The students of SIMSREE had the opportunity of interacting with Mr. Rajeev Thakkar, CIO and Director, PPFAS (Parag Parikh Financial Advisory Services Ltd.) Mutual Funds, in a Corporate Connect session, organised by the Corporate Relations Committee, at his office on 5th October, 2018. The session, which was fairly interactive and beneficial to the students, delved mainly in the subject of value investing, while shedding some light on several factors to look out for while making investments, while simultaneously explaining the work done at PPFAS, which revolved primarily around value investing.
What is value investing? It is an investment strategy which involves the selection of certain stocks, that trade for values that are less than their intrinsic values. The reason for choosing such stocks is the belief that they have been undervalued by the market.
A few of the factors that Mr. Rajeev revealed, to look out for, while investing in a company were:
- Leadership competence
- Management efficiency
- Debt-equity ratio
- Leveraging multiple
- Intrinsic value
Among the aforementioned factors, special focus was given on the management of the firm, and its intrinsic value. Mr. Rajeev ascertained that the stock market was a function heavily reliant on the market sentiment and advised to look beyond the myths or obstacles that usually cloud an investor’s judgement. For this reason, calculation of the intrinsic value plays an instrumental part while carrying out any value investment. The aspect of management efficiency was also drawn, which primarily involved determining the nature of the management, through their relationships with investors and customers.
Mr. Rajeev gave his insights on the current investment scenario in our country, and what could be done differently for us to boost ourselves globally. He also narrated a few of his personal learnings from the late Parag Parikh, Founder, PPFAS, while encouraging the students to actively participate in investing, based on their own research and intuition.
No dimension of an enterprise is more important than its people. It is the most decisive and the most important factor for success. Any product in reality is the sum and substance of intangibles – human ideas, transformed into something tangible- a commodity.
Business organizations require leaders at every level to sustain their growth and win against competition. The constant, accelerating, unpredictable change in today’s competitive global environment demands more and better leadership. People at different organizational levels want to be inspired and get directions to face the uncertainty.
The article is written by Khushal Shah and Chetan Dhawan from SIMSREE in the Arthneeti Article Writing Competition (September 2012)
GDP: Demonetisation pain, GST anxiety to the fore (A report by CRISIL Ltd)
The Central Statistical Office (CSO) released quarterly estimates of GDP for first quarter of current fiscal. Crucially, the government has also revised down gross value added (GVA) growth for the fourth quarter of last fiscal by 50 basis points (bps) to 5.6%, suggesting that the impact of demonetisation on the economy was more than earlier estimated. In the first quarter, real GDP growth slid to 5.7% from 7.9% in the same quarter last fiscal. The slowdown corroborates with corporate results for the first quarter, which had shown net profits declining for chunk of listed firms. The computation of GDP relies heavily on corporate data from the Ministry of Corporate Affairs database. The slowdown reflects sharp deceleration in exports of goods, and some moderation in consumption growth.
As of 25 June 2017 and growing there were more than 900 crypto currencies available over the internet. New crypto currency can be created any time. By market capitalization, Bitcoin is currently the largest blockchain network, followed by Ethereum, Ripple and Litecoin.
What is Blockchain Technology?
Before we talk about Blockchain it is important to know the role intermediaries play in economy. Intermediaries like banks and government facilitate the transaction of goods and services by creating trust and certainty. Like when an individual or business makes an electronic payment, they require a bank to track and record the transaction or when an individual buys a real state property then they need local government body to keep records stored. What if there was a way of making a transaction that didn’t require the use of trusted intermediaries like banks, government or local body?
Navi Mumbai based FINO PayTech Ltd. recently launched the FINO Payments Bank, which is the newest entrant in the space after Airtel, India Post and Paytm. FINO was one of the original 11 applicants which were issued an in-principle approval by the RBI for setting up a payments bank back in 2015. Paytm has also launched its Payments Bank in May 2017 offering an interest rate of 4%.
Introduction to RERA
The real estate sector has grown in the recent years but has largely been unregulated mainly from customers perspective. The provisions and law which were available were not much of preventive. It had affected the potential growth of the sector.
It is quite normal these days to be bombarded frequently, with news related to the ecommerce industry which is considered to be a sunrise industry from an Indian context. Exciting news articles quoting astronomical valuations of ecommerce companies have almost become a norm. While it is very affirming and pleasant to paint a rosy picture of the ecommerce industry in India, it needs to be done through a lens of rationality.