Kumarpal Jain

FCA, CS, Founding partner at HBK & Associates, Ex Banker

[Kumarpal Jain @kumjain]

Price Earning ratio (P/E) denotes how much amount you need to invest to earn 1 Re in a year. Price is the current market price of the stock & earning is earning per share as per last financials. So lets say, if PE of Maruti is 25, means you need to invest 25 to earn 1 Re. (1/n)

[Kumarpal Jain @kumjain]

@Patterns0001 @mugatu007 Shouldn't it be Nifty 100 TRI

[Kumarpal Jain @kumjain]

@one_hardTruth Michammi Dukkadam, is all about forgiving in jainism

[Kumarpal Jain @kumjain]

@Keval_IM There was an exceptional ₹100/share interim dividend paid in Aug25, which is unlikely to be recurring. That should ideally be excluded to assess the sustainable/future dividend yield. The normal dividend payout is much lower.

[Kumarpal Jain @kumjain]

@devinamehra Would be particularly interesting to see this both on a normal annual basis and on a rolling 5-year basis. That would quantify how much entry/exit timing has actually impacted investor returns versus the underlying market returns.

[Kumarpal Jain @kumjain]

@devinamehra Do we have the data comparing point-to-point market returns vs investor-weighted returns, where the weight is the net equity fund inflow in each year?

[Kumarpal Jain @kumjain]

@iamrakeshbansal @NSEIndia The system seems fine. Once the market adjusts, arbitrage opportunities will largely vanish. Over time, this should benefit index funds, mutual funds and FIIs, as the closing price will better reflect genuine liquidity and actual executed trades.

[Kumarpal Jain @kumjain]

@aakankshalovely Also, can anyone confidently say today that HDFC Bank won't outperform the Nifty over the next 5 years? If it fits your investment process and allocation, there's nothing wrong with owning it.

[Kumarpal Jain @kumjain]

@aakankshalovely Unfortunately, that's how investing works. No one can predict the future, it's a game of probabilities. As long as a mutual fund beats its benchmark over the long term while staying true to its process, the underperformance of one or two individual stocks doesn't matter.

[Kumarpal Jain @kumjain]

@deepakshenoy To be honest, initially I thought it's TOI ad

[Kumarpal Jain @kumjain]

@pvsubramanyam Infact, those who sells his entire HDFC bank holding now, would have short term capital gain @ 20% on bonus share (entire sale proceeds as cost of bonus shares is zero) and long term capital loss on holding before bonus date, so sell only after Aug 29, 2026.

[Kumarpal Jain @kumjain]

@pvsubramanyam HDFC bank was 978 on grand fathering date, if you give impact of bonus, price comes to 489, so effectively investor would be in profits

HDFC Ltd, if you give merger and bonus impact it should be 585, so still investors would be in profits.

[Kumarpal Jain @kumjain]

@ThetaVegaCap Another 4-5 years of below 5-6% annualised return and many investors would turn bearish on equity.

Please note returns in equity are often lumpy and you will get it when you least expect it, invest when valuations are comfortable and don't expect unreasonable return.

[Kumarpal Jain @kumjain]

@BaluGorade However there can be pilferage on account of front running or any other fraud, though SEBI Regulations are stringent enough to monitor and regulate.

[Kumarpal Jain @kumjain]

@jitenkparmar Ideally tax harvesting can be done in more smart way is to sell loss making stocks in your account and buying in your family members account at the same time and vice versa

[Kumarpal Jain @kumjain]

@rohitchauhan I feel, during the froth (Jul - Oct 2024) was the better time to move up the quality curve

[Kumarpal Jain @kumjain]

@prasenx Humanisation of AI

[Kumarpal Jain @kumjain]

@naval If it can be drained, it was never a moat :)

[Kumarpal Jain @kumjain]

@himanshupandya1 @DealsDhamaka Mean reversion inevitable

[Kumarpal Jain @kumjain]

@FI_InvestIndia Further when sharks are offered advisory shares, they will also have to pay Income tax on the fair value of such shares, without actual cash receipts by sharks, so not even a tax efficient method. All this just to maintain the valuation, which may or may not sustain ecentually

[Kumarpal Jain @kumjain]

@InvestorOfJAMMU @RemindMe_OfThis in December 2026