Some points for Canfin Homes bulls to ponder upon:

1. It has been on the block twice in the last 5 years. Why didn't anyone buy?

2. If it gets sold, would the liabilities side stability remain?

3. Is it granular enough or only limited to Tier 2 cities unlike Aavas which is in

The Basics of a Cash Flow Statement explained from scratch 🏧🎰🧮

In this thread we will talk about -

1. How Cash flow statement is made?
2. What is CFO,CFI and CFF?
3. Why is CFO/Ebitda important?
4. Finally, we will talk about Free Cash flow statement

Retweet for max reach!

A Cash flow statement shows inflow and outflow of cash and cash equivalents from various activities of a company during a particular period.

The net cash flow at the end of the year tells us about the movement of cash on the balance sheet.

Why is cash flow important? ⤵️

Companies maintain books of accounts as per accrual principle, that means we book revenue or expense as and when it is incurred.

Let's say we make sales of 10,000 so we will record it as when sale is completed and prepare P&L accordingly, here it doesn't matter whether cash is received or not.

Cash flow helps us in knowing whether that 10,000 has been received in cash or not.

For Example:- There are 2 companies selling T-shirts and doing the following transactions:

Free Cash Flow to Firm Bridge for Asian Paints

Source: Marcellus&BQ Quint. Good read!

Why Indoco Remedies looks Interesting and why FY22-24 growth is likely to be stellar here?

Time for a thread🧵🧵🧵🧵

(Source for ophthalmics data:Nirmal Bang and rest is own work)

Looking at the incremental opportunity in Ophthalmics:-

Market size is not attractive for the Large Generic companies but for someone like Indoco which has a smalll base in exports business

As per the USFDA’s orange book, for Ophthalmic suspension drugs, only 3 out of 17 molecules have an active patent. Among the 14 molecules that are patent expired, 8 molecules are yet to see generic
competition.

Even for the one’s which have seen generic competition, the competitive intensity is very low and there is space for an additional entrant.. Entrenched players like Novartis, Bausch & Lomb and Abbvie have dominated this market with legacy products for decades.

Indoco Remedies and Sun Pharma are the only Indian generic manufacturers to have successfully won approvals for generic version of Ophthalmic suspensions in the US market. Indoco Remedies has recently launched generic version of Azopt (brinozolamide)

Once invested it's your duty to look for Anti Thesis pointers/disconfirming evidence. Don't get caught up in echo chambers. Investing is lonely because of this

Epic Watch of the day: https://t.co/uq1ZAr50Ft

Bet you won't find a simpler explanation anywhere.

What are Monoclonal Anti-bodies? interesting to understand to get the trend for businesses like Syngene and other contract manufacturers+Animal Pharma innovators

sir you will enjoy this one!

The real estate market in India expanded at a CAGR of ~10% from $50bn to $120bn between 2008-17.

It's estimated to expand at a CAGR of 17.7% to $1tn by 2030. It will added $820bn in 10 years from $180bn in 2020.

Will throw a number of opportunities along the way.

#CenturyPly

👉Capex done in d last 8years = ~1000crs

👉Capex to be executed in next 2 years = ~1000crs

Speaks volumes about demand from the real estate sector.🚀

A THREAD on how most real estate folks structure deals with outside investors.

Most people utilize the "preferred equity" structure when they raise money from outside investors. They "syndicate" deals.

Here's the basics:

The person (or team of people) putting the deal together is the "sponsor". Also called general parter. Referred to on twitter as the GP.

They find the property, do all the work, hire the management company and take fees. They often co-sign debt and always secure the financing.

The investor is generally passive, doing no work and putting in cash. This is the "limited partner". Referred to on twitter as the LP.

They don't co-sign debt. They simply read reports and ask the sponsors questions and cash checks every month (if the deal is going well).

There are two equity classes.

"Preferred equity" belongs to the LPs. Cash talks, so this is a higher class of shares. They are first in the "capital stack" behind the debt (bank loan).

"Common equity" belongs to the sponsor. They are generally last in the capital stack.

Sponsors generally co-invest. That means they hold both equity classes. A 10% co-invest is standard.

That means the GP has skin in the game. His 10% co-invest makes him both an LP and a GP.

If there is one sentence that symbolizes the rotten nature of Noida real estate. (Yes, less than 1 cr)

"In 8 cases–the net worth of the sub-lessee was less than even Rs 1 crore but were permitted sub-lease of plots aggregating worth over Rs 500

@VishalBhargava5 The issue is that builders offering smaller carpet area per room. In some cases, it’s even difficult to fit king size bed.