NSE IFSC - How to Invest in US Stocks 🇺🇸 from India 🇮🇳?
#NSEIFSC #USSTOCKS

A detailed Thread on the NSE IFSC route for investing in US Stocks for Indian Retail Investors 🧵

RETWEET FOR MAX REACH

Major FAQ’s 🙋‍♂️❓
1. What is this all about?
2. What can we buy?
3. How can we buy?

4. Who can buy?
5. How much can we buy?
6. What benefits?
7. Exchange timings & modalities?
8. Any risks?

Ever heard of FAANG, Metaverse Stocks & a whole host of stocks that seem so promising but yet so out of reach. Within this global village, information is traveling at a speed of light, so are our expectations from our PF.

There has been a rage in people to invest globally via indirect means as directly investing in US Stocks has been cumbersome & mostly people feel that unease of dealing with currency conversion & taxation.

But now NSE through its subsidiary exchange is making things simpler.

Let's dive in to understand more:-

1. What is this all about?

NSE IFSC (NSE International Exchange) incorporated on Nov 29, 2016, is a wholly-owned subsidiary of NSE.

Deepak Nitrite|The Upcoming Stalwart of the Chemical Industry?

Let's read the story of the business and an updated view on the valuations of the business today!

First ever blog by @sidnautiyal07 , do let us know the feedback in the comment section!

🔗:https://t.co/yXU8qQFMLc

Did you know that Radico Khaitan🍻 has consistently outperformed the Indian Alcohol industry in terms of volumes:

2019 it grew at 10.8% vs 9.2%, in 2020 at 12.5% vs 0.4% growth of the industry. In 2021, industry degrew by 14% and Radico by 8%. Focus on the right alcohol co 🥃🥃

Creating segments and classifications about what really works in a sector can help you massively.

EG:- IT is just not about IT, there are Product companies, SAAS Businesses, services companies, ER&D companies and Corporate Learning Companies.

Banking&Finance is just not about Large Private Banks ⤵️

There are regional banks, Small Finance Bank, Public Sector Banks, Regional NBFCs, Deposit taking NBFCs, Housing Finance companies, Microfinance companies, CV Financiers etc.

Chemicals are not just speciality chemicals ⤵️

There are Bulk Chemicals like Phenol, Speciality Chemical and different chemistry chains expert like Fluorine, Bromine, Phosgene etc. Then there are niche product manufacturers like SDA or ATBS.

Retail is just not about Retail ⤵️

There are various segments within retail too! Someone might be doing value retail, someone might be doing luxury retail, Some companies might go for a COCO model (Company owned+Company Operated). Some might go for FOFO model (Franchise owned)

Pharma Contract Manufacturing has various types too ⤵️

Some Like Windlas are just CMO's for generics (low margin), some are present throughout the value chain Like Syngene (Complete CRAMS), some are just in Contract Development and manufacturing of intermediates (Suven)

Companies openly talking about the API shift, validation will take time. Expecting opportunities to open for businesses that can maintain margins or expand them. One of them is in the midst of a brownfield expansion :) 💊

The Q4F22 Earnings season is almost here!

What are the Key things that you need to track in various businesses like Hospitals 🏥, Pharma🩹, Chemicals 🧪 and Music🎵 etc ⤵️⤵️

I will be analysing the companies and the expectations in two ways:-

1⃣What does the company do and the sales split?
2⃣What to expect from the results/Business direction?

1. Divis Labs:

Over the years Divis has proven its capabilities as an API player and has the highest Ebitda margins (44%) when compared to the other Pharma companies. 57% of the business in the last Quarter Q3FY22 was contributed by Synthesis and 43% by Generic API’s.

What to expect?

Molnupiravir has contributed to almost 21% of sales for Divis in FY22 (According to Kotak).
Investors will need to track the recovery in the Generic API division which has been soft for the last 3 quarters and growth in CDMO ex of Molnupiravir.

What to look for in Financials?

Key monitorable to track is by how much the topline grows or degrows QoQ. Given the base was high in last Quarter due to Molnupiravir Sales.

Topline sustaining above 2100 crores and margins above 41% will be good!

Take debt at an average rate of 0.7%. Buy Japanese stocks with dividend yield of 4%.

Stocks double, yields are itself enough to pay off the debt.

One and only true legend who has stuck to finding these idiosyncratic opportunities- Warren Buffett. Others can buy Shopify at 60 PS

Warren Buffett at 91 Years remains a vastly superior investor to the new called Tech Gurus. Reason being- Valuation focused and doesn't get carried away with the trend. That's the discipline..

Everything about Free cash Flow Simplified!

What we will talk about in this 🧵🧵:

1⃣What is Free Cash Flow
2⃣How to calculate Free Cash Flow
3⃣Types of Free Cash Flow
4⃣Importance & Limitations of Free Cash Flow

Let's dive in ⤵️⤵️

What is Free Cash Flow?

Free cash flow means the cash that is left over after a company pays for its operating expenses and capital expenditures (Capex) like purchasing new machinery, equipment, land & building, etc. and satisfying all its working capital needs.

In simple words, suppose whatever cash that is left with you after you spend your salary or income is known as Free cash flow that you can use for different purposes.

The more FCF a company has, the better it is. Businesses which generate high FCF can:-

1⃣Give investors higher dividends
2⃣Do share buybacks
3⃣Build a war chest for acquisitions or Capex.
4⃣Reinvest in the business when opportunity arises with lesser dependence on debt.

How to calculate Free Cash Flow👇:

To calculate free cash flow, all you need to do is open the Cash Flow Statement and subtract "Net Capital expenditure" from "net cash from operating activities".