Monday 31 December 2012

Incredible Stocks - CEBBCO


Stock Investments will bring you good rewards if you invest in good companies even if belonging to diverse sectors having long term relevance. In this post we will discuss about one such little known company which has a niche market and - in our opinion - a long term relevance.

Commercial Engineers and Body Builders Co. Ltd (CEBBCO) is

Friday 28 December 2012

Stock Valuation - More on PE

In our post on Valuation by PE we discussed how PE gives more insights than CMP when valuing stocks for investments. Let us continue with some detail discussion about PE ratio, which may help us in learning to invest better.

PE ratio reflects the

Monday 24 December 2012

Stocks - Buy Cheap or Buy Expensive?


The general tendency when buying in stocks is to judge it by its current market price (CMP). Some think that if the price is low today then the price may appreciate in the future and give big returns. Other think the other way around and invest in highly priced stocks thinking that the price may still appreciate further and give good returns. If there is a stock priced at Rs.150/- and another priced at Rs.3000/- , of companies in the same sector, which one to go for? Which is right? To buy cheap or to buy expensive?

Friday 21 December 2012

Stocks - Buy 'em to Keep 'em


OK so you have decided to try the stock market in your master plan of wealth creation. Very well.
Equities do have some great advantages when it comes to financial planning and investments. Just to have a recap, some of the advantages of investing in stocks  and equities, which beginners should know,

Monday 17 December 2012

Evaluate and Invest - Enterprise Multiple


How much is a company worth? If we can satisfactorily answer this question, it will help very much in finding a good stock. Are there any parameters which can give us such a quick comparative look? A certain figure which will give us the first insight into the comany’s value?

Monday 10 December 2012

Learn to Invest - EV, Buyback and Open Offers


The world of finance is filled with incomprehensible jargon which is difficult to understand by the common man. We have tried to simplify concepts and terms in our blog so that our readers can understand the important concepts and terms. We believe that with better understanding, the journey of learning to invest in stocks is made a lot easier.

Continuing on the same lines we bring about some more terms which we think will go a long way in learning about stocks and stock markets.

Tuesday 4 December 2012

Invest in Stocks - Invest in Our Economy


Post liberalisation in 1991, India opened its doors to the world for investments. From then on there was no looking back for the economy. Many private firms and new businesses sprung up including many foreign firms setting up shop here. Also, many foreign investors including institutional investors started investing in our growing economy which accelerated the growth further.

The effect of this accelerated growth was increased comfort in

Friday 30 November 2012

Incredible stocks - Glaxo Smithkline Consumer Healthcare


Branded consumer healthcare products are big hit with consumers always. With growing income and better health awareness, the demand for these products is going to increase. The main consumers are children and teenagers. One example is health drinks like Horlicks, Boost, Complan etc. which we all consume and which have become household names. The brand recall value for such products is very high and surely presents the investor with a good opportunity to explore this sector for good stock investments

Tuesday 27 November 2012

Importance of Stock Investments


Almost all of us are familiar with stock markets to some degree. With so many television channels exclusively covering the market movements on a daily basis and bombarding us with huge amounts of information regarding stocks and their price movements, we are sure to get affected by the buzz.

Still, the importance of parking your money in stocks is not understood very clearly.

Saturday 24 November 2012

Incredible Stocks - Persistent Systems


When you are searching for companies to invest in, it always helps if you spot a company which provides a specialised product or service. As opposed to companies which provide many varied products or services, one which has some specialisation and has some niche market to go with it, definitely will be far ahead of any competition.

Monday 19 November 2012

Incredible Sector - Digital Cable TV


In this post we will not study any individual company but a sector which is poised for tremendous growth in the coming years. Cable digitisation was recently in the news due to the govt. policy changes taking effect.
Recently the four metro cities have gone through cable digitisation process completing the first phase of the process. 31 October 2012 was the deadline. By 31 December 2014, the whole nation will have to convert to digital cable network.

Friday 16 November 2012

The Economic Ecosystem


Why to invest in stocks? This is the nagging question that arises time and again on the mind of any beginner to stock markets. Its our hard earned money and we need to invest it safely. As a beginner to stock investments you need to be clear about two things.

Friday 9 November 2012

Incredible Stocks - Cera Sanitaryware


The need for good sanitation is as old as the human race. It is even said that the proof of a clean house is its clean WC. And indeed in recent times, if the number of ads on print and electronic media is anything to go by, a well-designed bath and WC has become a style-statement in itself.

In the last five years, Indian markets have witnessed a tremendous increase in demand of good and branded sanitaryware. The reason for this can be traced to the better standards of living that the Indian middle-class is aiming for.

Tuesday 30 October 2012

Incredible Stocks - Tata Coffee


Coffee is the second most traded commodity in the world after crude oil. India needs no new introduction to Coffee. The demand for coffee is never ending due to the large youth population in the country. The success of Cafe Coffee Day is the proof of the potential that is available in the vast Indian market. The domestic annual consumption rate is predicted to increase at the rate of 6%.

Friday 19 October 2012

Incredible Stocks-BATA


In this post we look at a company which was an early entrant in its sector. We all know BATA as an old brand name. Being an early bird has its own advantages as a good stock investment option. Since BATA was an early brand, it has reaped the benefits of the industry and is now the largest company by sales in India. BATA as a brand has now become a household name

Sunday 7 October 2012

Learn to Invest - Performance Indicators


Knowledge is power. Same is true in the stock investments scenario. A learned investor will keep away from making mistakes and will invest wisely. It is important to continue learning to invest better and this is most important in stock investments where things change everyday.

Our balance sheet series which you can find in Learn to Invest section gives some of the pointers on which companies can be compared. There are other parameters which can be helpful

Tuesday 2 October 2012

Incredible Stocks- MindTree


The IT industry is a has a strong foothold in India. By their very nature, an IT company can be a very low-debt and fast growth company if the management has the correct vision.

The fact that IT sector has been the driver of the economic boom for the Indian middle class leading to greater spending power and greater consumer economics is an undisputable fact.

Thursday 20 September 2012

Incredible stocks - Titan Industries Pt-2


Lets take a detailed look at Titan Industries before deciding to invest in the company for the long term.

Consumption accounts for 60%-70% of India's GDP. It is a reflection of the fact that ours is purely a consumer-based economy which is only set to grow in the future, notwithstanding temporary hiccups here and there.
Titan Industries is a company which has given successful products one after the other. Be it their watches, jewellery or eyewear.


Wednesday 5 September 2012

Incredible Stocks-Titan Industries Pt-1


Excuse me, what time is it? In response to this question you would normally twist your arm and look at your timepiece. But as a stock investor, have you ever thought of the value that watchmaker company must be having? Well, I would say the answer would be a NO.

We are not conditioned to think like that. Stocks as investment option is still treated with undue caution.

Sunday 2 September 2012

Case Study Asian Paints Pt-2


Lets take a deeper look into Asian Paints company to see if it is a good stock to invest in.

The Asian Paints share is presently trading at a P/E ratio of 35 (approx.). So, this stock is undoubtedly pricey. Going by the logic laid out in one of our previous posts, at the first glance it may seem that we should avoid this stock because it is currently trading at a premium and not at all undervalued.

Wednesday 22 August 2012

Case Study Asian Paints Pt-1



Since the beginning of this blog we have stressed on the advantages of investing in stocks. Having learnt about the balance sheet we are at a comfortable level of learning to invest in stocks. We will study different companies and judge them on the basis of points that we laid down earlier and see if they are good stock investment options. So, let's get started...

Tuesday 14 August 2012

Balance Sheet Pt-5


At the outset let me say that this is going to be a long post. Let us start by putting a question? How do we know how much value the company has as per its accounts? There is a parameter which may be used to answer this. It is the Book Value of the company.

Friday 10 August 2012

Balance Sheet Pt-4


Shareholder Equity :


In this article we will learn about Shareholder Equity a little more. In the last article we had noted that when a company is liquidated, the shareholder equity will equal the net worth of the company. There are other aspects of shareholder equity too which are as follows.

Thursday 2 August 2012

Balance Sheet Pt-3


In this post will learn about a few other aspects of balance sheet which help us decide on our investments. These are Long Term Assets and Long Term Liabilities.

Sunday 22 July 2012

Balance Sheet Pt-2


Balance Sheet of a company can be used to know the strengths/weaknesses of a company, we will learn about some important aspects which help us to invest better in stocks and are reflected in the balance sheet. They are Current Assets and Current Liabilities.

Wednesday 11 July 2012

Learn To Invest - The Balance Sheet


Any investment in shares should be made based on understanding of the business in which the company is involved, its sales turnover, the projected business growth etc.  and should never be based on empty hype. But how to learn more about the financials of a company?

One of the important tools that the investor can use to glance at the financials of a company is the company’s balance sheet.

Sunday 1 July 2012

Customisation vs Standardisation


Guess everybody remembers their dream vacation. The nice places you visited and the beautiful pictures you took as memories. Coming to the pictures, I guess that most of you were comfortable using the point-and-shoot cameras that are so popular for their ease of use.

Thursday 21 June 2012

Kingmaker Stocks


Careful investment in stocks can be really rewarding. Learn to invest in the proper way and in the proper company at the right time and you can have handsome gains. Let’s take the consumer goods sector to illustrate this further.

Everybody knows that consumer is king.

Thursday 14 June 2012

The In(fy)vestor


Investing in stocks can give you great rewards in the long run. Let’s see a little bit in detail about the Infosys Investor. To see why an investment in this company has given such a high return on investment we will take the help of the company data available to public from the past 9 years (i.e. from 2003 to 2012). This can prove as a good example while you are learning to invest in stocks.

Tuesday 5 June 2012

Spot The Gems

There are good companies and bad companies. Learning to invest in stocks is all about spotting the good companies amongst the bad ones. Invest in stocks of good companies and you will gain good returns and create wealth.

Sunday 6 May 2012

The Risk Factor


Stock investments carry associated risk. As a beginner to stock market we should know about that risk and how to manage it. If a company in which you invested grows and makes profit then the market price of its shares will increase, thereby increasing the wealth of its investors. It is however possible that the company may not stand the onslaught of its rivals and may run into losses or

Wednesday 25 April 2012

B for Basics - Beginner's guide to Stock Market


Investing in stocks is a really good option to create wealth over the long term. It is easy to learn to invest in stocks and also keeping track of your investments. Investing in stock markets is as important as parking your money in certain other traditional financial instruments. However it is important to get the basics right. So this post is for the beginners to clear concepts about stocks and stock markets.

Tuesday 10 April 2012

Salary seed to Moneyplant

Lets start by making an assumption. You are earning a nice enough income and are happy with your earnings. You know that all your current needs are met by your pay cheque alone.

But is your income sufficient to make all your dreams come true? Your needs may be very less today. However, it will not be the same in the future.