September 15, 2016

Register for "Peaceful Investing" Workshop in Bengaluru on November 13, 2016

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 a times to decades. However, such long investing duration invariably contain periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for 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 fulfill our dream of financial independence.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop Bangalore Bengaluru Hotel Monarch Luxur November 2016


The workshop would focus on fundamental stock analysis of stocks with 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 good stock investor and the workshop has been designed keeping it in mind.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop Bangalore Bengaluru Hotel Monarch Luxur November 2016


You may read about the feedback/experience of participants of:
  • First "Peaceful Investing" workshop held in Mumbai on August 28, 2016: Click here
  • Second "Peaceful Investing" workshop held in Mumbai on September 11, 2016: Click here

The workshop had 40 seats and has been completely sold out. You may pre-register and express interest for a workshop in your city by clicking here.

September 12, 2016

Second "Peaceful Investing" Workshop conducted in Mumbai!

The second “Peaceful Investing” workshop was held in Mumbai on September 11, 2016. The workshop was aimed at sharing equity investing knowledge with the participants that could help them gain confidence while taking their equity investment decisions.

Second “Peaceful Investing” workshop became special in many aspects. The workshop became the first “Peaceful Investing” workshop to witness participation by female members. The workshop was also special as it witnessed investors from cities like Vishakhapatnam, Hyderabad, Nanded, Pune and Bharuch coming to Mumbai to attend it. 

”Peaceful

September 4, 2016

Analysis: TVS Srichakra Limited (TVS Tyres)

www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Overtime, readers have asked queries about multiple stocks in this section. Answers to these queries have been done post preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers.

Q&A 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, “Q&A” covers: TVS Srichakra Limited, a part of famous TVS group and the leading producer of 2 and 3 wheeler tyres in India under the brand name “TVS Tyres”.


Equity Analysis Research Report of TVS Srichakra Limited, TVS group company 2 and 3 wheeler tyres in India brand TVS Tyres

September 3, 2016

Register for "Peaceful Investing" Workshop in Delhi on October 23, 2016

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 a times to decades. However, such long investing duration invariably contain periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for 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 fulfill our dream of financial independence.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop delhi hotel amrapali grand october


The workshop would focus on fundamental stock analysis of stocks with 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 good stock investor and the workshop has been designed keeping it in mind.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop delhi hotel amrapali grand october

You may read about the feedback of participants in the first "Peaceful Investing" workshop held in Mumbai on August 28, 2016: Click here

The workshop had 40 seats and has been completely sold out. You may pre-register and express interest for a workshop in your city by clicking here.

August 29, 2016

First "Peaceful Investing" Workshop conducted in Mumbai!

First “Peaceful Investing” workshop was conducted on August 28, 2016 in Mumbai. The workshop aimed at sharing equity investing knowledge with the participants that could help them gain confidence while taking their equity investment decisions.

Peaceful Investing workshop, Value Investing workshop Mumbai, Dr Vijay Malik Dr Stock Workshop


The workshop focused on highlighting those qualities of companies, which if analysed and identified in potential investment targets, would lead the participants to make their investment decisions with a lot of confidence. Such a confidence would lead the participants to have a lot of emotional stability around their investing decisions and they would be able to hold on to these stocks through the up turns as well as downturns of the markets.

The workshop aimed to point out characteristics of such companies, which once analysed and invested in, would make an investor happy when their share price goes up (as the investor is becoming wealthy) and makes the investor even happier when their share price goes down (as the investor would buy more of them). At the end of the day, then investor would be "Peaceful" with his/her investments.

August 13, 2016

3 Principles to Decide the Investable P/E Ratio of a Stock for Value Investors

Deciding about the valuation level of any company at which an investor buys its stock is one of the key aspects of stock analysis. It is said that even a very good company if bought at an overvalued price, might not prove to be a good investment. Therefore, every investor while analysing stocks for investment keeps on continuously asking herself, whether the current price presents an attractive valuation opportunity or whether she might get stuck in an overvalued stock if she buys the stock at current prices.

There are many parameters, which are used by different investors to assess the valuation levels of any stock at a given price. A few of these parameters are listed below:
  • Price to Earnings ratio (P/E ratio)
  • P/E to Growth ratio (PEG ratio)
  • Earnings Yield (EY)
  • Price to Book value ratio (P/B ratio)
  • Price to Sales ratio (P/S ratio)
  • Dividend Yield (DY)
  • EV/EBITDA

An investor should read the following article to understand the above mentioned valuation parameters in further detail: How to do Valuation Analysis of a Company

Every investor has her own favourite valuation ratios, which she determines based on her own experience and preferences. I prefer using the price to earnings ratio (P/E ratio) as the valuation level for determining the attractiveness of a given stock price of any company.

P/E ratio is the most widely used parameter to analyse whether the stock of any company is overvalued or undervalued at any point of time. It is calculated by dividing the current market price (CMP) of a stock by profit/earnings per share (EPS). It represents the price an investor pays to buy ₹1 of earnings of a company.

To illustrate, if the P/E is 10, it means that to get ₹1 of earnings in one year from a company, the investor is paying ₹10. Similarly, if P/E is 20, it means that to get ₹1 of earnings in one year from the company, the investor is paying ₹20. If we compare P/E ratio of 10 and 20, in the above example, it would become evident that at P/E of 20, the investor is paying more money to get the same value of ₹1 in earnings than when P/E is 10.

Investors interpret P/E ratio and its derivatives in multiple ways to decide about valuation level of a stock: 
  • Comparing P/E ratio of the stock with the industry in which the company operates: Industry P/E ratio is the average of P/E ratios of all the companies of the specific industry listed on the stock exchange. If P/E ratio of the stock is higher than the industry P/E ratio, it is assumed to be overvalued and vice versa.

  • Comparing current P/E ratio with historical P/E ratio of the stock: if P/E ratio is lower than average P/E ratio of last 10 years, then stock is deemed undervalued and vice versa.
  • Comparing P/E ratio with earnings (EPS) growth rate (PEG ratio) and
  • Comparing P/E ratio in form of Earnings Yield (EY) with yield on other asset classes like government securities (G-Sec), Treasury Bills etc.

However, despite presence of such multiple ways of interpreting P/E ratio investors still find themselves unsure about the right P/E level that they should pay for any stock. The fact that the price of the stock is influenced by a multitude of factors like external factors (interest rates etc.) and internal factors (competitive advantage etc.), further increases the uncertainty about the right price to be paid for the stock of any company.

The current article is an attempt to help the reader tread on a guiding path to determine the right price i.e. P/E ratio to be paid for a stock. The article attempts to determine a few of the factors that influence the P/E ratio of the stock and tries to bring a some objectivity to the approach of determining the right P/E ratio that the investor might be willing to pay for the stock.

The article would focus on the key criteria that an investor should look at while deciding about the P/E ratio (premium or discount) that she may pay for any company. These criteria would help her in deciding about the maximum P/E that she may pay for a company, which she has initially bought at very attractive levels but the stock has now increased in price and P/E ratio. This would also help her in deciding her strategy for accumulating stocks which are already existing in her portfolio.

August 6, 2016

Analysis: Chaman Lal Setia Exports Limited (Maharani Basmati Rice)

www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Overtime, readers have asked queries about multiple stocks in this section. Answers to these queries have been done post preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers.

Q&A 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, “Q&A” covers: Chaman Lal Setia Exports Limited, an Indian basmati rice producer and exporter company owning the Maharani Basmati rice brand.

”equity