April 17, 2018

Analysis: Cupid Limited


www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Over time, readers have asked queries about multiple stocks in this section. We have answered these queries after doing post preliminary analysis of the stocks under consideration. Readers have found such analysis helpful.

“Analysis” series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. The primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Analysis” covers Cupid Limited, a leading Indian manufacturer and exporter of male & female condoms and lubricant jelly.

Fundamental analysis of Cupid Limited Equity Research Report, Ratio analysis, Annual report analysis, Management Analysis, profitability analysis, FCF, SSGR, Multibagger

April 9, 2018

How to calculate Deferred Tax Assets, Calculation of Change in Trade Receivables & Payables in CFO (Q&A)


www.drvijaymalik.com has a section dedicated to answering queries from readers: “Ask Your Queries”. Over time, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. We have responded to these queries as replies to their comments.

“Q&A” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. The primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to the following queries:
  • What is Deferred Tax Asset and how do we calculate it?
  • How to calculate changes in trade receivables/payables for the cash flow statement?
  • Resources to understand Deferred Tax Assets & Deferred Tax Liabilities?

How to calculate Deferred Tax Assets, Calculation of Change in Trade Receivables & Payables in CFO

April 8, 2018

Register for "Peaceful Investing" Workshop, Mumbai, July 29, 2018


One of the key methods to generate significant wealth from stock markets is to buy & hold fundamentally sound stocks over long periods of times extending to years and many times to decades. However, such long investing duration invariably contains periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for the long term a difficult proposition.

Therefore, the patience to hold stocks in fluctuating markets requires very high level of conviction from the investor in her investing decisions.

“Peaceful Investing” workshop aims to focus on stock selection and analysis skills, which would make us much more confident about our stock decisions. It would ensure that our faith would not shake with day to day market price fluctuations and we would be able to reap true benefits of stock markets to fulfil our dream of financial independence.

Fundamental stock investing workshop, Value investing workshop, Dr Vijay Malik, Peaceful Investing workshop, Mumbai


The workshop would focus on the fundamental stock analysis of stocks with a detailed analysis of various sources of information available to investors like annual reports, quarterly results, credit rating reports, online financial resources like screener.

The workshop would help an investor learn in-depth analysis of stocks that would help her make her own opinion about the strengths & weaknesses of any stock. The participants would be able to use the stock analysis with their preferred stock selection approach like value investing or growth investing.

The workshop would cover basics of investing and simultaneously focus on key concepts needed for stock analysis both for a beginner and seasoned stock investor. I believe that a person does not need to have an educational background in finance to be a good stock investor and the workshop has been designed keeping it in mind.

Fundamental stock investing workshop, Value investing workshop, Dr Vijay Malik, Peaceful Investing workshop, Mumbai

April 7, 2018

Can we Assess a Bank's Financial Position from its Reported Financials, How to Safeguard Stocks with Discount Brokers, How is Total Interest Outgo different from Interest Expense in P&L (Q&A)


www.drvijaymalik.com has a section dedicated to answering queries from readers: “Ask Your Queries”. Over time, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. We have responded to these queries as replies to their comments.

“Q&A” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. The primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to the following queries:
  • Can we know the true financial position of a Bank by reading its reported financials?
  • How to safeguard stocks lying with Discount Brokers?
  • Is interest expense in P&L equal to the total interest outflow of the company? If not, then how to calculate total interest outflow? 

Can we assess financial position of Bank from its reported financials?
Safeguard your stocks, Discount Brokers,
interest expense, total interest outflow


April 6, 2018

Should we pay High P/E for Established & Proven Companies, Which P/E Ratio should be used, Can we predict future Market Cap? (Q&A)


www.drvijaymalik.com has a section dedicated to answering queries from readers: “Ask Your Queries”. Over time, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. We have responded to these queries as replies to their comments.

“Q&A” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. The primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to the following queries:
  • Should we pay high P/E for stocks with proven competitive advantage/moat?
  • Which P/E ratio should we use?
  • Can we predict the future market cap of a company?


Should we pay high p/e for established companies like HDFC, Kotak, Asian Paints, Which P/E ratio to use, Predict Market Cap


April 5, 2018

Ideal Level of Promoters' Remuneration, Application of Capitalization to Inventory, QIP Pricing (Q&A)


www.drvijaymalik.com has a section dedicated to answering queries from readers: “Ask Your Queries”. Over time, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. We have responded to these queries as replies to their comments.

“Q&A” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. The primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to the following queries:
  • What should be the ideal level of promoters’ remuneration?
  • Does capitalization apply to inventory as well?
  • QIP: How do companies determine QIP pricing and does it impact the company’s growth 
What is ideal appropriate level of promoters' remuneration salary, does capitalization apply to inventory, how is QIP price determined

April 2, 2018

"Follow My Portfolio" Performance Update for FY2018 (Premium Service)

Follow Dr Vijay Malik’s Portfolio with Latest Buy/Sell Transaction updates” is a premium service in which we provide the subscribers an access to the details of our equity portfolio along with latest buy/sell transactions in our portfolio.

It is an information service (not an advisory service), which lets the subscribers know what % of our portfolio has been invested in each of the stocks and what stocks we are buying currently. Buy/sell transactions list includes the stocks that we have bought recently along with the prices at which we bought them.

The "Follow My Portfolio" service is to act as an information source to subscribers about the stocks that we are buying currently. This is an information source to subscribers to know what stocks we believe are currently within our buying range so that they may choose to take a decision accordingly.

  1. Update by email about all the future transactions (buy as well as sell) in our portfolio at the end of the day of the transaction (after market closing hours) during the period of the subscription. The email update would contain the details of the stock bought/sold and the price at which the transaction was done.
  2. Access to the premium section containing updated details of our portfolio and the list of all the transactions from the start of this service (July 30, 2016) until date during the subscription period, at the following link: http://premium.drvijaymalik.com/portfolio/

Updates on portfolio performance as on March 31, 2018:


  • I started building the portfolio on August 8, 2011, on joining my first job after MBA (2009-11). Since then, the portfolio has generated an annualized return (CAGR) of 47.59% against CAGR of Sensex of 10.48%
  • During FY2018, the portfolio has generated returns of 12.66% against an increase in BSE Sensex of 11.34%. 
  • During FY2018, We had a total of 51 transactions in the portfolio. All of these transactions were buy transactions and we did not sell any stock during FY2018. 

The below table contains the yearly performance history of the portfolio:

Dr Vijay Malik portfolio performance update FY2018, fundamental investing, value investing India

Investors may learn more and subscriber to the “Follow Dr Vijay Malik’s Portfolio with Latest Buy/Sell Transaction Updates” by visiting the following link:


It is highly recommended that investors read the Frequently Asked Questions (FAQs) at the subscription page to understand the terms & conditions and contours of this service.

Please note the following disclosure/FAQ:

Q. Would you be sharing your complete portfolio and transactions or partial?
Important Disclosure: We disclose the details of the portfolio of my family (my wife and I). My wife, due to her association with Newgen Software Technologies Limited (Newgen) has been allotted shares under their employee stock options plan (ESOPs). Our holding and transactions in the shares of Newgen are covered under the insider trading guidelines of SEBI, Newgen as well as other company policies of Newgen Software Technologies Limited. Due to restrictions applicable under the above mentioned insider trading and other policies, we find ourselves unable to do the dissemination of our holding and transactions in the shares of Newgen Software Technologies Limited. Therefore, we would continue to disclose our equity portfolio composition, transactions and portfolio performance updates, consisting of my & my wife’s portfolio excluding the position in the shares of Newgen Software Technologies Limited. At any point of time, subscribers should note that we may have positions in the shares of Newgen Software Technologies Limited.
Details of the stocks in the portfolio as per the disclosed format, are shared with the subscribers. Absolute amounts of portfolio/stock holdings in INR are not disclosed. Percentage holding of each stock in the portfolio at market prices is disclosed.
Transactions are regularly updated on the portfolio page as per the format shared. Moreover, as part of this service, details of every new transaction would be shared with subscribers at the end of the day. 

All the best for your investing journey!

Regards,

Dr Vijay Malik

March 11, 2018

E-book: “Company Analyses (Vol. 3)” : Live Examples using Peaceful Investing Approach (Premium Service)

www.drvijaymalik.com has a huge collections of  stock analysis articles, where we have provided our views about different companies as inputs to queries asked by readers. As on date, the number of such articles is nearing a hundred.

Each of these articles contains learning arrived after conducting the in-depth analysis of companies:
  • their financial performance
  • detailed study of historical annual reports
  • credit rating reports
  • corporate communications
  • peer comparison
These articles contains analysis of the companies on parameters like financial, business, operating efficiency analysis. The articles have a special focus on the in-depth management analysis along with assessing margin of safety in the business model of companies.


A lot of readers have provided very good feedback about these analysis articles. Readers have appreciated the help, which these articles have provided the investors in understanding the analysis process that can be replicated by them while conducting their own stock analysis.

All these stock analysis articles are separate write-ups, which are available to all the readers at www.drvijaymalik.com.

A lot of readers have asked whether there exists an e-book compiling all these articles, which could be downloaded by the readers so that the articles could be read in a sequence even when the reader is offline.

As a result, the book (PDF) “Company Analyses (Vol. 3)” : Live Examples using Peaceful Investing Approach has been made available as a premium download to the investors. Investors who wish to get the book may download it from the following link:


Company analysis (volume 2)using Peaceful Investing Stock Analysis approach, learn equity research analysis, value investing, fundamental investing, Peaceful Investing book, Value investing book, Dr Vijay Malik book, Dr Stock book, ebook, e-book, Stock Investing Guide book

March 10, 2018

Analysis: Skipper Limited


www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Over time, readers have asked queries about multiple stocks in this section. We have answered these queries after doing post preliminary analysis of the stocks under consideration. Readers have found such analysis helpful.

“Analysis” series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. The primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Analysis” covers Skipper Limited, a leading Indian manufacturer of transmission towers and PVC pipes.

March 5, 2018

Analysis: Finolex Industries Limited


www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Over time, readers have asked queries about multiple stocks in this section. We have answered these queries after doing post preliminary analysis of the stocks under consideration. Readers have found such analysis helpful.

“Analysis” series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. The primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Analysis” covers Finolex Industries Limited, a leading Indian manufacturer of PVC pipes & fittings and PVC resin.
Fundamental analysis of Finolex Industries Equity Research Report, Ratio analysis, Annual report analysis, Management Analysis, profitability analysis, FCF, SSGR, Multibagger

March 3, 2018

Interpreting NFAT levels, Does quality of borrower show on quality of lender, Should CFO and FCF be equal, Simplifying SSGR

www.drvijaymalik.com has a section dedicated to answering queries from readers: “Ask Your Queries”. Over time, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. We have responded to these queries as replies to their comments.

“Q&A” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. The primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to the following queries:
  • What is a good level of Net Fixed Asset Turnover (NFAT)?
  • Does the quality of borrowers reflect upon the quality of lender?
  • A simplified understanding of SSGR
  • Should a company have equal CFO and FCF?
  • Why some stocks have low P/E ratios?

Interpreting NFAT levels, Does quality of borrower show on quality of lender, Should CFO and FCF be equal, Simplifying SSGR