D-Mart Valuations

It may appear to be steep, but it is hardly overpriced…

There were some real concerns when Avenue Supermarts (the company that operates the chain of D-Mart Stores) actually reported lower profit growth in the September quarter. The profit growth fell from above 35% in the previous quarter to a level of 26%. This sharp fall in profit growth led to concerns that the valuations may be a little too steep for comfort at 90-95X. While the concerns are justified, investors do not need to get overly worried about the same. Here is why! Continue reading

Trading Rule – “Please, no Ifs and Buts in trading”…

Remember a very important rule of trading; you need to take responsibility for your trades. You can argue that prices went down due to factors beyond your control. But that does not help! As a trader or an investor in the stock markets, the buck stops with you and you alone. You may not have control over events but you surely have control over managing your risk and that is what you are expected to do. But, no excuses please! Continue reading

Trading Rule – “Always focus on the winners in a group”…

One of the basic rules of investing in the markets is that normally it is the sectoral leaders or the thematic leaders who actually give you outperformance. The focus should not be on existing leaders but companies with the potential to emerge as future leaders. Classic examples are hero honda and bharti in the indian context. They not only disrupted an entire industry but ended up dominating the industry for many years! Continue reading

Online versus Offline trading: What you need to know…

When online trading was first launched in the year 1999, there was a very slow and tardy acceptance of the new trend. The reasons were not far to seek. Markets were still in a state of flux, people were still wary of the risks of online trading, brokers were worried about cannibalization and the platform itself was evolving. That is no longer the case. Brokers are increasingly moving toward the online platform as it offers them simplicity, cost saving and scalability. Continue reading

Factors to consider before investing in an IPO…

We are in the midst of the season of IPOs. During the last fiscal year, nearly $2 billion was raised through IPOs. This fiscal year, the markets have raised nearly $5 billion already through the IPO route and could end the year with nearly $8 billion. The story of IPOs in the last 2 years has been one of competitive pricing and attractive post-listing performance. Marquee names like Alkem, Shankara Building Products, D-Mart, ICICI Pru Life, SBI Life and GIC Reinsurance have all contributed towards the credibility of the IPO market. The big question in front of investors is how they should evaluate an IPO. There are 8 key factors… Continue reading

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