#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).