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This week i was studying Capital Mind Newsletter and found something interesting which seems to be inline with my thought . It may be wrong or right .....like every time :) Sharing the same with you guys as below : Stock markets  will see turmoil in the coming months, with volatility increasing as it has in the recent past, except we’ll see a lot more. While we struggled to see a 20% move last year we’ll see many 20% moves in the coming months, on the index. The  Indian Economy will slow down yet again . This time there will not be much jugglery to save the numbers. The slowdown will be on the back of lower discretionary spending and increase in taxes by the government, which will attempt to increase its spending through political packages. Bank stocks will see a  LOT more NPAs  coming on to their books and credit growth will fall substantially until they get their act together and raise capital. Even the best banks will see a hit, including private ...

I read about something like pharma stocks are better picks in current situation because they are defensive and cannot hit by recession. This may be correct but I am not an expert of pharma industry and the industry has some of its internal problem.In current situation most of the well established pharma companies are trading in the PE of range 30-60 like FMCG companies but with a far greater DEGREE OF  UNCERTAINTY . There are 2 approach of anchoring the valuation: Balance sheet Approach P&L approach Balance Sheet Approach : This is helpful for companies driven by mainly commodities not by consumers.   P&L approach The P&L approach is suitable for Asset light and dependent on consumer spending. These companies generally have strong brand high ROE and no debt. You will find them in FMCG segment and in pharmaceuticals.Pharma is a complex business and difficult to give a fair value for its shares . Why is it difficult to analyz...

While the rupee has hit 65 to the US dollar again after two years, Indian rupee has been a stronger currency in the last 16 months than in the previous four years   Whatever China does attracts attention - big attention. So when China suddenly decided to move the Yuan downwards against the US dollar, currency markets panicked. Indian Rupee could not have been left untouched and has reacted from around 63.7 per US dollar to around 65 per US dollar, a level not seen since September 2013. That was the time when the Rupee market was in complete panic and had even touched 68 to a dollar.   So are we into that panic mode again? Not exactly. Just as a recap, what was the scenario in September 2013? India’s current account deficit (CAD) had gone haywire (about 4-5% of GDP). External debt was a concern. Inflation was in double digits or very close. Dependence on foreign inflows just to maintain equilibrium in the forex markets was very high.   All it took was a com...

India has successfully written its IT services glory for last 20 years for its cheap labour cost.However this is now not true any longer . That’s why the companies which were once showing 20-40% CAGR growth now struggling for 3-7% growth…. In India we have TCS, Infosys, CTS, TechMahindra and many other companies are doing their business since last couple of decades. Among all TCS is more valued company with $90 Billion market. In FY-14 TCS had over 3,00,000 (3 lacs) employees and reported a revenue of $13.44 billion. To grow it’s revenue at the rate of 15% for next 5 years it has increase it’s employee base to 6,00,000 (6 lacs) by FY-19. Managing attrition, productivity, quality and very high fixed wage costs will be a huge challenge for the company. Any downturn in business from western world would severely hurt the company’s financials and profits. From the above analysis one thing is evident that TCS is increasing their employee base to cater service and do ...

Since our childhood days our parents, neighbors and friends programmed our mind in such a way that we are in a firm belief that Real Estate can never depreciate and an ever appreciating investment. But this is not true …. Let me tell you a story ….. Suppose ABC is a place where no business was there, no job was getting generated. But one day one rich person came to that place and bought the property with 30 lakh Rs. Now what will happen? The other property owners also will try to sell the land with the same price or above… The rich guy had black money and paid in cash. After sometime in that place some business has grown up and people started getting good job and handsome salary. When these salary people went to land owners/builder to buy, they get afar high quotation of 50 lakh J … To fulfill their so called dreams these guys rush to bank and took loan and bought the house. Like this rat race started one after another joined the race of house buying …. Making builder an...

Dear Readers , Wish you a happy Eid and Rath Yatra .... After 32 years both of this auspicious occasion fall in the same day :) So in this festival season let me share a movie on DALAL STREET  This weekend i do not bug your head with those stock calculations ..... :) Generally i can not watch complete movie in one shot , but this movie has something interesting which i watched continuously from start to end in one shot.... I found this from Value Blog Spot the author shared .... Please Click here to watch the movie It seems they want to show Mehta and Parekh Scam!

What comes to you is Credit.                                       What goes from you is Debit.                     Birth is your Opening Stock.                                           Death is your Closing Stock.    Your ideas are your Assets.                                         Your views are your Liabilities.                                        Your happiness is your Profit.                   Your sorrow is your Loss Your soul is your Goodwil...