to an investment of ₹13,420 at the time of the initial issue. Fast forward to the present, and with the current issue rate, that same 5 grams of gold is now valued at ₹30,995.0. 💰

Now we will calculate XIRR for the whole 8 yrs and surprising revelation as we calculate the for 8-year period, considering the semi-annual interest of 2.5%( which was ₹167.75 every 6 months) 🔄. See Below ⬇️⬇️

The XIRR for this period comes out to be 12.81%! ✨
We have attached the excel sheet for your calculation and also for future XIRR calculation of your SGB returns - docs.google.com/spreadsheets/d…

If you are new to the markets. You must watch these 7 videos to accelerate your Journey!!

🧵🧵🧵🧵🧵 Learn about the basics of the markets and how compounding works here:-

Many people are confused about Elecon's results, and don't know what caused the sudden fall in stock price.

In this thread I will teach you how to read results correctly with the example of Elecon.

🧵🧵🧵🧵🧵 There are two ways to look at Quarterly results:-

1. YoY= Year on year comparison means that we are comparing Q4FY23 with Q4FY22

2. QoQ= Quarter on Quarter comparison means that we are comparing Q4FY23 with Q3FY23. This is also known as sequential growth.

Investors beware! Companies are getting crafty with their financial statements.

Let's understand how companies fool investors with terms like we achieved profitability*

*T&C apply

Who knew accounting could be so much fun?

Retweet for Maximum Reach!!
#EBITDA #AdjustedEBITDA Do you know what Adjusted EBITDA is?

It's like a financial game of Jenga - you take out one-time, irregular & non-recurring items to get a normalized number!

The purpose of adjusting EBITDA is to get a normalized number that is not distorted by irregular items or one time cost.

Do you know why the Debt to Equity of companies like Titan, Jubilant Food Works, Apollo Hospitals, has gone up significantly in the last few years?

This is due to the accounting change in leases which a retail investor must know.

Let's delve deeper to understand the cause 👇👇 It is due to Ind AS 116, which defines the accounting treatment for leases

Previously leases were treated as monthly rent expenses and charged to P&L in other expenses but post the applicability of Ind AS 116 there has been a drastic change in the books of accounts for companies

9 Types of Stocks every Investor should know

A thread on different types of stocks🧵🧵

The best place to begin looking for the ten-bagger is close to home—if not in the backyard, then down at the shopping mall & especially wherever you happen to work

Retweet for Max reach!👇👇 By simply observing business developments and taking notice of your immediate world from the mall to the workplace you can discover potentially successful companies before professional analysts do.

This jump on the experts is what produces “multi-baggers,”.
⏫💹📈

Thread on How to do Forensic Analysis of a Company 📚💵🧮

In this thread we will talk about:
1⃣ Why Forensic Analysis is important
2⃣ How sales can be manipulated
3⃣ How companies rigged cash flow
4⃣ Importance of related party transactions

RETWEET FOR MAX REACH Warren Buffett in his letter said, "Beware of companies displaying weak accounting. When mgt takes the low road in aspects that are visible, it is likely they are following a similar path behind the scenes."

We will discuss how to find weak accounting practices by companies.

This Sunday, learn how to analyse cash flow statement, Profit and Loss, Balance sheet and Free cash flow.

Simply via these 4 threads:-

🧵🧵🧵🧵🧵🧵🧵 Start with Balance Sheet!

https://twitter.com/soicfinance/status/1547243237530042369?s=20&t=vv3tBJvBAK6TgT7KNzZ9qw

Idea of buying a strong business in temporary downturn

Form is temporary and class is permanent as the saying goes. Not all Quarters can be good in the journey of a company. Over a period of time though a complete picture emerges. Long term performances- 3 years and 5 years depict this.

One of the ideal times is to invest in a good company when it is going through temporary problems. Eg:- One of the agrochemical companies went through a severe downturn in 2016-2018 due to consolidation of end customers.

I have seen that PE ratio remains a complex subject for a lot of retail investors,

Lets simplify it the SOIC way!

7 Things about PE that no one will tell you about:-

Retweet to educate maximum investors :)

🧵🧵🧵🧵 1. What is the meaning of PE ratio?

PE Ratio is simply calculated as Price upon earning. Which denotes how much price are you willing to pay for 1 Rs of Earning of an asset.

👇👇

Holding Companies Simplified
#HoldCo

A detailed thread on Holding Companies 🧵

We’ll break it down into 4 parts:

1. What is a HoldCo
2. Types of HoldCo
3. Should you invest in HoldCo
4. Right time to invest in HoldCo To cook a meal one needs to be careful in keeping it over high flame for the right amount of time. Either way, if overcooked or under-cooked, the desired taste is not achieved and the meal is not as satisfying as it should have been.

Jubilant Ingrevia Ltd.
#JUBLINGREA

Annual Report 2022 Thread 🧵🧵🧵

Key pointers:
1. Company
2. Speciality Chemicals
3. Nutrition & Health
4. Chemical Intermediates
5. CapEx Plans

Let’s dive in 🥽 1. Company:

Jubilant Ingrevia is a part of the globally-present multi-billion dollar Jubilant Bhartia Group, vertically-integrated Life Science products and innovative solutions provider catering to diverse sectors namely pharmaceutical, agrochemical, nutrition, consumer and

Everything about P/E Ratios Simplified!

In this thread we will learn:-

1⃣What is the Meaning of PE ratios?
2⃣Why PE ratios are important?
3⃣5 Unique ways to Look at the PE of companies

Retweet to educate maximum Investors🧵🧵🧵🧵 Price to Earnings ratio simply Means how much price are you paying for Rs. 1 of earning of the asset.

For example:-

If you invest Rs 100 in a Fixed Deposit at 6% (Rs 6 of interest)

PE= 100(Price)/6(earning)=16.6 times

To Earn Rs 1 from FD, you are paying Rs 16.6

P.S

A case study in commodity investing. No longer own the co, but keep tracking as I understand the maize cycle and is easier to track for me :)

Understand the risks, opportunities come automatically post! I track the maize prices from here. Just in case:-

commodityonline.com/mandiprices/ma…

The basics of ROE, ROCE & ROIC explained from scratch with multiple case studies 🧵🧵🧵

In this thread we will cover:
1⃣ Du Pont of ROE
2⃣ Du Pont of ROCE
3⃣ Going Beyond as Investors
4⃣ Du Pont of ROIC
Retweet to educate Maximum Investors!! 👇👇 First ratio is Return on Equity:-

ROE indicates a company’s profitability by measuring how much the shareholders earned for their investment in the company.

ROE signifies how good the company is in generating returns on the investment it received from shareholders.

The Basics of Profitability Ratios explained from Scratch 🧵🧵🧵🧵🧵🧵

In this Thread we will talk about:-

1. Gross Margins/Ebitda Margins/EBIT Margins & PAT Margins
2. Du Pont of ROA
3. Du Pont of ROE
4. Importance of ROCE

Retweet to educate Maximum Investors!!👇👇 What are Profitability Ratios?

Profitability ratios show how well a company is able to make profits from its operations, assets or shareholder's equity.

It also indicates how well the company utilises its assets to generate profits and provide value to its shareholders.

A meta thread for all the Financial statements and key concepts like:- Balance Sheet, Cash Flow, Income statement, Free cash Flow and Topline!

Retweet to educate maximum investors :)

🧵🧵🧵🧵🧵🧵 The one on Balance Sheet

https://twitter.com/soicfinance/status/1547243237530042369

What is the Topline of a company or What are different ways of looking at the sales/Topline of a company?

This is a detailed thread on a common yet often misunderstood topic.

Retweet to educate maximum investors and those who are running businesses 🧵🧵🧵🧵🧵 What is the topline of a company?

In simple words Topline is nothing but sales/revenue of a company that is generated by selling products or services.

Why is it called topline?

As this is the first line item that is reported in an income statement of a business. Check 👇👇

Links relevant to those who just attended the Syngene Annual Report session!!

What makes Biologics difficut to manufacture?

ncbi.nlm.nih.gov/pmc/articles/P…

Manufacturing Barriers in Biologics:-

ilr.law.uiowa.edu/print/volume-1…

Librela Contract: fool.com/earnings/call-… Librela is a blockbuster drug ^ just read the Concall of Zoetis

Samsung Biologics and how fast they are growing

fiercepharma.com/manufacturing/…

Detailed Brain Damage on Biologics:

iqvia.com/-/media/iqvia/…

2 Must follow websites: Contract Pharma and Fierce Pharma for CDMOs

The Basics of a Balance Sheet explained from scratch 🧮➕➖➗

In this thread we will talk about -

1. What is Balance Sheet
2. How Balance Sheet is made?
3. Each line items of Balance Sheet
4. Why it is important

Retweet for max reach! What is a Balance Sheet:

The balance sheet displays the company’s total assets and how the assets are financed, either through debt or equity. It gives an idea of the financial health of an organization. It is like a snapshot of the financial position at a specified time.

PE comes down when earnings backfill into valuations or earnings grow exponentially.

Eg- Dmart has gone through both price and time correction+Earnings have grown well.

Price to Earnings has fallen from 287x to 125x post the results.

Disc:- not invested. +Effort of these case studies is to just make you think about the businesses and apply these frameworks somewhere else. No point in teaching investing without real life case studies, please don't get butt hurt if i/someone owns or doesn't own a stock 🙏