#deepakntr looks fairly valued at current valuations
Price to FCF > 30
PE < Industry PE
Avg ROCE 3 years > 18%
Quick Overview of the #product segment
Detailed Video Coming soon
The most common Parameter considered while Valuing a Company is the #Roe
π‘ If the RoE > 20% most retail Investors happily invest in the company.
π΄ But the lesser-known fact is it can be easily manipulated by the #naughty#promoters.
Read the π§΅for understanding
π We may see the #Asset turnOver has declined and #Leverage has increased drastically (from 0.07 to 6.58), elevating the RoE
π‘ If we reduce the effect of leverage, say to 1, you may see the RoE falls to 7.77%
But, for importers, it is bad.
As they have to pay more to buy the same quantity.
In such cases, the cost of raw materials and production goes up which gets passed on to the consumers, thus increasing INFLATION!
The #indianrupee Depreciating (7.64% since Jan 22) as compared to #USA Dollar and making new lows.
With this,
1. Indian #exports will increase while #imports will suffer.
2. #inflation will increase in the country.
Read the below #Thread π§΅ to understand in detail.
This favors exporters in two ways:
1. They can sell more quantities
2. Indian currency, they get after converting, is now higher than before.
Thus, every time the rupee depreciates against the dollar, exporters will be benefitted.
There are lot of companies declaring 800%, 1500% 1800% #dividends.
1 #Hidden reason can be, to hold on with their existing #shareholders and encourage others to buy.
This can even be a #trap to getting into the wrong companies.
One simple parameter that can be used is the FCF
You may have a target in mind, but what is important is to take care of those small steps in life like
What needs to be done,
What I am supposed to do,
What extra I can do
and this will help us achieve the target. "
Came across this short piece from one of #Dhoni sir's interviews and thought of sharing it with the fellow readers -
Hope this helps you all as well.
Interviewer -
"How do you keep yourself so cool?"
MS Dhoni Sir -
"Very simple - Don't think about the results.
If we don't get the desired results - we will improve, we will change our plans, we will execute better and we will get a chance to prove ourselves again.
Thinking about the result will never give you the result.