EQUITY

value investing

Value investing vs value trap

High-profile proponents of value investing, including Berkshire Hathaway chairman Warren Buffett, have argued that the essence of value investing is buying stocks at less than their intrinsic value. The discount of the market price to the intrinsic value is what Benjamin Graham called the “margin of safety”. Now one of the most important and difficult aspects of stock selection is determining whether …

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ion exchange

Ion Exchange (India) Ltd – Clear growth

Ion Exchange (India) Ltd (IEL) pioneered water treatment in India and is today the country’s premier company in water and environment management, with a strong international presence. Formed in 1964, as a subsidiary of the Permutit Company of UK, it became a wholly Indian company in 1985 when Permutit divested their holding. The Company is …

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budget 2018

Stocks to watch out for in budget-2018

The budget to be presented on 1st February 2018 will be unique in some aspects. With GST in place most parts of indirect taxation (other than customs, O&G sector etc.) is likely to stay outside the purview of the budget. Indirect tax impact on various industries & products has always been the talking point in …

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bull market mistakes

Mistakes small investors make in a bull market

2017 was a mega year for stock market investors. As you can read in a previous article The year of the bull-2017 even if you did nothing & just simply remained invested through the year you would have earned about 30%. SENSEX/NIFTY returned ~28% during 2017. This would be one class of investors. Other investors could …

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DVR shares

DVR – Shares with a difference

DVR stands for Differential Voting Right. DVR shares are like ordinary shares, but with fewer voting rights. These allow a company to dilute equity without a matching reduction in promoters’ stake. The aim of limiting voting rights is to prevent hostile takeovers by separating economic interests and voting rights. DVR shares are ideal for small shareholders as …

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market review

Creating a new normal…

The Indian markets have been scaling new highs with NIFTY remaining above 10,000 for over a month. The current rally in Indian market is fuelled by strong liquidity from domestic investors. As strong inflows continue into domestic mutual funds reforms initiated by the Modi-led government reaffirm the faith of foreign investors ( as evident from …

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IPO

IPO bidding rules to maximize chances of allotment

Primary markets have been hyper-active over the last year & the pace has only picked up over the last couple of months. There has been 30 IPOs since last Diwali garnering over Rs.45,000 cr of which Rs.14,000 cr was raised in October 2017 & we have another ~Rs.20,000 cr worth IPO lined up in the …

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