Showing posts from May, 2020

Four basic thoughts for the Investor - Value Investing

Four basic thoughts for the Investor - Value Investing Investing can always be Boring. Day Trading is a day to day phenomenon. But in the reality, it's different. Would you be happy if you are making profits on Day trading regularly or Would you be enjoy your Daily Loss on Trading ? In fact, the Trading Strategy takes more time to research than the Investing. As for the Investing, you need to understand the Business primarily. Then you can dig into the fundamentals of the company. At the same time, the Trading is nothing but to speculate with the numbers. As for Day to Day trading, you have to make a speculative decision. But for an Investing, It's basics and its business valuation. I am not comparing between the Investors and Day Trader, but the time that you should think twice. Making a money means minimizing the initial loss or not causing the Entire loss. This is only available in Investment with more time. If you spend too much time on Day Trading, you can go for a Day Job

5 Basic things to follow before Investing

5 Basic things to follow before Investing The Proper Financial Planning tells you that one should follow the basic initiatives before going to Invest. Investment may be like Equity, Real Estate, Business, AIF or any investments which are considered as Risky. There are five basic initiatives are said to be as a Financial Backup to protect you. If your Personal Finance Advisor does not tell you about this, then you should ask this for your safe. Generally, the Financial Advisor is not just a Stock Broker or Insurance Agent. Even the Mutual Fund distributor who is selling Mutual Fund Products alone is not said to be a Complete Financial Advisor. A Personal Finance Advisor is like your Family doctor, where he cares and knows about your Financial Status and Family members. He really knows what you need exactly based on Personal Finance, appoint a nominee and plan for writing a Will. So, he should plan for the basic initiatives as per Financial Planning before you are going to invest. Yes, t

Thyrocare Technologies - Net loss of Rs. 18 Crore due to Covid-19 - Q4FY20

Thyrocare Technologies - Net loss of Rs. 18 Crore due to Covid-19 - Q4FY20 Thyrocare Technologies involves in provide Quality Diagnostic services in the Health care Segment in India. Established in the year 1996, the company conducts Clinical tests and laboratories.  Currently, the Market capitalization for Thyrocare is Rs. 2800 Crore. Book value comes at Rs. 75 per Share. It is virtually a Debt Free Company, where the Debt to Equity stands at 0.03. The Promoters holding is said to be around 66 Percent and there is no pledging on Promoters Share holding. The Interest coverage ratio (ICR) is also comes with sufficient numbers, around 120 Times. For the Last five years, the Sales growth is up 20 Percent and the Compounded profit growth were at 15 Percent. The Return on Equity (ROE) for the Thyrocare is 19 Percent over the past 5 years. In Q4FY20 - quarterly results, the Company reported its revenue of Rs. 94 Crore. The Expenditure was Rs. 64 Crore in the said period. Rs. 44.33 Crore has

REPO rate reduced to 4 Percent cut by 40 basis points - RBI

REPO rate reduced to 4 Percent cut by 40 basis points - RBI The Monetary Policy Committee held for the three days from 20th May 2020 to 22nd May 2020. In the end of 3rd day, all the committee members had cast their votes in favor of interest rate cut. In a statement issued by the RBI, it was said that the REPO rate for banks would be reduced to 4 Percent from the earlier 4.40 Percent, cut by 40 basis points. The announced REPO rate cut on last morning was considered to be as an 'Emergency Move' by the Central Bank. Similarly, the Reverse REPO rate has been reduced from 3.75 Percent to 3.35 Percent. The Bank rate was also said to be 4.25 Percent from 4.65 Percent. According to the RBI data, Since March 2020 the economy of the country has been badly affected and most of the businesses have been harmed by the Covid-19 Lock down. It has been said that it is currently unable to gather proper data on Inflation rates and that there will be unexpected changes in the Inflation rates in

India's GDP Share of the Global Economy - 2019

India's GDP Share of the Global Economy - 2019 According to the economic outlook released by the IMF in 2019, India's Economy (GDP) is said to be $2.9 Trillion. Currently, the United States is the number one country in the world economy with about $22 Trillion. China is in the Second place which is valued at $14 Trillion. Japan ranks third and Germany at Fourth. India ranks in the Fifth position in the Global Economy. The country is also said to be one of the Fastest growing economy. In terms of Purchasing Power Parity (PPP), China holds the number one position in the world. The United States comes in the Second and India is in the third position. India's Economy growing is due to the High Consumption and the emerging in the Service Industry. The Service sector holds the maximum percentage than the Agriculture and Manufacturing in India. It has contributed 60 Percent of the growth in GDP and 28 Percent of the employment has been generated through the Service Industry. Where

6 Steps to create an Investment Portfolio

6 Steps to create an Investment Portfolio Before investing your hard earned money (Monthly pay or Business) in any investment product, there are four key elements that you have to mind. They are the essentials of an Investment Opportunity. Needs and Wants Financial Goals Goal Period or Investment Duration Expected returns (Interest rate) % Simply putting your money in a Bank Deposit account or blindly investing in Equity - both will hurt you in the long run. One should consider the said above four elements to stay invested. For example, if Mr. X have a Financial Goal to buy a new house after 5 years. So, his wants or needs are considered here as, 'New House'. Generally, it is a Financial Goal. The Goal Period is about 5 Years. Finally he or she have to find the appropriate investment avenue to reach his 5 Years Financial Goal. On common, one should take less risk in a shorter period and take a moderate to high risk in the longer term to fulfill his Financial Goals.

India's Retail Inflation revised to 5.84 Percent in March 2020

India's Retail Inflation revised to 5.84 Percent in March 2020 Inflation in India can be calculated in Two ways - Consumer Price Index (Retail) and Whole sale price Index. The CPI Retail inflation was said to be as revised to 5.84 Percent for the month of March 2020. It is noteworthy that the inflation in January 2020, was 7.59 Percent. Now, it seems declined, but it it more than Central Bank's expectation. we have to analyze the numbers during Lock down and Post Lock down session. The Central Statistics office has so far taken more data related on prices from the Rural and Urban areas. Since 19th March, 2020 it was suspended due to Covid-19 Lock down. The Inflation for the month of April 2020 has not been released. Instead, the March inflation was revised there. PM's recent speech hinted that there could be a fourth Lock down (Lock down 4.0), while the businesses may run with some restrictions. Prime Minister were also said about there is a stimulus to boost the current ec

Rising Unemployment rate in India - A bitter data - April 2020

Rising Unemployment rate in India - A bitter data - April 2020 The news of the Covid-19 impact has been talked about globally for the past two months. In the Developed and developing nations, there was a lock down was imposed for more than a month. The total number of cases were exceeded 40 Lakh till date. The Covid-19 death toll is said to be around 2.77 Lakh and more than 14 Lakh people were recovered. The Unemployment rate in the United States has been rising for the past five weeks due to a Lock down. This is the similar situation for India also. According to the recent data announced by CMIE, the unemployment rate stood at 23.52 Percent in the month of April 2020. It was 8.74 Percent at the end of March 2020. As per the weekly ended data, the Country's unemployment rate were about 27.11 Percent on 3rd May. The number of people who lost their jobs in urban areas is higher than the Rural. There is a statistics that 12 Crore People have been unable to continue their regular job,

FII and DII Trading activity – April 2020

FII and DII Trading activity – April 2020 The Indian Equity Market, which was fallen down around 23 Percent in the month of March 2020. The Economic Slowdown was happening in the past 18 months, added more with Covid-19 and it leads to Economic Recession. It was noteworthy that the Nifty50 climbed about 15 Percent in the month of April 2020 - So called, Bear Market Rally. One can remember that there was a lock down throughout the month of April. There is No Sales or Zero Sales for the Automobile Companies in the month of April 2020 domestically. Therefore the Indian Equity Market has fluctuated over the past one month without any basis. The April month rally in the Stock Market considered as a Small boom, following a Big Fall. As per the April 2020, there are 18 trading days in the said month. Both Foreign Investors and Domestic Investors were the net sellers in the end of the period. The FII had bought shares of worth Rs. 1,22,483 Crore and sold shares of worth Rs. 1,27,691 Crore. So,