[Ferrari1976]

Originally Posted by KL01toKA03

I had bought 800 shares of Carysil at an average price of 700. The price has now reached 1000+ levels. I had bought only by looking at the price charts and not based on any other factor.

Can somebody who is able to understand the P/E ratio and other factors comment if this is a good stock to hold for one or two more years

I suggest you go thru this thread: https://forum.valuepickr.com/t/carys...hen-sinks/1060

[SmartCat]

Originally Posted by KL01toKA03

Can somebody who is able to understand the P/E ratio and other factors comment if this is a good stock to hold for one or two more years

Better question would be: Can somebody who is able to understand P/E Ratio & other factors explain how it works, taking this stock as an example?

[ajmat]

Originally Posted by KL01toKA03

I had bought 800 shares of Carysil at an average price of 700. The price has now reached 1000+ levels. I had bought only by looking at the price charts and not based on any other factor.

Can somebody who is able to understand the P/E ratio and other factors comment if this is a good stock to hold for one or two more years

I would exit or at least recover your capital

P/E is too high
Highly geared
Profit growth marginal
Very niche - dependent on construction growth

[NomadSK]

A quick question for experts, I'm holding a considerable amount of stocks in IEX at around 150ish. Since market coupling news has been doing the round, the stock has been in the downward spiral. Although technically the stock looks good, but Big Daddy always plays a spoil sport.

So I'm confused about, should I exit, add more (while it's down) or wait and watch with my holdings ?

Just want to pick some expert brains. Thanks in Advance.

[green_ninja]

Originally Posted by KL01toKA03

I had bought 800 shares of Carysil at an average price of 700. The price has now reached 1000+ levels. I had bought only by looking at the price charts and not based on any other factor.

Can somebody who is able to understand the P/E ratio and other factors comment if this is a good stock to hold for one or two more years

Let me take a stab at it. All the ratios and numbers have been obtained from here --> https://www.screener.in/company/CARYSIL/consolidated/

Current Price - 1034; Book Value - 122; PE - 50.5; P/BV - 8.51; ROE - 19%; Div Yield - 0.19% and Operating Profit Margin - 19%

Risk Free Rate of Return (1 year FD return) - 7% pre tax.
Real risk free rate of return - 5% assuming you are in the 30% tax bracket.


Earnings yield of Carysil - 100/PE = 100/50.5 = 1.98%.
At the current price this is the return on the price even if the company distributes all it's earnings as dividend but the dividend yield is a negligible 0.19%.

Even though the company is retaining much of it's profits and invested it in plant and equipment to increase the topline, the profit margin has stayed the same at about 19% for the past 10 years. I haven't read the annual report but there doesn't seem to be any major change in the company's activities to support the rally from ~450 last Feb to 1000+ in a year.

Given this I'm assuming the earnings yield is not going to change much in the future unless the price crashes back to more reasonable levels. IMVHO, this price trend is not sustainable but who am I to tell what the irrational Mr. Market will do.

Book Value is also suspect given the intangible assets in the balance sheet jumped from 24cr in 2022 to 103cr in 2023. If the intangible assets are excluded then BV will be even lesser and so will shareholder equity. ROE will also take a toss.

If I were in your shoes, I would exit the stock and find something cheaper or hold the cash in a FD or equivalent instrument. But then you have to consider the missed opportunity cost if the stock continues to increase in price. It is speculative at this point and if your risk appetite is high you can continue holding.

Alternately, sell half of your holding and re-invest elsewhere. Hold the other half (with some reasonable stop-loss) to hedge the opportunity cost.

[SmartCat]

Originally Posted by green_ninja

Let me take a stab at it.

Good one.

I had created a separate thread on how to analyze a stock sometime back:
https://www.team-bhp.com/forum/india...ve-sector.html (Guide: Investing in shares of the automotive sector)

[iampulo]

Hello BHPians.
For me, playing the stock market always gives me a backseat question. How well do I know the business. And like all popular recommendations, I have started reading more about investing( as I feel much confident in making a calculative move, and not trading, which, pardon everyone, is a breath to breadth game). I have been trying to read all those popular books and I realised, I am a kind of Value investor person.

Since last year I have been trying to cover renowned value investing guru Prof Aswath Damodaran's MBA Corporate Finance and MBA Valuation course(absolutely free) courses.It's tough, but that's where the treasure is!

His analysis on Adani, Zomato and Paytm was bang on.
Currently, I am searching for a partner so we study and practise in group and solve the problems. As self study is quite challenging for me.

I wish someday I reach his level of expertise and use the power of compounding and value investing to earn more money and ultimately use the funds on social service(that's a far fetched dream for now)

I was introduced to him by this video:

https://www.youtube.com/watch?v=Z5ch...biBnb29nbGU%3D

Link to Prof's wisdom:
https://www.youtube.com/@AswathDamod...luation/videos


Also, Reddit has been a very great guide to me for Value Investing. For anyone interested, here is the link:
https://www.reddit.com/r/ValueInvest..._step_by_step/


My few takes on good books:
1. Poor Charlie's Almanack (Has more insights of a life skills than just investing). I loved the fact that given any situation, Charlie would always think, what can be the worst case scenario. And that made him more prepared.
2. Learn o Earn. Very basic intro to market, but it teaches you that you will be more competent in analysing stocks which align to your interests/profession.
3. Howard Mark's Memos: Incredible insights on wisdom of investing, timing, what's same as ever, what to not expect.
4. F Wall Street. Good guide to Value Investing. Although I haven't completed yet.
5. Little book of Common Sense Investing- Teaches you value of Index Funds. And yes, this book started my addiction for Index Funds. Currently, I am having with being a average performer investor with Index Funds.

There are more, I shall add in future, if it spices the discussion up.

I would love to have a healthy discussion on Value Investing too. Also, I would love to know what other investor's read/follow/learnt.
Happy Investing Team

[DigitalOne]

Any experience with "ICICIdirect Global Account"? I have shares issued by my Germany based company, which I plan to move to a private account soon. The shares are traded in the Frankfurt stock exchange, which ICICIDirect claims to support. I don't intend to hold/trade in any other global securities, and slowly liquidate these shares also.

Anything I need to be cautious of?

[satish.gawai]

Dear All,
I am getting some calls for investment through Nirmal Bang Securities Pvt Ltd for stock delivery trades.
Person Name - Amit Tripathi
He is asking me to open the demat acc with Nirmal Bang and he will generate returns of 5-6% every week approximately.

Just wanted to know if anyone has ever worked with Nirmal Bang and how genuine the company is?

Pl comment.

[ValarMorghulis]

Originally Posted by satish.gawai

...
He is asking me to open the demat acc with Nirmal Bang and he will generate returns of 5-6% every week approximately.
...

A return of 5% every week equals 1164% per annum.
A return of 6% every week equals 1970% per annum.

If one could generate this, they wouldn't need your money.

[Fuldagap]

Originally Posted by satish.gawai

Dear All,
I am getting some calls for investment through Nirmal Bang Securities Pvt Ltd for stock delivery trades.
Person Name - Amit Tripathi
He is asking me to open the demat acc with Nirmal Bang and he will generate returns of 5-6% every week approximately.

Just wanted to know if anyone has ever worked with Nirmal Bang and how genuine the company is?

Pl comment.

I had an account with them in 2011 till 2012. Exactly for 1 year. I used to trade commodities through them over the phone. My experience was great, the returns were good, service was prompt. I don't remember the guy's name but he was a decent fellow always ready to reply back and was active throught the day. I had to close the account afterwards due to personal reasons.

On a side note, had i not closed the account and stopped the trading, my money would be stuck probably for years in the NSEL scam that ensued later.

Returns of 5-6% that he is quoting to you might be absolute returns, which means basically nothing. If the returns are indeed compound interest based, I don't know what he is smoking.

[rx100]

Originally Posted by satish.gawai

he will generate returns of 5-6% every week approximately.

I have no idea about them, but the quoted part is your cue to run away from him.

[satish.gawai]

Originally Posted by ValarMorghulis

If one could generate this, they wouldn't need your money.

Originally Posted by Fuldagap

Returns of 5-6% that he is quoting to you might be absolute returns, which means basically nothing. If the returns are indeed compound interest based, I don't know what he is smoking.

Originally Posted by rx100

I have no idea about them, but the quoted part is your cue to run away from him.

Thanks all for the replies. I do agree that the quoted returns are like anything and give the sign of RED FLAG. may be he is quoting the returns on the per trade and not the compounded returns. Meanwhile, I have done some research online about the company Nirmal Bang Securities Pvt Ltd and found that it is a genuine full broker as like Sharekhan. Not made any decision yet to go with them.

[reverse_gear]

Originally Posted by satish.gawai

Dear All,
I am getting some calls for investment through Nirmal Bang Securities Pvt Ltd for stock delivery trades.
Person Name - Amit Tripathi
He is asking me to open the demat acc with Nirmal Bang and he will generate returns of 5-6% every week approximately.

Nirmal Bang is a genuine broker with a lot of customers and has been in existence for many years. BUT the broker does not generate the returns, he is only an intermediary facilitating investments. It is the investments themselves (and the investment strategy) that generates returns. You would do well to understand the specific investment strategy before blindly going in for it. If you are not convinced or do not understand the investment strategy, stay away. In all these schemes, the risk is entirely yours.

One more thing (if you do not know already). Please understand the difference between demat account and trading/ investment account. They are selling you not just a demat account but also a trading account. Please understand the meaning of “power of attorney” in the context of trading account. Please have a full grasp of the risk factors, not just the projected returns. If you do not understand these, please ask him to explain and then get proper clarifications from others who can guide you properly.

[satish.gawai]

Originally Posted by reverse_gear

If you do not understand these, please ask him to explain and then get proper clarifications from others who can guide you properly.

Thank you reverse_gear,
This clears a lot of doubt. I will definitely get in touch with the known person before putting anything with the broker (or the adviser in this case) as you rightly said that they are selling not just a demat but also a trading account.