Archive by Author Prateeksha Sabhani - Team MoneyWorks4me

Company Shastra: Crompton Greaves Ltd.

Crompton Greaves is a leading player in the electrical engineering space and manufactures transformers, switchgears, circuit breakers, rotating machines and a range of consumer durable products. The company has the highest market share in 765 kv. transformers and is among the top 10 transformer manufacturers in the world. In the consumer durables range, it is the market leader in the fans segment. Crompton Greaves faces stiff competition from majors like ABB, Areva T&D especially in offerings like transformers, switchgears etc. Also, active participation by Korean and Chinese players for orders from  Power Grid Corporation (PGCIL) has resulted in severe pricing pressure. a)    So, how has Crompton Greaves performed in the recent past and what lies in store for the next few quarters? b)    What is in store for the company’s long-term future?

Read more

Company Shastra: Blue Star Ltd

Blue Star is India’s largest central air-conditioning company and a leader in commercial refrigeration. It fulfills the air-conditioning needs of a large number of corporate and commercial customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. The company also offers expertise in contracting services like electrical, plumbing and fire-fighting services. Blue Star has an impressive past clocking robust growth rates in its financials. But, in FY10, the company witnessed stagnant growth in its Net Sales. So, will it record a stellar performance in future, after a lukewarm last year?

Read more

Company Shastra – Titan Industries Ltd.

Titan Industries Ltd. is India’s largest watch manufacturer, with a market share of more than 60% in the organized watch market. It is also the market leader (35-40%) in the branded jewellery market. With India’s two most recognized and loved brands – Titan and Tanishq to its credit, Titan is a name that doesn’t need an introduction. It is an ace retailer of lifestyle products.  The strong brand developed by it in watches, helped Titan make it big in other product extensions like jewellery & now in Titan Eye +. This strong brand is a moat (a sustainable competitive advantage) for the company. What will its moat of a strong brand do for its future? At its current price, what should be your investment decision?

Read more

From Snakes & Ladders to Value Investing

Before I invested in my first stock which was almost a year back in April, 09 I always thought stock investing was a game of snakes and ladders, where you went only up the ladder. This was till my dad’s friend, who too like my thoughts had been climbing the ladder for a very long time; lost a lot of money when the Sensex reached the mouth of the snake and his investments ended up reaching the bottom of the board game. This was sometime in October, 2008. Not only did he lose all the gains he had made in that one year, but the networth of his stocks was now lower than his investment. After that day I realized that when the snakes bites at 99, the probabilties of an investor seeing his investments at their 52 week lows is very high. I decided to stay away from this […]

Read more

A stock that trades at a low P/E is not always cheap!!!

Sudha, a housewife had just returned from her weekly kitty party session. She immediately turned on her computer at home and went to one of the trading websites. She was impatient. Mrs. Kumar at the kitty party had just mentioned how she had tried her luck at stock investing. She explained the thumb rule of of finding stocks at low P/E’ s being a good bet and went on bragging about how she had a earned a good Rs. 10000 in one month. As soon as Sudha heard this her thoughts were only on getting home early & finding stocks with low P/E s to invest in. She immediately logged on to one of the financial trading websites & looked for stocks that traded at price to earnings ratio less than 10 (a ratio Mrs. Kumar had mentioned as being a good buy.) She was excited to find some 50 […]

Read more