Wednesday, 25 October 2017

Global Equity Market at New High

Global Equity Market at New High




*Global Equity Market at New High*

The Total market cap of global equities $ 77 trillion. 
*Major Economy around worldwide*

US : 27.46
China : 6.83
Japan : 5.66
Hong Kong : 4.72
UK : 3.48
France : 2. 41
Germany : 2.24
India : 2.05

*India just joined 2 trillion-market club. Only 3% people buying equity right now. Think what happens when like others countries 30% - 40% investors start investing.*

*Moral*: Future of Indian equity market is very bright stay with Investment in good companies.



Financial Ratio - Inventory Number of days

Financial Ratio - Inventory Number of days




Inventory Number of days

While the Inventory turnover ratio gives a sense of how many times the company ‘replenishes’ their inventory, the ‘Inventory number of Days’ gives a sense of how much time the company takes to convert its inventory into cash. Lesser the number of days, the better it is. A short inven-tory number of day’s number implies, the company’s products are fast moving. The formula to calculate the inventory number of days is:

Inventory Number of Days = 365 / Inventory Turnover

-thanks to zerodha


Financial Ratios - Total Assets Turnover

Financial Ratios - Total Assets Turnover




Total Assets Turnover

This is a very straight forward ratio. It indicates the company’s capability to generate revenues with the given amount of assets. Here the assets include both the fixed assets as well as current assets. A higher total asset turnover ratio compared to its historical data and competitor data means the company is using its assets well to generate more sales.

Total Asset Turnover = Operating Revenue / Average Total Assets

-thanks to zerodha


Financial Ratios - Working Capital Turnover

Financial Ratios - Working Capital Turnover




Working Capital Turnover

Working capital refers to the capital required by the firm to run its day to day operations. To run the day to day operations, the company needs certain type of assets. Typically such assets are – inventories, receivables, cash etc. If you realize these are current assets. A well managed company finances the current assets by current liabilities. The difference between the current assets
and current liabilities gives us the working capital of the company.

Working Capital = Current Assets – Current Liabilities

-zerodha



Bharat forge CMP 650 Strength 1000

Bharat forge CMP 650 Strength 1000




Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 29783.70 Crore) operating in Engineering sector.

Bharat Forge Ltd. key Products/Revenue Segments include Steel Forgings which contributed Rs 3776.83 Crore to Sales Value (92.88 % of Total Sales), Scrap which contributed Rs 157.71 Crore to Sales Value (3.87 % of Total Sales), Export Incentives which contributed Rs 82.87 Crore to Sales Value (2.03 % of Total Sales), Job Work which contributed Rs 26.82 Crore to Sales Value (0.65 % of Total Sales), Dies which contributed Rs 14.03 Crore to Sales Value (0.34 % of Total Sales), Wind Mills which contributed Rs 7.86 Crore to Sales Value (0.19 % of Total Sales)for the year ending 31-Mar-2017.

For the quarter ended 30-06-2017, the company has reported a Standalone sales of Rs 1200.79 Crore, up 6.67 % from last quarter Sales of Rs 1125.66 Crore and up 35.11 % from last year same quarter Sales of Rs 888.76 Crore Company has reported net profit after tax of Rs 175.08 Crore in latest quarter.

The company’s top management includes Dr.T Mukherjee, Mr.Amit B Kalyani, Mr.B N Kalyani, Mr.B P Kalyani, Mr.G K Agarwal, Mr.Kishore Saletore, Mr.Naresh Narad, Mr.P C Bhalerao, Mr.P H Ravikumar, Mr.Pratap G Pawar, Mr.S E Tandale, Mr.S M Thakore, Mr.Vimal Bhandari, Mrs.Lalita D Gupte. Company has SRBC & Co LLP as its auditoRs As on 30-09-2017, the company has a total of 465,588,632 shares outstanding.

Courtesy See More @ :http://bit.ly/2h3iUFI


Top picks for diwali 2017

Diwali 2017: Top investment picks from Geojit Research




According to Geojit Research, the top Diwali 2017 picks include names like Yes Bank, KNR Constructions, NBCC, Aurobindo Pharma, Tata Motors, JK Lakshmi Cement, Aarti Industries, Bharat Electronics and UPL.

Moneycontrol News

It was not the begining which investors or traders expected to be for Samvat 2074. The Nifty and the Sensex saw the biggest fall in recent years during the auspicious Muhurat trading day with the Nifty50 falling 64.30 points or 0.63 percent while the Sensex dipped 0.6 percent or 194.39 points. Bank Nifty was the biggest lower, down 1.25 percent led by ICICI Bank and Kotak Mahindra Bank.

Research and broking firm Geojit Research has come out with investment picks for Diwali 2017 which can give handsome returns.

Yes Bank: Rating: Buy CMP: Rs. 370 Target: Rs. 443 Return: 20%

According to the research firm, advances will maintain strong momentum and continue to grow ahead of industry. It factors advances to grow at 27 percent CAGR over the next two years. On robust business growth and stable asset quality, earnings are expected to grow at a healthy 25 percent CAGR over FY17-19E and deliver an ROE of 19 percent.

At CMP, the stock is trading at P/Adj.BV of 3.3x and 2.8x on FY18E and FY19E, respectively. Considering the positive outlook on the operating metrics, the firm believes that the stock is likely to trade at a premium over its historical average. Geojit values Yes Bank at 3.4x FY19E Adj.BV and recommend Buy with a target price of Rs 443.

KNR Constructions Ltd: Rating: Buy CMP: Rs. 208 Target: Rs. 242 Return: 16%

Geojit expects execution will ramp up as most of the projects are now operational which continue to construct growth. EBITDA margin improved by 317bps to 17.6 percent in Q1FY18 due to better operational performance. The company continues to maintain their order inflow target of Rs 2,000 crore to Rs 2,500 crore in FY18E which is a key trigger to monitor for re-rating.

Consequently, the firm expects order intake to grow at a CAGR of 35 percent over FY17-19E. With better visibility on execution and better operating performance, it increased FY18E/FY19E PAT estimate by 12 percent and 6 percent respectively.

NBCC: Rating: Buy CMP: Rs. 243 Target: Rs. 283 Return: 16%

According to Geojit, with pick up in execution we factored earnings to grow at 42 percent CAGR over FY17-19E supported by 60bps improvement in EBITDA margin. Considering the asset light PMC segment, less leveraged balance sheet and robust opportunities in the pipeline, NBCC will command premium valuation in the construction space. The research firm values NBCC’s core business at a P/E of 32x on FY19E and book value of land parcel at Rs 29/share to arrive at SOTP target price of Rs 283 and assign Buy rating

Tata Motors: Rating: Buy CMP: Rs.424 Target: Rs. 508 Return: 20%

Geojit projects JLR (ex-China) volumes to witness a healthy CAGR of 10 percent during FY17-19E driven by Z success and strong product pipeline. PV segmenth as witnessed traction with the success of recent launches including Tiago,Tigor and Nexon. PV standalone sales growth for the H1FY18 was12 percent YoY.


Courtesy See More @ :http://bit.ly/2yF5QjK



Financial Ratios - Fixed Assets Turnover

Fixed Assets Turnover




The ratio measures the extent of the revenue generated in comparison to its investment in fixed assets. It tells us how effectively the company uses its plant and equipment. Fixed assets include the property, plant and equipment. Higher the ratio, it means the company is effectively and efficiently managing its fixed assets. 

Fixed Assets Turnover = Operating Revenues / Total Average Asset

-Thanks to zerodha 

Stocks And Share Analyst


Financial Ratios - Operating Ratios

Operating Ratios





Operating Ratios also called ‘Activity ratios’ or the ‘Management ratios’ indicate the efficiency of the company’s operational activity. To some degree, the operating ratios reveal the management’s efficiency as well. These ratios are called the Asset Management Ratios, as these ratios indicate the efficiency with which the assets of the company are utilized.19 

zerodha.com/varsity Some of the popular Operating Ratios are:

1. Fixed Assets Turnover Ratio
2. Working Capital Turnover Ratio
3. Total Assets Turnover Ratio
4. Inventory Turnover Ratio
5. Inventory Number of Days
6. Receivable Turnover Ratio
7. Days Sales Outstanding (DSO)


Financial Ratios - Financial Leverage Ratio

Financial Ratios - Financial Leverage Ratio




Financial Leverage Ratio We briefly looked at the financial leverage ratio in the previous chapter, when we discussed about Return on Equity. The financial leverage ratio gives us an indication, to what extent the assets are supported by equity.The formula to calculate the Financial Leverage Ratio is:

Average Total Asset / Average Total Equity

Stocks and Share Analyst


Pricol Limited

Pricol Limited




Pricol Ltd., incorporated in the year 2011, is a Small Cap company (having a market cap of Rs 840.37 Crore) operating in Auto Ancillaries sector.

Pricol Ltd. key Products/Revenue Segments include Motor Vehicles which contributed Rs 1343.51 Crore to Sales Value (96.39 % of Total Sales), Dash Board Instruments which contributed Rs 630.24 Crore to Sales Value (49.82 % of Total Sales), Other Products which contributed Rs 192.07 Crore to Sales Value (15.18 % of Total Sales), Speed Limitation Device which contributed Rs 188.64 Crore to Sales Value (14.91 % of Total Sales), Oil Pump which contributed Rs 111.22 Crore to Sales Value (8.79 % of Total Sales), Other Operating Revenue which contributed Rs 49.17 Crore to Sales Value (3.88 % of Total Sales), Chain Tensioners which contributed Rs 44.84 Crore to Sales Value (3.54 % of Total Sales), Other Auto Components which contributed Rs 40.77 Crore to Sales Value (3.22 % of Total Sales), Idle Speed Control Valve Assembly which contributed Rs 6.89 Crore to Sales Value (0.54 % of Total Sales), Export Incentives which contributed Rs 1.02 Crore to Sales Value (0.08 % of Total Sales)for the year ending 31-Mar-2017.

For the quarter ended 30-06-2017, the company has reported a Standalone sales of Rs 274.99 Crore, up 6.33 % from last quarter Sales of Rs 258.63 Crore and down -15.33 % from last year same quarter Sales of Rs 324.78 Crore Company has reported net profit after tax of Rs 5.03 Crore in latest quarter.

The company’s top management includes Mr.C R Swaminathan, Mr.G Soundararajan, Mr.K Murali Mohan, Mr.R Vidhya Shankar, Mr.Suresh Jagannathan, Mr.Vijay Mohan, Mr.Vikram Mohan, Mrs.Sriya Chari, Mrs.Vanitha Mohan. Company has Haribhakti & Co. LLP as its auditoRs As on 30-09-2017, the company has a total of 94,796,721 shares outstanding.

Courtesy See More @ :http://bit.ly/2h2QwDu

Tuesday, 24 October 2017

Operating Ratios

Operating Ratios



Operating Ratios

Operating Ratios also called ‘Activity ratios’ or the ‘Management ratios’ indicate the efficiency of the company’s operational activity. To some degree, the operating ratios reveal the management’s efficiency as well. These ratios are called the Asset Management Ratios, as these ratios indicate the 
efficiency with which the assets of the company are utilized.19 
zerodha.com/varsity Some of the popular Operating Ratios are:
1. Fixed Assets Turnover Ratio
2. Working Capital Turnover Ratio
3. Total Assets Turnover Ratio
4. Inventory Turnover Ratio
5. Inventory Number of Days
6. Receivable Turnover Ratio
7. Days Sales Outstanding (DSO)

ஷேர்கள் வாங்க, விற்க வழிமுறைகள் ஒரு முதலீட்டாளராக ஷேர் வியாபாரம் செய்யும் வழிமுறை.


ஷேர்கள் வாங்க, விற்க வழிமுறைகள் 
ஒரு முதலீட்டாளராக ஷேர் வியாபாரம் செய்யும் வழிமுறை




1. ஒரு வங்கிக்கணக்கு வைத்திருத்தல்.

2. ஒரு வங்கியிலோ, வேறு நிறுவனங்களிலோ டிமேட் கணக்கு திறத்தல் இதற்கு (PAN) அவசியம்.

3. தங்களுக்கு சௌகரியமான, ஷேர் மார்க்கெட்டில் நல்ல அனுபவம்மிக்க, திறமை வாய்ந்த புரோக்கரை தேர்வு செய்தல் மிக மிக அவசியமான ஒன்றாகும். 

4. கண்டுபிடித்த நபர் NSE அல்லது NSE யின் டிரேடிங் மெம்பர் ஆகவோ அல்லது அவற்றின் டிரேடிங் மெம்பரிடம் அனுமதி பெற்ற சப்-புரோக்கராகவோ இருப்பவர் என்பதை உறுதி செய்து கொள்ளுதல்.

5. சரியாக எழுதப்பட்ட ஒப்பந்தத்தில் Member Constituent அவருடன் கையெழுத்திடுதல்.

Fixed Assets Turnover

Fixed Assets Turnover



The ratio measures the extent of the revenue generated in comparison to its investment in fixed assets. It tells us how effectively the company uses its plant and equipment. Fixed assets include the property, plant and equipment. Higher the ratio, it means the company is effectively and efficiently managing its fixed assets. 
Fixed Assets Turnover = Operating Revenues / Total Average Asset

-Thanks to zerodha 

Stocks And Share 
Analyst

Bharat forge CMP 650 Strength 1000

Bharat forge CMP 650 Strength 1000


ஷேர்கள் வாங்க, விற்க வழிமுறைகள் ஒரு முதலீட்டாளராக ஷேர் வியாபாரம் செய்யும் வழிமுறை.


ஷேர்கள் வாங்க, விற்க வழிமுறைகள் 
ஒரு முதலீட்டாளராக ஷேர் வியாபாரம் செய்யும் வழிமுறை



1. தனக்குத் தேவைப்படும்போது வாங்குவதற்கோ, விற்பதற்கோ எழுத்துமூலம் ஆர்டர்கள் கொடுத்தல்.

2. புரோக்கர் உங்கள் ஆடர்ரை NSE-யில் கொடுத்ததற்க்கான 'கன்ஃபர்-மேஷன்' ரசீது தாளினைக் கேட்டு வாங்குதல்.
3. ஆர்டர் முடிந்ததும், புரோக்கரிடம் டிரேட் கன்ஃபர்மேஷன் தாளினைக் கேட்டு வாங்குதல்
4. வாங்கியதற்கோ, விற்றதற்கோ, 'காண்ட்ராக்ட்' ஸ்லிப் உண்டு. அதில் வாங்கிய (அல்லது விற்ற) விலையும், புரோக்கரேஜ் தொகையும் குறிப்பிடப்படியிருக்கும். அதனைப் பெறுதல்.
5. வரையறுக்கப்பட்டுள்ள காலத்துக்குள் ஷேர் வாங்கியிருந்தால், அதற்கான பணத்தைக் கொடுத்தல். ஷேர் விற்றிருந்தால் 'ஷேர் டெலிவரி' யினைக் கொடுத்தல்.

Monday, 23 October 2017

பரஸ்பர நிதிகளில் பணத்தை முதலீடு செய்யும்பொழுது கவனிக்க வேண்டியவை


பரஸ்பர நிதிகளில் பணத்தை முதலீடு செய்யும்பொழுது கவனிக்க வேண்டியவை 



1. இது வேகமாகப் பணம் செய்வதற்கான வழி (அல்லது குறுக்கு வழி)அல்ல.

2. Systematic Investment Plan எனப்படும் முறையின் மூலம் நாம் மாதம் மாதம் கொஞ்சமாக முதலீடு செய்யலாம். (மாதம் நூறு ரூபாய் என்பது போல)

3. நாம் வாங்கும் யூனிட்டின் NAV என்ன என்று தெரிந்து வாங்க வேண்டும். 

4. நாம் முதலீடு செய்யும் ஸ்கிம் எது, அவர்கள் முதலீடு செய்யும் போர்ட்போலியோ என்ன என்று தெரிந்து வாங்க வேண்டும். 

அதேபோல, அந்தத் திட்டத்தினை நடத்துவதற்கு அவர்கள் விதிக்கும் கட்டணம் என்ன (Exit Load ) என்று தெரிந்து வாங்க வேண்டும்.

Financial Ratios


Financial Ratios





Working Capital Turnover

Working capital refers to the capital required by the firm to run its day to day operations. To run
the day to day operations, the company needs certain type of assets. Typically such assets are –
inventories, receivables, cash etc. If you realize these are current assets. A well managed company
finances the current assets by current liabilities. The difference between the current assets
and current liabilities gives us the working capital of the company.
Working Capital = Current Assets – Current Liabilities

-zerodha




தங்களிடம் உள்ள பணத்தை ஷேர் வியாபாரத்தில் முதலீடு செய்ய விருப்பமா?


தங்களிடம் உள்ள பணத்தை ஷேர் வியாபாரத்தில் 
முதலீடு செய்ய விருப்பமா? 


1.முதலில் இதற்கான எவ்வளவு பணம் என்று ஒரு தொகையினை, தெளிவாக முடிவு செய்து கொள்ளவும்.


2.அந்த பணம் நிச்சயமாக சொந்தப் பணமாக தான் இருக்க வேண்டும்.

3.அதாவது வட்டிக்கு கடன் வாங்கி ஷேர் வியாபாரம் செய்ய வேண்டாம்.

4.அதேபோல, முடிவு செய்த பணத்துக்கு மேல் கட்டாயம் போக வேண்டாம்.

5.எந்த நிறுவன ஷேர்களை வாங்குவது என்று நன்கு ஆராயந்து, 
தகவல்களின் அடிப்படையில் முடிவு எடுக்க வேண்டும்.

6.உங்கள் பணத்தை எவ்வளவு நாள்கள் இதில் விட்டு வைக்கலாம் என்பதைப் பொறுத்தே வாங்கும் ஷேர்கள்.



Total Assets Turnover

Total Assets Turnover



This is a very straight forward ratio. It indicates the company’s capability to generate revenues
with the given amount of assets. Here the assets include both the fixed assets as well as current
assets. A higher total asset turnover ratio compared to its historical data and competitor data
means the company is using its assets well to generate more sales.
Total Asset Turnover = Operating Revenue / Average Total Assets
-thanks to zerodha

தங்களிடம் உள்ள பணத்தை ஷேர் வியாபாரத்தில் முதலீடு செய்ய விருப்பமா?


தங்களிடம் உள்ள பணத்தை ஷேர் 
வியாபாரத்தில் முதலீடு செய்ய 
விருப்பமா? 


7.ஒரே நிறுவன ஷேரில் எல்லாவற்றையும் போட்டு விட வேண்டாம்.ஒரளவேனும் பரவலான முதலீடு செய்ய வேண்டும்.


8.கண்காணிக்கக் கூடிய எண்ணிக்கையிலான நிறுவன ஷேர்கள் மட்டுமே வாங்க வேண்டும். 

9.வாங்கிய பிறகும், அவற்றின் (அந்த நிறுவனச் செயல்பாடுகள், பங்குச்சந்தை நிலைமை, அந்தத் தொழில் நிலைமை) போக்கு பற்றித் தொடர்ந்து கண்கானிக்க வேண்டும்.

10.நாம் எதிர்பார்த்த அளவு முதல் பெருக்கம் கிடைத்ததும், அந்த பங்கினை விற்றுவிட்டு வெளியே வந்து விடலாம்.

11.நமது முடிவுகளில் தவறு என்று தெளிவாகத் தெரிந்தால், லாபமோ நஷ்டமோ உடனே தயங்காமல் உடனே விற்று விட்டு வெளியே வந்து விட வேண்டும்.

12.மிக நல்ல சந்தர்பங்களைச் சரியாகப் பயன்படுத்தி கொண்டு வாங்க வேண்டும்.



Financial Ratio

Financial Ratio 



Inventory Number of days

While the Inventory turnover ratio gives a sense of how many times the company ‘replenishes’
their inventory, the ‘Inventory number of Days’ gives a sense of how much time the company
takes to convert its inventory into cash. Lesser the number of days, the better it is. A short inven-
tory number of day’s number implies, the company’s products are fast moving. The formula to
calculate the inventory number of days is:
Inventory Number of Days = 365 / Inventory Turnover

Saturday, 14 October 2017

TMB IPO

TMB IPO




The 96-year-old bank will list to meet Reserve Bank of India regulations.

IPO of 96-year-old TMB bank likely in this year ... IPO, private placement, and Listing at Attractive Price (maybe at 800-850 range). Book value 235/ sh. Equity 143 cr pat 2016 March was 400 cr EPS 28/sh. Pat 325 EPS 22 for March 17 due to higher one-time provisioning as per RBI directive. Dividend 40% more than 500 branches pat per branch 80 lac. Current Market Price 460 (unlisted).
One of India's oldest private banks in Tamil Nadu Mercury Bank (Tamilnad Mercantile Bank Limited).
In the past 2011, the one of the best Indian Bank's ranking in the list of great Indian banks in the list of Tamil Nadu.

The ' Pikcaṭ setup ' is called as ' Pikcaṭ ' in the time of time, at least one year, and banks are offering a maximum of 10.25 % interest. More, the interest of the senior citizens is given more than this. In this way, in order to get more interest, in, Tamil Nadu Mercury Bank in appointing. This bank will deposit a 10.25 % interest to deposit account. I mean, 10 thousand rupees, when investment, 11 k15 will get 65 rupees. In this situation Tamilnadu merkaṉṭail bank publishes IPO.

- thank you currency vikatan

The 96-year-old bank will list to meet Reserve Bank of India regulations.
IPO of 96-year-old TMB bank likely in this year ... IPO, private placement, and Listing at Attractive Price (maybe at 800-850 range). Book value 235/ sh. Equity 143 cr pat 2016 March was 400 cr EPS 28/sh. Pat 325 EPS 22 for March 17 due to higher one-time provisioning as per RBI directive. Dividend 40% more than 500 branches pat per branch 80 lac. Current Market Price 460 (unlisted).. Dividend 40% more than 500 branches pat per branch 80 lac. Current Market Price 460 (unlisted).



Financial Ratios - Debt to Asset Ratio

Financial Ratios - Debt to Asset Ratio





Debt to Asset Ratio

This ratio helps us understand the asset financing pattern of the company. It conveys to us how much of the total assets are financed through debt capital.The formula to calculate the same is:Total Debt / Total Assets Stocks and Share Analyst



Financial Ratios







Debt to Equity Ratio

This is a fairly straightforward ratio. Both the variables required for this computation can be found in the Balance Sheet. It measures the amount of the total debt capital with respect to thetotal equity capital. A value of 1 on this ratio indicates an equal amount of debt and equity capital.Higher debt to equity (more than 1) indicates higher leverage and hence one needs to be careful.
Lower than 1 indicates a relatively bigger equity base with respect to the debt.The formula to calculate Debt to Equity ratio is:[Total Debt/Total Equity]


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Financial Ratio Analysis

Financial Ratio Analysis




The Leverage Ratios

1.Interest Coverage Ratio
2. Debt to Equity Ratio
3. Debt to Asset Ratio
4. Financial Leverage Ratio

Interest Coverage Ratio:

The interest coverage ratio is also referred to as debt service ratio or the debt service coverage ratio. The interest coverage ratio helps us understand how much the company is earning relative to the interest burden of the company. This ratio helps us interpret how easily a company can pay its interest payments. For example, if the company has an interest burden of Rs.100 versus an income of Rs.400, then we clearly know that the company has sufficient funds to service its debt.

However, a low-interest coverage ratio could mean a higher debt burden and a greater possibility of bankruptcy or default.



Atul Auto Ltd Buy

Atul Auto Ltd Buy





Atul Auto Ltd., incorporated in the year 1986, is a Small Cap company (having a market cap of Rs 1045.98 Crore) operating in Auto sector.

Atul Auto Ltd. key Products/Revenue Segments include Automobile - 3 Wheelers which contributed Rs 456.76 Crore to Sales Value (96.09 % of Total Sales), Spare Parts & Others which contributed Rs 15.40 Crore to Sales Value (3.24 % of Total Sales), Other Operating Revenue which contributed Rs 3.13 Crore to Sales Value (0.65 % of Total Sales) and Traded Goods which contributed Rs .04 Crore to Sales Value (0.00 % of Total Sales)for the year ending 31-Mar-2017.

For the quarter ended 30-06-2017, the company has reported a Standalone sale of Rs 115.53 Crore, up 11.86 % from last quarter Sales of Rs 103.28 Crore and up 24.96 % from last year same quarter Sales of Rs 92.45 Crore Company has reported a net profit after tax of Rs 7.81 Crore in latest quarter.

The company’s top management includes CA.Hemantkumar J Bhatt, Dr.Margie S Parikh, Dr.Vijay K Kedia, Mr.Hakubhai J Lalakiya, Mr.Hasmukh H Adhvaryoo, Mr.Jayantibhai J Chandra, Mr.Mahendrakumar J Patel, Mr.Niraj J Chandra. The company has Maharishi & Co as its auditors As on 30-09-2017, the company has a total of 21,943,200 shares outstanding.

Courtesy see more @ http://bit.ly/2yn5KfH


Return on Capital Employed (ROCE)

Return on Capital Employed (ROCE)




The Return on Capital employed indicates the profitability of the company taking into consideration
the overall capital it employs.

Overall capital includes both equity and debt (both long term and short term).

ROCE = [Profit before Interest & Taxes / Overall Capital Employed]
Overall Capital Employed = Short term Debt + Long term Debt + Equity

From ARBL’s Annual Report we know:

Profit before Interest & Taxes = Rs.537.7 Crs

Overall Capital Employed:

Short term debt: Rs.8.3 Crs
Long term borrowing: Rs.75.9 Crs
Shareholders equity = Rs.1362 Crs
Overall capital employed: 8.3 + 75.9 + 1362 = 1446.2 Crs
ROCE = 537.7 / 1446.2 = 37.18%


Friday, 13 October 2017

Financial Ratio - Return On Asserts

Financial Ratio - Return On Asserts




The Return on Equity (ROE) is a very important ratio, as it helps the investor assess the return the shareholder earns for every unit of capital invested. RoE measures the entity’s ability to generate profits from the shareholder's investments. In other words, RoE shows the efficiency of the company in terms of generating profits to its shareholders. Obviously, higher the RoE, the better it is for the shareholders. In fact, this is one of the key ratios that help the investor identify investable attributes of the company. To give you a perspective, the average RoE of top Indian companies vary between 14 – 16%. I personally prefer to invest in companies that have a RoE of 18% upwards.

This ratio is compared with the other companies in the same industry and is also observed over time.Also note, if the RoE is high, it means a good amount of cash is being generated by the company, hence the need for external funds is less. Thus a higher ROE indicates a higher level of management performance.

RoA = [Net income + interest*(1-tax rate)] / Total Average Assets
From the Annual Report, we know:

Net income for FY 14 = Rs.367.4 Crs

And we know from the Dupont Model the Total average assets (for FY13 and FY14) = Rs.1955 Crs So what does interest *(1- tax rate) mean? Well, think about it, the loan taken by the company is also used to finance the assets which in turn is used to generate profits. So in a sense, the debt holders (entities who have given a loan to the company) are also a part of the company. From this perspective, the interest paid out also belongs to a stakeholder of the company. Also, the company benefits in terms of paying lesser taxes when interest is paid out, this is called a ‘tax shield’.For these reasons, we need to add interest (by accounting for the tax shield) while calculating the
ROA.

The Interest amount (finance cost) is Rs.1 Cars, accounting for the tax shield it would be = 7* (1 – 32%)= 4.76 Crs. Please note, 32% is the average tax rate.

Hence ROA would be – ROA = [367.4 + 4.76] / 1955 ~ 372.16/ 1955 ~19.03%



Return on Equity (RoE)

Return on Equity (ROE)



The Return on Equity (ROE) is a very important ratio, as it helps the investor assess the return the shareholder earns for every unit of capital invested. ROE measures the entity’s ability to generate profits from the shareholder's investments. In other words, RoE shows the efficiency of the company in terms of generating profits to its shareholders. Obviously, higher the RoE, the better it is for the shareholders. In fact, this is one of the key ratios that help the investor identify investable attributes of the company. To give you a perspective, the average RoE of top Indian companies vary between 14 – 16%. I personally prefer to invest in companies that have a RoE of 18% upwards.
This ratio is compared with the other companies in the same industry and is also observed over time.

Also note, if the RoE is high, it means a good amount of cash is being generated by the company, hence the need for external funds is less. Thus a higher ROE indicates a higher level of management performance.

RoE can be calculated as: [Net Profit / Shareholders Equity* 100]

There is no doubt that RoE is an important ratio to calculate, but like any other financial ratios, it also has a few drawbacks. To help you understand its drawbacks, consider this hypothetical example.Assume Vishal runs a Pizza store. To bake pizza’s Vishal needs an oven which costs him Rs.10,000/-. The oven is an asset to Vishal’s business. He procures the oven from his own funds and seeks no external debt. At this stage, you would agree on his balance sheet he has a shareholder equity of Rs.10,000 and assets equivalent to Rs.10,000.

Now, assume in his first year of operation, Vishal generates a profit of Rs.2500/-. 

What is his RoE?

This is quite simple to compute: RoE = 2500/10000*100 =25.0%.

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GODERJ AGROVET LIMITED

GODERJ AGROVET LIMITED




Godrej Agrovet IPO subscribed 2.37 times on Day 2 

NEW DELHI: The Rs 1,157-crore initial public offer (IPO) of Godrej Agrovet (GAVL) was subscribed 2.37 times on day two of the bidding process on Thursday. 

The public offer received bids for 4,19,93,536 shares against 1,80,27,464 shares offered by the company, according to data available with NSE until 5 pm. 

The offer had been subscribed over 52 percent on the first day of the bidding process on Wednesday. 

On Tuesday, the company allotted 74.17 lakh shares to 25 anchor investors including Reliance capitalize -0.54 % Trustee Company, SBI Life Insurance Company, Nomura, Goldman Sachs, Government of Singapore, among others, at Rs 460 apiece. 

Godrej IndustriesBSE 1.03 % owns 60.81 percent stake in Godrej Agrovet and intends to use the IPO proceeds towards loan repayments and other general purposes. 

The company is the largest palm oil producer in India. Its joint venture in Bangladesh is the fourth largest feed producer in terms of sales volume. 

courtesy see more @ http://bit.ly/2xD0Szq






Financial Ratios

 

Financial Ratios







PAT Margin

While the EBITDA margin is calculated at the operating level, the Profit After Tax (PAT) margin is calculated at the final profitability level. At the operating level, we consider only the operating expenses, however, there are other expenses such as depreciation and finance costs which are not considered. Along with these expenses, there are tax expenses as well. When we calculate the PAT margin, all expenses are deducted from the Total Revenues of the company to identify the overall profitability of the company.

=10.5 %

PAT Margin = [PAT/Total Revenues]
PAT is explicitly stated in the Annual Report. ARBL’s PAT for the FY14 is Rs.367 Crs on the overall revenue of Rs.3482 Crs (including other income). 

This translates to a PAT margin of: = 367 / 3482 =10.5 %



Wednesday, 11 October 2017

What You Need To Get Started With Mutual Fund Investing?

What You Need To Get Started With Mutual Fund Investing?




To start investing in a fund scheme you need a PAN, bank account and be KYC (know your client) compliant. The bank account  should be in the name of the investor with the Magnetic Ink Character Recognition (MICR) and Indian Financial System Code  (IFSC) details. These details are mentioned on every cheque leaf and it is common for an agent or distributor to seek a  cancelled bank cheque leaf.

How to get your KYC?

The need for KYC is to comply with the market regulator SEBI in accordance with the Prevention of Money laundering Act, 2002  ('PMLA'), which undergo changes from time to time.

KYC process is investor friendly and is uniform across various SEBI regulated intermediaries in the securities market such as  Mutual Funds, Portfolio Managers, Depository Participants, Stock Brokers, Venture Capital Funds, Collective Investment  Schemes and others. This way, a single KYC eliminates duplication of the KYC process across these intermediaries and makes  investing more investor friendly.

Documents required to be submitted along with KYC application

*Recent passport size photograph
*Proof of identity such as a copy of PAN card or UID (Aadhaar) or passport or voter ID or driving licence
*Proof of address passport or driving license or ration card or registered lease/sale agreement of residence or latest bank  A/C 

You will need to submit copies of all these documents by self-attesting them along with originals for verification. In case  the original of any document is not produced for verification, then the copies should be properly attested by entities  authorised for attesting the documents. In case you are unable to furnish proper documents, it could result in delays in  getting a KYC.

Resident Indians can get it attested by: Notary public, Gazetted officer, Manager of a scheduled commercial or co-operative  bank or multinational foreign banks. Make sure the name, designation and seal is affixed on the copy.

NRIs can get attestation from: Authorised officials of overseas branches of scheduled commercial banks registered in India,  notary public, court magistrate, judge, Indian Embassy in the country where the client resides.

How to check your KYC status?

Existing investors and those who have submitted their applications can check the status on KYC compliance with their PAN  number.

Mutual fund is actually one of your best bets for investment, since you don't need to put your money anywhere else. Mutual  funds diversify your investment by putting your money in government bonds, policies, stocks and shares, commodities etc. 

KKP Capital offers a wealth of mutual fund choices along with the competitive advice to help you invest wisely.
Before Investing Mutual Fund, get assistance from Mutual Fund Advisor Mr. MK Prabhagharan.

Benefits of Investing in Stocks

Benefits of Investing in Stocks



Higher Liquidity: In the Indian stock market, two exchanges, the Bombay Stock Exchange (BSE) and National Stock Exchange  (NSE) play important roles. Most companies trade their shares on either or both of these exchanges. This provides higher  liquidity to investors because average daily volumes are high. Therefore, if an investor wants to buy or sell any product on  the stock exchanges, this liquidity makes it easy. Best Share Broking Company In Tamilnadu, We wish to work together with you  to increase your assets and secure your future.

Versatility: The stock market offers different financial instruments, such as shares, bonds, mutual funds, and derivatives.  This provides investors a wide choice of products in which to invest their monies. In addition to providing investment  choices, this flexibility is beneficial in mitigating the risks inherent to stock investing by enabling diversification of  investment portfolios.
Higher Returns in Shorter Periods of Time: Compared to other investment products like bonds and fixed deposits, stock  investing provide investors an excellent possibility of making greater returns in comparatively shorter time periods.  Adhering to the stock market basics, such as planning the trade, using stop-loss and take-profit triggers, doing the research  and due diligence, and being patient can significantly mitigate the risks inherent to stock investing and maximize the  returns on share market investments.

Acquire Ownership and Right to Vote: Even if an investor acquires a single share in a company, he acquires a portion of  ownership in the company. This ownership, in turn, provides investors the right to vote and offer his contribution in the  strategic movement of the business. Although this may seem like an exaggeration, it is true and there are several instances  when shareholders have prevented company management from making unreasonable decisions that are detrimental to their  interests.

Regulatory Environment and Framework: The Indian stock market is regulated by the Stock Exchange Board of India (SEBI). The  SEBI has the responsibility of regulating the stock exchanges, its development, and protecting the rights of the investors.  This means when investors invest in financial products on the stock market, their interests are well-protected by a  regulatory framework. This significantly helps in reducing risks due to fraudulent activities of companies.

Convenience: Technical development has influenced every aspect of modern living. The stock exchanges are also using various  technical advancements to provide greater convenience to the investors. The trades are all executed on an electronic platform  to ensure the best investment opportunities to investors in an open environment. Best Share Broking Company In Tamilnadu  offer share trading facilities that make investing convenient, because investors can place their orders through a computer  from the comfort of their homes or offices. 

Although stock investing has several benefits, investors must also be cautious while making their decisions. Understanding  the stock market basics and doing their research before investing is advisable to mitigate risks and maximize returns. To  know more visit www.mkprabhagharan.com.