Author: Dinesh Sairam

Dinesh: Investor | Risk Consultant | Finance Geek | Writer @Quora | Blogger | Poet | MBA from XIME

This Famous Wall Street Metric Can Aid Your Trading and Investing Decisions

Reading Time: 8 minutes Value at Risk or VaR as it’s usually referred to, is a Risk Management metric widely used by many Banks and Investment Banks around the world. The post explores the basics of the definition, the calculation and the usage of this famous Wall Street Metric. If you’ve watched the movie ‘Margin Call‘, there is a […]

Valuation in Motion: Cupid Limited Valuation: David Vs. Goliath

Reading Time: 8 minutes Cupid Island One of the more interesting campaigns was done by Cupid Limited recently. In July 2020, Cupid inaugurated ‘Cupid Island’ at City Center Mall Square in Nashik. It has a statue of a couple with Umbrella in rain surrounded by a beautiful garden and a statue of Cupid (The Roman God of Love). This island […]

Valuation in Motion: HDFC AMC IPO Valuation: Speed Demon

Reading Time: 8 minutes ‘Mutual Funds Sahi Hai’ says a famous Indian TV advertisement. While the slogan is used and abused several times over, the sentiment seems to ring true with many Indians. We know for a fact that only 2-3% of India invests in Equities directly or in Mutual Funds. However, the general trend is that the number […]

Valuation in Motion: D-Mart Valuation: The 100 P/E Conundrum

Reading Time: 8 minutes Avenue Supermarts Limited, or D-Mart as it is better recognized, is a curious case. The stock trades on the Indian markets at a staggering P/E of 118. Although absolute P/E levels are nowhere near indicative of undervaluation or overvaluation of a stock, we still have to ask, how much is too much? Today, we will […]

Valuation in Motion: Harita Seating Systems Valuation: Buying Things Well

Reading Time: 9 minutes Have you ever traveled in Bharat Benz, Volvo or Scania bus? Or for folks who are living / have lived in Karnataka, traveled in a BMTC bus? Chances are, you might have unwittingly used the product(s) of Harita Seating Systems — a not-so-well-known seat manufacturer. The Company It may come as a pleasant surprise to […]

Valuation in Motion: Goodyear India Valuation

Reading Time: 11 minutes In his book “Poor Charlie’s Almanac”, Berkshire Hathaway’s Vice Chairman Mr. Charlie Munger talks about an informal speech he gave in 1996, titled “Practical Thought About Practical Thought?“. He warns that not many people understood his talk and it was practically a communication failure. But at the crux of this speech lies hidden a valuation […]

Valuation in Motion: DHFL Valuation: When the Facts Change..

Reading Time: 9 minutes Disclaimer: After the Cobrapost expose, there has been a lot of noise around whether the numbers reported by DHFL are genuine or not. While a rebuttal from the Management is expected, as a responsible student of valuation, I ask that you take this post with a mountain of salt. There’s a famous quote in relation […]

Valuation in Motion: CCL Products (India) Valuation: Freshly Brewed Value

Reading Time: 9 minutes Everyone loves coffee and not just in India. Coffee is loved globally and even today, it is one of the most sought-average hot beverage by a long margin. So, it’s not far-fetched to say that CCL Products (India) is in a sweet spot, operating in such a niche industry. The Company CCL Products (India), a […]

Valuation in Motion: Kajaria Ceramics Valuation: Regaining Lost Ground?

Reading Time: 8 minutes I was recently touring the beautiful hill station of Munnar in Kerala. To my surprise, the way to Munnar and back was covered with several hoardings of Kajaria Ceramics, the market leader in the Tiles segment. I had been following it earlier on and off, and with the recent slide in its share price, I […]

Valuation in Motion: Motherson Sumi Systems Valuation: Saving the Hippopotamus

Reading Time: 12 minutes If you’ve ever owned a car, you are sure to have used this company’s products. With that bold opening statement, let’s attempt to unravel the story and the numbers behind one of the largest Retail Automotive players in the country: Motherson Sumi Systems Limited (MSSL). The Company Motherson Sumi Systems Limited (MSSL) is the flagship […]

GlaxoSmithKline Consumer Healthcare Valuation: Buyers’ Remorse or Sellers’ Dilemma?

Reading Time: 11 minutes Taller. Stronger. Sharper. These three words are synonymous with the childhood of several Indians. Indeed, it’s the tagline of ‘Horlicks’, the health drink produced by GlaxoSmithKline (GSK) Consumer Healthcare. The company has several other impressive brands under their portfolio such as Boost, Viva, Maltova, Crocin, Sensodyne, Eno and Iodex. But that’s not the talk of […]

Tools of the Modern Day Investing Process

Reading Time: 4 minutes In this day and age, information has become a commodity. You can do an end-to-end research and analysis of a company by sitting in the comfort of your home. So in a way, several websites have become a necessary addition to an investor’s toolkit. Here are a few investing websites I use (Most of them […]

Data Update and Economic Value Added (EVA)

Reading Time: 8 minutes Starting from 2019, I will be making the ‘India Inc., in Numbers’ series of posts once a year. I will be showcasing how the different companies / industries in India have fared in terms of several financial ratios and others numbers. India Inc., in Numbers In case you are wondering where I got the idea, […]

How Much Cash is Too Much Cash?

Reading Time: 12 minutes Central Depository Services Limited. If you’ve been investing in Equities or Debt in India, there’s an almost 50% chance that you’ve heard about this company. In fact, if you’re an investor in India, there’s also an almost 50% chance that you’re currently using the services of this company. Otherwise known as CDSL, it is the […]

Valuation in Motion: The Intrinsic Value Puzzle: Components and Case Studies

Reading Time: 9 minutes What is the ‘Intrinsic Value’ of a Stock? What are its components? How do they affect the way the company’s Stock is likely to behave? We will attempt to answer these seemingly daunting questions in simple terms and with relevant, real world examples. Intrinsic Value – What is it Anyway? If you have been reading […]

Valuation in Motion: Indian Energy Exchange Valuation: Odds, Bets and Handicapping

Reading Time: 9 minutes Indian Energy Exchange (IEX) is the premier Energy trading platform of India. The government’s goals, tuned towards better infrastructure and better industrial output, puts IEX in a sweet spot. But is the market paying up for the growth ahead or is it overpaying for opportunities that aren’t even there? The Company Indian Energy Exchange (IEX) […]

Valuation in Motion: VIP Industries Valuation: Old Dog, New Tricks

Reading Time: 9 minutes VIP Industries is the market leader of the luggage industry in India. VIP, Aristocrat, Skybags, Carlton, Caprese — these are some of the most recognizable brands for consumers in this segment. Faced with stiff competition from the likes of Safari and Samsonite, dealing with the resignation of Mrs. Radhika Piramal from the active management activities […]

Valuation in Motion: Godrej Consumer Products Limited Valuation: Share of Mind

Reading Time: 12 minutes Hair colors, hair care, hair salons, mosquito repellents, household insecticides, bathing soaps, air fresheners, wet tissues, liquid detergents: These products cover the impressive breadth of the consumer needs this company solves. Godrej Consumer Products Limited. If you haven’t heard the name, you have most probably used the company’s products at least once in your life. […]

What is the ‘Double Irish with a Dutch Sandwich’?

Reading Time: 5 minutes I have been indexing my Quora answers of late. I came across a particularly interesting one which I thought I should share with a wider audience. So, here’s a light weekend read. Hopefully, you will have learnt something new and interesting. ‘Double Irish with a Dutch Sandwich’ is a tax-avoidance strategy famously employed by corporations […]

Valuation in Motion: RBL Bank Valuation: Bank or Banker?

Reading Time: 12 minutes It may come as a surprise to some of you that RBL Bank, despite having caught the attention of the media only a few years ago, is actually a considerably old bank. It was incorporated in Kolhapur, Maharashtra in 1943 as ‘Ratnakar Bank’. It has come a long way since then. In line with its […]

Valuation in Motion: ‘Doing Nothing’ Investing: A Thought Experiment

Reading Time: 4 minutes If you have been reading my blog posts since a long, long time, you may appreciate the fact that ‘Masterly Inactivity: A Case for Very Long Term Passive Investments‘ was one of my earliest posts here. Since it had more to do with dissecting why passive investments work, it really didn’t do the title justice. […]

Valuation in Motion: Petronet LNG Valuation: Schrödinger’s Stock

Reading Time: 6 minutes Considering how the domestic gas supply isn’t up to the mark, LNG regasification businesses will have to depend on imports to fill the gap. Note: Risk-free Rate The current 30-year GOI Bond Yield (Which I consider to be the Risk-free Rate for Indian investments) is trading at 6.863% Note: Cost of Capital I did calculate […]

Valuation in Motion: The Importance of Margin of Safety in Life and Investing: Only the Paranoid Survive

Reading Time: 5 minutes If someone asked me, “What is one investing rule you would never break?“, I would immediately say “Margin of Safety” without flinching. In fact, it has almost become an instinct for me to claim a Margin of Safety for every single one of my investment ideas. Why is being cautious so important in investing? Margin […]

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