Monishaaa, ‘Bio-refineries’ bolo beta…
This ‘Sugar Mills’ is just too middle class!

Thread on IDFC first Bank 🧵

Market cap: 37,087 crores
Revenues: 15,968 crores
P/E: 82
P/B: 2.42
ROE: 2.95%

Here we go 👇

1/25

Unique evolution,

On getting a license, it was created out of a demerger of infrastructure financing business followed by the merger of erstwhile Capital First;

Stress build-up and franchise investment resulted in a weak Return profile during the transition phase;

2/25

After merger of Capital First, with Mr. V. Vaidyanathan at the helm, management is focused on building a high-yielding retail banking franchise (average retail yield at >15%);

Infrastructure loans to be completely run down, selective lending in non-infra corporate segment:

3/25

Of the wholesale exposure, infra book has been almost halved since merger to Rs108bn and will be further rationalized to a very negligible proportion in 3-5 years;

4/25

Remarkable transition in asset and liability profile post the merger:

After having rolled out a 5-year strategic roadmap towards targeted RoA and RoE of 1.4-1.6% and 13-15% respectively, it has made significant strides on most operating parameters:-

5/25

Well it's happening...

Someone who usually buys after I suggest, msgd me and said...
"U should read Renuka Sugar"

U don't know - Modi ji changing Ethanol Rules...

When I argued..immediate response was to send some watsapp msg & a reply "I bought Balrampur also sometime back"

Just to add : I have no views on sugar stocks.. I don't understand if Sugar stocks are overvalued or undervalued..

Once envy eats away at someone, everything you do only makes it grow, and day by day it festers inside him.

Eventually he will attack.

Grateful to @AswathDamodaran for sharing his wisdom in this remarkable conversation with @veiled_value about the book, The Dark Side of Valuation.

Excerpts follow in this thread.
Members, access the full interview

On every investor's worst enemy:

On uncertainty:

On multiples vs. DCF:

On stories and valuation:

Balrampur Chini Mills is betting big on distillery capacities. Company is setting up a 3,20,000 liters per day capacity, which will be start in December 2022.

Excellent resource for Individual investors who want to learn about Accounting and Financial Statements.📊

The concepts are really well explained in a simple, understandable manner for beginners.

cc: @dmuthuk @Gautam__Baid

Content available 👇

Some of my fav sections.

1⃣ The Financial

2⃣ Fundamental Accounting

3⃣ Financial Ratio

If the Adani stocks trading at more than 50x sales are able to sustain for next 3 years, we will enter a new era of valuation.

And we have never entered in the new era of valuation before.

There was only one since the beginning.

If you know, you know.

@unseenvalue Got it sir 🙏

Total case study in expectation-setting by @JeffBezos.

If you want to understand how to communicate directly & candidly with employees, customers, partners, just read this...

1997 shareholder letter for those wondering

Appearing better than others is always dangerous,

but most dangerous of all is to appear to have no faults or weaknesses.

Envy creates silent enemies.

Feelings of inferiority gnaw at them; the thought of your success only heightens their feelings of stagnation.

@kunalb11 @GabbbarSingh IMO it is got to do with the nature of products & consumer behaviour. Most of the banks’ products are consultative sell rather an impulse buy at grocery stores. A customer has more chances of buying a shaving gel while buying milk than someone taking a car loan on a visit to ATM!

Either dampen your brilliance occasionally, purposefully revealing a defect, weakness, or anxiety, or attributing your success to luck; or simply find yourself new friends.

Never underestimate the power of envy.

1/ As an $FB shareholder and avid user of TikTok I've been closely following Reels since its US launch in August 2020. The product and the videos have been slowly improving over time but it's still nowhere as good as TikTok. So I decided two look at two hypothesis as to why:

2/ First, is Reels not able to attract the creators that I find entertaining?

Second, do they have the creators but the algorithm doesn't know how to surface the content to me?

For context, most of my TikTok usage is comedy but most of my Reels is animals and cute kids 😬

3/ This isn't suppose to be a highly scientific but I started skimming through videos I previously liked on TikTok and looked up the creator on IG. Here are insights from 26 of the larger creators representing 2.4B likes on TikTok.

4/ 50% of creators don't post on IG at all or rarely do. But more importantly, this 50% represented 74% of TikTok likes. This is driven by the fact that two large creators (yoleendadong and zlnccx1) with 941M likes, use IG as more of a fan page, not sharing content

5/ My general sense is that it's the combination of both hypothesis (only some creators are on IG and the algo isn't super sophisticated) that leads to a subpar experience on Reels. Maybe IG can fix this over time with scale, tech, and growing a new set of creators native to IG?

Case Study 3 : #UnitedSpirits / #DiageoIndia 🍻
CMP – 629.25 (4/6/2021)

(Must read Thread 🧵for #TA & #FA learners)

Fundamentals Sound & Technically Breakout Soon Candidate !

#TechnoFundaInvesting

@dmuthuk hope you like our detailed analysis🙏

@caniravkaria
@rohanshah619

1⃣United Spirits Limited, abbreviated to #USL (Diageo India) is an Indian alcoholic beverages company, and the world's second-largest spirits company by volume.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

2⃣Company has a comprehensive brand portfolio with over about 80 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka and gin.

11 of these brands sell more than a million cases annually.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

3⃣Company’s popular brands include - Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Royal Challenge, McDowell’s No. 1, Smirnoff and Captain Morgan.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

4⃣🌟Few Fundamental Positives🌟

✅Company Market Cap – 45,723.74 Cr
✅TTM EPS – 5.28
✅TTM P/E – 119.20
✅Industry Average P/E – 113.63
✅Book Value – Rs. 56.20.
✅Promoter Holding Pledge – 1.19% (Reduced from 3.22% in 9 quarters)

Some of the most unusual economic indicators you've probably never heard of-

A thread...

1. Men’s underwear Index: Accordingly to this index, a decline in men’s underwear sales indicates a poor overall state of economy, while an upswing in sales predicts an improving economy.

Hence, by tracking the sales of men's underwear, we might be able to detect the relative health of the economy.

2. The First Date Indicator:
When an economy bottoms out, people seek the comfort of relationships to overcome depression and loneliness. The indicator shows how there is an increased traffic on online dating sites during recession.

This was seen during the crisis of 2008, when US-based online dating service Match. com reported the highest surge in traffic in over seven years.

Mark Zuckerberg and CFO David Ebersman debate acquisition strategy

February 27, 2012

[Note: This document is from the House Judiciary Antitrust Subcommittee.]