This presentation was delivered in a Pune investor meet. Provides stock screening criteria, methodology, the ways to avoid trap, important consideration to identify the stocks
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain.
The presentation was delivered at CFA Institute on 7th Mar 2020.
This presentation covers case studies as if we are in that time period and to check if numbers could tell us upcoming problems.
Added 3 new case studies and a quiz
Case study 1: Slide# 37-41
Case study 2: Slide# 42-47
Case study 3: Slide# 48-52
Quiz: Slide# 58
It also covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
How to screen stocks so as to avoid common mistakes and uncommon lossesNiteen S Dharmawat
This presentation covers several new case studies.
It covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
This presentation tries to give a perspective on understanding cyclicals. Understanding of business and market cycles. With examples from Indian market. This was presented at CFA society, Delhi on Dec 14, 2019 and at FOF, PPFAS on Dec 20, 2019
This presentation provides stock screening criteria, methodology, the ways to avoid traps, important considerations to identify the stocks, how to design portfolio to minimize risk, when to sell, several case studies.
This presentation is delivered at Tamilnadu Investor Association (TIA) 20-20 Ideas Summit in Chennai. It covers the company details, business operations and how they have been doing. It is for study purpose. Please read the important disclaimer. If you do not agree with the disclaimer please do not read the presentation.
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain.
The presentation was delivered at CFA Institute on 7th Mar 2020.
This presentation covers case studies as if we are in that time period and to check if numbers could tell us upcoming problems.
Added 3 new case studies and a quiz
Case study 1: Slide# 37-41
Case study 2: Slide# 42-47
Case study 3: Slide# 48-52
Quiz: Slide# 58
It also covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
How to screen stocks so as to avoid common mistakes and uncommon lossesNiteen S Dharmawat
This presentation covers several new case studies.
It covers investing principles to screen stocks, avoid common mistakes backed by several real case studies from the Indian market
Objectives-
Quick screening to avoid major mistakes
What are the parameters that you must see
Sources to get the lists
Case studies covering failures and frauds
Delayed gratification: Most important quality
This presentation tries to give a perspective on understanding cyclicals. Understanding of business and market cycles. With examples from Indian market. This was presented at CFA society, Delhi on Dec 14, 2019 and at FOF, PPFAS on Dec 20, 2019
This presentation provides stock screening criteria, methodology, the ways to avoid traps, important considerations to identify the stocks, how to design portfolio to minimize risk, when to sell, several case studies.
This presentation is delivered at Tamilnadu Investor Association (TIA) 20-20 Ideas Summit in Chennai. It covers the company details, business operations and how they have been doing. It is for study purpose. Please read the important disclaimer. If you do not agree with the disclaimer please do not read the presentation.
Niteen S Dharmawat, Co Founder, Aurum Capital, presented the business analysis of Greaves Cotton Ltd in the Tamilnadu Investors' Association (TIA) 20-20 Summit in Chennai on 18 Feb 2023.
Please go through the Disclosure. This is not a buy/sell/hold recommendation. It is the business analysis of the company.
In-depth Study of Investor's Perception towards investment in Various Alterna...Vinaysingh Tomar
This report is all about the investor's perception towards the investment in various alternative available in the market and also focuses on the factors affecting investor's perception while investing their funds in various alternatives.
Investor behavior in the stock market – Rational and Irrational perspectivesRohit Bedi
This research involves the study of buying and selling behavior of the Indian investor from both rational and irrational perspectives. The research involves collection of primary data through a questionnaire. The questionnaire has general questions related to investors’ preferences regarding their investment decisions and questions related to the influence groups which affect their investment behavior.
Key Takeaways:
Enhanced reporting requirements in CARO, 2020
Significant changes in CARO, 2020
Matters specified in Auditor's report
Comparison between CARO, 2020 and CARO, 2016
Summer Training Report on Fundamental AnalysisFellowBuddy.com
FellowBuddy.com is an innovative platform that brings students together to share notes, exam papers, study guides, project reports and presentation for upcoming exams.
We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
Like Us - https://www.facebook.com/FellowBuddycom
Common mistakes and uncommon losses real case studies from the indian marketNiteen S Dharmawat
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain. It was delivered in "Small-Cap Investor Summit 2.0" organized by "The Investment Lab" in Mumbai on 14th Dec 2019.
Niteen S Dharmawat, Co Founder, Aurum Capital, presented the business analysis of Greaves Cotton Ltd in the Tamilnadu Investors' Association (TIA) 20-20 Summit in Chennai on 18 Feb 2023.
Please go through the Disclosure. This is not a buy/sell/hold recommendation. It is the business analysis of the company.
In-depth Study of Investor's Perception towards investment in Various Alterna...Vinaysingh Tomar
This report is all about the investor's perception towards the investment in various alternative available in the market and also focuses on the factors affecting investor's perception while investing their funds in various alternatives.
Investor behavior in the stock market – Rational and Irrational perspectivesRohit Bedi
This research involves the study of buying and selling behavior of the Indian investor from both rational and irrational perspectives. The research involves collection of primary data through a questionnaire. The questionnaire has general questions related to investors’ preferences regarding their investment decisions and questions related to the influence groups which affect their investment behavior.
Key Takeaways:
Enhanced reporting requirements in CARO, 2020
Significant changes in CARO, 2020
Matters specified in Auditor's report
Comparison between CARO, 2020 and CARO, 2016
Summer Training Report on Fundamental AnalysisFellowBuddy.com
FellowBuddy.com is an innovative platform that brings students together to share notes, exam papers, study guides, project reports and presentation for upcoming exams.
We connect Students who have an understanding of course material with Students who need help.
Benefits:-
# Students can catch up on notes they missed because of an absence.
# Underachievers can find peer developed notes that break down lecture and study material in a way that they can understand
# Students can earn better grades, save time and study effectively
Our Vision & Mission – Simplifying Students Life
Our Belief – “The great breakthrough in your life comes when you realize it, that you can learn anything you need to learn; to accomplish any goal that you have set for yourself. This means there are no limits on what you can be, have or do.”
Like Us - https://www.facebook.com/FellowBuddycom
Common mistakes and uncommon losses real case studies from the indian marketNiteen S Dharmawat
Common mistakes and uncommon losses: Real case studies from the Indian market. This presentation covers the case studies of the companies where the investment went down the drain. It was delivered in "Small-Cap Investor Summit 2.0" organized by "The Investment Lab" in Mumbai on 14th Dec 2019.
Apohan Corporate Consultants Private Limited India is a leading M&A company in India. It has prepared a master database of the companies it has approached and has secured consulting mandates for equity investment. These businesses seeking equity funding are led by reputed technocrats with huge marketing strength, whose core strength, at the same time, isn’t strategic financing . Apohan assists them with its end-to-end customized equity investment consulting services. Apohan provides end-to-end equity funding consultancy & implementation services for operational growth or financial turnaround to SMEs with very high potential but which are lacking a professional well documented business strategy, a corporate management mechanism, a proper financial strategy and the merger & acquisition (M&A) expertise.
Broadly, there are the following ways in which you can associate with Apohan:
1. As a distressed asset, an NPA account, a company under ARC / CIRP for equity finance for financial turnaround of your business.
2. As a growing business for equity funding for growth, new projects, new initiatives, etc. Our focus is on Indian SMEs & new-age technology companies.
3. As a professional business: For formulation of a business strategy, financing strategy & corporate management plan.
4. As a strategic investor or as a financial investor: For equity investment in well-studied, low-risk, well contracted, high ROI private businesses.
5. As a financial intermediary, M&A professional firm: For M&A related strategic, statutory & compliance work in collaboration with Apohan.
6. As a deal broker: For connecting Apohan directly to the final decision-making client businesspersons or investors for a finding fees (referral fee).
Please get in touch with the undersigned on e-mail or WhatsApp.
Arun Joshi
WhatsApp: +91 9810481325
E-mail: arun.joshi@apohanconsultants.com
Website: www.apohanconsultants.com
This is the first of the three-part learning program for a business to understand the importance of equity funding for business growth and financial turnaround. The three parts of the program are:
1. Strategic financial concepts for a promoter of technical background
2. Process of equity funding
3. Factors for success of equity funding deal
This presentation file is on the first part. It covers what is the no-nonsense financial objectives of a business, how it is measured, what are the aspects of it, what are the types of it, how to improve it, why medium businesses stagnate or become NPA, etc.
The presentation also tells a business how to focus more on returns than on profits, what are the factors apart from profit that affect returns. It also tells various types of sources of capital for a business. This presentation creates a background to understand the equity funding process in a business.
Debt outlook and Asset Allocation: Through this PowerPoint deck, explore insights into Fixed Income and Equity regarding the variables driving current market situation and the outlook for 2022 that will impact mutual fund investments.
www.Quantumamc.com
Dust Collecting: Panning for Competitive Intelligence Nuggets in Company Fina...Richter & Company LLC
Presentation by Brandon Conroy, Executive Consultant at Richter & Company, at the Association of Proposal Management Professionals (APMP) California Chapter Training Day November 6, 2015 in Anaheim, CA.
Indian equity market performance in election year - challenges and drivers (2...Niteen S Dharmawat
2018 is a special year. It is a pre-election year. This presentation covers analysis of last 7 Loksabha spanning over 25+ years. It talks about various challenges and drivers during the election year and how the markets performed.
I did this analysis 5 years ago on pre-election year performance of the market. The market was hovering around 18500-19000 levels that time. Many were predicting that it will go down to 12,000. However, it went off exactly I talked about in my presentation. The market gave 22% absolute return in 2014 election year.
I see current situation no different. There is always an uncertainty about the future and fear of unknown. The fear could be legitimate as we have seen huge market up move during the last couple of quarters.
I have updated my presentation with the performance of 2014 and with current numbers. Will this year be different from others, only time will tell us.
As always, I eagerly look forward to your feedback.
KNR constructions a case study of patience and multibagger returnsNiteen S Dharmawat
The answer to the quiz of 17th Jan is KNR Constructions. I received several responses. Many of you answered it correctly, some of you got confused it with J Kumar Infra (JKIL) and REC Ltd. But that’s ok. Many of you tried to find out the name of the company by matching the parameters. This process of learning was more important.
In this presentation, I have discussed Time Technoplast with an objective to understand the company, its business and financial health. Please read the disclaimer before you proceed further. Please share your feedback. I look forward to receiving your response.
I am disclosing the answer to my third quiz. This company, in my opinion, SHOULD BE AVOIDED.
I have already given several reasons in the form of quiz questions. But I am providing some additional inputs that I received from various respondents or researched during the course of discussion of the responses received. It was like more we dig into this company, more skeletons come out.
This presentation was delivered on Feb 15, 2014 to Equity Pune group. In this presentation I discussed about an undervalued stock: Eimco Elecon.
Eimco Elecon is a leading, profit making and established manufacturer of various Mining equipment. It is a zero debt company available at a Market Cap of just Rs92Cr (CMP INR 160). More importantly it has an investments of INR 60.42Crs in high grade shares and mutual funds. So effective market cap is just INR 32Crs i.e. INR 55 per share. Besides Net Current Asset per share is INR 154 and book value of INR 295. It is like company paying us to acquire its shares. Some additional highlights include consistency in operating and free cash flow, dividend yield of 2.5% (paying dividend for last several years), ROCE in double digits during last 6 years, and high promoters at 74% stake including 25% by Sandvik group. Also HDFC holding 4.79% for last several years. The key negatives are slowdown in mining and construction industries and overall economy & equipment industry and the stock is an illiquid/low volume stock.
Enjoyed the discussions with the group.
Indian equity market performance in election year - challenges and driversNiteen S Dharmawat
I did this analysis about 7 months ago on pre-election year performance of the market. The market was hovering around 18500-19000 levels that time. Many were predicting that it will go down to 12,000. However, it went off exactly I talked about in my presentation. The market as of today has crossed 21,000 giving cool 12% absolute return or 20% annualized returns.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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How to screen stocks
1. Niteen S Dharmawat - http://dharmawat.blogspot.com/
June 2017
1
How to screen stocks
(Basic work to avoid TIPs -> PITs)
A presentation by: Niteen S Dharmawat
Be a wise
investor and
not a day
trader…
2. Niteen S Dharmawat - http://dharmawat.blogspot.com/ 2
IMPORTANT DISCLAIMER: This presentation is prepared solely to provide
information about this company and take feedback from the readers. This
presentation is NOT meant for equity investment. It should NOT be construed
as an investment advice for buy/sell/hold or anyother form of
recommendation. This presentation does not recommend any price or price
target for the company discussed. Investment in equity shares has its own
risks. The information contained herein is based on my study and upon
sources that I consider reliable. I, however, do not vouch for the accuracy or
the completeness thereof. This material is for personal information and not
intended for any investment decisions. I am not responsible for any profit or
loss incurred based upon it & take no responsibility whatsoever for any
financial profits or loss which may arise from the discussion thread
above/anywhere in communication. It is safe to assume that I, my family,
friends have vested interest in any of the companies/stocks
discussed/presented here. Please do your due diligence and take the help of
a qualified advisor before you take any financial decision.
3. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Agenda
3
We get tips (or interested to get tips)
Quick screening to avoid major mistakes
What are the parameters that you must see
How to generate your owns stock list
4. Niteen S Dharmawat - http://dharmawat.blogspot.com/
The Wealth Creation Formula
4
Right Focus – Right results
5. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Tips: after reading Google news/Forums
5
TIPs take you to PITs
Someone I know
bought few lac shares,
despite my warning,
believing Google news
with a target price of
100 in next few years.
6. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Tips: after analyst reco/FII holding
6
TIPs take you to PITs
• Strong FII holding
• Increased holding
by 12% in 5 years
(equity dilution)
Rs 244
on Jan 4 2008*
As on Dec 2007
• FII holding 25.49%
• MFs holding 4.3%
Rs 221
on Feb 17 2012*
As on Dec 2012
• FII holding 37.34%
• MFs holding 0.07%
7. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Before you put in money…
7
Make an Excel sheet (Detailed PPT even better)
Write the name of the script, buy price
Write very briefly the reasons for investment: it could be your
research finding or someone recommended you to buy
Also, your expectations from the investment
8. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Classify your portfolio… My way… You may evolve yours
8
Portfolio A: 70-90% funds
High conviction
Long term: 3-5 Years
Not more than 5-10 stocks
Portfolio B: 10-20% funds
Still unsure about Long term
Want few more quarters, ratify investment thesis
Medium term: 1-3 years, move to A else drop
Portfolio C: 5-10%
Tips /Respect quota
Time duration: 1min-1year
If develops conviction based on research move to B
9. Niteen S Dharmawat - http://dharmawat.blogspot.com/
What are the free resources for quick screening
9
bseindia.com / nseindia.com
Screener.in, Moneyworks4me.com, stockflare.com,
capitalcube.com… and many more… including Apps
Brokers websites for financial data
Annual reports (most important)
12. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual Report
12
Chairman / CEO’s statement and Management Discussion and Analysis
Must read the first two and last two paragraphs in detail.
Find the answer for:
Is management staying focused?
What are the management’s stated plans to take the
business forward: Expanding capacity, Rationalizing
underperforming areas, Introducing new products
/services to existing customers, Investing to raise
margins (e.g. new product features, service add-ons)
via R&D, marketing, etc
13. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual Report
13
Chairman / CEO’s statement and Management Discussion and Analysis
Negative list: flowery language, away from the
reality like throwing big industry numbers/future
growth
Positive list: clearly elaborating risks while
talking about opportunities, conservative in
approach,
Look for: The results of operations, Changes in
financial condition and Risk management
strategies
14. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual Report
14
Financial statements
Always look for consolidated numbers and not
standalone
Go through notes to the financial statements for
details
(P&L): net profits and sales are positive, rising or
falling;
(CF, P&L): operating cash flow after working capital
adjustments is positive or negative and compare with
NP
(B/S and P&L): net debt is rising or falling and interest
amount;
B/S: Balance Sheet CF: Cash Flow P&L: Profit and Loss
15. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual Report
15
Financial statements
(CF, P&L): Is company paying Taxes while showing profits?
(P&L) Component of other income? If high then see
previous years/quarters’ numbers also. If one off then
remove from net profit, if consistent then dig more to find
sustainability
(P&L) What are the main expenditure heads: employee
costs, raw material dependencies (e.g. crude prices)
(P&L, CF): Interest paid v/s net profit v/s OCF
(P&L, B/S notes) Inventory trends: Finished good, WIP v/s
sales numbers
B/S: Balance Sheet CF: Cash Flow P&L: Profit and Loss
16. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual Report
16
Others…
• Salary of the directors, revision in the salary,
in line with the growth/profit numbers?
• Members of audit and salary committees
• Composition of board of directors, how many
of them are independent?
• Directors attendance in board meetings
• Independent auditors report
17. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Shareholding Pattern
17
Governance
Skin in the game
- Unpledged Holding
- Promoters’ Holding – Buying or Selling
- BSE Website SHP:
- Quarterly Trend
- Going in strong hand
- Corporate Announcements
18. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Shareholding Pattern
18
Governance
XYZ Industries
Who Month # of Shares % holding
Promoters Mar-07 48,94,544 35.28%
Promoters Dec-06 47,78,994
Total Change 4 months 1,15,550
Date Acquired Who
15-Mar-07 10,000 Managing Director
06-Mar-07 20,050 Managing Director
28-Feb-07 8,000 Managing Director
28-Feb-07 17,500 Managing Director
14-Dec-06 60,000 Director
Total Buy 1,15,550
100 Crs market cap in 2008
800 Crs market cap in 2017
19. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Trader v/s investor
19
Time V/S Return
KNR Industries in 2011
Fundamental Analyst 100 Day Trader 100
5 years target 200 5 hours target 105
You bought They sold
Today = Rs 1025 + Dividend =>
Total valuation including dividends =
Rs 205*5 KNR + Rs 14 Dividends => 1029
10 times return that of original investment
KNR Case study from 2008-2017: https://goo.gl/PR3gCe
A case study of how slow and steady wins the race
10 bagger in 6 years…
v/s
5% (?) of a trader
20. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Year 2000: A repetitive grim reality
20
Time V/S Return V/S Valuations
Date Price Shares
2-Feb-00 1,549 119,642
3-Feb-00 1,673 68,309
4-Feb-00 1,807 82,375
7-Feb-00 1,855 3,126,844
8-Feb-00 1,877 2,358,212
9-Feb-00 1,817 2,394,038
10-Feb-00 1,848 1,788,398
11-Feb-00 1,842 1,570,270
14-Feb-00 1,875 1,336,249
15-Feb-00 1,823 975,591
16-Feb-00 1,791 808,272
17-Feb-00 1,841 843,279
18-Feb-00 1,948 2,350,699
21-Feb-00 2,104 528,893
22-Feb-00 2,272 1,301,678
23-Feb-00 2,090 1,424,987
24-Feb-00 1,952 1,454,274
25-Feb-00 1,810 1,469,617
28-Feb-00 1,770 879,915
29-Feb-00 1,628 2,157,518
1-Mar-00 1,759 1,030,278
In year 2000
Low of 200 Rs
High of 2000+
21. Niteen S Dharmawat - http://dharmawat.blogspot.com/
What are the free resources for quick screening
21
bseindia.com / nseindia.com
Screener.in, Moneyworks4me.com, stockflare.com,
capitalcube.com… and many more… including Apps
Brokers websites for financial data
Annual reports (most important)
Free Resources
22. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Availability of data on internet/Annual Reports
22
Free Resources
Parameter Section
P/E ratio/Earning Yield Key Financial Ratios
Book Value Key Financial Ratios
Return On Invested Capital (ROIC) Key Financial Ratios
Dividend & dividend history Summary
Revenue & profits of last 5 years P&L
Inventories trend of last 5 years Balance sheet
Current Assets & Current Liabilities Balance sheet
Statements of the company
executives
Company websites/read newspapers
Promoters’ Holding (Buying or
selling)
Corporate announcements in NSE/BSE
websites
23. Niteen S Dharmawat - http://dharmawat.blogspot.com/
What are the free resources for quick screening
23
Screener.in
Standard summary
Customized summary
24. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Quarterly results
24
Screener.in
Draw top 5 conclusions in
90 seconds and move on
1) Sales trend
2) Operating performance
3) Interest component
4) Depreciation
5) Tax paid
25. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Annual results
25
Screener.in
Draw top 6 conclusions in
120 seconds and move on
1) Sales trend
2) Operating performance
3) Interest component
4) Depreciation
5) Tax paid
6) Dividend payout ratio
26. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Balance Sheet
26
Screener.in
Draw top 3 conclusions in
60 seconds and move on
1) Equity Dilution
2) Share capital (equity / preferential)
3) Borrowings (ST/LT) v/s interest component from last quarter
27. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Cashflow
27
Screener.in
Draw top 5 conclusions in
60 seconds and move on
1) CFO v/s NI
2) WC changes
3) Taxes Paid
4) CFI trend
5) CFF trend
28. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Reports and announcements
28
Screener.in
29. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Query Builder
29
Screener.in
30. Niteen S Dharmawat - http://dharmawat.blogspot.com/
Quiz…
30
Two questions
1. Identify this legend?
2. Where is this portrait kept?
If you know answer to 2nd question,
you would also know who presented
this portrait?
31. Niteen S Dharmawat - http://dharmawat.blogspot.com/ 31
About the presenter:
Niteen is an MBA and cleared CFA Level 2, CFA Institute USA.
A firm believer in long-term financial planning, and a 20
years veteran of the stock market. He also conducts free
investor awareness sessions.
He likes reading books/magazines/news papers on the
topics as diverse as general management, technology,
investment, fiction, marketing and the Gita.
He is a person who believes in "Everything else can stop but
learning".
32. Niteen S Dharmawat - http://dharmawat.blogspot.com/ 32
Thank you
Twitter: @niteen_india
Blog: http://dharmawat.blogspot.com/
Mobile: 9850571857
Also on: Slideshare, Facebook
34. 34Niteen S Dharmawat - http://dharmawat.blogspot.com/
A Scooter Manufacturer… A quick example
Cash
Credit
Cash recorded
in OCF
P&L
Sales, Profits
recognized
Cash
Received
Yes Bad debts
No
Warning sign:
Check Receivables…
35. 35Niteen S Dharmawat - http://dharmawat.blogspot.com/
Exceptions
- Companies that sells more and more cash through lending
- e.g.: Banks and Financial Institutions
Other helpful parameters along with OCF
- Interest paid v/s net profit
(a ratio of more than 0.4/0.5 is risk)
- Equity dilution?
- Promoters unpledged holding in the company
- Trend in receivables
- Investing and financial cash flows
Exceptions
37. 37Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 1: A vertically integrated multinational medical
technology Group
From Rs140 to
now Rs25
38. 38Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 2: Education and training company based in Chennai
‘Darling’ of punters
Several stories around the business model
FII holding close to 28% (now less than 1.4%)
Some prominent names on the board could also
not save it
CBI caught one of the directors of the company
in a bribery case
Parameter Mar-11 Mar-10 Mar-09 Mar-08
Net Profit 67.64 45.45 22.08 13.8
CFO 16.01 25.13 -8.98 13.31
Signal
In INR Crs
Poor
shareholding
pattern
From Rs350 to
now Rs23
39. 39Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 3: a leader in the Security Surveillance domain, the first
company of its kind to be
“Big names” leaving dangerously
Promoters holding 21% (unpledged 8.4%)
Big stories =>
poor cash flow & receivables numbers
In INR Crs
Parameter March-08 March-09 March-10 March-11 March-12 March-13 March-14 March-15
Net Profit 1.45 19.36 15.03 44.46 16.84 30.32 41.94 50.59
CFO -9.02 -40.41 0.46 -114.28 -15.53 -42.34 2.87 -51.66
Signal
Parameter March-12 March-13 March-14 March-15
Share Capital 12.7 17 17.6 20.2
Borrowings 160.37 318.3 436.82 555.7
Equity dilution
+
Borrowings
From 185 to 45 in no time
40. 40Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 4: A ‘fast growing’ Indian Pharmaceutical company
A recent casualty
Analysts/research house giving aggressive
targets
Several stories around the company
Promoters pledged the shares
In INR Crs
Parameter Jun-13 Jun-12 Jun-11 Jun-10 Jun-09 Jun-08
Net profit 53.71 42.77 33.18 22.33 18.63 27.19
CFO -70.44 -53.43 -35.84 -28.11 -50.78 -40.46
Signal
Poor
shareholding
pattern
From 75 to 11 in no time
41. 41Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 5: Unified Supply Chain & Infrastructure Group
From Rs140 to
now Rs30
Poor
shareholding
pattern
42. 42Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 6: the largest commercial real estate developers in India
Parameter Mar-08 Mar-07 Mar-06 Mar-05
Net Profit 7812.03 1933.65 411.03 86.5
CFO -1780.9 -6563.5 -873 575.4
Signal
A high profile developer with expansion in multi-sectors
Brought India’s largest IPO (June 2007)
At IPO price Rs525 (market cap 96K Crore)
Touched Rs1200 (market cap 2Lac Crore) Jan 2008
Today Rs157 (market cap 28K Crore)
Some “smart investors” searching value again
From peak price Rs1200 to below Rs160
43. 43Niteen S Dharmawat - http://dharmawat.blogspot.com/
Case 7: India's second largest real estate investment company
Parameter Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
Net Profit 675.05 1196.43 1661.34 1306.14 84.07 33.36
CFO -1339.5 -5.39 -975.03 -2074.5 -224.67 96.89
Signal
Another high profile developer
Touched Rs500 (market cap 1Lac Crore) Jan 2008
Today Rs8 (market cap 4K Crore)
98% loss of wealth from peak
From Rs500 to now Rs8
44. Niteen S Dharmawat - http://dharmawat.blogspot.com/
'Piotroski Score'
44
Interpretation: In the range of 0-9
• 8-9: considered to be strong
• 0-2: considered to be weak
Calculation: 9 specific criteria from financial statements each with 1 point else 0
• Profitability
1. Positive ROA in the current year
2. Positive operating cash flow in the current year
3. Higher ROA in the current period compared to the previous year
4. Cash flow from operations are greater than ROA
• Leverage, Liquidity and Source of Funds
5. Lower ratio of long term debt to in the current period v/s previous year
6. Higher current ratio this year compared to the previous year
7. No new shares were issued in the last year
• Operating Efficiency
8. A higher gross margin compared to the previous year
9. A higher asset turnover ratio compared to the previous year
Strength of a firm's financial position
Should not be applied to
Financial Services/Banks
45. Niteen S Dharmawat - http://dharmawat.blogspot.com/
'Altman Z-Score'
45
Interpretation
• Below 1.8 means the company is probably headed
for bankruptcy,
• Above 3 are not likely to go bankrupt
Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E Where:
• A = working capital / total assets
• B = retained earnings / total assets
• C = earnings before interest and tax / total assets
• D = market value of equity / total liabilities
• E = sales / total assets
Score for bankruptcy
Should not be applied to
Financial Services/Banks