Companies increase authorized share capital to legally allow themselves to issue more shares. This helps them raise large amounts of money from investors without repeated approvals. The extra money, often coming as share premium, is then used to fund business expansion.
Growth looks attractive when profits rise, but higher earnings do not always mean higher value for shareholders. What matters is how well a company reinvests the money it keeps. If returns on reinvested capital are poor, growth can quietly destroy value instead of creating it.
High ROE looks attractive, but it does not tell you where returns come from. By breaking ROE into operating performance (Operating ROE) and leverage (Leverage ROE), you see whether profits come from business strength or debt. This simple split helps investors judge quality, risk, and sustainability more clearly.
The Full P/E method helps investors calculate what P/E a stock should have based on expected returns and business quality. It separates normal returns from franchise value. By comparing calculated Full P/E with actual P/E, investors can clearly judge overvaluation or undervaluation. Step by step calculation of Franchise P/E is here.
Earnings yield is simply the inverse of the P/E ratio and shows how much a company earns for every rupee you invest. By comparing it with safer options like fixed deposits, you can judge the risk and potential reward. If earnings (PAT/EPS) grow and the P/E rises, future returns can increase meaningfully.
To calculate Full P/E, first find the Base P/E, which shows the value of today’s steady earnings. Then measure how much new profit the company can create by reinvesting at high returns. Finally, add both pieces to see the total P/E the business truly deserves.
TARIL’s stock has dropped 55% after weak results and a governance issue shook investor confidence. The business itself still looks strong, but trust in management needs time to recover. The fall makes the stock interesting, but it’s more of a careful accumulation story than an ‘all-in’ opportunity.
Understanding Effective CAGR helps SIP investors see the real return their total money actually earns. It shows why (and how) SIP results differ from the fund’s advertised return. It also explains how the timing of investments changes long-term wealth growth. It is also one example which explain, why wealthy people gets richer faster than middle class people (jump to the conclusion).
The flight cancellations are primarily due to crew shortages caused by the DGCA’s new safety rules for pilots (FDTL Norms), which mandate longer rest periods. This forces IndiGo, which uses a lean staffing model, to cut flights because it lacks enough pilots to cover the required rest. Consequently, the airline faces higher costs and the stock price has fallen, reflecting a permanent hit to its profitability.
Early retirement at 45 with Rs.2.8 crore is possible, but the margin is tight. Your yearly expenses and inflation reduce the safety of that corpus. With a larger Rs. 3.5 crore base, retirement becomes far more comfortable and financially secure. Read my detailed answer will all calculations here
Hindustan Unilever’s competitive advantage is rated as “Only Reasonably Wide”. The current price of Rs. 2,425.55 is significantly overvalued compared to its intrinsic value (<60% of its current price). Consequently, the high valuation is not justified by the company's "Only Reasonable" fundamentals. Report by the Stock Engine.
A 29-year-old, even with a salary of Rs. 2.8 Lakhs per month, cannot reach the goal of one crore with high EMIs and very high discretionary spendings (Read the query). If cash flows are too skewed towards expenses, it leaves very little to invest, making the goal of One Crore in 5-Years look unrealistic. Though, with tighter expenses and higher, consistent investments, the target becomes possible. Check here the step-up SIP calculator.
