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.

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 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.

@moatandvalue @sahil_vi @itsTarH 1. Healthcare
2. Cdmo/crams in Pharma and agro
3. Spechem
4. Music streaming
5. Building material
6. Exchanges
7. Ecommerce Businessess
8. Financialization
9. Niche Manufacturing due to cost arbitrage
10.Certain Auto anc cos with tie ups
11. Insurance space
12. Animal health

@sahil_vi @itsTarH 13. Cybersecurity cos abroad. Not in India.
14. Digital transformation: digital is an overused word though.
15. Biotechnology: emerging theme. Waiting for it to play out.
16. Green energy: some players already benefitting

NSE IFSC - How to Invest in US Stocks 🇺🇸 from India 🇮🇳?
#NSEIFSC #USSTOCKS

A detailed Thread on the NSE IFSC route for investing in US Stocks for Indian Retail Investors 🧵

RETWEET FOR MAX REACH

Major FAQ’s 🙋‍♂️❓
1. What is this all about?
2. What can we buy?
3. How can we buy?

4. Who can buy?
5. How much can we buy?
6. What benefits?
7. Exchange timings & modalities?
8. Any risks?

Ever heard of FAANG, Metaverse Stocks & a whole host of stocks that seem so promising but yet so out of reach. Within this global village, information is traveling at a speed of light, so are our expectations from our PF.

There has been a rage in people to invest globally via indirect means as directly investing in US Stocks has been cumbersome & mostly people feel that unease of dealing with currency conversion & taxation.

But now NSE through its subsidiary exchange is making things simpler.

Let's dive in to understand more:-

1. What is this all about?

NSE IFSC (NSE International Exchange) incorporated on Nov 29, 2016, is a wholly-owned subsidiary of NSE.

Another JV from PI Industries, they recently incorporated another subsidiary by the name of PI Health sciences.

Interesting signalling here:

1. Acquisition of IndSwfit's api business
2. Incorporation of 3 subsidiaries: PI Enzachem Pvt ltd and PI Fermachem Pvt Ltd

Pi Health sciences.

3. Now this JV.

Let's see what is ahead of us, increasing optionalities for sure!

One of the best debates I have seen in recent history between @SunilBSinghania and Saurabh Mukherjea.

TOPIC: Has P/E lost its relevance?

I resonate more with Sunil’s side. Here’s a thread 🧵 on the main points made by him:

@varinder_bansal @safiranand @myvaluepicks

1/ Importance of PE

PE is not the only factor but an important factor.

Ultimately the growth has to justify how much PE are you paying for the company.

There cannot be an unlimited PE multiple based on some xyz parameters.

2/ Hindsight Bias:

In hindsight we can say that from 2001 to 2021, a company grew at 25 % and we should have given a very high PE to it.

But on the day when you buy, you don’t know that the company is going to grow at 25% for the next 20 years.

3/ Millennial preference:

Things have become more competitive.

New generation don’t really care much about legacy.

Convenience and affordability matters more.

The longevity and sustainability of growth has changed dramatically.

4/ Company that require a big investment - There is opportunity to invest big.

Company 1: Mkt Cap of 50 cr
Company 2: Mkt cap of 1 lakh cr

50c r company can become 3x, 1 lakh cr company cannot become 2x.

On absolute basis you end up making 5 cr vs 5k cr in 1lakh cr company.

What is a Qualified Institutional Placement and what do I like about them (more to do with the QIP doc)

Time for a thread🧵🧵🧵🧵🧵🧵

What is a QIP?

A QIP or a Qualified Institutional placement allows a company to raise capital by issuing securities (by diluting equity) only to institutions.

Only Qib's or Qualified Institutional Buyers can participate in QIP's. This includes Mutual Funds, Foreign institutions

and Pension funds etc. (From my knowledge PMS' or any individual investor cannot participate in Qip's).

Just to give you an example:- Look at the investors who participated in the QIP of Saregama (750 crores)

Another example is the Qip of Deepak Nitrite in 2016 for the Phenol Project (size of the project was 1400 crores+)

The QIP witnessed participation from some of the top domestic institutional investors namely Reliance MF, Birla MF, ICICI Pru MF

Question arises, Why did SEBI allow for creation of QIP as an instrument for raising money?

QIP was introduced in the Indian Markets in 2006 by Sebi. As the regulator was concerned that the domestic companies were getting too dependent on raising money through

Here's a fun fact for all the proponents of buying 'Quality companies at any price':

Wipro is a 'Quality Company' and a part of Nifty 50 for most part of the last 20 years

Between 2000-2021, Sales went up 22x while profits went up 33x

Stock returns were basically almost ZERO

@soicfinance @suru27 Indeed. For later, industry/sector has to be within your circle of competence to judge the turnaround correctly.

Because according to Warren Buffett
"Both our operating and investment experience cause us to conclude that turnarounds seldom turn"

A thread: How to value? 🏦💰❓

Sharing my learnings from my journey so far.

Initially when I started out I used to ignore what anybody would have to say about their style of valuing a business and I would blindly copy what Benjamin Graham’s book, The Intelligent Investor had to say.

Later came a stage where I realized Benjamin style was not working.

Before we get into the learning, here is the background to it:

If you have been following me for the past 1 year you would have noticed how my valuation method has changed.

I used to struggle a lot with valuation and it would be at the back of my mind the whole day thinking what are these investors doing to value. I tried DCF but that didn’t work for me. (Don’t hate me for that, its my personal choice)

I used to attend Bloomberg Quint’s talk on Zoom, message investors, read books, etc. to figure out: How to value? (The frustration had got to a level that I took break from investing for 3-4 weeks)