Gaming Industry in India
The factors considered below present an overview of the gaming industry in India. The analyses below are based on the circumstances of Delta Corp Limited which runs the largest casino operations in India. WHAT’S DRIVING THE STOCK Rising internal consumption and favorable demography Over the last few years, domestic consumption in India has kept the economy insulated from […]
Price to Book Value Ratio (P/B ratio)
Investors spend time in identifying companies with strong profits and growth prospects. Before investing in the stock market, the uncertainties, the ups and downs, questions like what is the fair value of the share, what price should I pay for a company’s shares etc. become relevant, rightly so. Various valuation techniques like the price to […]
Short term financial position – analysis of working capital
In order to meet immediate obligations as they arise in the regular course of business, companies often rely on short term finance (i.e. loans and credit facilities that must be repaid in less than 1 year). The short term liabilities for a business consist of items such as accounts payable, taxes, utilities payable and other accrued expenses. In […]
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 […]