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Q&A: SSGR, CFO vs PAT, Margin of Safety & Valuation Analysis

March 13, 2016, 1:25 am
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www.drvijaymalik.comhas a section dedicated for answering queries of readers: “Ask Your Queries”. Overtime, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. I have responded to these queries as replies to their comments.

“Readers’ Queries” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. Primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to:
  • Self Sustainable Growth Rate (SSGR)
  • Cash flow from operations and CFO vs PAT analysis
  • Valuation analysis of companies
  • Margin of Safety (MoS) 

Answers to queries on Self Sustainable Growth Rate (SSGR), CFO vs PAT analysis, valuation analysis and margin of safety.


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Q&A: Intrinsic Value, ROE, Promoters' Salary & Others

March 13, 2016, 6:08 am
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www.drvijaymalik.comhas a section dedicated for answering queries of readers: “Ask Your Queries”. Overtime, many readers have asked their queries related to many aspects of stock analysis and sought clarifications about investing. I have responded to these queries as replies to their comments.

“Readers’ Queries” series is an attempt to share the queries & their responses, which have featured on “Ask Your Queries” section, with all the readers. Primary aim of this new feature is to share the knowledge with other readers of the website, who might have similar queries.

The current article in this series provides responses related to:
  • Assessment of intrinsic value of a stock
  • Return on equity (ROE)
  • Reasonable levels of promoter’s salary
  • Portfolio concentration
  • Treatment of inventory

Answers to queries on intrinsic value, return on equity (ROE), promoters' salary, portofolio concentration & others

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Upcoming Talk in Mumbai on April 16

April 1, 2016, 9:31 pm
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Topic: How to Assess the Management Quality before Buying Stocks

I will address a session organized by Moneylife, in Mumbai on Saturday, April 16, 2016 in Mumbai. This session will focus on the assessment of management quality of a company before an investor makes the final investment decision about any stock.

Long term investors understand that a share of a company is not just a piece of paper but a part ownership in the underlying business of the company. Many established investors around the world have supported this view and have advised their shareholders, readers and other investors to consider themselves as part owners of the company.

Though, I agree with this view, I think that the part ownership concept suits more to those investors who have a significant stake in the company. These shareholders who have a significant stake have the power to influence the management in their critical decisions about the company and its business.

Retail individual investors very rarely have a shareholding in a company, which is large enough to influence management decisions. In such a situation, retail investors, have to accept the decisions of the management& other large strategic shareholders; whether such decisions are related to market expansion, diversification, capex or dividend declaration. A retail investor, most of the times has the option to either accept the management decisions or sell the shares and exit out of the company.
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Why Management Assessment is the Most Critical Factor in Stock Investing? (Moneylife Session Part-1)

April 17, 2016, 9:34 am
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On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organized by MoneyLife Smart Savers, courtesy Mrs. Sucheta Dalal, Managing Editor of Moneylife and Mr. Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks.

Read: Finding Stocks that are backed by right management - MoneyLife

I was touched by faith reposed by the audience in me, who had come to Mumbai to attend the session from the locations like Vishakhapatnam, Trivendram, Kochi, Surat, Pune etc. The feedback of the session from the audience was very good and it was felt that the content was useful to investors while making investment decisions.

Assessing Management Quality most critical factor stock equity investing Moneylife Gujarat Automotive Gears Limited HIM Teknoforge Limited



The current article is the first part of a series of articles that I plan to write to cover the learnings shared in this session with the audience. However, it is not a transcript of the session. For the original video links of the session, you may contact Moneylife: editor@moneylife.in
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Steps to Assess Management Quality before Buying Stocks (A) (Moneylife Session Part-2)

May 7, 2016, 2:10 am
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On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organised by MoneyLife Smart Savers, courtesy Mrs Sucheta Dalal, Managing Editor of Moneylife and Mr Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks.

Read: Finding Stocks that are backed by right management - MoneyLife

I was touched by faith reposed by the audience in me, who had come to Mumbai to attend the session from the locations like Vishakhapatnam, Trivandrum, Kochi, Surat, Pune etc. The feedback of the session from the audience was very good and it was felt that the content was useful to investors while making investment decisions.


Steps tools of management assessment analysis in stock analysis and equity investments value investing india Brooks Laboratories Limited, Manappuram Finance Limited, ESS DEE Aluminium Limited, Ambika Cotton Mills Limited, Rexnord Electronics & Controls Limited


The current article is the second part of a series of articles that I plan to write to cover the learnings shared in this session with the audience. However, it is not a transcript of the session. For the original video links of the session, you may contact Moneylife: editor@moneylife.in

The first part of this series of articles highlighted the reasons that make management assessment an essential parameter in stock investing. You may read this first article here:

Read: Why Management Assessment is the Most Critical Factor in Stock Investing? (Moneylife Session Part-1)

The current article, which is the second part of this series, would highlight some of the key steps/tools that investors should use to find out a good management and avoid bad management. An investor should read these carefully and inculcate them in her stock analysis process so that she may avoid falling into the trap of unscrupulous managements that try to benefit at the cost of minority shareholders.
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Steps to Assess Management Quality before Buying Stocks (B) (Moneylife Session Part-3)

May 28, 2016, 7:54 pm
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On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organized by MoneyLife Smart Savers, courtesy Mrs. Sucheta Dalal, Managing Editor of Moneylife and Mr. Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks.

Read: Finding Stocks that are backed by right management - MoneyLife

I was touched by faith reposed by the audience in me, who had come to Mumbai to attend the session from the locations like Vishakhapatnam, Trivandrum, Kochi, Surat, Pune etc. The feedback of the session from the audience was very good and it was felt that the content was useful to investors while making investment decisions.

Steps tools of management assessment analysis in stock analysis and equity investments value investing india warrants, Rexnord Electronics & Controls Limited, DCB Bank, Motilal Oswal Wealth Creation Study, Tata Steel, Kotak Securities Limited

The current article is the third part of a series of articles that I plan to write to cover the learnings shared in this session with the audience. However, it is not a transcript of the session. For the original video links of the session, you may contact Moneylife: support@moneylife.in

The first part of this series of articles highlighted the reasons that make management assessment an essential parameter in stock investing. You may read this first article here:

Why Management Assessment is the Most Critical Factor in Stock Investing? (Moneylife Session Part-1)

The second part discussed some of the key tools that an investor has at her disposal to assess the management quality of companies. You may read the second part of this series of articles here:

Steps to Assess Management Quality before Buying Stocks (A) (Moneylife Session Part-2)

In the second part we discussed the following tools for management assessment:
  1. Promoters’ background check
  2. Promoters’ salary
  3. Related party transaction

The current article, which is the third part of this series, is a continuation of the discussion of the key steps/tools that investors should use to find out a good management and avoid bad management. An investor should read these carefully and use them in her stock analysis process so that she may avoid falling into the trap of unscrupulous managements that try to benefit at the cost of minority shareholders:
Read The Complete Article»
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Steps to Assess Management Quality before Buying Stocks (C) (Moneylife Session Part-4 Final)

May 29, 2016, 6:15 am
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On April 16, 2016, I got the opportunity to address a group of investors in an event “Investor Club” organized by MoneyLife Smart Savers, courtesy Mrs. Sucheta Dalal, Managing Editor of Moneylife and Mr. Debashis Basu, Editor of Moneylife. The session focused on the assessment of management quality while buying stocks.

Read: Finding Stocks that are backed by right management - MoneyLife

I was touched by faith reposed by the audience in me, who had come to Mumbai to attend the session from the locations like Vishakhapatnam, Trivandrum, Kochi, Surat, and Pune etc. The feedback of the session from the audience was very good and it was felt that the content was useful to investors while making investment decisions.

Steps tools of management assessment analysis in stock analysis and equity investments value investing India, Satyam Computer & Services Limited, Golden Peacock Awards, Corporate Governance, Accounting Juggleries

The current article is the fourth and the final part of a series of articles that I plan to write to cover the learnings shared in this session with the audience. However, it is not a transcript of the session. For the original video links of the session, you may contact Moneylife: support@moneylife.in

The first part of this series of articles highlighted the reasons that make management assessment an essential parameter in stock investing. You may read this first article here:

Read: Why Management Assessment is the Most Critical Factor in Stock Investing? (Moneylife Session Part-1)

The second and the third parts discussed some of the key tools that an investor has at her disposal to assess the management quality of companies.

You may read the second part of this series of articles here:

Steps to Assess Management Quality before Buying Stocks (A) (Moneylife Session Part-2)

In the second part we discussed the following tools for management assessment:

1) Promoters’ background check
2) Promoters’ salary
3) Related party transaction


You may read the third part of this series of articles here:

Steps to Assess Management Quality before Buying Stocks (B) (Moneylife Session Part-3)

In the third part we discussed the following tools for management assessment:

4) Warrants and their misuses
5) Management focused on the share price
6) Dividends funded by debt


The current article, which is the fourth and the final part of this series, is a continuation of the discussion of the key steps/tools that investors should use to find out a good management and avoid bad management. An investor should read these carefully and use them in her stock analysis process so that she may avoid falling into the trap of unscrupulous managements that try to benefit at the cost of minority shareholders:

Read The Complete Article»
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Analysis: National Fittings Limited

June 5, 2016, 1:12 am
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www.drvijaymalik.comhas a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Overtime, readers have asked queries about multiple stocks in this section. Answers to these queries, have been done post preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers.

Q&A Series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. Primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Q&A” covers: National Fittings Limited (erstwhile Interfit Techno Products Limited), an Indian manufacturer of piping components.

”equity
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Pre-Register & Express Interest for a Stock Investing Workshop in Your City

June 10, 2016, 9:53 pm
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It has been about two years since drvijaymalik.com started its journey of “Simplifying Stock Market Investing for a Common Investor”. It has been a very fulfilling journey until now in which I have seen many readers benefiting in their efforts to hone their skills as fundamental stock investors.

Many readers have shared their inputs about the usefulness of the articles on drvijaymalik.com in their quest to search for fundamentally sound stocks. Personally, it has been a great experience to receive the feedback, some of which can be read here in the section: Testimonials

Until now, the primary mode of sharing knowledge on drvijaymalik.com has been articles focused on various stock investing concepts and stocks’ analysis. However, overtime, many readers have suggested extending the knowledge sharing to “in-person” formats like workshops, YouTube video logs etc. I appreciate all the readers/investors who have given their feedback to guide the next stage of progress to drvijaymalik.com in its quest to help common retail investors become better investors.

In the effort to take the knowledge sharing to the next level, I plan to conduct day long workshops focused on fundamental equity investing. The aim of the workshops is to help a retail investor understand the key aspects of fundamental equity analysis and use them in her stock selection so that she can identify good stocks for investment on her own.

Stock Investing Workshop, Value Investing, Doctor Dr Stock, Dr Vijay Malik, One Day Full day Workshop

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Register for "Peaceful Investing Workshop", Mumbai, August 28, 2016

June 25, 2016, 5:18 am
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One of the key methods to generate significant wealth from stock markets is to buy & hold fundamentally sound stocks over long periods of times extending to years and many a times to decades. However, such long investing duration invariably contain periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for long term a difficult proposition. 

Therefore, the patience to hold stocks in fluctuating markets requires very high level of conviction from the investor in her investing decisions.

“Peaceful Investing Workshop” aims to focus on stock selection and analysis skills, which would make us much more confident about our stock decisions. It would ensure that our faith would not shake with day to day market price fluctuations and we would be able to reap true benefits of stock markets to fulfill our dream of financial independence.

Full day fundamental stock investing workshop focusing on value investing by Dr Vijay Malik at Mumbai on August 28, 2016 at The Mirage Hotel


The workshop would focus on fundamental stock analysis of stocks with detailed analysis of various sources of information available to investors like annual reports, quarterly results, credit rating reports, online financial resources like screener. 

The workshop would help an investor learn in-depth analysis of stocks that would help her make her own opinion about the strengths & weaknesses of any stock. The participants would be able to use the stock analysis with their preferred stock selection approach like value investing or growth investing.

The workshop would cover basics of investing and simultaneously focus on key concepts needed for stock analysis both for a beginner and seasoned stock investor. I believe that a person does not need to have an educational background in finance to be good stock investor and the workshop has been designed keeping it in mind.

Full day fundamental stock investing workshop focusing on value investing by Dr Vijay Malik at Mumbai on August 28, 2016 at The Mirage Hotel

The workshop had 30 seats and has been completely sold out. You may pre-register and express interest for a workshop in your city by clicking here.
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Understanding & Interpreting Quarterly Results Filings of Companies

June 26, 2016, 2:32 am
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One of the key requisites of being listed on stock exchanges is that the listed companies are required to disclose their performance on a periodic basis. This is true for publically listed companies across the world. Different countries stipulate different disclosure requirements on the companies listed in their respective stock exchanges. However, the common requirement in all the markets is to disclose information about critical developments on an ongoing basis and financial performance on a regular basis.

Most of the markets, including India, stipulate disclosure of financial performance at least once every quarter. Therefore, companies listed in Indian stock exchanges publish their financial performance at least four times in each financial year (April – March) within a prescribed timeline from the end of the stipulated period (end of the quarter):
  • April to June: within 45 days from end of June quarter
  • July to September: within 45 days from end of September quarter
  • October to December: within 45 days from end of December quarter
  • January to March: within 60 days from the end of March quarter

If due to any reason, a company is not able to disclose its results within the above mentioned timelines, then it is a red flag. The investor should be warned that the company is facing some issue and she should not ignore such delay in disclosure of results as being trivial in nature. Most of the times, delays in filing of quarterly financial performance are linked with ongoing frauds and corporate governance issues within the companies.

The example of Ricoh India Limited is pertinent here, which published its results for September 2015 quarter on May 18, 2016. The company has initiated proceedings against its senior management for possibility of perpetrating fraud.

The current article focuses on understanding the key information contained in the quarterly results published by companies and their interpretations. The articles is aimed at helping the reader to develop a framework in getting the critical information from quarterly filings within a short amount of time.

A simple guide to understand and interpret key information from quarterly results of companies, Ricoh india Limited, Ambika Cotton Mills Limited
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"Second Peaceful Investing Workshop" (Last for Mumbai in 2016) at September 11, 2016

July 2, 2016, 2:13 am
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One of the key methods to generate significant wealth from stock markets is to buy & hold fundamentally sound stocks over long periods of times extending to years and many a times to decades. However, such long investing duration invariably contain periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for long term a difficult proposition. 

Therefore, the patience to hold stocks in fluctuating markets requires very high level of conviction from the investor in her investing decisions.

“Peaceful Investing Workshop” aims to focus on stock selection and analysis skills, which would make us much more confident about our stock decisions. It would ensure that our faith would not shake with day to day market price fluctuations and we would be able to reap true benefits of stock markets to fulfill our dream of financial independence.

Full day fundamental stock investing workshop focusing on value investing by Dr Vijay Malik at Mumbai at The Mirage Hotel

The workshop would focus on fundamental stock analysis of stocks with detailed analysis of various sources of information available to investors like annual reports, quarterly results, credit rating reports, online financial resources like screener. 

The workshop would help an investor learn in-depth analysis of stocks that would help her make her own opinion about the strengths & weaknesses of any stock. The participants would be able to use the stock analysis with their preferred stock selection approach like value investing or growth investing.

The workshop would cover basics of investing and simultaneously focus on key concepts needed for stock analysis both for a beginner and seasoned stock investor. I believe that a person does not need to have an educational background in finance to be good stock investor and the workshop has been designed keeping it in mind.

Please Note: 

This workshop would be the last Mumbai workshop in 2016 as during Oct-Dec 2016, I plan to organize workshops in other cities like Delhi, Bangalore, Chennai, Hyderabad etc. Next workshop in Mumbai would be in 2017.

Full day fundamental stock investing workshop focusing on value investing by Dr Vijay Malik at Mumbai at The Mirage Hotel

The workshop had 40 seats and has been completely sold out. You may pre-register and express interest for a workshop in your city by clicking here.

Read The Complete Article»
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Dr Vijay Malik's Screener.in Stock Analysis Excel Template

July 11, 2016, 4:06 am
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All of us are aware about the usefulness of excel templates in stock analysis. These templates help the investors in quick analyses of the data as it presents the data in easily comprehensible formats like a dashboard.

I use a customized excel template to analyse stocks as per my preferred parameters by using the data downloaded from screener.in website. The template acts as a dashboard of key analysis parameters, which help me make an opinion about any stock within a short amount of time (sometimes within a few minutes). I have used this excel template and the analysis output in many stock analysis articles published on this website.

You may read about various stock analysis articles and see the screenshots of the excel template in the "Author's Response" segments on the following link: Stock Analysis Articles

In the past, many readers/investors have asked me to provide the copy of this excel file. However, until now, I have not put the excel template in the public domain for download.

I have always advised investors to customize the standard screener excel template as per their own preferences and their learning about stock analysis from different sources. Customization of excel template on her own can be a very good learning exercise for any investor.

However, due to repeated requests for sharing the excel template, I have decided to make the customized excel stock analysis template, which is compatible with screener.in and provides stock data as a dashboard, as a paid download feature.

Investors who wish to get the customized excel stock analysis template may download it by paying ₹1,000/- from the following link:

Dr Vijay Malik premium paid services workshops, guest lectures, Stock Analysis Excel Template compatible with Screener.in


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Follow My Portfolio with Latest Buy/Sell Transactions Updates (Premium Service)

July 29, 2016, 9:19 pm
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Dear friends,

www.drvijaymalik.com has a dedicated page "My Portfolio", which until July 29, 2016, contained a list of stocks in my portfolio. The portfolio details were provided for the purpose of additional disclosure over and above the standard declaration about my ownership of any stock under discussion, to indicate any conflict of interest.

However, over time, I have received a lot of requests from multiple investors asking further details about the portfolio like:
  1. What are the stocks that I am buying in the portfolio at current levels?
  2. Which of the stocks in the portfolio still offer long term appreciation potential at current prices?
  3. What is the proportion of each stock in the portfolio?
  4. What is the average cost of different stocks in my portfolio?
  5. Since when I have been holding different stocks in my portfolio?

Follow track Dr Vijay Malik portfolio latest transactions updates value investing investor portfolio India bottom up fundamental analysis research


Until now, I have stayed away from answering these questions while highlighting that the portfolio details have been shared only as for disclosure purpose and were not there to serve as an indirect stock recommendation service.

However, with continued requests from readers, I have now decided to make available the elaborate details about my portfolio and the latest transactions as a premium service.

My stock portfolio has its origins in August 2011, when I invested my initial savings from my first job after MBA (2009-11). I have been able to invest in some of the fundamentally good stocks at the initial stage of their growth phase, which were later on discovered by research/brokerage houses and witnessed investments from institutional investors.

The recognition of stocks by key market players have helped to generate significant gains for the portfolio as the underlying stocks got rerated and increased in value. A few such examples are: Ambika Cotton Mills Limited, Vinati Organics Limited, Mayur Uniquoters Limited etc.

I started investing in Ambika Cotton Mills Limited in September 2014, when it was trading at very low valuation levels. The stock was later on identified by the well-known value investor Prof. Sanjay Bakshi, who invested in it through his fund “ValueQuest India Moat Fund Ltd” in March 2015.

Similarly, other stocks like Vinati Organics Limited and Mayur Uniquoters witnessed increased FII buying and thereby generated good returns by increase in share price. The increased FII buying led to the P/E ratio of Mayur Uniquoters increasing from 6.6 to above 30 and P/E ratio of Vinati Organics increasing from 7.7 to above 20. This increase in valuations led to significant increase in the contribution of these stocks in the portfolio returns.

The portfolio has generated an annualized growth rate (CAGR) of 71.67% (from August 8, 2011 to July 29, 2016) including dividends and realized & unrealized capital gains.

Readers/investors who wish to know about the details of my portfolio and the recent transactions with regular updates may subscribe to this premium service by paying ₹7,500 per annum at the following link:

Follow track Dr Vijay Malik portfolio latest transactions updates value investing investor portfolio India bottom up fundamental analysis research


The yearly subscription service for “Follow My Portfolio” involves the following features:
  1. Update by email about all the future transactions (buy as well as sell) in my portfolio at the end of the day of the transaction (after market closing hours) for one year from the date of subscription. The email update would contain the details of the stock bought/sold and the price at which the transaction was done.
  2. Access for one year to the premium section containing updated details of my portfolio and the last 10 transactions at the following link: https://drvijaymalikportfolio.blogspot.in/p/my-portfolio.html

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Analysis: Chaman Lal Setia Exports Limited (Maharani Basmati Rice)

August 6, 2016, 3:23 am
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www.drvijaymalik.comhas a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Overtime, readers have asked queries about multiple stocks in this section. Answers to these queries have been done post preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers.

Q&A Series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. The primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Q&A” covers: Chaman Lal Setia Exports Limited, an Indian basmati rice producer and exporter company owning the Maharani Basmati rice brand.

”equity
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3 Principles to Decide the Investable P/E Ratio of a Stock for Value Investors

August 13, 2016, 2:52 am
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Deciding about the valuation level of any company at which an investor buys its stock is one of the key aspects of stock analysis. It is said that even a very good company if bought at an overvalued price, might not prove to be a good investment. Therefore, every investor while analysing stocks for investment keeps on continuously asking herself, whether the current price presents an attractive valuation opportunity or whether she might get stuck in an overvalued stock if she buys the stock at current prices.

There are many parameters, which are used by different investors to assess the valuation levels of any stock at a given price. A few of these parameters are listed below:
  • Price to Earnings ratio (P/E ratio)
  • P/E to Growth ratio (PEG ratio)
  • Earnings Yield (EY)
  • Price to Book value ratio (P/B ratio)
  • Price to Sales ratio (P/S ratio)
  • Dividend Yield (DY)
  • EV/EBITDA

An investor should read the following article to understand the above mentioned valuation parameters in further detail: How to do Valuation Analysis of a Company

Every investor has her own favourite valuation ratios, which she determines based on her own experience and preferences. I prefer using the price to earnings ratio (P/E ratio) as the valuation level for determining the attractiveness of a given stock price of any company.

P/E ratiois the most widely used parameter to analyse whether the stock of any company is overvalued or undervalued at any point of time. It is calculated by dividing the current market price (CMP) of a stock by profit/earnings per share (EPS). It represents the price an investor pays to buy ₹1 of earnings of a company.

To illustrate, if the P/E is 10, it means that to get ₹1 of earnings in one year from a company, the investor is paying ₹10. Similarly, if P/E is 20, it means that to get ₹1 of earnings in one year from the company, the investor is paying ₹20. If we compare P/E ratio of 10 and 20, in the above example, it would become evident that at P/E of 20, the investor is paying more money to get the same value of ₹1 in earnings than when P/E is 10.

Investors interpret P/E ratio and its derivatives in multiple ways to decide about valuation level of a stock: 
  • Comparing P/E ratio of the stock with the industry in which the company operates: Industry P/E ratio is the average of P/E ratios of all the companies of the specific industry listed on the stock exchange. If P/E ratio of the stock is higher than the industry P/E ratio, it is assumed to be overvalued and vice versa.

(Read: Is Industry P/E Ratio Relevant to Investors?)
  • Comparing current P/E ratio with historical P/E ratio of the stock: if P/E ratio is lower than average P/E ratio of last 10 years, then stock is deemed undervalued and vice versa.
  • Comparing P/E ratio with earnings (EPS) growth rate (PEG ratio) and
  • Comparing P/E ratio in form of Earnings Yield (EY) with yield on other asset classes like government securities (G-Sec), Treasury Bills etc.

However, despite presence of such multiple ways of interpreting P/E ratio investors still find themselves unsure about the right P/E level that they should pay for any stock. The fact that the price of the stock is influenced by a multitude of factors like external factors (interest rates etc.) and internal factors (competitive advantage etc.), further increases the uncertainty about the right price to be paid for the stock of any company.

The current article is an attempt to help the reader tread on a guiding path to determine the right price i.e. P/E ratio to be paid for a stock. The article attempts to determine a few of the factors that influence the P/E ratio of the stock and tries to bring a some objectivity to the approach of determining the right P/E ratio that the investor might be willing to pay for the stock.

The article would focus on the key criteria that an investor should look at while deciding about the P/E ratio (premium or discount) that she may pay for any company. These criteria would help her in deciding about the maximum P/E that she may pay for a company, which she has initially bought at very attractive levels but the stock has now increased in price and P/E ratio. This would also help her in deciding her strategy for accumulating stocks which are already existing in her portfolio.
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First "Peaceful Investing" Workshop conducted in Mumbai!

August 29, 2016, 7:52 am
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First “Peaceful Investing” workshop was conducted on August 28, 2016 in Mumbai. The workshop aimed at sharing equity investing knowledge with the participants that could help them gain confidence while taking their equity investment decisions.

Peaceful Investing workshop, Value Investing workshop Mumbai, Dr Vijay Malik Dr Stock Workshop


The workshop focused on highlighting those qualities of companies, which if analysed and identified in potential investment targets, would lead the participants to make their investment decisions with a lot of confidence. Such a confidence would lead the participants to have a lot of emotional stability around their investing decisions and they would be able to hold on to these stocks through the up turns as well as downturns of the markets.

The workshop aimed to point out characteristics of such companies, which once analysed and invested in, would make an investor happy when their share price goes up (as the investor is becoming wealthy) and makes the investor even happier when their share price goes down (as the investor would buy more of them). At the end of the day, then investor would be "Peaceful" with his/her investments.
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Register for "Peaceful Investing" Workshop in Delhi on October 23, 2016

September 2, 2016, 7:59 pm
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One of the key methods to generate significant wealth from stock markets is to buy & hold fundamentally sound stocks over long periods of times extending to years and many a times to decades. However, such long investing duration invariably contain periods of exuberance & distress where the market price rises & falls significantly. It leads to strong emotional reactions from investors that make holding stocks for long term a difficult proposition. 

Therefore, the patience to hold stocks in fluctuating markets requires very high level of conviction from the investor in her investing decisions.

“Peaceful Investing” workshop aims to focus on stock selection and analysis skills, which would make us much more confident about our stock decisions. It would ensure that our faith would not shake with day to day market price fluctuations and we would be able to reap true benefits of stock markets to fulfill our dream of financial independence.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop delhi hotel amrapali grand october


The workshop would focus on fundamental stock analysis of stocks with detailed analysis of various sources of information available to investors like annual reports, quarterly results, credit rating reports, online financial resources like screener. 

The workshop would help an investor learn in-depth analysis of stocks that would help her make her own opinion about the strengths & weaknesses of any stock. The participants would be able to use the stock analysis with their preferred stock selection approach like value investing or growth investing.

The workshop would cover basics of investing and simultaneously focus on key concepts needed for stock analysis both for a beginner and seasoned stock investor. I believe that a person does not need to have an educational background in finance to be good stock investor and the workshop has been designed keeping it in mind.

peaceful investing workshop Dr Vijay Malik, Dr Stock, value investing workshop delhi hotel amrapali grand october

You may read about the feedback of participants in the first "Peaceful Investing" workshop held in Mumbai on August 28, 2016: Click here

The workshop had 40 seats and has been completely sold out. You may pre-register and express interest for a workshop in your city by clicking here.
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Analysis: TVS Srichakra Limited (TVS Tyres)

September 4, 2016, 4:07 am
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www.drvijaymalik.comhas a dedicated section for investment & stock specific queries of readers: “Ask Your Queries”. Overtime, readers have asked queries about multiple stocks in this section. Answers to these queries have been done post preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers.

Q&A Series is an attempt to summarize & share with all the readers, the key questions and their answers, which have featured on “Ask Your Queries” section. The primary aim of this new feature is to share the knowledge with all the readers of the website.

The current section of this series, “Q&A” covers: TVS Srichakra Limited, a part of famous TVS group and the leading producer of 2 and 3 wheeler tyres in India under the brand name “TVS Tyres”.


Equity Analysis Research Report of TVS Srichakra Limited, TVS group company 2 and 3 wheeler tyres in India brand TVS Tyres
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Second "Peaceful Investing" Workshop conducted in Mumbai!

September 12, 2016, 9:44 am
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The second “Peaceful Investing” workshop was held in Mumbai on September 11, 2016. The workshop was aimed at sharing equity investing knowledge with the participants that could help them gain confidence while taking their equity investment decisions.

Second “Peaceful Investing” workshop became special in many aspects. The workshop became the first “Peaceful Investing” workshop to witness participation by female members. The workshop was also special as it witnessed investors from cities like Vishakhapatnam, Hyderabad, Nanded, Pune and Bharuch coming to Mumbai to attend it. 

”Peaceful
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