Global Consilient Research

I covered TD Power Systems in a research article a few weeks back, and the price has appreciated a lot since then

And it currently trades at a PE Ratio of 84 times! And many are calling it an overvalued stock now!

So, I did some reverse engineering on P/E ratio, to find out whether TD Power is actually overvalued or not!

So, here are my findings:

First off, let’s understand what determines the P/E ratio for a firm (I made a video on this)

The key determinants are
- Cost of Equity
- Payout Ratio
- Growth (ROE x Retention)

So, If we back track everything and calculate one variable using the other one which is available, we get the implied growth, and implied ROE

In the case of TD Power, I took the current PE ratio of 84x, with an estimated cost of equity of 18%, and took payout ratio of 11%

Then I solved for Implied growth, which came out to be 17.9%

And implied ROE came out to be 20.1%

Now, if I compare this ROE to cost of equity, I know for a fact that this firm is creating value on each of incremental rupee invested back into the business!

And even current ROE trending upwards is creating positive bias in the market for the stock!

So what’s at play here?

Based on the business fundamentals of the company, market is expecting a growth of 17%+, ROE of 20%+, with an expected cost of equity at 18%

And if company keeps growing at this pace and delivering incremental return on equity above 18%, it will keep trading at rich valuations as here!

Thank You!

18 hours ago | [YT] | 12

Global Consilient Research

Humbled and honoured to announce that as a Managing Partner at Magnus Hathaway Investing

I’ve played a key role in developing a new Portfolio Product called “All Weather Portfolio”

This serves both Retail as well as HNI needs, and works across market cycles, and is diversified globally!

Link to subscribe is in the comments!

2 days ago | [YT] | 21

Global Consilient Research

The only sector growing at 15% - 18% CAGR

The one and only Hospital Sector

See the pinned comment for a complete video!👇🏻

1 week ago | [YT] | 20

Global Consilient Research

Another CFA L2 cleared student who enrolled in our Advanced ER Batch placed successfully in a family office as a front end MFO Analyst!

I’m not even surprised at this point!

Enrol in our Advanced ER batch today! At discounted price!

4 weeks ago | [YT] | 12

Global Consilient Research

l've been in Equity Research domain for more than 5 years now!

And recently became a Managing Partner at Magnus Hathaway Investments!

And here are some brutal truths about India's job markets

1. Freshers aren't respected much!

Trust me on this, no matter what your college is or what certifications you did, if you're a complete fresher on paper, then you're going to get treated like a nobody in Indian job market!

And that's a sad part which nobody tells you on Linkedln!
__

2. People join this industry with wrong reasons

Most have no idea why they are here, all they can say is that they are just passionate about the markets, or they're doing it because someone else is also doing it!

Herd mentality is a real thing!
__

3. CLAUDE is here to ruin many things

If your only skill is building repetitive financial models, and reports, then trust me, you're cooked!

People are underestimating Claude at this stage!
__

4. Referrals are your MOAT

If you don't know a thing, but still have some good connections, then you can be sure of having a great career!

But you must become skilled sooner or later!

Hope it helps!

1 month ago | [YT] | 30

Global Consilient Research

Humbled to announce that as a Managing Partner at Magnus Hathaway Investments, I’ve been given further responsibilities of managing all the financial models of our HNI clients portfolio stocks!

This marks my official entry in Buy Side Portfolio Management & Valuation

Grateful 🙏

1 month ago | [YT] | 30

Global Consilient Research

Sir, I failed in CFA, it’s so over for me!


Wait, before you sign yourself off, let me tell you one thing: Your past failures are no indicators of your future performance!

Not even close!

There’s zero correlation between past and future!

Zero!

For more detailed guide on this, I’d recommend you to read Psycho-Cybernetics by Maxwell Maltz!

And for CFA Candidates, watch this one: yt.openinapp.co/s6bpp

1 month ago | [YT] | 11

Global Consilient Research

If I were to start in Equity Research from absolute scratch in 2026, then here’s how I’ll start!

From the first step to the final step!

First, I’ll understand the industry, job profiles, different roles and what they do!

Second, I’ll gain a basic understanding of the research, finance and basics of valuation!

Third, I’ll learn about the expected salaries for an absolute fresher in the market!

And then only, I’ll give it a deep dive with all the qualifications, skills and internships thing!

This is the way!! This way, you will have a plan, and you’ll take the wise decision in career choosing and without spending much!

All the resources are in the comments👇🏻

2 months ago | [YT] | 60

Global Consilient Research

Valuation Role cracked by our Advanced ER batch candidate!

Enrol in recordings of Advanced ER batch today!

Link is in the comments!

2 months ago | [YT] | 21

Global Consilient Research

I’ll not be surprised if entry level equity research job salaries are further reduced!

Don’t expect much in today’s time if you’re completely fresher! Without any internship, projects, you’re not getting a good job in today’s time!

2 months ago | [YT] | 31