• Power Grid Corporation: A Quick Analysis

    Power Grid Corporation of India, is a publicly traded “Maharatna” company. The company comes under India’s Ministry of Power. It is a company that transmits nearly half the nation’s electricity. It was incorporated in 1989, it owns and maintains India’s interstate transmission system. Power Grid also offers consultancy services in power transmission as well. Power…

  • Buy-and-Hold Investing [Concept Explained]

    In the complex world of investing, it’s easy to get swept up in trends and rush to chase the latest stocks. But what if there’s a simpler, smarter approach for the long haul? I’m talking about buy-and-hold investing. This tried-and-tested strategy promotes patience and discipline, centered on acquiring high-quality stocks and holding onto them for…

  • Why Agrochemical Stocks Are Falling? [Example: UPL Limited]

    Agrochemical companies in general, including UPL Limited, have recently encountered several challenges. Their biggest problem is global channel destocking. Channel destocking refers to the reduction of inventory levels across distribution channels. Agrochemical companies like UPL have witnessed this trend, impacting their revenue and sales. Almost all companies operating in the agrochemical space are seeing tough times….

  • Investment Style of Charlie Munger

    In the world of stock investing, two names that come first in mind are Warren Buffett and his partner the legendary Charlie Munger. Charlie Munger, born in 1924, is a renowned American investor, businessman, and long-time business partner of Warren Buffett. He was the Vice Chairman of Berkshire Hathaway. Charlie Munger had a degree from…

  • Bajaj Finance: Business, Income Streams, Profitability, and Growth

    In the last six months, the shares of Bajaj Finance have seen a price correction of about 10%. I have always found the business of Bajaj Finance exciting, but I could not invest in it due to valuation concerns. I use my Stock Engine to estimate the intrinsic value of my stocks. From the peak…

  • FAQs On Mutual Fund Taxation Rules in India

    If you are new to investing and are curious about mutual fund tax rules, this article will help. The tax landscape can be overwhelming for beginners as different types of investments are taxed diversly. In this blog post, let’s break down mutual fund taxation in India with simple explanations and real-world examples. My approach to…

  • Is Breaking The Fixed Deposit To Buy A House A Wise Financial Decision? [Calculator]

    Many people dream of owning their own home. But when it comes to buying a house, there are many hurdles, especially regarding finances. Most of us do not have the capital to buy a house in India (especially in tier-1 cities of India like Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Pune, and Ahmedabad). Hence, we…

  • DCF Calculator and Related FAQs

    It’s an introduction to the Discounted Cash Flow (DCF) method as a tool for estimating the intrinsic value of stocks. Here is a free online DCF Calculator that can be used to estimate the intrinsic value of stocks. I feel DCF is a powerful technique that goes beyond stock price. It allows us to assess…

  • Effect of Profitability and Growth On Company Valuations [Intrinsic Value]

    Deciphering the factors that influence company valuations is crucial for investors. Two key metrics that play a pivotal role in valuations are profitability and growth rate. We’ll understand how profitability and growth collectively affect the valuations of companies. We’ll use examples to get a hold of this correlation. Effect of Profitability (Example #1) Suppose there…

  • Example of Working Capital and Change in Working Capital

    I received a message from one of my readers. He wanted to get more clarity about the concept of working capital, and also about the ‘change in working capital.’ He is a person from a manufacturing background hence I thought to explain the topic using a related example. We’ll try to first understand the concept…

  • Correlation Between Macroeconomy and Stock Market

    The stock market is like a busy marketplace where people buy and sell ownership in companies. It’s where we can become part-owners of big names like Nestle, TCS, HDFC Bank, etc. Imagine it as a giant auction where shares of companies are traded, and the prices constantly go up and down. There is a correlation…