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Fundamental Analysis of Tata Motors #StockScoreCard

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Tata Motors is an Indian automobile manufacturing giant who makes everything from the cheapest car to trucks to military vehicles! They even own Jaguar and Land Rover!






If you judge by the sales revenue, Tata Motors is much bigger than Maruti Suzuki!!!

But,
Is it enough if a company is big and has more sales??
Is it enough if a company makes great cars??

Tata Motors is a classic case to prove just the opposite!!
Keep reading,..

Fundamental Analysis1. Growth StoryTata motors has been aggressively launching new passenger vehicles in India hoping for a turnaround from a record loss-making track record.

On the other hand, Jaguar Land Rover has been investing heavily on new models and has promised to the goal of electrification of every single model by 2020.

Just remember couple of important facts:
More car models DOES NOT mean more sales!
More sales DOES NOT mean more profits!

This is exactly what's happening with Tata Motors.

Last 5 years, there has been a lot going on with respect to the roadmap,…

Power of Compounding

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Ever thought of how money can work for you, instead of you working hard for money??
Today, we are going to cover just that!
In fact, we will show you a simple trick for your retirement savings!


Imagine you invest 1 Lac Rupees in a mutual fund which typically grows at 15% interest per annum.

Take a look at below table and be surprised how fast your money grows:

Year 0: 100000.00  (+0%)
Year 1: 115000.00  (+15%)
Year 2: 132250.00  (+32%)
Year 3: 152087.50  (+52%)
Year 4: 174900.62  (+74%)
Year 5: 201135.72  (+101%)

Yes, you "DOUBLE" your money in 5 years!
If you are still in doubt, you can double or triple check the above math!!



Imagine you stay invested for 5 more years, can you guess what will be your returns?

Year 6: 231306.08  (+131%)
Year 7: 266001.99  (+161%)
Year 8: 305902.29  (+205%)
Year 9: 351787.63  (+251%)
Year 10: 404555.77  (+304%)

Yes, your 1 Lac investment is now grown over "4X".



As Einstein said, Compounding is the eight wonder of the world, one who understands it, earn…

The secret benefit of Diversification #IntelligentInvestor

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BasicsLet's say you invested all your money by picking 10 different stocks in automobile sector. If government announces any policy like changes in taxes, upgraded crash norms, new engine standards etc., this can have huge impact on company's performance, at-least in short term.

Imagine, if you had diversified your investments across sectors like automobiles, IT, agriculture, construction, Retail, Oil & Gas etc. you wouldn't have got affected as much as you have in the first case.

In simple words, Diversification means spreading your investments across different companies/sectors/countries.

FYI, there are some mutual funds which invest in countries like United States, China, and other emerging markets. You can take advantage of these funds for diversification across countries as well.


Known Benefit
Common sense tells us that diversification helps us reduce the risk of our investments.

Thus, probability of you losing your capital is reduced drastically as you diversify more.



S…

Fundamental Analysis of Maruti Suzuki #StockScoreCard

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IntroductionMaruti Suzuki is the manufacturer of the most popular cars in India. It is a subsidiary with ownership of 56% by its parent Suzuki Motor Corporation (A Japanese firm). Maruti Suzuki has given some of the best selling cars in the past including Maruti 800, Omni, Alto, Swift, Swift Desire, Ciaz and Baleno.






Fundamental Analysis1. Growth StoryMaruti Suzuki is a true  market leader with a lion's share of 50% (source) in Indian Passenger Vehicle (PV) segment. This simply means that one in two cars sold in India is made by Maruti Suzuki! 

In the last five years, the company has doubled its revenue and profits which is an incredible performance. 

Recently, Suzuki also announced a partnership with Toyota on various aspects to improvise the capacity utilization, improving sales and global expansion (Africa).

Maruti Suzuki is definetly posied for growth looking at the long term.


2. Shareholding PatternPromoter (Suzuki Motor Corporation) holds 56.21% of the company shares which is a ve…

Trading vs Investing - Showoff!

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Well, everyone wants to make tons of money in stock market, nobody comes to do charity! 😜

While everyone is trying to figure out different ways and techniques to make profits, there are two approaches to which you can broadly classify all of them into. They are - Trading and Investing.

There are millions of traders who have made lots of money and who believe trading is better than Investing and of course vice versa.

So which one is the right approach?
The answer is both!

In cricketing terms, it is like asking the coach if straight drive better or off drive better??
Again, the answer is both! you need to know how to play the right shot the way for the right ball!

The trick is to understand the underlying mechanics and first practice before you can play for real!!

Trading:
In trading, typically one either buys and sells the stock within a day or maybe holds it for a few weeks max!

Traders generally look at the charts to identify certain patterns, trends and make a prediction if the sto…

Fundamental Analysis of Suzlon #StockScoreCard

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IntroductionSuzlon Energy  is a wind turbine supplier based in Pune, India. Formerly ranked by MAKE as the world's fifth largest wind turbine supplier, it has since dropped out of the Global top ten rankings (as of 2014) due to extensive losses and inability to repay debts.





Interesting FactsSuzlon operates in over 18 countries and 6 continents!Has over 17,000 MW capacity worldwide.Price of the share has fallen 97%  from its peak since 2008
Fundamental Analysis1. Growth StorySuzlon has been struggling over the past many years to maintain consistent revenues and profits.

Recent changes in the governance policy has damaged the company's scope for making decent profits. Government of India has decided to proceed with auction regime, which has led to extreme competitiveness among companies and thus losing the pricing power!

Lately, Solar energy has proven that clean energy need not be expensive by beating existing non-renewable energy prices by huge margins! Thus Solar energy companies…

Introducing #StockScoreCard

Introducing Stock Score Card!
At Money Can Work, we always strive to educate our users with the best possible content to help you grow your money.

We are introducing a new Blog Series called #StockScoreCard, where we will try to share the fundamental analysis of an individual stock based on the five multibagger magic mantras which we earlier discussed in this blog.

Five Multi-bagger Magic Mantras:
Growth Story (link)Shareholding Pattern (link)Debts (link)Return on Equity (link)Valuation (link)

Hopefully, #StockScoreCard helps you decide either to Buy/Sell a particular stock.
Please share your feedback, insights and suggestions at our facebook/twitter page.

Check out our first #StockScoreCard - Vakrangee (link)!

Stay tuned!