Global Consilient Research

Here’s what to look for analysing any cement player!

23 hours ago | [YT] | 20

Global Consilient Research

Buy and Hold is not always a good strategy!

Book name: The Making of a Value Investor

6 days ago (edited) | [YT] | 35

Global Consilient Research

Today, with a heart full of gratitude, I’m announcing that I have been promoted from the position of Research Analyst to the Managing Partner at Magnus Hathaway Investments!

Grateful! 🙏

1 week ago | [YT] | 107

Global Consilient Research

Our Advanced Equity Research Program is best in the world

1 week ago | [YT] | 12

Global Consilient Research

Let me drop the biggest value bomb for you today, especially in the domain of Banking Analysis!

(I need to be consistent tho)

Let's understand the relationship between the following asset quality metrics in banking

- GNPA
- NNPA
- PCR
- Credit Costs
__

Let's understand the concept of GNPAs first, they stand for Gross Non Performing Assets, any asset which is overdue for more than 90 days from its due date (in case of term loans) becomes a GNPA

Now comes your NNPA, aka Net Non Performing Assets, arrived after reducing Provisions from GNPAs.....but most people have no idea how to tackle the differences between the these two

See, when the divergence between GNPA & NNPA is too much, then understand that its because of higher provisioning, and when provisions are higher, then automatically 2 other metrics will go up too, and those 2 metrics are your provisioning coverage ratios and credit costs

Why? Because when we increase the provisions on our loan book, we are in part saying that we expect more no. of our advances to turn into NPAs

And when provisions goes up, your PCR and credit costs goes up too!

(PCR = Provisions/Gross NPAs)
(Credit Costs = Provisions/Total Average Advances)
_

Plus, when credit cost goes up, it directly affects your ROA, and when ROA gets hit, the ROE (ROA x Leverage) goes down too

This in turn affects your P/B Ratio and stock trades at a lower valuation!

This is how these metrics are interlinked with each other, and that's the reason most PSU banks trade at a lower valuations than private banks, mainly because of higher provisions (90%+).

3 weeks ago | [YT] | 14

Global Consilient Research

Understand the flow of income statement of a bank and NBFC

And how profit is created!

Do look for provisions and compare it to average advances to arrive at credit cost

Credit cost eats into the profit and suppresses both ROA & ROE!

Learn more about Banking & NBFC in our webinar👇🏻

4 weeks ago | [YT] | 21

Global Consilient Research

Whenever you study Pharma Companies, you will find one thing!

It’s RFPs! But, what are RFPs?

RFPs are simply your Request for Proposal

It is a formal document that an innovator or buyer issues when they want Pharma/API vendors to bid for a product or service

Think of an RFP as the buyer saying:

“Here’s exactly what I need.
Tell me how you will deliver it, at what cost, and why I should pick you.”

Pharma sector webinar coming soon! 🔜

Good night!

1 month ago | [YT] | 20

Global Consilient Research

If you are using EV/EBITDA multiple to value any business in the stock market, then please take a look at how much % is D&A contributes to EBITDA

If the % is higher, then the business requires a lot of sustenance capex, and is generally an indicator of higher reinvestment needs

And as a matter of fact, EBITDA to EBIT ratio is called as depreciation factor, and higher this ratio is, higher the reinvestment needs for the business!

This analysis will add a new layer of valuation knowledge to your analysis!

Thanks!

1 month ago | [YT] | 17

Global Consilient Research

Tracking the quarterly results are one thing! And I have already made a video on that!

But how do we attend the concalls and be the first one to ask questions from the management?

Link is in the comments

1 month ago | [YT] | 10

Global Consilient Research

Always be the first one to ask questions in a concall! That’s the only way you can have a edge!

Tomorrow I will upload a video on how to attend concalls, and ask your questions to the management as a retail investor!

Good night!

1 month ago | [YT] | 9