L_P

Environment, Markets, Law, Handloom, Black, Riddles, Mountains, and Odisha. In no specific order. || Minimalist || Vegetarian

[L_P @Un_Common_Law]

@meishato Guess who is terrible at math

[L_P @Un_Common_Law]

@stockmarket8058 @grok which company

[L_P @Un_Common_Law]

@leadlagreport Or... inflationary recession?

[L_P @Un_Common_Law]

@SamirPradhann (1600-1300) - (1300-1200) = 200

[L_P @Un_Common_Law]

@EquityInsightss Trying to recall some of the multibaggers from 2016-2018 period: Apex Frozen, HEG, Graphite India, La Opala, and VIP

[Sekhar @LearningEleven]

Stallion India Fluorochemicals - Burj Khalifa built in 10 weeks

[L_P @Un_Common_Law]

@suru27 Cement prices have shot up in the last few quarters which helped in margin expansion of most cement companies if you look at their EBITDA and PAT numbers. However, cement prices are stabilising so PE is likely to start going up in the coming quarters.

[Ruchika Sethi @SethiRuchikaT]

Excellent well-researched article bravely exposing the dirty secret of Gurgaon’s solid waste “management” ! All officers who have served the municipality since 2013/14 as commissioner’s, as well as the sanitation teams and top bosses at ULB, have a lot to answer for, including ex-CM @mlkhattar , who is ironically serving as @MoHUA_India Union Minister. What's most telling is that the '#transportation' model of waste has to be addressed urgently, and waste minimization policies need to be implemented on urgent basis Furthermore, SBM must stop putting pressure on local urban bodies for rankings and respect our #parliament passed solid waste management rules 2016, -prevent each city sinking in its waste dumps and choking on waste burning !

@phoenix_wing16 @BiswasSuha73988 @newslaundry

@PMOIndia @PrinSciAdvGoI @LokSabhaSectt @NayabSainiBJP @VipulGoelBJP @kamalguptabjp @moefcc @LiveLawIndia @SupremeCourtFan

https://t.co/xGvBeu8BbP

[Samir Arora @Iamsamirarora]

No one knows anything about anything beyond a point.

[Dhruv Suyamprakasam @dhruvsuyam]

I want to put this out publicly because it might save someone lakhs.

A few weeks ago, I was offered Groww unlisted shares at ₹135.
The pitch was aggressive: “Discount. Limited quantity. Take it now.”
No mention of lock-in. No mention of commissions.

They had emailed me a request for ₹6,75,101 for 5,000 shares.
(Attaching screenshot for transparency.)

I even added their bank account and was minutes away from transferring the money.
From the hype they gave, I thought it would have a bumper listing.

Coincidentally, @dmuthuk had posted not to buy unlisted shares however lucrative they look.
He specifically mentioned lock-in and commissions.

So I casually asked the people who pitched it to me about the lock-in period
and the truth suddenly changed:
“Yes sir, 6-month lock-in is there…”

They hadn’t disclosed this earlier.

That moment, I walked away.

Now see what actually happened:

• IPO Price: ₹100
• Listing Price: ₹114
• My offered price: ₹135
• Current Market Price: ~₹137 (it closed yesterday at this price)

If I had gone ahead:

• I would have entered 35% above IPO
• Taken a ₹21 per share loss on listing
• That is ₹1,05,000 wiped out on Day 1
• And been locked in for 6 months, unable to exit

And here’s the funniest part:

Even today at ~₹137
I could have bought freely from the open market with zero lock-in, zero hidden cuts, full liquidity.

Exactly what Mr. Muthukrishnan has been warning about.

Unlisted share hype is a trap.
Commissions are massive.
Risks are hidden.
And the buyer pays the price.

If Muthu’s warnings weren’t there in the X post , I would have been stuck with a bad deal and a pointless loss/also a lock-in.

Sharing this so others don’t fall for the same trick. There is no quick money with the stock markets.

Transparency > Hype. Liquidity > Illusion.

Thank you @dmuthuk for the wonderful job with your X posts.

Cc @SEBI_India

[Gordon Johnson @GordonJohnson19]

Ummm... $NVDA is currently trading at 27.6x sales, which means the "market" expects $NVDA to pay it, as a dividend, 100% of its sales, every yr, for the next 27.6yrs. I'll remind you of this quote from Sun Microsystems' CEO when the https://t.co/ThQz52tZgT bubble burst in 2002.

[L_P @Un_Common_Law]

@kushalbhagia What does the company do (without naming the company)?

[Ray Dalio @RayDalio]

In 1971, the US ran out of money and defaulted on its debts. Now, they didn’t say it that way. But by moving away from the gold standard, money as we understood it ended.

I expected the stock market to plunge, but it went on to rise nearly 25%. That surprised me. But when I looked into it, I discovered the exact same thing happened in 1933 and it had the exact same effect.

Here’s why.

[Stocks World @anandchokshi19]

A common story of investors in the stock market:

[Sann @san_x_m]

Even now, if you ask an Odia who their Chief Minister is, some will still say Naveen Patnaik by mistake. He wasn’t just a leader, he was the voice and identity of Odisha.

It’s truly heartbreaking to see him growing old and in this condition. May Prabhu Jagannath bless him with health and a long life. 🙏

[AIM Investments @AimInvestments]

Sugar prices have crashed like anything, be careful if you are invested in Sugar stocks.

Image Credit: @Barchart

[Gems @gemsofbabus_]

First we pay taxes. Then we spend weekends fixing what babus couldn’t.

A man in Hyderabad is doing the job the municipality is supposed to do. This is how Failed Governance looks. 🤡🤦‍♂️

[MoneyTalkWithL @LarissaFernand]

Attention Equity Investors

1. Valuation ratios
Source: @soicfinance

[amrit @amritwt]

what did i just read bro

[Nithin Kamath @Nithin0dha]

If you take money out of a business as dividends, the effective tax rate is 52% (25% corporate tax + 35.5% on personal income). Through capital gains, it's just 14.95% (with cess).

Why does this matter? Here’s what you should know if you invest in IPOs.

If you're an investor (especially a VC), the math is simple: reduce corporate tax by showing minimal profits or losses. Spend (Burn) on acquiring users, build a growth narrative, and then sell shares at a higher valuation while paying much lower tax.

This spending also makes it harder for competitors to survive. To be clear, we're not discussing R&D spending here, which, incidentally, is very low in India (0.7% of GDP).

What's often overlooked is that VCs are essentially playing a tax arbitrage game. Look at most VC-backed businesses listed in the last few years, the reason they show little or no profit is partly due to this. Once you run a business this way, it's extremely difficult to switch.

Every startup that's 7-8 years old from the time of raising the first round faces constant pressure from VCs for an exit. With almost no M&A opportunities in India, IPO is often the only way out.

The government probably designed this tax arbitrage to incentivize companies to spend money and not just accumulate and distribute. But I'm unsure if the balance is correct. I think it's also creating businesses that aren't very resilient. One prolonged market downturn, and many of these unprofitable companies would struggle to survive.

Two things that make this more interesting:

Unprofitable growth gets valued at much higher multiples than steady profits. A company doing ₹100 cr revenue with 100% growth might get 10-15x, while a profitable one with 20% growth gets 3-5x. So VCs aren't just saving on tax; they're in essence creating a 3x higher exit valuation.

If you're competing against someone burning cash, you almost have to match it to defend market share, even if you don't want to, because of the quirks I mentioned above.