DistrictD

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ANALYSE MARKET DYNAMICS LIKE A BOSS

The past few weeks have been about currency wars, trade wars and a lot of things moving about and on within India itself. As a result stock markets have also been moving around. This does indeed present opportunities for investors – “buy into interesting stocks which have corrected a bit?” or “play into the export theme?” or “sell when there is still a good price?”. Either ways the dynamics of market are what keeps the juices going for us. We believe that humans aided by technological tools can analyse much better and deeper than either a purely human driven approach or a purely algo driven one. So we feel any analyst aided by their intellect and using DistrictD web models and tools can analyse the market dynamics like a boss. The models allow them to do varied analysis such as calculating the impact of INR depreciation on IT companies, Or the impact of Rising fuel prices on Airline companies profitability; Or commodity prices on any of the metals/mining companies etc. Stock buybacks, fund raising, cost of capital and several other themes can be analysed using our models.

Udit Garg

Published on 07/09/2018 12:00 AM

THE TECHIE FUND MANAGER!

Indian equity markets have grown at a rapid pace over the past 2-3 years. Domestic flows have gone up several fold over this time frame as the new generation is finally waking up to capital markets as a viable end for their savings. This shift in the asset allocation from banking system, real estate and gold towards financial assets such as stocks, insurance etc has meant that equity markets have seen strong flows. This liquidity flow coupled with rising stock prices has meant that suddenly fund managers are saddled with lots of money and expensive valuations. This has led to a peculiar problem for modern fund managers in India, how to deploy this large pool of money that is coming in and where to find new ideas from. Further the number of investible companies have been growing steadily, fueled by number of IPOs and growing small-cap/mid-cap companies that are now making the cut.

Udit Garg

Published on 12/03/2017 12:00 AM

THE UTOPIAN DREAM

We wonder Why do retail investors lose money each time? Why do analysts cover only top 100 companies, whereas there are so many hidden gems beyond that? Why is critical information held in silos or with certain cliques for profiteering? Why is investing the domain of only a few elite?

Udit Garg

Published on 13/01/2017 12:00 AM

FINANCIAL MODELS AND THEIR NUANCES (PART 2)

Continuing from our previous post on Financial models… In this post we talk about the other two components of Financial models. The reason we have separated these posts is to differentiate the “Science” from the “Art”. We believe that Historical data and the Business Model represent the science of investing. They are quantifiable and objective in nature. Whereas the Assumptions for future drivers and valuations are more of Art. Future assumptions are always subjective in nature and can be debatable – perception for the future outlook of businesses can vary between investors, management and other stakeholders. Similarly valuation is a fluidic topic and is a subject of great debate and argument between investors.

Udit Garg

Published on 13/01/2017 12:00 AM

THE FANTASTIC STORY THAT IS INDIAN EQUITY MARKETS

Despite this we have only models for less than 20% of the listed companies in India. There are still many industries that are not covered even now and even many companies in the sectors that we have solved. This just goes on to show how large and vast the Indian equity markets are. Every few months new IPOs of very interesting companies come up. We are making it a habit of putting out models for IPO companies before the IPO – to allow investors to make their own unbiased decisions (after all one has to invest looking in mind the future and not the past performance as given in the prospectus). – This means the task is only getting tougher and bigger for us. But spare a thought for investors, who need to know, remember and process this ever increasing information pool.

Udit Garg

Published on 13/01/2017 12:00 AM

MARKETS AND COLLECTIVE WISDOM

In a previous post we talked about our handmade(!) financial models. But just because we have put in the effort to create these models, doesn’t mean we stop there. To our mind the models are only the starting point. We are building a large set of tools that will help users to make better sense of the data by Comparing it across dimensions such as companies, users, time, industries, geographies and more, Valuing it better using not only standard benchmarks, but also custom made ones, Estimates of market expectations at overall as well as granular level (think – volume growth expectations). Better trend analysis of expectations and actual performance – both markets and own … and as our product matures, there will be a lot more.

Udit Garg

Published on 13/01/2017 12:00 AM

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