Basic Concepts of Stock Analysis
How to do Business Analysis of Auto Ancillary Companies
The auto ancillary or auto component sector is one of the important sectors for both the economy as well as investors. There are hundreds of companies from auto ancillary listed on Indian stock exchanges. Many of them have achieved big scale with manufacturing plants located
Inventory Turnover Ratio: A Complete Guide
Inventory turnover ratio is a measure of the efficiency of inventory management by a company. It tells us whether the company is using its inventory in the best possible manner or not. Inventory management is one of the most essential functions of the company. It
Are professionally managed companies safer for shareholders?
It is a hard truth that the management of a company stands between the profits of the business and its public shareholders. The management decides how much of the profits it wants to share with the public shareholders. The corporate world has many examples where
Receivable Days: A Complete Guide
Receivable days represent the number of days customers are taking to pay a company for its sales. We calculate receivable days using the following formula: = 365 / (Sales / average of trade receivables outstanding at the start of the year and at the end
Asset Turnover Ratio: A Complete Guide for Investors
Asset turnover ratio represents the efficiency with which a company is able to use investments in its assets. It is defined as a ratio of sales and assets. Effectively, an asset turnover ratio intimates an investor the amount of sales that a company can generate
What I learnt from brief analysis of 2,800 Companies
I had always desired to learn about all the companies listed in the Indian stock market. This desire became stronger when I read about an interview of Warren Buffett with Adam Smith, the author of Supermoney. In the interview, Adam asked Warren about the advice
Why We cannot always Trust What Management Claims
The management of any company is its best spokesperson. One of the responsibilities of the management is to create an environment conducive for the business of the company. Therefore, the management does its best to create the best possible positive impression about the company in
How Promoters benefit from Related Party Transactions
We believe that an investment in a stock is a faith in the integrity and shareholder-friendliness of the promoters. But many times, related party transactions break this faith. Stock investment is much more than the part-ownership of the company. This is because the person-in-charge of
How Companies Inflate their Profits
Profit generated by a company is one of the most important parameters looked at by the investors. The profit forms a part of many key ratios used by investors like price to earnings ratio (PE ratio), return on equity (ROE), return on capital employed (ROCE)
How to Identify if Management is Misallocating Capital
It is said the primary aim of a company is to maximise the wealth of its shareholders. Therefore, whenever an investor puts money in any company, then she expects that the management of the company will utilize the money to generate significant profits for its
- 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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