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How to Use Segment Information to make better investments

This post is a continuation of my process series. You can read the first part here. What is Segment Information? Segment Information (or Segment Reporting) is a requirement under the India Accounting Standard 108(rechristened from earlier AS 17). Under this requirement, a company needs to specific their operating segments, revenue per segment, and assets under … Continue reading How to Use Segment Information to make better investments

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Abbott India Ltd: Good Management, ROCE, Cash Conversion and Leverage

I became aware of Abbott India through this tweet: If a company has 4x times the PAT as cash equivalents on its books, 40% ROCE, 15% OPM, almost every year for last decade+ it has grown top line by 10%+, 20%+ ROE, 30% divided payout, 0 debt, leading products in its domain etc.Is a 40 … Continue reading Abbott India Ltd: Good Management, ROCE, Cash Conversion and Leverage

How to use Revenue Recognition Policy in your investing

Lots of people have asked me about my process and what all things I look while assessing a company. I thought I'll highlight some of the more abstruse parts of my process. The first thing I look for in a company is the revenue recognition process. What is Revenue Recognition? All analysis starts with a … Continue reading How to use Revenue Recognition Policy in your investing

Book Review: Of Long Term Value And Wealth Creation and Masterclass with Super-Investors

As an Indian market investor one of my major gripes has been that we don't see many good books from Indian gurus. The problem as I am realizing isn't that we don't have decent books rather than we aren't aware of them. These obviously aren't classics like Random Walk Down on Wall Street or One … Continue reading Book Review: Of Long Term Value And Wealth Creation and Masterclass with Super-Investors

Hester Biosciences Ltd: Rule of 2, Inadequate Profits and Compensation

Hester Bioscience manufactures animal vaccines. Their largest product being - poultry vaccine. In my analysis, this company had some serious shareholder friendliness issues. Rule of 2 The onus of good corporate governance lies with the board of directors. In which case it is necessary for the board to be independent from the management of the … Continue reading Hester Biosciences Ltd: Rule of 2, Inadequate Profits and Compensation

OYO Rooms Buyback and Flipping Homes in a Real Estate Boom

Recently, Ritesh Agrawal, the founder of OYO Rooms pulled a double whammy. First, he bought back shares giving early investors - Sequoia and Lightspeed Ventures a 30x exit. Second, he doubled OYO's valuation from 5 Billion to 10 billion in just over 3 months. This deal has confused people with questions like - How does … Continue reading OYO Rooms Buyback and Flipping Homes in a Real Estate Boom