Tata Motors stock analysis
The factors considered below present an overview of the Indian Automobile Industry in general and stock analysis of Tata Motors in particular. Tata Motors operates in 2 business segments – Automotive Operations and Others [1] Automotive operations accounted for 99.5% of the total revenues in FY 2015. The Company’s automotive operations segment is further divided into Tata and other brand vehicles (including […]
ONGC Stock Analysis
Performance of the oil and gas sector in India has a significant impact on the broader economy. With deregulation of petrol prices, prospective reforms in the oil and gas sector and rising energy needs, driven mainly by urbanization, companies in this sector are poised for good growth over the next few years. The factors considered below present an overview […]
Cipla Stock Analysis
Unlike the real estate or automobile sector, healthcare sector is not as vulnerable to economic fluctuations. Despite the fragile global economic environment over the last few years, Indian Pharmaceutical companies have seen good growth and the industry is on the threshold of becoming a major global market by 2020. The factors considered below present an overview of […]
Are You Buying Stocks For The Next Bull Market?
Exactly one year ago, I wrote a piece about the hypothesis that “markets are always ahead” of the real economy. At that time, I said that empirical evidence suggests that stock markets can indicate the future prospects of the broader economy. That stock prices decline before deterioration in the general economy and vice-versa. If you […]
Insider Trading and Stock tips in Indian Stock Markets
On the 24th of January 2014, as the markets opened for trade, Ranbaxy share price declined 20 % on news of U.S. Food & Drug Administration’s (USFDA) ban on the company from sending its drugs and ingredients into the United States (*from the company’s production facility in Punjab). It was a sudden and sharp fall and by […]
Looking for Debt Free Companies in India
There are increasing numbers of Indian companies which are finding themselves in a debt trap, with their entire operating profits not sufficient to meet their finance charges. Worst still, a lot of these companies have negative operating profits and a huge interest burden on top of that. Look at the examples below: One could be wishful and hope that […]
Making Long Term Investment Decisions Based on Risk Profile
Since I get this asked a lot, I thought I’ll write a post on this topic. Note: I will assume that long term is 3+ years with some of the investments being purchased for a much longer period (read indefinitely). The problem with equity investing is that the line between trading and investing is blurred by the […]
ROCE vs ROE
Return on Capital Employed (ROCE) and Return on Equity (ROE) (also called– Return on Net Worth (RONW)) are both used to measure the profitability of a company based on the funds with which the company conducts its business. ROE measures the amount of profit generated by the company on the total amount of shareholder’s equity whereas; ROCE highlights the […]
Stock Market Outlook for 2014-Initial Public Offering of AAP
I always found the concept of ‘Value at Risk’ pretty interesting. Usually nobody ever pays attention to it until it is breached. I am not sure how many of you are buying this one but the value at risk for this political outfit is zero as it usually is for start-ups. Which means what? For […]
Top Line and Bottom Line Profitability
Often analysts and proprietors get into the top line and bottom line profitability growth figures. What are they talking about? To understand this, refer to any financial statement, for example — Ashok Leyland Top line refers to gross sales or total income from operations generated by the company in a given period (i.e. this is the first line item […]