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Friday, 21 April 2017

Players - Harshil FA vs Puneet Grover TA


7 comments:

  1. Unknown21 April 2017 at 22:36

    Hi, Harshil I have 3 Questions on Fundamntals
    Q1. What is ROE and ROCE, which should be used and when?
    Q2. why some of the analyst use PB*PE?
    Q3. What should be right method to find multibagger stock?

    ReplyDelete
  2. Unknown22 April 2017 at 07:08


    Hello Puneet Grover Sir,
    I am not very Good FA but as per my understanding i am answering your few queries. Incase of doubt please ask so i can also clear my concepts
    Answer 1
    Return on Capital Employed
    ROE is determined using method
    Return on equity = Net income / Shareholders equity
    This is basic understanding for all.
    Now net income is sum total of all the income of the company in a given financial year subtracting the expenses and costs incurred to the company in that given period.
    Higher ROE is better for the shareholder because the whole functioning of the company is profitable and also shows how efficient the management is.

    Return on Capital Employed
    ROCE = Earnings before interest and taxes (EBIT) / Capital Employed

    Now when u want to see which is better method its like very subjective.
    I ll explain with a small example.
    U see ROE when u are shareholder and higher the ROE better for u
    Now ROCE is used when u want to see how the company earns more and more with additional capital employed.
    So this is better measure when u want to go for generating more capital. ROCE is better when u are particularly a Management Person and want to see only betterment of company

    I hope i am able to solve your first query


    Answer 2
    PB ratio
    Price to Book Ratio
    PB is the market price divided by the price mentioned in the books i.e Balance Sheet.
    High PB represents overvaluation. Low PB represents undervaluation.
    Sometimes if all other things such as Pe and other ratios are good than lower PB ratio companies shows good future investment potential.
    Generally high capital intensive companies have lower PB ratio and Service Sector companies have higher PB ratio.

    PE ratio
    Price to earnings Ratio
     PE is the market price divided by the earnings per share.A high PE may indicate investors expect a higher earnings per share growth in the future.

    So if any analyst uses PB*PE that might be his personal choice because multiplying this both ratio dont take u to any conclusion still i never used it, incase if u find someone will try and understand from him and get back to u.

    Answer 3

    This is very subjective question and answer to this question is neither right neither wrong. But the person and his approach depends on how he finds it.
    There are various approach such as
    Studying whole annual report and finding ratios and future plans and management performances,
    Studying various Macro economic Factors and Micro Economic factors,
    Studying the reports and contacting the company management upfront.
    But according to me u should study a bottom up approach
    Like study upfront company's annual report and all the kind of information available
    Study its past ratios and future management personnel
    Den study the peers and competition
    Den study the industry as whole and in detail sector and its future
    Den go for the country's economy
    And last have a Macro International Forces into consideration.
    To be precise i will say u like what i did for one company
    Study Kpr Mills company
    Get news abt accounts and all plans and forecasts
    Get news on mergers and acquisitions like when it was rated 300 at that time page industry wanted to takeover the company at valuation of 600 per share
    Than study the sector as whole.
    U can also take a top down and bottom up approach in mixture.
    Like select the sector and den company and den all other factors of macro level

    Hope u are satisfied by all the answers
    And thanks for giving me opportunity to read and learn everything to answer your question.
    Incase of any doubt please let me know so i can improve on it and we can grow together..


    ReplyDelete
  3. Unknown22 April 2017 at 08:24

    So Mr Puneet Grover Sir,
    Actually m very much less aware about technical analysis thing i am always keen to start learning about it.
    So my Question is
    1) do u really think that candlesticks complete study helps u to earn daily 3 to 4 grands? Is yes how and where to start if u can guide me with basics in breif
    2) all these levels and rsi indicators and breakouts does these things of work in thr option premium and breakout comes in that, if yes please explain with an example?
    3) One of the person i met predicted Nifty at 10000 and also that BJP will surely win in the UP election what according to u is this? Because since December whatever he is saying me is getting correct on basis of charts only?

    ReplyDelete
  4. Unknown22 April 2017 at 09:13

    Ans1. Frankly speaking only candle sticks can not make too much for us. Its use of various patterns like head and shoulder with the use of moving average and elliot wave theory can help for that kind of return that too on weekly closing charts.
    To start it first learn basics of charting.
    Ans 2. RSI and support and resistance are very important for trading and investment as well. They work well in intraay day also.but I prefer not to use in options as they are used for hedging, better would be analyse on stock and use options as hedging tool.
    Ans 3. In india , I even think no body is like modi so definetly he will win. Keep long positions and add more on dips, I would conclude in Indian MKT buyers make more money in index than sellers. Always long in ur pockets and with hedge as well.

    ReplyDelete
  5. Unknown22 April 2017 at 10:45

    Thats a great explanation sir. Can v continue further on our questions so that we will surely gain more knowledge from each other. Winning and loosing is a different game but learning is important is what i feel

    ReplyDelete
    Replies
    1. Unknown22 April 2017 at 19:04

      Give u more details on Monday as typing on mobile, I don't like.

      Delete

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