tag:blogger.com,1999:blog-7101716092008125091Fri, 08 Nov 2024 16:30:51 +0000Banking And FinanceCompany Analysis - IndiaDUMMY BOOKEconomic TrendsEconomicsValuation TheoryImpressionsPolitics in EconomicsBeing average in multiple trades might just be better than being a master of one!http://ssvrm.blogspot.com/noreply@blogger.com (Rohit Kumar)Blogger24125tag:blogger.com,1999:blog-7101716092008125091.post-991740235020405220Mon, 22 Aug 2011 19:09:00 +00002011-09-28T22:41:07.358-07:00The excel below contains the strategic summary of the drug and patent portfolio of the top 12 pharmaceutical companies in the world. This will help you in understanding the incremental revenues their blockbuster drugs will generate going forward against competition from generics. Drug and Patent portfolio of pharmaceuticalshttp://ssvrm.blogspot.com/2011/08/strategic-summary-of-drug-and-patent.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3341488912790759770Tue, 09 Aug 2011 20:23:00 +00002011-08-09T15:50:22.828-07:00Valuation TheoryI used the model below to value Dr. Reddy's. Single Stage GrowthTo use the multistage discounted cash flow methodology we need two growth numbers – 1) Short term growth (G), and, 2) Long term growth (g). For long term growth we usually use the nominal GDP growth rate as the perpetual growth rate. The short term growth rate (G) for the immediate 5 years will be based on the Single Stage Growth http://ssvrm.blogspot.com/2011/08/how-to-value-company-using-multistage.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-5425339824237541384Fri, 29 Jul 2011 21:27:00 +00002011-07-29T15:46:05.243-07:00I did an event study on Apple's share price for each of the 4 quarter's in 2010  to understand the effects of quarterly result announcement on apple's share price. I thought I would share the same with you. I look forward to your comments. Apple Event Study Documenthttp://ssvrm.blogspot.com/2011/07/event-study-on-apples-stock-in-2010.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-6399271869179737672Tue, 26 Jul 2011 20:11:00 +00002011-07-26T13:14:05.729-07:00EconomicsAs part of my summer internship I have worked on a pair trading strategy on the Shanghai Composite and the BSE Sensex. The report has been prepared by factoring in the socio economic and equity valuation perspective for the two countries. Pair trading strategy on India and Chinahttp://ssvrm.blogspot.com/2011/07/pair-trading-strategy-on-india-and.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3328061467312449888Tue, 15 Mar 2011 19:04:00 +00002011-03-15T12:06:16.022-07:00Company Analysis - IndiaThis time around Kaveri Telecom would be rewarding shareholder's by repurchasing shares for a price of 116.75/share. The company plans to make an open offer to purchase 28,13,796 representing 20% of the paid up equity capital. Share repurchases are more rewarding as compared to dividend payouts, because dividend income is taxed, which translates to double taxation for shareholders. http://ssvrm.blogspot.com/2011/03/kaveri-to-repurchase-shares-through-buy.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3634372959217325303Wed, 09 Mar 2011 03:00:00 +00002011-03-08T19:00:13.341-08:00DUMMY BOOKFactoring is an accounting concept. When a customer uses a bank card (VISA or a Mastercard) to pay for an item or a service, the company doesn't carry the receivable on its balance sheet. The receivable is sold off to the finance company that issued the card. Under this arrangement the company simply debits the cash a/c and credits sales a/c.http://ssvrm.blogspot.com/2011/03/what-is-factoring.htmlnoreply@blogger.com (Rohit Kumar)1tag:blogger.com,1999:blog-7101716092008125091.post-4312880551180788446Tue, 17 Aug 2010 18:45:00 +00002010-08-17T11:45:58.642-07:00EconomicsWe would think that the higher the taxes the government levies on corporations and individuals, the richer the government gets. You would be surprised to know that the government gets poorer. Let us see how? Take the example of India. India is a developing economy and a net importer i.e it imports more and exports less. Therefore, the treasury runs into a deficit. An efficient http://ssvrm.blogspot.com/2010/08/how-do-high-taxes-effect-economy.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-6457712786736313763Tue, 17 Aug 2010 14:37:00 +00002010-08-17T10:11:10.480-07:00DUMMY BOOKA market is a place where trades take place. A stock market is a place where stocks are traded between people. Some people sell and some people buy. A person cannot sell if there are no buyers and vice versa. A stock market can further be broken down into Primary markets and Secondary Markets. Primary Markets If you read newspapers and watch business news channels, you would have probably heardhttp://ssvrm.blogspot.com/2010/08/what-is-difference-between-primary-and.htmlnoreply@blogger.com (Rohit Kumar)1tag:blogger.com,1999:blog-7101716092008125091.post-1218826105731010454Tue, 17 Aug 2010 14:20:00 +00002010-08-17T07:20:56.155-07:00Company Analysis - IndiaKaveri Telecom declared the June quarter results on Aug 14, and in my opinion the results were disappointing. The company registered marginal growth in sales and practically no growth in profits. The company also deducted 18 crores for the increase in stock from the expenses side. This, along with a no growth in the profits has made me sell the shares in the short term. I am expecting some http://ssvrm.blogspot.com/2010/08/disappointing-fy11-june-results-for.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3409899056925594204Mon, 16 Aug 2010 17:31:00 +00002010-08-16T10:31:07.768-07:00ImpressionsLast month I had to travel to Calcutta. I had the option of either flying or travel by rail. For a normal Indian who has time constraints, flying is the best option. But this time I could afford to be different since I had the luxury of time. But the thought of crowded railway stations and the not so hygienic toilets in the coaches makes me uncomfortable. But Indian railways can surprise you withhttp://ssvrm.blogspot.com/2010/08/delhi-to-kolkata-journey-worth.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-6331303877467135942Fri, 13 Aug 2010 11:22:00 +00002010-08-13T04:23:55.343-07:00DUMMY BOOKLong ago when most of us were in liquid form, shares were traded in hard form i.e. when one bought some shares from the market, certificates were issued. Think about a portfolio with hundreds of shares of hundreds of company. You probably would have to buy a small office space to store all the certificates :-). In a nutshell shares in hard form were an headache. To expedite share trading and&nbsphttp://ssvrm.blogspot.com/2010/08/what-is-demat-account-and-how-to-choose.htmlnoreply@blogger.com (Rohit Kumar)1tag:blogger.com,1999:blog-7101716092008125091.post-5902190554145761951Fri, 13 Aug 2010 10:48:00 +00002010-08-13T03:48:59.737-07:00Banking And FinanceToday, Indian bank closed 6% up. Is this a breakout in the counter? This bank had secured rank 1 in the valuation data that I had published last week. In the private banking space I like Karur vysya and JK Bank. Both these banks have shown aggressive growth in the past three years and are undervalued when compared to say a Yes Bank.http://ssvrm.blogspot.com/2010/08/breakout-seen-in-indian-bank.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-821162664000101927Thu, 12 Aug 2010 14:18:00 +00002010-08-12T07:20:58.818-07:00DUMMY BOOKAn earnest request, from one of my buddies, has inspired me to write an article on how to start investing? Treat this as a journey from the i to g of investing. I would probably narrate my story on how I got started and in the process formulate the do's and dont's in investing. Dummies, please hard code these golden words into your brain "no knowledge - no investing". If you can strategize your http://ssvrm.blogspot.com/2010/08/how-to-get-started.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-5800849948329015870Thu, 12 Aug 2010 13:31:00 +00002010-08-12T06:31:30.267-07:00Company Analysis - IndiaThe promoters in the board meet have decided to raise capital by alloting preferrence shares. Who will buy the shares? Well, the promoter's themselves!!! After the purchase the promoter's stake will get raised to over 35%, which is a kind of assurance to an investor like me. The results for Q1 2011 are supposed to be announced on Aug 14, 2010. If the results beat expectations, the stock will http://ssvrm.blogspot.com/2010/08/kaveri-telecom-promoter-stake-to-go.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-2887619749017872298Thu, 12 Aug 2010 09:42:00 +00002010-08-12T02:43:35.134-07:00Economic TrendsThe sensex is trading at 18000 levels, and we can best say that the sensex is currently consolidating. There are thousands of investors, not very sure whether the markets are heading upwards or a correction is due. Any bad news from the USA or Europe might cause a major correction. I see this as an opportunity. Why? Simply because the domestic growth story is very robust. Today the elephant(SBIhttp://ssvrm.blogspot.com/2010/08/elephant-delivers-way-forward.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-5711612525802613717Tue, 10 Aug 2010 16:07:00 +00002010-08-10T09:08:28.078-07:00Banking And FinanceAs, promised I am sharing the spreadsheet, where I have tried to value the different PSU banks with an asset base of over 20,000 crore(with some exceptions). This spreadsheet is the first draft. There is still some work that needs to be done on this. Once I complete the valuation of the PSU banks I will turn over to the smaller private banks(since they are undervalued and have the potential to http://ssvrm.blogspot.com/2010/08/psu-banks-valuation-data-as-on-march-31.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-215312563997594942Wed, 04 Aug 2010 06:21:00 +00002010-08-03T23:21:24.554-07:00Banking And FinanceAs promised, I have been researching PSU banks(large cap) for one week now. I am almost done with the research, and couldn't wait to share the results with you. Seems like Indian Bank and PNB have emerged as the top contenders. This is based on their financial position as on March 31, 2010. I have not included the June 2010 results in my analysis. Will do so in the coming weeks. Let me explain http://ssvrm.blogspot.com/2010/08/who-is-winner-amongst-psu-banks.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3337821475298081242Thu, 29 Jul 2010 19:06:00 +00002010-07-29T12:07:26.993-07:00Banking And FinanceAs promised, I have started the process of valuing the PSU banks in India. Listed below is the strategy that I am going to adopt. This time I will be sticking to the process of relative valuation. 1. I will be selecting around 8 banks based on their market cap and asset base. I wont be selecting very small banks. 2. For each bank, I will be calculate ratios like P/BV, P/E, NPM, CAR, etc. 3. I http://ssvrm.blogspot.com/2010/07/started-valuing-psu-banks.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-3790637802963944644Tue, 27 Jul 2010 11:33:00 +00002010-07-27T05:26:02.714-07:00Valuation TheoryValuation of a company can be done in either of the following ways: 1. Valuation using cash flows. 2. Relative Valuation.  Valuation using cash flows. You could discount the future earnings of a company to arrive at the present value(intrinsic value)  by discounting the dividends(DDM - Dividend Discount Model), by discounting the operating cash flow to the firm(OCFF)  and http://ssvrm.blogspot.com/2010/07/how-to-value-company.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-7429374026178118669Thu, 22 Jul 2010 11:23:00 +00002010-07-22T04:23:09.266-07:00Banking And FinanceI have always believed that if an economy grows, the banking system has to grow. Or you can say that a prospering banking system implies a prospering economy. The housing burst in the USA, which propelled the world to a slowdown is a testimony to the importance of a prudent banking system. As far as India is concerned, we have world class banks in HDFC and ICICI along with Axis and Yes Bank, http://ssvrm.blogspot.com/2010/07/valuing-bank.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-4609021556347260448Wed, 21 Jul 2010 10:19:00 +00002010-07-21T03:19:55.986-07:00Politics in EconomicsI was reading an article, written by a professor from Columbia University, today in economic times. I was fascinated by what I read and wanted to share it here. The professor talked about the history of the role the government has been playing in energy regulation. The most recent Bharat bandh was a testimony to the fact that freeing up energy prices is a very socio sensitive issuehttp://ssvrm.blogspot.com/2010/07/energy-deregulation-irony.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-9126201282777881191Tue, 20 Jul 2010 14:52:00 +00002010-07-20T07:52:49.061-07:00Company Analysis - IndiaKaveri Telecom is one company, which is my personal favourite. Unless and until something really goes wrong with the sector or the management messes things up, this counter will not find a way out of my portfolio. Like a father, in love with his child, I am in love with this stock. Probably because I have seen this stock grow since 2006, when it was a teenager in puberty. And today the http://ssvrm.blogspot.com/2010/07/kaveri-telecom.htmlnoreply@blogger.com (Rohit Kumar)1tag:blogger.com,1999:blog-7101716092008125091.post-5851244781753050705Tue, 20 Jul 2010 07:42:00 +00002010-07-20T00:42:32.168-07:00Economic TrendsUntil now to make an open offer, the acquirer had to have 15% stake in the target company. This threshold has been increased to 25%(which bestows the acquirer with the power to pass resolutions within the board). This makes sense because a company, wanting to build up a strategic position in the target company, would go to the open market. Moreover, the time period for making the http://ssvrm.blogspot.com/2010/07/more-thoughts-on-sweeping-open-offer.htmlnoreply@blogger.com (Rohit Kumar)0tag:blogger.com,1999:blog-7101716092008125091.post-2253393104926769508Mon, 19 Jul 2010 15:00:00 +00002010-07-20T02:39:06.632-07:00Economic TrendsToday, SEBI has laid down new guidelines tweeking the way open offers are made in India by an acquirer. Until today an acquirer, who already owned 15% of a company, could increase the stake by making a 20% open offer to the general public. This didn't provide 100% exit option to the general public. To provide the retail shareholder an equitable opportunity to exit the company, the SEBI panel is http://ssvrm.blogspot.com/2010/07/is-india-ready-for-a100-open-offer-norm.htmlnoreply@blogger.com (Rohit Kumar)0