#idfcfirstbank is my largest and oldest investment. Thought of creating a thread to explain the business. If you like the thread, please spread the knowledge, retweet. Buckle up, because this is going to be a long one. :D

Quick summary of what a bank does. This enables me to establish a framework under which the analysis of the bank will become very structured.
Money is its raw material.

Bank takes customer deposits, raises money via borrowings (can issue its own bonds, takes loans from other banks etc). This is the input for the bank. Since the bank is liable to pay interest on it, it is also known as liabilities.

The output is a loan which the bank gives. These are broadly of 2 types: loans given to customers (Retail and Corporate) and subscription to bonds issued by other entities (Government of India, corporates like Vodafone Idea etc).

This is the output of a bank. Since these generate income for the bank, they are called assets. Not all the liabilities can be utilised as loans or used to purchase bonds, because banks need to have enough liquidity to service redemptions of their deposits.

#Garware #HiTechFilms Search this company on twitter, all you see is news of @LuckyInvest_AK Ashish sir investing in it. This thread adds some fundamental research about this company, to demystify it. If you like the thread, please retweet so max investors can gain the knowledge

Primary business of GHTF is manufacturing polyester (PET) films. These are transparent plastic films used for a variety of purposes. Packaging of items. The tint you see on windows (not in India, but abroad) is a PET film. The tint you see on buildings (yes, in India); PET Film.

Not all polyester films were made equal though. The basic PET film is a commodity. Primary use is packaging. There are 11 manufacturers in India. Most PET manufacturers are thus commodity producers. Not GHTF though.

76% (& increasing) of GHTF’s business is into value-added PET films. It is the largest exporter of PET films in India. GHTF’s products find applications in auto, real estate, electronics and FMCG industries.

They also claim to be the only fully vertically integrated producer of PET films in the world. RM is crude oil derivatives for them, not PET, coz they make their own PET (Polyethylene Terephthalate).

🧵🧵🧵🧵 👇

Artificial Inteligence = 🖥️ + 🧠

When can you expect your fridge & mobile phone to revolt against you? (Spoiler Alert: Not in the foreseeable future).

Please Do 're-tweet' the Thread & help me spread the knowledge to more people.

1. The Language
In order to understand Artificial intelligence, machine learning, deep learning, we need to start at the very basics.

Humans speak and understand a wide variety of 'natural' languages (this is what computer science community calls them): like English, Hindi, Marathi, Bengali, Tamil etc.

But have you seen a peculiarity of human languages? They do not have a precise meaning associated with a given sentence. On an average, every English word has 2 meanings. This makes human conversations confusing, with the need for multiple turns & clarifications. Example 👇:

Person 1 conversing with Person 2 face to face:

Person 1: Lets go watch The Dark Knight. Its our marriage anniversary!
Person 2: I dont like going out at night. Its too scary & depressing.
Person 1: Oh, what i meant was watching the movie "The dark Knight".

Lets discuss how to invest in equity directly, the end to end picture, taking as an example my largest holding: RACL ⚙️ 🖥️

🧵🧵👇👇

I am not a financial advisor & please don’t treat any of this as financial advice. Also, please dont think of whatever i say here as gospel or the absolute truth. This is only my perception of the truth.

I am not your Guru.

A little bit of framework/paradigm building up-front, please bear with me.

Here is the 1 tweet summary. 1000s of hours of reading, writing & contemplation.
Then, decades of patience. If we get both the steps roughly right, then some 💰💰.

The first step a Direct Equity investor with little knowledge has to do is to perceive their world accurately.

We do this by seeing interviews by experienced investors, books they're writing & reading company communications.

When we perceive our world through reading & listening, we go from being an investor with little knowledge to an investor with some knowledge. We are building mental models by learning from experienced investors

See how many our investor became :D

Vaibhav Global.

The OG 💍💎💍💎💍💎 in the dust.

🧵👇

1. Business Model.

Vaibhav Global is a vertically integrated omnichannel company that sells value fashion jewellery & lifestyle products.

Don't worry, I'll break those terms down in subsequent tweets.

Let's dive deeper into the vertical integration aspect. VGL is present across the value chain.
(i) Identifying trends & products.
(ii) Manufacturing or sourcing.
(iii) Selling.

(i) Identifying trends & products.
VGL's value starts at identifying trends in jewellery, lifestyle, fashion products across the world. Their employees are well entrenched in this space.

(ii) Manufacturing or sourcing.
VGL then decides whether to manufacture it, or source it from outside. This flexibility results in the crazy high 63% FMCG like ROCE. Why? Coz producing in-house is capital intensive. Sourcing goods is good for the capital efficiency.

Which cos according to you have highest probability of tripling revenue in next 4 years (~30% cagr)?

FY26 revenue is 3x FY22 revenue ?

My guess among cos I track: Sona comstar, saregama, mastek, dynemic products, sastasundar, angel one

I missed one: Mirza india aka red tape. :)

@dixit_37 Yup, autocorrect. 😅

One key learning from @VijayKedia1 Sir:

Many of the cos he invested in: vaibhav global, Tejas networks, sudarshan chemicals he was tracking for 4-5 years before he decided to invest. Wants to pull the trigger near the bottom of biz cycle

Patience