A word of advice and caution. When you buy a High Pe stock. Make sure that you are very certain about the growth. Plenty of good and bad examples

Eicher=Growth stopped, Got derated.

Pi Industries= At 52+Pe in 2015, growth continued (5bagger since then)

Praj is not just an Ethanol Play. Found this bit to be the best, creating mind map of optionalities requires in-depth understanding and use of knowledge from multiple domains. Hats off @unseenvalue 🙌🙌
https://t.co/XP4SErAZVo

Tomorrow at 11am on our Youtube channel. Have simplified it to an extent that even a 5th Grader understands the key terms 🙏

Link🎥
https://t.co/AKBBNV6N49

Happiest Minds Business Analysis|The Next Big IT Business? 😁🎥

We have analyzed the multiple trends currently driving the IT industry, and which players can be the likely beneficiaries

Link to the video 🔗: https://t.co/2JUfvKGKrd

Blessed to receive such feedback 🙏🙏

Creating segments and classifications about what really works in a sector can help you massively.

EG:- IT is just not about IT, there are Product companies, SAAS Businesses, services companies, ER&D companies and Corporate Learning Companies.

Banking&Finance is just not about Large Private Banks ⤵️

There are regional banks, Small Finance Bank, Public Sector Banks, Regional NBFCs, Deposit taking NBFCs, Housing Finance companies, Microfinance companies, CV Financiers etc.

Chemicals are not just speciality chemicals ⤵️

There are Bulk Chemicals like Phenol, Speciality Chemical and different chemistry chains expert like Fluorine, Bromine, Phosgene etc. Then there are niche product manufacturers like SDA or ATBS.

Retail is just not about Retail ⤵️

There are various segments within retail too! Someone might be doing value retail, someone might be doing luxury retail, Some companies might go for a COCO model (Company owned+Company Operated). Some might go for FOFO model (Franchise owned)

Pharma Contract Manufacturing has various types too ⤵️

Some Like Windlas are just CMO's for generics (low margin), some are present throughout the value chain Like Syngene (Complete CRAMS), some are just in Contract Development and manufacturing of intermediates (Suven)

The Art of asking smart questions | When do you really graduate as an investor?

Time for a thread🧵🧵🧵🧵🧵

Retweet for Max reach!!

You graduate as an investor when you start asking things like the quality of revenue, incremental quality of earnings and the competitive landscape. Eg:- One API player will grow earnings because of shortage in market for those

APIs but the other one which will grow because of being the lowest cost producer. The markets often give higher Valuations to the latter player.

Another example that comes to mind is Balkrishna Industries vs other tyre players.🚜🚜

Given the fact that it is the lowest cost producer and has the highest margins. It always gets a premium to the other players in the tyre space. Whether at peak or at trough.

One more example is that of APL Apollo, same business got low valuations during the last cycle and collapsed by 50%+ when their EBITDA per tonne reduced. In this cycle, the value added proportion has increased.

#DeepakNitrite valuation is most attractive in the space...

growth will be most explosive in the space...

If valuations wise one stock look attractive esp after almost 50% fall in 6mths, does it become attractive buy? Quality of disclosures, mgmt commentary equally imp and has to meet with reality.

One more, was it pumped up on Twitter/SM platforms while making its way to the top?

Never make the mistake of selling a great business just because it's overvalued.

💥

If you understand just this one quote, it will transform your investing journey...

So powerful...

#investing #compounding

Reverse DCF calculator is now available on Tijori

You can edit the earnings field, discount rate and terminal multiple to any value you like. Below is an example of Astral Pipes

Hope its useful to gauge optimism being baked into the current price!

https://t.co/Y6iV8LVLzT