CA Abhishek Zaware

Professor with passion to teach and innovate.

[CA Abhishek Zaware @adzaware]

In my view PNGS Gargi Fashion Jewellery Ltd is interesting play on fashion jewelry in India. I like the fact that Management has razor sharp focus on Profitability. Growth in Revenue is likely to be 30-35% on y-o-y. At 30 times PAT valuation appears reasonable (not cheap at all). They dont have any substantial effect on profitability due to silver price fluctuations. There growth outside Maharashtra will be key factor that i am looking at. Promoters had infused funds at Rs. 970 per share in August 2025. CMP is 867.
Disclaimer: I am not SEBI registered Advisor. This is SME stock and SME investment has comparatively more risk. I am biased towards company due to my investment.

[CA Abhishek Zaware @adzaware]

Media reports suggest that banks in India will have to reduce their long dollar positions by $40 billion approximately due to the RBI's announcement of restricting the net open position to $100 million only.

Tomorrow if the dollar declines by one rupee from, say, 94.5 to 93.5, banks will have a loss of ₹4,000 crore on a mark-to-market basis, which will have to be booked for the financial year 25-26.

I just pray that RBI modifies the announcement somehow. Just astonishing numbers.

[CA Abhishek Zaware @adzaware]

Yesterday RBI announced tightening of norms regarding the net open positions of banks in the foreign exchange market to control high volatility in the Indian Rupee.
Now Banks can have Net Open Position on INR of maximum 100 Million USD at end of each day starting from 10 April 2026. (Net Open Positions will basically be speculative positions only. Hedged / Arbitrage positions wont be classified as Net open position.)
At present BOD of Banks / Authorised dealers used to set the limits which could go up to max 25% of Equity Capital of Bank / AD.
It will cut down "Long Dollar" speculative positions significantly.
Expect sharp rise in Rupee on Monday as many banks / AD's will have speculative positions in excess of 100 Million USD leading to forced winding down of positions.
Also this will stop burning of Fx Reserves by RBI to support Rupee.
This wont have any material effect for Equity markets.

[CA Abhishek Zaware @adzaware]

In my opinion USDINR in range of 92 to 94 will be the biggest trigger for FII/FPI to enter Indian Market once this war settles down as Rupee will appreciate after war cools off and crude prices tapering down. Rupee Appreciation will boost FII/FPI return in near term.

I don't see crude / gas shortages to continue for very long even though war may go on. Price of crude will also cool off boosting appreciation of Rupee.

There is deep value in certain pockets of Indian market. Overall Valuations are looking stretched because of new age businesses being included in index.

Our biggest problem is lack of liquidity in Smallcap, Midcap, Microcap.

Return of FII/FPI on the backdrop of corrected valuations (Time + Price correction) will be icing on the cake.

Remember this is not the time to sell.
Counter views are welcome.

[CA Abhishek Zaware @adzaware]

Yesterday Edelweiss Financial Services Limited sold 4.4% stake in its 100% subsidiary EAAA India Alternatives Ltd (EAAA) at INR 375 Cr valuing subsidiary at INR 8500 Cr.
This Subsidiary is going to get listed soon (DRHP filed in Jan 2026).
Holding Company Edelweiss Financial Services is valued by Market INR 10350 Cr.
Even if i take 35% Holding company discount valuation of EAAA for Holdco will be 5525 cr. This is 53.38% of Total Value of Holdco.
Other than EAAA Holdco has MF AMC (90% stake), ARC Business, Lending Business and Insurance Business.
Market is not placing higher value on the company because Debt at Corporate Level is still high and in past NPA problem in lending business had created trouble for profitability to company.
At 110 CMP valuations look tempting! Counter views are welcome.
Disclaimer: I am not SEBI Registered advisor. This is for education purposes only. Objective is to explain valuation to commerce students.

[CA Abhishek Zaware @adzaware]

@CoinMamba4 Please read Presentation uploaded by BSE for Q3FY24. Read about Red ocean and Blue Ocean business slide in that. They have mentioned 12% share for Q3FY24. Sensex and Bankex derivatives are picking up in volume.
I will never ever share number if I am not sure.
ADZ

[CA Abhishek Zaware @adzaware]

NSE Q-o-Q Revenue decline shows that they are losing market share in FNO. Profit comparisons are not correct due to contribution to Settlement Guarantee Fund by both NSE and BSE.
Q3 Mkt share for Cash Segment 93% NSE and 7% BSE
Q3 Mkt share for FNO Segment 88% NSE and 12% BSE

[CA Abhishek Zaware @adzaware]

Disclaimer: I have investments in NSE Ltd. This is not recommendation to buy NSE / BSE. This is just to explain point about valuation.

[CA Abhishek Zaware @adzaware]

NSE declared its result for Q3 FY 24 Today. After going through PPT of BSE it seems that NSE has lost market share for Derivatives segment in Q3. NSE has not given quarterly data. Clearly BSE is gaining and NSE has lost market share. So BSE has higher growth trajectory for sure.

[CA Abhishek Zaware @adzaware]

What should be best metric to do valuation of Exchange ? In my view following factors are important
1. Average Daily Trading Volume (ADTV)
2. Growth in ADTV
3. Take Rate i.e. Revenue as % of ADTV
4. Market size and Market Share
5. Margin Profile
Appropriate PE would be 25 to 30.

[CA Abhishek Zaware @adzaware]

An audit reckoning—the $22B Byju’s juggernaut is yet to get Deloitte’s approval - The Ken

Is BYJU’S in trouble? https://t.co/CKkoVpgfRE

[CA Abhishek Zaware @adzaware]

Entire Logistics sector is due for rerating. There are lot of structural changes that have taken place.
1. Freight rates won’t decline even if crude comes down.
2. Better roads leading to efficient time utilisation
3. Demand for cold storage jumping up.
4. Lower Debt levels.

[CA Abhishek Zaware @adzaware]

Lack of Attention results in lack of Retention.

[CA Abhishek Zaware @adzaware]

“Wearing a personality rather than wearing a brand is more important.”
CA vs CPA vs MBA Debate in context of new proposals of Govt

[CA Abhishek Zaware @adzaware]

India will be signing trade deals with Canada UK Australia. This will ease taboo “India is Protectionist nation”
Above 3 countries have least trade conflicts with India. Deal with UAE & Mauritius was on similar lines.
Its Shift from competing economies to complementary economies

[CA Abhishek Zaware @adzaware]

Find companies which get better with size.
I learned this after decent losses in Dilip Buildcon (Highway maker)
For every new project they had to infuse additional capital and couldn’t benefit substantially from scale they achieved.

[CA Abhishek Zaware @adzaware]

NSE: Classic example on Operating Leverage Benefit or Platform based companies. I hope Intermediate students will recollect this.
Disclaimer: I have NSE in portfolio.