India is 3rd largest producer of chemicals in Asia, 6th largest in the world and chemicals sector contribute to around 8% of GDP. India is steadily moving up the rank as global economic power and becoming business magnet for investment. High domestic consumption, Diversified industry, Ease in doing business and Increased Export demand from developed nations are the key drivers for success of the sector. The economic influence of the sector is promising for the future.
Udit Garg
Published on 15/06/2022 01:05 PM
Most of what I previously wrote was from our point of view, our vision, our ideas etc. However this is one from the other end. Over the past year I have interacted with nearly 500 professional investors, fund managers, brokers, analysts, bankers, consultants across all sizes of institutions. I saw them as my advisors, mentors, clients, friends and took in whatever they had to throw at us. Went back to our desks, updated our plans and solved the problems that they gave us.
Published on 08/06/2022 11:34 AM
Hope you grabbed one of the biggest opportunities in the last couple of years. Markets got very jittery (from weak) around Sept last year and remained so till Feb this year. No one can say for sure what it will be like going forward, however in hindsight it seemed like the best opportunity over the past couple of years. I am sure the stock pickers had their picks – many stocks have bounced back (nearly doubling back from lows), several others failed to recover. A lot of investors I met over the past couple of years tend to think that fundamental analysis is just looking at the past financial data and making screens on them. I for one believe that there is more to it. Some of it is do with the innate ability with which you look at businesses and how they can make money. It is like a test match – long, patient, difficult but immensely satisfying for the purists. And like all matches there are risks associated including (but not limited to) things such as weather changes! DistrictD brings to you your own fundamental analysis gear, which can help you in your test match. Some of the stuff we have done over the past year and have in works are in PS below. Also just felt like sharing an interesting read on customer servicing from a fellow entrepreneur. @Jatin Gujrati – hear you on this. PS – Key features we have added last year Company Models increased from c.300 to c.800 now Datasets – Quarterly results, Shareholding patterns, Business factors – Geographical presence, Products and services, Operational and financial Metrics etc. Color coded quarterly results analysis screen Better productivity tools – Notes – Upload attachments, Calendar (Added corporate actions, earnings con call updates), Important links to transcripts, presentations etc, Daily email updates on followed companies. Upcoming features Industry level datasets and quarterly business metrics Advanced stock filtering – across various financial, valuation, business metrics Working on consensus (still !!, yes it is taking some time)
Priyanka Gandhi
Published on 31/05/2022 04:41 PM
This is a followup to our previous blog where we had presented the implied growth rates in some companies stock prices. Given the good response that we got, we have decided to run a small screen on implied growth rates every week on Thursdays. Please do send in your requests if there is a specific company/space where you want us to run this. The only rule for this screen is Same macro assumptions for all – WACC of 12%, terminal growth 3% and 10 years of growth. In the last blog, we used 15% WACC, but that seems high in the current context. Nonetheless we want to treat all companies to a similar discount rate and macros for sake of simplicity. One can obviously go back to our site and use it to test for more company specific Cost of Capital and other parameters to assess the fair values. For this blog we have chosen a mix of consumer companies, showing the variations between various segments there.
Elections got announced few days back, yet will remain as The News on every channel for the next two months. An event like that will allow media to generate more news everyday – opinion polls, voter surveys, panel discussions just to create derivative content and milk every event to its fullest. In our context, the primary event of interest is quarterly results, which provides us with a glance into the performance of our companies. So the problem we are trying to help resolve with this blog is – Are we making the most out of the information the results season provides us? To help process this, we had prepared the quarterly results screen. Based on user feedback, we have improved the screen now. In this iteration of the screen we have improved it broadly on two counts: Increased the data fields in the screen – included EBITDA growth, CMP/M.Cap, More valuation parameters and target price set by users. We also added a row on average of the universe selected. Enhanced UX – User defined color coding of key fields as Green and Red to highlight and identify strong and weak performers across large company sets. I have been positive on the chemicals sector in India over the past year or so. So I checked the screen below – and interestingly companies which beat our forecasts (see YTD% achieved, green cells v/s red cells) actually saw better share price performance than others.
Published on 04/04/2019 12:00 AM
Another results season and another set of broker downgrades of Nifty EPS have gone by. I thought the downgrades came a month too late. The markets had already fallen, and the downgrades were only a post-facto reporting of what had already happened. To most informed investors it would not have been any news. Even now I think just following the headlines maybe misleading. For one, while at aggregate level PAT growth maybe missing, the revenues for most players have actually been good, so in some sense it is the margins that have taken a hit and not core growth. Secondly, as is usually the case, there is significant divergence in performances of individual companies – Most commodity companies have benefited from better prices, yet Vedanta’s performance has been weak. Reliance has seen nearly 50%!!! revenue growth (y/y) and telcos have been hurt.
Published on 21/11/2018 12:00 AM