Every investor, regardless of size, has the same primary concern when investing in stocks: losing money. Here, we’ll examine several common ways investors lose money in the stock market and discuss precautions to take. You must adhere to one fundamental rule in order to prevent losses: Which stocks should you avoid?
Here are some ways to identify the right stock and avoid the wrong ones. Stay Away from
The group of stocks which is most likely to lose money are of companies that are highly leveraged, meaning companies that have high debt on their balance sheets. These are the companies that are the most vulnerable to external or internal disasters. These companies can be labelled Capital Destroyers. The main characteristics of capital destroyers include loss-making activities, negative cash flows, and significant amounts of debt that are rising.
During the bull markets, the share price of these companies might go up. In fact, the share prices of leveraged companies go up the fastest under favourable circumstances. Stories about the “great opportunities” the company has ahead may be highlighted in narratives from different sell-side analysts, buy-side fund managers, media, and other financial influencers as the share prices rise, and they may even forecast higher prices.
At such times, the typical investor would be lured into buying such stock. At the peak of a bull market, such a stock may even generate extremely high returns quickly. However, one should stay away from such companies. Otherwise, wrong lessons will be learnt when such a wrong strategy makes money.
How to identify “Capital Destroyers”?
Find out how to look it up on any of the financial websites online, and see if the leverage is large.
You can check the following things which are easily available on most portals:
EPS > 0 (meaning that the company is profit-making)
Debt-equity ratio < 0.1 (meaning that the company has relatively low debt)
The corporation is not a Capital Destroyer if it is profitable, has no or little debt, or is even cash-rich.
Track Last 5 Years Trend
If you’re comfortable and familiar with the aforementioned ratios, you may start examining the trend over the previous five years or so. This will protect you from cyclical businesses that have made losses for numerous years in a row but are only seeing profits this year.
Check EPS, Debt-Equity Ratio:
Businesses with low debt-to-equity ratios over the past few years are significantly more resilient than those with high debt-to-equity ratios but recent debt repayment. You will be well ahead of 80% of investors if you develop the practise of checking the EPS and the debt-to-equity ratio whenever a company is mentioned as a potential investment. You will become more knowledgeable and confident by adopting this one habit.
As comparison to a random portfolio or even the market portfolio, a portfolio free of Capital Destroyers, or highly leveraged corporations, is likely to be significantly safer. Of course, there may still be more concerns, but we will discuss those in upcoming sections.
Never Allocate more than 5% on one stock:
Remember, never devote more than 3-5% of your targeted equity allocation to one one stock. This means holding roughly 20-30 equities in your portfolio. In subsequent parts, portfolio design as well as strategies to increase returns or produce alpha will be covered.
IEX Share Price: On Monday, shares of Indian Energy Exchange, NSE: IEX, continued to lose money for the seventh session in a row. The stock started off in the green but gave in to selling pressure and turned red amid rumours that the Dalmia Group could reduce its shareholding.
The stock has crashed 11.63 per cent in the last seven sessions, eroding the wealth of investors. IEX shares are trading under pressure since 2:1 bonus issued on December 3, 2021. The scrip has tumbled 41 per cent in the last one year as against 0.81 per cent decline in Nifty50. IEX is India’s premier energy marketplace, providing a nationwide automated trading platform for the physical delivery of electricity, renewables and certificates.
Vedanta Ltd., incorporated in the year 1965, is a Large Cap company (having a market cap of Rs 101,386.60 Crore) operating in Diversified sector.Vedanta stock is currently at its support but we suggest to wait till it cross 280 level for buy.
Shares of publicly traded businesses are traded there. In an initial public offering (IPO), businesses sell shares to the general public on the primary market in order to raise money.
New securities are traded in the secondary market after being sold in the primary market, where investors purchase shares from one another at the going market price or at a price that both the buyer and the vendor agree upon. The regulatory body controls the secondary market and stock exchanges. The Security and Exchange Board of India oversees both the main and secondary markets in India. (SEBI).
Stock brokers can swap business stocks and other securities through a stock exchange. Only stocks that are posted on an exchange are eligible for purchase or sale. As a result, it serves as a hub for stock buyers and dealers. The Bombay financial Exchange and the National Stock Exchange are India’s top financial exchanges.
KEY TAKEAWAY
Buyers and sellers can trade equity shares of public companies in stock markets.
Due to their ability to democratise access to investor buying and capital exchange, stock markets are essential elements of a free-market economy.
Prices are discovered and traded in stock marketplaces in an efficient manner.
The Securities and Exchange Commission (SEC) and regional regulatory agencies oversee the American equity market.
Let’s have a look at BSE and NSE meaning:
The oldest and quickest financial exchange is BSE (Bombay financial Exchange). Asia’s first stock market was there. For new investors or those seeking steady, low-risk assets, BSE is a great option.
The first stock exchange to give a screen-based trading system was NSE (National Stock Exchange), the world’s largest stock exchange. With a completely integrated business model that offers high-quality data and services, it increased trading transparency on the Indian stock market. The NSE trades more than other financial exchanges combined. For investors who like to take big risks, NSE is an excellent choice.
Companies and buyers can trade in a secure environment thanks to NSE and BSE. Both provide high levels of money, reach, and transaction speeds. Securities and Exchange Commission
Bombay Stock Exchange
It is the oldest stock exchange in India and has the 11th-largest market capitalization value worldwide, having been founded in 1875. Premchand Roychand established it as the Native Shares and Stock Brokers’ Association, and Sethurathnam Ravi is in charge of running it at the moment. The Bombay Stock Exchange, which is based in Mumbai, is similar to stock exchanges in New York, London, Tokyo, and Shanghai and has close to 6,000 companies listed on it.
BSE improved the nation’s finance system and gave India’s capital markets a much-needed boost. BSE has additionally given SMEs a platform for equity dealing. Its product portfolio has grown over time to now include clearing, risk management, and payment services.Bombay Stock Exchange (BSE): BSE is the most established and rapid.
National Stock Exchange
NSE was incorporated in 1992 and recognised as a stock exchange by SEBI in April 1993. It commenced operations by launching the wholesale debt market in 1994 followed by the launching of the cash market segment. In 1996, it commenced the index NIFTY 50. In 2010-11, it started trading of index futures and options on global indices like S&P 500 and Dow Jones Industrial Average.
How does the Bombay Stock Exchange Work?
The Bombay Stock Exchange operated on an open floor arrangement up until 1995. It then switched to a computerised trading platform used by the Nasdaq and the New York Stock Exchange, which is hugely well-liked globally. The electronic trading method has advantages such as reduced errors, quicker execution, and increased effectiveness.
By allowing direct market entry, the electronic trading system has eliminated the need for outside specialists. With this change, the overall number of transactions per day have taken centre stage instead of specific buyers and sellers.
Although some investors who engage in high volumes of transactions are given direct financial access, trading in the BSE online market is carried out through depository participants.
There are several benefits of listing in the BSE and NSE:
Simple capital formation Investors have faith in companies that are published. Due to the transparency of the platform, users can analyse openly available data points on the performance of the companies and make investments as a result. For businesses seeking to raise money from ready investors, this trust is advantageous. There is a ready market of buyers for the securities of listed businesses. Additionally, it is impossible to ignore the BSE and NSE’s contribution to the flow of money into the economy.
As we can see here bajaj finserv is standing at its support but still it has not showed any bullish sign so i would suggest to wait till it go above Rs1260
Latest News About Bajaj FinServ
Bajaj Finance Ltd. and Cathay Financial Holding Co. are among the firms considering bids for Commonwealth Bank of Australia’s business in Indonesia, people familiar with the matter said.
The Indian and Taiwanese companies have had talks with advisers about potential offers for PT Bank Commonwealth, the people said. Other companies in the industry could bid for the business, the people said. A sale could value the business at several hundred million dollars
Let us look at the Fundamentals
Profit & Loss
Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS
Mar 2011
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
TTM
Sales +
2,415
2,715
8,055
6,023
11,335
20,533
24,507
32,862
42,605
54,351
60,592
68,406
77,308
Expenses +
615
920
4,124
1,531
5,823
13,795
15,794
22,074
27,569
36,094
40,950
46,951
49,682
Operating Profit
1,800
1,794
3,931
4,491
5,511
6,739
8,713
10,788
15,037
18,258
19,641
21,455
27,626
OPM %
75%
66%
49%
75%
49%
33%
36%
33%
35%
34%
32%
31%
36%
Other Income +
168
1,190
2
3
8
0
0
1
2
0
-7
8
0
Interest
301
744
1,204
1,562
2,230
2,877
3,716
4,531
6,657
9,500
9,274
9,629
11,247
Depreciation
19
14
22
31
38
58
73
160
226
457
498
563
647
Profit before tax
1,649
2,226
2,708
2,902
3,251
3,804
4,925
6,099
8,155
8,302
9,862
11,271
15,733
Tax %
11%
15%
18%
24%
26%
27%
30%
32%
34%
28%
25%
26%
Net Profit
1,492
1,890
2,214
2,191
2,409
2,775
3,450
4,176
5,374
5,994
7,367
8,314
11,408
EPS in Rs
7.00
8.40
9.89
9.71
10.62
11.71
14.21
16.65
20.23
21.17
28.09
28.63
37.65
Dividend Payout %
2%
2%
2%
2%
2%
1%
1%
1%
1%
2%
1%
1%
Compounded Sales Growth
10 Years:
38%
5 Years:
23%
3 Years:
17%
TTM:
19%
Compounded Profit Growth
10 Years:
13%
5 Years:
15%
3 Years:
12%
TTM:
43%
Stock Price CAGR
10 Years:
32%
5 Years:
19%
3 Years:
37%
1 Year:
-24%
Return on Equity
10 Years:
14%
5 Years:
13%
3 Years:
13%
Last Year:
12%
Balance Sheet
Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS
PVR is opening 11 screen multiplex in Chennai .As you all can see the stock it at its support right now around 1500 so we can start taking entry from here.
Let us look at the fundamental of the stocks
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone PRODUCT SEGMENTS
Dec 2019
Mar 2020
Jun 2020
Sep 2020
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Sales +
916
645
13
40
45
181
59
120
614
537
981
687
941
Expenses +
609
473
129
125
124
238
150
188
449
437
640
533
652
Operating Profit
307
173
-116
-85
-78
-57
-91
-68
165
100
342
154
289
OPM %
34%
27%
-914%
-209%
-172%
-31%
-153%
-57%
27%
19%
35%
22%
31%
Other Income +
8
17
43
70
275
82
33
155
96
43
21
16
20
Interest
122
117
124
123
127
124
124
124
126
125
128
128
127
Depreciation
135
142
145
142
142
146
143
149
154
169
149
153
155
Profit before tax
58
-70
-342
-279
-73
-245
-325
-185
-19
-152
85
-110
26
Tax %
38%
-6%
34%
34%
33%
-18%
32%
17%
47%
30%
38%
35%
39%
Net Profit
36
-75
-226
-184
-49
-289
-220
-153
-10
-105
53
-71
16
EPS in Rs
6.58
-13.49
-40.87
-31.02
-8.28
-47.58
-36.11
-25.17
-1.67
-17.29
8.74
-11.65
2.64
Raw PDF
Balance Sheet
Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS
Mar 2011
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Sep 2022
Share Capital +
27
26
40
41
42
47
47
47
47
51
61
61
61
Reserves
314
257
603
358
368
835
918
1,029
1,449
1,429
1,773
1,309
1,318
Borrowings +
162
203
657
613
747
660
820
831
1,282
5,066
5,003
5,196
5,291
Other Liabilities +
153
126
287
340
273
356
440
442
1,062
881
665
757
646
Total Liabilities
656
613
1,586
1,352
1,429
1,897
2,225
2,348
3,840
7,428
7,502
7,323
7,316
Fixed Assets +
368
273
996
820
860
1,000
1,509
1,590
2,742
5,886
5,475
5,407
5,360
CWIP
58
88
145
107
80
76
106
102
221
155
217
64
104
Investments
1
1
38
24
2
2
2
21
11
2
1
0
0
Other Assets +
230
252
407
402
486
820
609
636
866
1,385
1,808
1,851
1,852
Total Assets
656
613
1,586
1,352
1,429
1,897
2,225
2,348
3,840
7,428
7,502
7,323
7,316
Balance sheet of PVR stock 2023
After analysis of this stock, we understand that the stock has been continuously falling from its all time high price. In any scenario, until this stock finds its rock hard support, we should not take an entry till then. Our recommended price to take entry in this PVR stock is Rs 1410. CMP of this stock is Rs 1506 a share.
In advanced economies, Aarti industries saw better-than-expected demand trends in the chemical sector. Reduced raw material sourcing risk strengthens the investment case. The company’s reported stable margins are reassuring. As a result, long-term investors should accumulate the stock in stages. #stockmarket #buyingstocks #investment
Lets look at the fundamentals of the stock .
Profit & Loss
Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS
Mar 2011
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
TTM
Sales +
1,449
1,667
2,086
2,619
2,890
3,006
3,163
3,806
4,168
4,186
4,506
7,000
6,719
Expenses +
1,251
1,417
1,725
2,217
2,424
2,434
2,509
3,106
3,202
3,209
3,525
5,071
5,542
Operating Profit
198
249
361
402
466
572
654
700
965
977
982
1,929
1,176
OPM %
14%
15%
17%
15%
16%
19%
21%
18%
23%
23%
22%
28%
18%
Other Income +
4
4
4
11
9
6
2
7
2
9
1
1
1
Interest
56
72
95
118
138
117
117
132
183
125
86
114
166
Depreciation
50
55
83
89
82
98
123
146
163
185
231
289
304
Profit before tax
96
126
187
206
255
363
416
429
622
676
665
1,527
707
Tax %
30%
29%
29%
26%
24%
26%
21%
19%
19%
19%
19%
14%
Net Profit
82
104
135
163
208
268
328
346
504
547
535
1,307
590
EPS in Rs
2.66
3.26
4.25
4.58
5.81
7.71
9.62
10.24
14.18
15.39
15.02
36.06
16.28
Dividend Payout %
24%
27%
24%
25%
24%
28%
3%
2%
19%
11%
10%
10%
Compounded Sales Growth
10 Years:
15%
5 Years:
17%
3 Years:
19%
TTM:
15%
Compounded Profit Growth
10 Years:
29%
5 Years:
33%
3 Years:
39%
TTM:
-50%
Stock Price CAGR
10 Years:
40%
5 Years:
16%
3 Years:
16%
1 Year:
-41%
Return on Equity
10 Years:
22%
5 Years:
22%
3 Years:
22%
Last Year:
28%
Profit and loss of aarti Industries 2023
Balance Sheet
Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS
You must have come across these headlines that ” Ashwani Gujral died” a famous stock Market research analyst and publisher. Know the complete story here.
what you have heard is right. unfortunately, he is not among us now but his work will always be. Known for irreverence, living life king size, adding color to the charts, and calling a spade, just that. Privileged to have shared many fun moments with him on our channel. He was always candid and insightful.
Who is Ashwani Gujral?
Ashwani Gujral is a stock market trader, technical analyst, and financial commentator based in India. He appears frequently on Indian business news channels, where he shares his insights on stock market trends and provides trading strategy advice.
Gujral is also the author of “How to Make Money Trading Derivatives: An Insider’s Guide,” a book that provides a thorough introduction to trading in the Indian stock market. He is well-known for his technical analysis expertise and ability to spot market short-term trading opportunities.
Gujral is well-known in the Indian financial community, and his opinions on market trends are frequently cited by other traders and investors.
With so many Stock Market WhatsApp Groups available, it can be difficult to find the right one for you. We listed some of the active stock market groups
Best Practices for Joining a Stock Market WhatsApp Group
Once you have found the right Stock Market WhatsApp Group for your needs, it is important to follow some best practices to ensure that you make the most of your membership. Here are some tips to help you get started:
Be Respectful and Professional
It is important to be respectful and professional when participating in a Stock Market WhatsApp Group. Remember that the group is a community of like-minded individuals who are all working towards a common goal. Be respectful.
Whatsapp Group for Indian Stock Market: Hello Friends! Most recent and up-to-date WhatsApp Groups in our WhatsApp Group Joins Link. You will find all types of Whatsapp Group Links here. If you’re looking for Indian Stock Market Whatsapp Group Links, you’ve come to the right place. You will find all types of Active Indian Stock Market groups on this page.
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