Three times , I listened to this podcast till now.

First time , I just listened and couldn't capture much.

Second time onwards, I started collecting gems.

A picture paints a thousand words!

For microfinance lenders, PAR 31-90% is a very crucial indicator to track the cycle.

Higher value indicates the lending space is under stress. When there is a reversal from peak to decline, it gives you early hints that the cycle is turning.

Abbott India

I have observed the same thing playing out for this company. PAT growth is higher than Revenue growth.


For example, this quarter, Revenue is up by 8%. Profit went up by 16%. YoY

This is because the operating Profit margin expanded from 30.5% to 32.5%.

Since revenue growth and profit growth numbers are not very attractive, this will not make any headlines.

Hence, this share has not been multi-bagger since I own.

This stock is up by 75% (excluding hefty dividends) since I bought it. It's been more than 4 years. Many of you will start comparing with Nifty , Nifty Pharma and many other indexes and tag it laggard.

Most people miss one very big thing in this whole equation. The risk of FDA flagging and fire are not a concern for this business.

Next year, with good probability, I can say that Profit for this business will grow faster than Revenue growth. And PAT growth is of double digits.

I don't have to check or scroll through posts and be very vigilant about new breaking news. Relaxed compounding.

Many of the concerns we had back on 2019, the similar line of concerns follows today also.

It is always great to listen to Rakesh Jhunjhunwala! Sharing an old interview.

Must read

If not for investing, at least for knowledge purpose...


https://blindspotresearch.substack.com/p/who-actually-makes-indias-cancer

Hi Everyone !


It's been some time since I have not been posting in this group.


I took some time out of the earlier timeline , and focused on personal life, and built a few good habits. Focus was to sharpen the skill, improve family relationships, enrich knowledge base and work on health.

Probably, I will try to post frequently. At least, I will try to do so.

I will post a series of audio to highlight the process and results. I believe in compounding any good thing for a long time adds tremendous value in life.

I hope my posts will help you to improve your journey in life.

"There are people so poor that money is all they have."

— Josh Billings

The whole idea is to become rich 😊

A quote to begin with ..


Don't be afraid to make a mistake. Only ensure you make one that you can afford so that you may love to make another.
-
RJ

Health is Wealth!

Health is the most neglected asset a human can own. You can change your car, but not this body. At least, in this life.

Here are five markers that can roughly decide if you are healthy.

Simple guidebook to start with.

Less than 5% population in our country will be able to pass all five.


1. Blood pressure below 120/80
2. HBA1C below 5.5
3. Waist size below 32 (men)
4. LDL cholesterol below 100
5. BMI below 25


I used to fail in No 1 and 2. I have worked on these for last two years.

Without medication, I fullfill all five now.

But it required a lot of hardwork and boring routine.

Here, I am not trying to brag up anything. What I am trying to share rather...

Find your weakness and work on it. If a simple person like me can do it, you can do it too.

Microfinance Sector

Fusion Finance came out with a good result. Earlier, Muthoot Microfin , Satin credit care also came up with good set of results.

This sector is resurrecting from graveyard. It is a brutal sector. Both on positive and negative sides.

If you don't understand this sector, start learning. Do not try to invest without learning.

Observe and learn. This cycle is short and repeats. If you learn, you can play it for your lifetime. And can make a lot of money.


If you take a shortcut and look for names to invest, this is an assured way to loose money in this sector.

Execution is the 🗝️

We know that simple things are building blocks of every success. But it is extremely difficult to follow simple things consistently.

Let's throw some examples

Wake up.. have a glass of water... Come to daylight..Walk for 20-30 min, preferably without using phone.

How difficult is that ?

Well, this is nearly impossible to follow this routine 30 days in a month.

Idea is simple. Execution is nearly impossible. Less than 1 percentile can do this .


In business, success is often simple to visualise. But execution is the most difficult part.


Take examples... What Indigo does is an open secret. Despite knowing it, others cannot execute.


Take recent example..

Two wheeler EV space, so many companies started with the ambition. See how many of them are doing right.

Now, we have LLM. It has never been so easy to learn a completely new sector. Look how many are actually learning. People want shortcut in every sphere of our life.

Well, there is no shortcut. Knowing the things to do is a commodity. No use. Unless you execute. Same old boring things. Day after day.

Execution is the key.

Pay attention to what the management is saying.

Concall snippet from one of the microfinance lenders.

This is no buy and sell recommendation by any means..

Go to the screener. Search any one company, say: fusion, satin credit care....and you will find the peers.

What the above concall snippts tell you is that .............Look for the lenders with higher capital adequacy...and lower AUM size.

I am not saying this...the management is saying.

Open the investor presentations of all the companies...These are the points to check..

Decreasing trend in PAR30+
Decreasing trend in GNPA
Higher rate of AUM growth.

Read and observe. First learn...do not jump to make money. You may fall badly.

PI Industries

Results came yesterday. Here, see how knowledge compounds.

I used to own this business earlier. This business used to grow at 20%. The business is not performing. I have continued attending this company's conference calls even after selling this business.

At first, the management gave a cautious outlook.
Then business growth slowed in the next quarter. I exited when the management said in the conference call that they are not going to give any guidance.

Management has indicated that 500-600 cr will be generated from the pharma business. They are not able to meet their guidance. Today, the call will be held at noon. I am busy with some activities. I will read the conference call transcript tomorrow.

I will need to check what the management is guiding for. What is the EBITDA guidance, and why are they not able to meet their guidance?

I will try to find the answer. It will probably take me 5-10 min to get the answer.

I made some money from this business.
More than that, I got a very important lesson.

If some pharma companies are growing at a 20+ % pace, do not apply your brain and dig into which molecule is driving the growth. Attend the conference call, understand the guidance and capex associated with it, and track quarterly results.

Block all other noise. And repeat.

Knowledge compounds...slowly!

The biggest Podcast Learning

I was listening to a podcast two years back. One sentence from Prof. Sanjay Baksi has hit me on my face like a thunderbolt.

"When facts change, I change my mind. What do you do, Sir?"

Give your mind some space to expand on these words... this may transform your outlook on life!!! FOREVER!!

Let's learn..

Those who want to learn about new things..and earn money...I need your input here...

Do you think I may roll out one day workshop online ? Will that help ?