VST Industries Valuation: Smokin' Hot

The Vazir Sultan Tobacco Company or 'VST Industries' for short, is an age-old player in the Cigarette and Tobacco products market in India. The on-going lull in the economy has impacted the Sales volume of this industry as well. But with a hard-to-quite habit like smoking, the runway enjoyed by this industry is virtually limitless. But this does come with severe restrictions in terms of reinvestment, advertisement and punishing taxation by the Government of India.

The Impact of Tax Rate-cuts on Value: Game Theory and Dominant Strategies

Most people in India, especially her investors, have welcomed Indian Government's Corporate Tax Rate-cut with fanfare. While first level thoughts may deceive us into believing all that extra money directly adds to the value of all companies, a deeper level thought process provides a more accurate understanding.

Ashok Leyland Valuation: What the Truck

Ashok Leyland is one of the top firms in the Commercial Vehicle segment in India. Near-term deterrents like new axle norms, implementation of the BS-VI standards and a very likely hike in vehicle registration charges may very well play the spoilsport. But if history is any indication, regulations do not have long-lasting impact. If the company can indeed cross these barriers, what will it be worth today?

The Importance of Margin of Safety in Life and Investing: Only the Paranoid Survive

If someone asked me, "What is one investing rule you would never break?", I would immediately say "Margin of Safety" without flinching. In fact, it has almost become an instinct for me to claim a Margin of Safety for every single one of my investment ideas. Why is being cautious so important in investing?

Petronet LNG Valuation: Schrödinger's Stock

Petronet LNG (PLNG) is the market leader in India's LNG re-gasification industry. With the Government of India explicitly pushing their alternative fuel agenda, PLNG could gain considerably in the future. But as with most companies, the promise of prosperity comes with its own set of risks.

'Doing Nothing' Investing: A Thought Experiment

If you have been reading my blog posts since a long, long time, you may appreciate the fact that 'Masterly Inactivity: A Case for Very Long Term Passive Investments' was one of my earliest posts here. Since it had more to do with dissecting why passive investments work, it really didn't do the title justice. So, let's get our thinking hats on and understand why patience or in a crude sense 'doing nothing', is a powerful virtue necessary for any investor.

RBL Bank Valuation: Bank or Banker?

It may come as a surprise to some of you that RBL Bank, despite having caught the attention of the media only a few years ago, is actually a considerably old bank. It was incorporated in Kolhapur, Maharashtra in 1943 as 'Ratnakar Bank'. It has come a long way since then. In line with its re-branding to 'RBL Bank' in 2014, it seems to have adopted a new and lucrative business model.

Tax Avoidance Strategy: What is the 'Double Irish with a Dutch Sandwich'?

I have been indexing my Quora answers of late. I came across a particularly interesting one which I thought I should share with a wider audience. So, here's a light weekend read. Hopefully, you will have learnt something new and interesting.

Godrej Consumer Products Limited Valuation: Share of Mind

Hair colors, hair care, hair salons, mosquito repellents, household insecticides, bathing soaps, air fresheners, wet tissues, liquid detergents: These products cover the impressive breadth of the consumer needs this company solves. Godrej Consumer Products Limited. If you haven't heard the name, you have most probably used the company's products at least once in your life. There's been a fresh correction in the price of the stock that's got the market wondering about the company's intrinsic value.

VIP Industries Valuation: Old Dog, New Tricks

VIP Industries is the market leader of the luggage industry in India. VIP, Aristocrat, Skybags, Carlton, Caprese -- these are some of the most recognizable brands for consumers in this segment. Faced with stiff competition from the likes of Safari and Samsonite, dealing with the resignation of Mrs. Radhika Piramal from the active management activities and grappling with rising labor costs, VIP Industries is indeed between a rock and a hard place. However, the rise in the Indian middle class and the growth in airline travel among Indian youth pose a long term tailwind for the company. What Value do these little components offer for the shareholders? Let's find out.

Indian Energy Exchange Valuation: Odds, Bets and Handicapping

Indian Energy Exchange (IEX) is the premier Energy trading platform of India. The government's goals, tuned towards better infrastructure and better industrial output, puts IEX in a sweet spot. But is the market paying up for the growth ahead or is it overpaying for opportunities that aren't even there?

The Intrinsic Value Puzzle: Components and Case Studies

What is the 'Intrinsic Value' of a Stock? What are its components? How do they affect the way the company's Stock is likely to behave? We will attempt to answer these seemingly daunting questions in simple terms and with relevant, real world examples.

CDSL Valuation: How Much Cash is Too Much Cash?

Central Depository Services Limited. If you've been investing in Equities or Debt in India, there's an almost 50% chance that you've heard about this company. In fact, if you're an investor in India, there's also an almost 50% chance that you're currently using the services of this company. Otherwise known as CDSL, it is the only other Depository for financial instruments in India (Apart from 'National Securities Depository Limited' or 'NSDL').

India Inc., in Numbers (2019): Data Update and Economic Value Added (EVA)

Starting from 2019, I will be making the 'India Inc., in Numbers' series of posts once a year. I will be showcasing how the different companies / industries in India have fared in terms of several financial ratios and others numbers.