Samajhdar Niveshak

Answer every question and fill all the details before moving to Annual Report Analysis and Discounted Cash Flow-based Intrinsic Value calculation About the Company: STAGE-1 Question Rational behind the question Answer Judgment based on Answer What does the company do? To get a basic understanding of the business Who are its promoters? What are their backgrounds? To know the people behind the business. Sanity check to eliminate criminal background, intense political affiliation, etc. What do they manufacture (in case it is a manufacturing company)? To know their products better, helps us get a sense of the product’s demand supply dynamics How many plants do they have and where are they located? To get a sense of their geographic presence. Also at times, their plants could be located in a   prime location, and   the value of such lo...

What is an Annual Report? An annual report is like a report card that every publicly traded company publishes for each financial year. It has lots of information about the company which can help an investor understand more about the company in which he would like to invest. Reading and understanding an annual report( along with quarterly reports, which are published each quarter) is indispensable for any successful investor. This is one art that you need to master if you want to find and invest in companies that have the potential to give you great returns. I, as a student of financial markets, read a lot of annual reports, up to 10 years of the annual report of the same company to better understand the company. I am sharing with you my personal notes which I refer to while reading and analyzing annual reports of any company. You can easily find the annual reports of a company on its website under the "Investors" section. For e.g. You can find the...

Hello Fellow Investors, I hope that you are keeping safe and utilizing this lockdown to learn about trading and investing by reading my blogs :) As promised in my previous blog , We will start building our Core portfolio based on Equity(Stocks). Let jump right in. Stock Screeners There are around 5000 companies( approximately) that trade on NSE and BSE. What I mean by trade is that you can buy stocks of 5000+ different companies on NSE and BSE. Great!!! I should buy them all. Unfortunately, we only have limited capital( money to invest) and not all of these companies are worth investing in( some are outright junk or trash). So as an amateur investor how do we decide which stocks to buy? Well, there is no single approach and I don't feel that one approach is necessarily superior or inferior to the other. I will discuss the approach that I take to filter a few stocks from the thousands and then dig further into those few selected stocks. I use what is called S...

First of all, my sincere apologies for writing the post after a long time. I have been preoccupied with my daily work and trading myself. So I guess by now you would have filled the answers to questions that I asked in the first part of this blog . Let us assume that your answers are like this:   Questions       Your answer (Fill your answers)  My risk appetite  high-risk appetite  Goal for trading  Buying Royal Enfield Desert Storm (₹2.5Lacs)  Current financial status  No liabilities, no dependents, No credit-card dues.  My initial trading capital  ₹100,000  The money I am willing to lose in a single trade(Drawdown)  ₹5000(5%) maximum  The time I can spend each day analyzing the chart patterns and planning my next trade 2 hours    My monthly return target       3-4%( This is a fairly optimistic return)  The time it will take to achie...