1/ Since "liquidity" has been the buzzword these days, here's an anecdote and a powerful lesson from history about printing unlimited amounts of money. Story time. #fintwit
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This thread is for investors or those who are interested in CDSL as an investment. Often the central reason quoted for an investment here is the gush of FCF the business produces and some float money also to boot. But this argument ignores a central problem as well. (1/11)
I completely agree that CDSL is a business that produces ample amount of Free Cash. So, it begs the question: "What are they doing with all that cash?" Generally, firms can utilize the cash on their books in 4 ways: Dividends, Acquisitions, Capex/Investments and Buybacks. (2/11)
CDSL does have a Dividend Payout Ratio of ~35-40%. But Dividends are the least efficient way of utilizing cash, due to the Triple Taxation on Dividends. More
Handled well, Inorganic Growth is so lucrative that some companies build their business models around acquisitions (Say, MSSL or Cyient). However, CDSL literally CAN'T be one such company. Read 7 (c) of the below regulatory document to know more:
https://t.co/071lwnnwJ4
(4/11)
CDSL can also reinvest cash into their own business, like most companies do. But CDSL (And most Exchanges) have little need for Capex/Reinvestment. CDSL's IPO came in at Rs. 523.99 Crores. Two years in, the Cash and Investments on their books stands at Rs. 650 Crores. (5/11)
I completely agree that CDSL is a business that produces ample amount of Free Cash. So, it begs the question: "What are they doing with all that cash?" Generally, firms can utilize the cash on their books in 4 ways: Dividends, Acquisitions, Capex/Investments and Buybacks. (2/11)
CDSL does have a Dividend Payout Ratio of ~35-40%. But Dividends are the least efficient way of utilizing cash, due to the Triple Taxation on Dividends. More
Handled well, Inorganic Growth is so lucrative that some companies build their business models around acquisitions (Say, MSSL or Cyient). However, CDSL literally CAN'T be one such company. Read 7 (c) of the below regulatory document to know more:
https://t.co/071lwnnwJ4
(4/11)
CDSL can also reinvest cash into their own business, like most companies do. But CDSL (And most Exchanges) have little need for Capex/Reinvestment. CDSL's IPO came in at Rs. 523.99 Crores. Two years in, the Cash and Investments on their books stands at Rs. 650 Crores. (5/11)
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Assalam Alaiki dear Sister in Islam. I hope this meets you well. Hope you are keeping safe in this pandemic. May Allah preserve you and your beloved family. I would like to address the misconception and misinterpretation in your thread. Please peruse the THREAD below.
1. First off, a disclaimer. Should you feel hurt by my words in the course of the thread, then forgive me. It’s from me and not from Islam. And I probably have to improve on my delivery. And I may not quote you verbatim, but the intended meaning would be there. Thank You!
2. Standing on Imam Shafii’s quote: “And I never debated anyone but that I did not mind whether Allah clarified the truth on my tongue or his tongue” or “I never once debated anyone hoping to win the debate; rather I always wished that the truth would come from his side.”
3. Okay, into the meat (my love for meat is showing. Lol) of the thread. Even though you didn’t mention the verse that permitted polygamy, everyone knows the verse you were talking about (Q4:3).
4. Your reasons for the revelation of the verse are strange. The first time I came across such. I had to quickly consult the books on the exegeses or tafsir of the Quran written by renowned specialists!
A lot of things Muslims do now and claim as Islamic rule is actually a culture that Islam curtailed or tried to perfect.
— Sule Nana (@izesule) January 2, 2021
Let's talk polygamy.
Islam didn't come and say, "oh men, marry four wives"
No.
Polygamy was in existence, long before the coming of Islam.
1. First off, a disclaimer. Should you feel hurt by my words in the course of the thread, then forgive me. It’s from me and not from Islam. And I probably have to improve on my delivery. And I may not quote you verbatim, but the intended meaning would be there. Thank You!
2. Standing on Imam Shafii’s quote: “And I never debated anyone but that I did not mind whether Allah clarified the truth on my tongue or his tongue” or “I never once debated anyone hoping to win the debate; rather I always wished that the truth would come from his side.”
3. Okay, into the meat (my love for meat is showing. Lol) of the thread. Even though you didn’t mention the verse that permitted polygamy, everyone knows the verse you were talking about (Q4:3).
4. Your reasons for the revelation of the verse are strange. The first time I came across such. I had to quickly consult the books on the exegeses or tafsir of the Quran written by renowned specialists!