Business Analysis
Interest Rate Risk for Financial Institutions: A Simple Guide
Interest rate risk (IRR) for a financial institution is similar to changing raw material costs for a manufacturing organization. If a financial institution like bank, non-banking finance company (NBFC) or housing finance company (HFC) is not able to manage interest rate risk properly, then it
Asset Liability Mismatch: Why do NBFCs & Banks knowingly create it?
The current article provides responses related to the query: Why do finance companies use short term funds like commercial papers (CPs) and current/savings account (CASA) for giving long term loans and create an asset liability mismatch? We have a section dedicated to answering queries from
Can we Assess a Bank’s Financial Position from its Reported Financials
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? What should we look at while investing in Banks/Financial Institutions? Do we invest in PSU banks? Can
Margin of Safety in Stock Investing: A Complete Guide
The current article explains all the aspects of Margin of Safety in stock investing including its meaning, calculations and the tools to be used. The article also clarifies some of the common queries of investors related to the margin of safety. We all have faced
Self Sustainable Growth Rate: Inherent Growth Potential of a Company
daSelf Sustainable Growth Rate (SSGR) is the rate of growth, which a company can achieve from its profits without relying on additional sources like debt or equity dilution. SSGR estimation has occupied an important part of my stock analysis as it indicates the strength of
How to analyse New Companies in Unknown Industries?
Many times, we come across companies, which show promising signs of becoming good investment opportunities. We may find such companies while interacting with friends, watching television, reading magazines, vacationing, shopping or screening stocks online. We get interested and start researching about these companies on the
Why we do not use Return on Equity (ROE) in our Analysis
I thank my friend, Saurabh Dwivedi, for bringing up this topic and initiating this debate. We (Saurabh & I) believe that Return on Equity (ROE) is not a true indicator of attractiveness of a stock for an investor. We believe that an investor should not
How to do Business Analysis of a Company
Whenever we look at the financial snapshot of any company, the first thing that we look at is the trend of its sales growth and its operating profit margin (OPM) over the last 10 years. One look at how the company has performed in terms
- Buy/sell recommendations for selected stocks with a crisp investment rationale
- We have selected these stocks after an in-depth financial, business, valuation, and management analysis
“Peaceful Investing” is the result of my experience of more than 15 years in stock markets. It aims to find such stocks, where after investing, an investor may sleep peacefully. If later on, the stock prices increase, then the investor is happy as she is now wealthier. If the stock prices decline, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks.
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