M. Tech (Microelectronics, IIT Mumbai),
26 yrs of Chip Design Experience. DSP | Image | Video Processing.
AI | Semiconductors | Renewable Energy | Investor
The price you pay determines the return you earn. Pay too much for even the finest business and you have
converted a great company into a poor investment sometimes for a decade or more.
This is how the operating profit, and operating cash flow of rajesh exports looks like.
The profits are steady, but the cash from operations is all over the place,
FY2018 : -2870 Cr
FY2021 : -10252 Cr
The profits not getting converted to cash is a big red-flag.
In crises, correlations go to 1 and liquidity vanishes.
Diversification across many positions is an illusion if they share a hidden common factor.
LTCM story :
@sh31155 The one I recommend to most beginners is
The little book that still beats the market
by Joel Greenblatt
Written in very simple language and comes up with 2 most powerful concepts.
1. ROCE
2. EV/Ebitda
He was hedge fund manager and delivered 34% cagr in 21 years [1985-2006]
@_HealthZwealth Out of these, I have read
1. 100 baggers
2. Capital Returns
3. Common Stocks and uncommon profits
4. Reminiscences of stock operator.
My favorite is 2 and 3
2 : because it teaches the concept of double engine
3 : all time favorite and go to book for rules on when to sell.
@yatinmota Finally some clarification from Vikram Solar:
The contested amount is only 9.44 Cr
Vikram Solar generated 640 Cr of cash from operations in FY2026.
It's D/E = 0.20
So nothing to worry :)