Tanay Nafdey

football and finance

[Goblin Moder @mischiefanimals]

senseless violence

[Tanay Nafdey @TNafdey]

@piyushchaudhry Bas ek baar koi nayi cheez ka naam sun liya ... Ab uski fear mongering chalu rakho 😂 badiya hai

[Tanay Nafdey @TNafdey]

@TheVivekSinghal Pretty baseless comparison tbh

[Earth_Wanderer @earth_tracker]

Places on Earth that look too magical to be real🧵

1. Trollstigen, Norway 🇳🇴

[Bhavin @bhavinjan1978]

Top-10 accounting checks from our forensic expert @Nilesh_Aiya: simple moves that can avoid 80% of mishaps ...

[Tanay Nafdey @TNafdey]

Some OMCs trading at dividend yield > RBI 10yr bond. Not a fair comparison, but still looking attractive.

[Tanay Nafdey @TNafdey]

@SanaSecurities Why not 4113?

[Tanay Nafdey @TNafdey]

@datta_arvind If you know this, why aren't you FII?

[Tanay Nafdey @TNafdey]

@param_yadavv 9/10 talk absolute nonsense on twitter (includes you)

[Tanay Nafdey @TNafdey]

@Akshat_World This is some generic bullshit blanket statement. Seriously, if you think the world would be better without MFDs, you're completely delusional. AND, if I may, you're the same kind of people who would lament DIIs for not supporting the markets.

[Tanay Nafdey @TNafdey]

@money_theory Yes, but you will be earning 3.16Cr more in ICICI Bluechip vs UTI Index fund.

ICICI Bluechip 10y = 12.21%
UTI Nifty 50 Index Fund 10y = 10.56%

You pay a price for active fund management, otherwise it simple won't work. Also, for Indian funds, only 50% underperform.

[Samit Vartak CFA @SamitVartak]

Finally the earnings season is majorly over and this is how the numbers look like.

After many years the equal weighted BSE 500 index (self created) has started underperforming the broadly followed BSE 500 index. Going forward I believe earnings growth will also be concentrated with lesser % of companies delivering superior growth. Fundamental stock picking of good high growth companies with reasonable valuation may again be back in favor.

[Tanay Nafdey @TNafdey]

@SamitVartak Many many congratulations to the Sage One team and Mr. Vartak. I wish you many more years of helping people create wealth, materially and intellectually.

[Samit Vartak CFA @SamitVartak]

Above is an analysis of large, mid and small caps by business buckets which generally have vastly different PE multiples because of their inherent nature. PSUs and banks trade at relatively low PE multiples and hence depending on their size in a universe, skews the weighted PEx. E.g. in large caps, PSU contribute to 33% of the total profit pool while in small caps it's contribution is only 9%. Hence looking at the total PEx is Apples vs Oranges comparison.

Weighted PEx also can be mis leading because just handful of companies (w/ huge profits or losses) can pull up or down the PEx for that index/universe. As an investor your allocation to a stock in a portfolio isn't proportional to the weight of profit or market cap. Often median PEx provides better picture of the valuation.

As you can see that Weighted PEx of large cap universe is 21.6x vs 29.9x for the small cap universe. This is because of huge contribution by the PSU and Pvt Banks (in large caps) who trade at relatively low multiples. Hence comparing median valuation of the individual buckets is much better comparison. Median PEx for Non PSU or Pvt Banks stocks in the large cap universe is 42x while that in small cap universe is 33.3x.

This analysis is more from a directional perspective rather than exact as the nature of businesses in each buckets would also be different. But blindly accepting comparable multiples thrown at us can also be very damaging to our decision making.

[Anoop @CalmInvestor]

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