Amay Solanki

Relative Valuation is not just P/E or P/B... Examples of 10 Sector Specific Multiples given here When using relative valuations, sector specific multiples help a lot in understanding the sector. These multiples usually compare the value of the company to the sector revenue driver. 10 such examples quoted here. Try comparing companies on these metrics when using Relative Valuation in these sectors 1) 2-wheelers : EV / Bike 2) Passenger Vehicles: EV / Car 3) Telecom: EV / Subscriber 4) Power : EV / MW 5) Metals: EV / Tonne 6) Retail : EV / Square Foot Area 7) Hospitals : EV / Bed 8) Hotels: EV / Room 9) Cement: EV / Tonne 10) Airlines: EV / Passenger Note: EV = Enterprise Value = Market Cap + Debt - Cash Also, this is not an exhaustive list. More adjustments can be done to these ratios. For example, in airlines you can find EV / Departure or EV / Passenger Km flow SAVE this post, and SHARE for the benefit of your network. ----- Peeyush Chitlangia, CFA I help students and professionals enhance their career in #finance Do reach out if you are looking to upskill yourself!

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IPO Alert: Multibagger IPO👀 JNK India Limited is here🚨 Date: March 23rd - 25th, April 2024 Price Band: ₹395 - ₹415 per share Lot Size: 36 GMP: currently 0 Issue size: ₹649 crore ( almost 48% fresh issue) Financials: Financials are rising and looks good. ROE & ROCE is above 31% What They Do: Company is into design, manufacture, supply, installation, & commissioning of process-fired heaters, reformers & cracking furnaces. IPO Objective: 52% towards OFS rest will be used for working capital & general purpose USP: 90% revenue is generated from oil & gas companies thus it is in ever growing sector. Final Decision: Company is good but let's wait for solid GMP numbers and Encouraging Anchor List and then will decide. Stay Tuned! #ipo #investing #personalfinance #stockmarket

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NIFTY 50 PE at 22742 21.7 agst. 1 month average 21.63 3 month average 22.43 6 month average 22.56 1 year average 22.34 3 year average 21.66 5 year average 25.62 It will be prudent to not compare 5 year average as this period include Covid period, when earnings were exceptionally low leading to higher PE. If we compare other figures, NIFTY 50 is still fairly priced. But there is one caution that IT and Financials like Bank have large weight in Nifty 50 and they are down leading to corrected NIFTY. If we exclude IT, Financials and FMCG, then market is certainly high. So, it makes more sense in investing in Basket instead of individual stocks. This is just for information for further analysis before investment and not a recommendation.

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Secret Strategies 🎯 to clear CFA L1 with 90% tile+ score in 1st attempt - After sharing my CFA L1 results yesterday, hundreds of students messaged me about how to prepare. Below resources helped me to get 90% tile+ in CFA L1 in just 3 months along with a job without any coaching 👇 1- CFA Practice Pack - Contains excellent set of questions. Practice this after completing syllabus in last 2 weeks before actual exam. 2- CFA Learning Ecosystem (LES) - Practice every question of 10 subjects in online LES with atleast "Proficiency" level in each category & also understand the solutions properly. Do this for pre-requisite readings also ✍️ Before attempting questions, first read the text and solved example of that topic in the online LES & also highlight key points for digital notes. 3- Schweser Secret Sauce - Very good for revision of all 10 subjects of CFA around 1-2 weeks before exam. 4- IFT & Schweser Quick sheet/ Formula sheet - Understand & learn each & every formula/ concept here 📚 5- Standards of Practice Handbook for Ethics by CFA - Very good resource for practicing ethics in depth questions 2 weeks before actual exam. All the above resources are also freely available online in Telegram for those who can't afford. Frequently asked questions 💡- ✓ There are many good coaching for video lectures like IFT, Mark Meldrum, Aswini Bajaj etc. but I didn't use any. ✓ Official CFA books & Schweser notes are very good for understanding but I didn't use them apart from LES texts. ✓ I gave 7 official CFA mock with avg score of 80% accuracy. Try to maintain atleast 70% here. ✓ Try to practice around 4000 questions before giving actual CFA exam. Lots of students who fail 🙅 focus too much on theory & very little on practice. ✓ Usually 3 months is good time for complete preparation if one has strong basic understanding but otherwise 6 months recommended. ✓ Do not study fixed income & financial statement analysis at the end. They are toughest subjects in Level 1 & will require more time & patience. ✓ Both PSM - Python & Financial Modeling are very good & complete them after giving actual exam. ✓ Do not defer your CFA exams if possible because it forces you to work hard to save money & prevent procrastination unless preparation is extremely bad with little time left. ✓ Try to enjoy the process & understand the practical applications of different concepts to link them better instead of just rote learning. Do comment below ⬇️ your query if you are a CFA L1 aspirant & which resource was most helpful to you if you have cleared CFA L1 !! *** Join FinStart (Finance & Startups) Community: https://lnkd.in/gKHr6RcS RE-SHARE ✅ this post if you find it useful !! #finance #cfa #education

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Many students enrol for FRM just because it has 2 levels and less costly as compared to CFA. You should never make your career decisions in this way. Although, your financial situation is an important factor but just because of it you are choosing a particular field over other is not good. You need to understand that CFA and FRM are not the same things. They are completely different. CFA prepares your for Equity Research, Investment Analysis, Portfolio Management etc. whereas FRM prepares you for Risk Management, Credit Risk, Market Risk etc. The best way to choose between the two is where your interest lies and which field excites you. That's the only way. If you want to play around money, equities and love handling people's money then CFA is the thing for you. If your interest lies towards assessing credit risk of individuals, corporates etc. then FRM will do the job for you. Also just because FRM has 2 levels and CFA has 3 that doesn't mean that there is a high probability that you will be able to clear FRM and not CFA. These are long term career choices so don't select something casually. I hope students reading this will make a wise and sound decision. If you want to have a detailed discussion regarding this then my DMs are always open. Ready to elevate your CFA | FRM | SCR | ESG | CAIA journey? Fintelligents and me are just a tap away 💡 I help people build a career in Finance. Book a Call now. 📞 (https://lnkd.in/dhX5KC2H) #cfa #frm #finance #career

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Recently CFA L1 results were announced but 56% people were not able to clear it. For those who couldn't clear this post is for you. You must be confused on what to do next. Try follow the suggestions mentioned:- [1] Confront Yourself First of all ask yourself that whether you honestly prepared hard for the exam or not? If yes then you should definitely give a second chance to yourself. If no then ask do you really want to do CFA or not? If yes then go for it again with 100% commitment and if no then leave it here. [2] Analyse your Mistakes We all know our weak and strong areas. Make a list this time where you made mistakes or were under confident in attempting the questions. This time focus more on those areas but don't neglect the strong ones. Study each and every topic with more focus on weak or hard ones. [3] Practice Practice Practice One of the many big reasons why some students didn't clear CFA exam is because of lack of practice. This time get done with as many questions as you can and don't leave a single question unturned. [4] Don't neglect Mock exams What students is do is they give the mocks and then leave it as it is. This is not for what mocks are created. CFA portal gives you complete analysis of your mock exams and it is very important to analyse them fully. Check for your mistakes and weak sections. Ready to elevate your CFA | FRM | SCR | ESG | CAIA journey? Fintelligents and me are just a tap away 💡 I help people build a career in Finance. Book a Call now. 📞 (https://lnkd.in/dhX5KC2H) #cfa #cfalevel1 #cfainstitute

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Make sure you are following these things on the CFA | FRM exam day. [1] Never Dare to Cheat If you don't know the answer of any question then skip. But never think of cheating it from somebody. They are very strickt with ethics. [2] Don't Revise in Break The half hour break during CFA exam is inadequate. Don't try to revise and go out to eat something. Have something from your tiffin and keep calm. [3] What Others are Doing Don't see or focus on what other students are doing. Who is leaving, who has completed - Don't bother about them and solely focus on your exam. [4] Never Panic Stay calm and try not to panic in any of the situation during the exam. - Don't know the answer of something? Skip and move on. - Proctor is coming late to your table? Be quite and keep doing the exam. - Someone is leaving early? Focus on your own. Ready to elevate your CFA | FRM | SCR | ESG | CAIA journey? Fintelligents and me are just a tap away 💡 I help people build a career in Finance. Book a Call now. 📞 (https://lnkd.in/dhX5KC2H) #cfa #cfalevel1 #frm #exam

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Only a few weeks left for the CFA August attempt. Here's some tips which you should follow:- [1] Practice Questions Do as much questions as you can and give mock papers. Analyse the mock and see where you are making mistakes. Focus more on those areas and revise them more. [2] Don't Take Stress Taking stress is not going to do anything good. Rather it can do bad to your preparation. Just keep revising and practicing without taking any stress. [3] Take Care of Health Don't neglect your health in these last days. Eat proper food and avoid parties during the last few weeks. Health should be the top most priority for you all. [4] Don't Focus on Result You can't change the result but you can change your preparation. Remember that result is not in your hand. Not a single question should come to your mind regarding the result. Feel free to reach out to me via DM in case you need any assistance or guidance. Ready to elevate your CFA | FRM | SCR | ESG | CAIA journey? Fintelligents and me are just a tap away 💡 I help people build a career in Finance. Book a Call now. 📞 (https://lnkd.in/dhX5KC2H) #cfa #cfalevel1 #exam

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Been seeing a lot of posts on #ElcidInvestments in the last 2 days. Almost all of them are saying "If you invested XYZ rs months back, your value would be ABC crores." or "Power of value investing" I don't know how many of such authors have actually researched this Company. I have been tracking this Company since last 3 years and yes I'm one of those idiots who placed buy orders daily for a period of 6 months about two years back. The stock has been illiquid because there are very few shares in the open market and those holding aren't willing to sell at 3-6 rs. There have been single digit volumes, that too once in 6-8 months. No, this is NOT the power of value investing, this is price discovery due to change in SEBI norms. Neither can you extrapolate this price discovery to say "If you invested months back". No you couldn't have invested months back because no one wanted to sell! Authors should really research about a Company before just posting uniformed statements. Lets promote informed and educated discussions on this platform :)

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Non-Finance background students can definitely clear CFA with this approach. [1] Build a Foundation Start by building up your base by taking NISM or NCFM courses. You can also go to YouTube and try your hands on some financial concepts. Start reading books related to finance so that you can get comfortable with terminologies and jagrons. [2] Proper Use of Study Material Choose the right study material. If you are a working professional then go for Schweser or otherwise if you want a very deep understanding then you can consider preparing from Institute Material too. [3] Notes & Formula Sheet Always make your own notes and formula sheet. While third party material is also good but you will grasp the things more when you will write it. Writing improves retention. [4] Effective Study Plan Make an effective study plan and stick to it no matter what happens. Set your level and see where you stand in terms of study hours available, days in a week available, which attempt to give etc. and then plan your lectures accordingly. [5] Study Groups & Mentorship It's good if you have a serious and helpful study group which can help you clear your doubts. Always seek a person or mentor who can lay down the path for you. Ready to elevate your CFA | FRM | SCR | ESG | CAIA journey? Fintelligents and me are just a tap away 💡 I help people build a career in Finance. Book a Call now. 📞 (https://lnkd.in/dhX5KC2H) #cfa #cfalevel1 #finance

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Taxes which middle class investor has to pay - ⛔ Security transaction tax 0.1% buy & sell ⛔Dividend distribution tax @15% ⛔Long term capital gains tax @12.5% ⛔Short term capital gains tax @20% ⛔Income tax as per slab ⛔Now Buyback taxes (New tax) After these all, middle class investor enjoy their penny!! Share your thoughts on Indian taxation system..... #tax #budget #investment #shorttermgainstax #longtermgainstax

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Exploring AIF Taxation: Taxation on Alternative Investment Funds (AIFs) varies by category: Category I & II AIFs: Have pass-through status, meaning any income (other than business income) is taxed in the hands of the investor, not the AIF. Category III AIFs: Do not have pass-through status, so income is taxed at the fund level, with no additional taxes for investors. Union Budget 2024 Update: Before the budget, long-term capital gains on listed equity shares were taxed at 10%, while unlisted shares were taxed at 20% with indexation benefits. Now, AIFs, which typically invest in unlisted securities, benefit from a unified 12.5% tax rate on long-term gains.

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"Budget 2024 gave a clear message to all" 🪽 Message to the Market Equity asset class is no more a superior one compared to peers like Real estate from tax pov. 👉🏻 All long term asset classes to be taxed uniformly at 12.5% 🪽 Message to rating agencies India needs a rating upgrade, anytime soon. Our ratings are one of the poorest in major economies, prudent fiscal management in Budget warrants a rating upgrade for 🇮🇳 JP Morgan and Bloomberg bond index inclusion certifies the same. 👉🏻 With such a controlled fiscal deficit targets, India might surely get the rating upgrade soon. 🪽 Message to Political experts The budget was expected to be a Populist one, meaning filled with higher subsidies and freebies. But it cut the subsidy bills by nearly 50% from the highs of Covid and it's constantly falling. 👉🏻 Low subsidy bills can either lead to lower taxes or fiscal consolidation. The government's focus currently is on the latter part. Your turn! What message did you take away from the Budget 2024? #unionbudget

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Investment Bankers are Raking in the Profits from India's IPO Boom! First, let's understand the IB's role in an IPO 👇🏻 1️⃣ Setting valuations and pricing 2️⃣ Marketing and underwriting securities 3️⃣Acting as the face of the company during the IPO process IBs earn IPO fees for their services, and with India's robust IPO market, they're making a killing! 📍IPO fees in India over the years: 2021- ₹2.7k Cr 2022: ₹1k Cr 2023: ₹1.3k Cr 2024 (till August): ₹1.2k Cr Typical IPO fees range from 2-3%, but can go as high as 8% (like in the Saraswati Saree IPO). For IPOs below ₹500 Cr, fees are usually 4-5%. 📍Top fee generators of 2024: Ola Electric - ₹145 Cr FirstCry.com (BrainBees Solutions Ltd.) - ₹96 Cr With big issues like Bajaj Housing Finance Limited in the pipeline, is 2024 shaping up to be a golden year for IBs in India? Yesterday, we discussed how Indian IPOs are leading global issuances. Today, we're highlighting the biggest beneficiaries of this trend – the Investment Bankers! ✅ JPMorganChase | Goldman Sachs | Morgan Stanley #ib #pe #exits #ipo #brlm

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Kennedy Capital Management | ROIC – The Underappreciated Variable in Valuation Looking at investment valuation solely through the lens of growth leaves out an important variable in determining the true valuation of an enterprise. While higher growth is always desirable, we believe it is generally not sustainable over the long run. ROIC on the other hand, which reflects the quality of a company’s operations and management team, is much more durable. While high growth is important, it is much more powerful to find a business with both high growth and high ROIC. Even more powerful is to find a high growth business where the market does not fully appreciate the business’s ROIC potential. #roic #valuation

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Anyone who knows me, knows my favorite phrase - “Every day I get up and choose trying”. I left my last story on CFA incomplete. Let me complete it now. I started preparing for CFA now with a lot more focus. I started taking classes over the weekend. That gave me regularity and brought me some rigour. I went to FinGuru. It's run by Sushant Suri. He's a great guy. Still a good mentor to me. I also started living in Gurgaon. That saved 3/4 hours of commute from Delhi to Gurgaon and back every day. In addition, I started solving for exam questions, and using the calculator a lot more. The other major challenge is really the exam day itself. It's a nine-hour exam, almost. I mean, it's six hours, three hours each, but the effective time that you spend in the exam hall is nine hours. You get to the exam hall at 8 a.m. The invigilators distribute the papers at 8.30. Then they tell you a bunch of instructions and you start the first leg of the exam - 9 to 12. Then you get a break, 12.30 to 1.30. You go for lunch and use the washroom (limited capacity and later you use, the harder to use it becomes). Then at 1.30 you are back for the second leg of the exam, which is 2 to 5. So basically, you're in the exam hall other than the lunch break from 8 a.m. to 5 p.m. That in itself is a huge thing to get yourself accustomed to. No one really does that while doing the preparation. I think that in itself is the biggest surprise and takes a lot of time to get used to. This is an exam hall unlike any other. It's not like a classroom with 50 students. At least for me, it was an auto expo center with a thousand people in one big hall. It's overwhelming. So take something to keep yourself hydrated. I used to keep electrolytes to keep myself up, especially in the second part of the exam. CFA frowned upon it though. At least the invigilators around that time used to frown upon me carrying anything during the exam, but it was mostly medicine for me so that they would allow. So you should consider that. I would just say finally, please only do it when you're convinced that you want to be or when you're already in the investments industry. It's not a great idea to do this exam when you're not in the industry. Anyhow you will not get the charter without investment experience. Most importantly, please remember CFA is truly a marathon, not a sprint.

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If someone's investment thesis/framework benefits from the market returns - there's nothing wrong with it. However if it entirely depends on the movement of the general stock market - it's neither a thesis or framework which would yield any satisfactory results and shall be disregarded for the pursuit of something more worthy &tangible. #investing

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