United Spirits - How beautifully chart patterns work on a monthly scale, too. I was bullish on this for the reason that it is coming out from a very strong tight consolidation zone. https://t.co/rdjPmgFN7d

Thread 🧵explaining #ROE & #ROCE and its use in #FundamentalAnalysis

(Must read for #FA learners)

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Views Welcome 👉 @dmuthuk @Vivek_Investor @datta_arvind @caniravkaria @FI_InvestIndia @AdityaD_Shah

#FundamentalAnalysis #StockMarket

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Return on Equity (#ROE) and Return on Capital Employed (#ROCE) are two important Financial Ratios used in #FundamentalAnalysis of Stocks.

#StockMarket #Investing

2⃣

Return on Equity (ROE) is the ratio of Net Income (Net Profit) of a company and it’s Total Equity (Shareholder's Equity).

Here - Shareholders Equity = Share Capital + Reserves & Surplus.

#StockMarket #Investing #FundamentalAnalysis

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#ROE is a measure of how much net profit a company is making for every rupee invested by its shareholders in the company.

It can be said that higher the ROE, better it is for the equity shareholders. It tells shareholders about how effectively their money is being used.

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However, you should not trust high ROE blindly. Biggest drawbacks or weaknesses of ROE is that it completely ignores debt.

Hence for companies having high levels of debt, ROE will give a higher but misleading value & therefore we need to look at #ROCE along with #ROE.

Sri Sanjeevi Rayar Temple located in Ayyangar Kulam,near Kanchipuram,TN

#Thread

Ancient but beautiful temple dedicated to Hanuman. This temple is a legendary one. According to the Sthala Puranam of Sanjeevi Rayar temple,it is associated with an episode from Ramayana.

Legend story -Hanuman was flying from Himalayas to Lanka bearing Sanjeevi hill to revive Lakshmana during battle between Rama& Ravana, a piece of the Sanjeevi Parvat fell at this place.Many believe this legendary story & even today that no one here dies of any kind of poisoning.

From historical background of the temple it is known that temple was originally built by a great scholar &administrator Kotikanyadanam Lakshmikumara Tatacharya. Temple itself&village were named following name of great scholar Tatacharya, who was then popularly known as Ayyangar.

He was the royal preceptor of Vijayanagara emperor Venkata Raya who had his capital at Chandragiri in AP.Upon returning from a pilgrimage,robbers tried to attack Tatacharya at this place. Being a great devotee of Hanuman,he instantly composed a poem in Sanskrit praising Hanuman.

The bandits immediately ran away &Tatacharya decided to build a temple dedicated to Anjaneya at that very place.This Sanskrit poem is called Hanumad Vimshati, has been inscribed in Grantha script inside this temple.The huge temple tank called Tatasamudram, in honor of Tatacharya.

Mr. Vijay Kedia built a net worth of over Rs. 800 crores.

But you probably never read past that headline.

So I binged hours of interviews to learn his investing principles and strategies.

Here are 20 lessons on investing from @VijayKedia1 Sir:

Collaborated with @AdityaTodmal

Before I start, a quick disclaimer, please don't ape his portfolio.

As the entry price, horizon and risk appetite would be far different than yours.

Rather lets draw inspiration and try to learn his stock picking skills.

Now let's DIVE IN👇

1/ Started off as a trader:

- Soon, beginner’s luck started to fade out and loses started to mount, to an extent where his mother was about to sell her ornaments.

- Although he was able to dodge the situation.

- This incident taught him the biggest lesson to have a stop-loss.

2/ Punjab Tractors:

- In 1990, he made his first investment by putting in his 10-years savings of Rs 35,000 in this stock, based on a news trigger that tractor industry will witness a turnaround.

- It worked and fetched him 4-5 times which he calls it as a fluke.

3/ He believes that an investor must possess three qualities:

i. Knowledge,
ii. Courage, and
iii. Patience.