Trade SMARTLY

Answers 👆 to all the common questions received through e-mail 📩

I am sure that this tool is gonna help you lot,
Since last 2 quarters I am using this and it's damn helpful 🔥

Watch it and Practice it 👇
https://youtube.com/shorts/bS4ShSOZXwI?si=mo0T8-h3U8YcLS38

RHFL CASE :- How 8800 cr funds were siphoned off by the top executives ( Anil Ambani )

Know the details in 1 minute

https://youtu.be/XoBXZNqSX8s?si=KCbonCH-91mk-HAp


I would highly suggest you to deep dive into the sebi order to understand how financials are manipulated by the promoters.

This would really proove insightful!

𝗖𝗵𝗲𝗰𝗸 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗯𝗲𝗳𝗼𝗿𝗲 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗾𝘂𝗮𝗹𝗶𝘁𝘆.

Yesterday I spent the whole day analysing business and its financials, everything seemed good about the company until early this morning.

Came to know that whatever Earnings quality has been represented by the company has a crack in it ouch 😣!
Meaning that the auditor has indicated possibilities of potential material misstatements.

That's why we should always prioritize reading Independent Auditor's report to save our hard earned money as well as time.

Also will give you practical examples in the next post it will be super learning,
So stay tuned !

A Comprehensive Overview of Operating Leverage.

Save the above image and also try out this query on the screener which includes some amazing companies where operating Leverage is playing out ↓

Profit growth 3Years > 20 AND
Sales growth 3Years > 10 AND
Operating profit growth / Sales growth > 2 AND
Profit growth 3Years / Sales growth 3Years > 2

Feel free to add your own criteria to the above query code.

Companies conducting CAPEX through internal accruals or Free Cash flow exhibits Strong financial strength 💪

But How to screen them 🧐 ?

Here is a CAPEX Cheatcode for you 👇

→ CWIP / Netblock > 0.5
→ Netblock > Netblock 3 yrs back
→ Debt < Debt 3 yrs back

Above criteria are specific to CAPEX

You can add Sales Growth etc.. too for further polishing the screener

Use this Idea on @screener_in

Two prominent companies that i found:-

→ Shyam metalics and energy
→ IKIO lightening

Try screening with this and practice 👍

Throwing out some weak stocks from my portfolio in this good bounce.
Making space for upcoming opportunities.

Scan your portfolio too and ensure to be in cash little

Keep researching and studying continuously, using strong filter ideas which I have already shared

The current video was super important and if you regularly practice it,
then it's Going to be worth it ↓
https://youtu.be/QKtYtzjbdaE?si=yvI5g7iQ5w4n8TPP

Kriti Industries :- Specialises in
producing plastic polymer piping
systems, molded plastic products and associated access.
Caters to :-
→ Agriculture
→ Building Products
→ Micro irrigation
→ Infrastructure sectors

Also interesting announcements are popping up here ( Warrants issue on 27th July and Madhuri Madhusudan Kela participated in Pref. allotment on 1st Aug )

Would be an interesting Study 📚

Finally the Video is out,
Sorry for the 20 mins delay TS family
But here is the video now 👇
https://youtu.be/QKtYtzjbdaE?si=59vpHqEnmoci7QLl

Today I am going to release an extremely interesting and important video almost 45 days later, as you know that my exams are going on and also preparing for professional exams ( CFA )

But, I recorded this video somehow which is based on Signalling Effect that company management uses to raise Funds and make profits out of it and How one can participate in their growth journey.

It's going to be super exciting,
The video is 50 mins long because i have taken many examples to explain this concept,
So do secure your time for 8 at night today and let me know your views in comments

Ever wondered how the companies Profit Growth outpaces Revenue Growth ?

The answer is Operating Leverage.

Operating Leverage simply means that your company has a high proportion of FIXED COST in the Total Cost Structure.

Imagine a Company ABC which has to incur costs for every Sales it does.
So, Increase in sales will simultaneously also increase the cost for doing the sales leading to no Margin Expansion.

Now, Imagine there is another company XYZ which doesn't require much additional cost for selling an additional unit.
Meaning that increase in sales of XYZ company doesn't lead to proportionate increase in Cost of doing the Sales and that's how
Margin expansion kicks in .

So, Companies that do CApex and have product with low marginal cost can benefit from Operating Leverage.
( Also various factors need to be considered)

Below I have attached the image of the illustration of how Operating leverage amplifies profitability 👇

Don't worry if you don't understand because I am gonna cover all these things in the dedicated videos ahead.
Just Stay connected because your boy is something on the Big.

Top Small Caps added by PMS fund managers in June ✨

📍Mold tek Packaging
📍Banco Products
📍 GMM Pfaudler
📍Windlas Biotech
📍Fiem Industries
📍Borosil
📍Uniparts India
📍Bharat Bijlee
📍MAS Financial Services
📍KP Energy
📍Protean eGov Technologies
📍Borosil Scientific

This source of information just acts as an initial step of screening some quality stocks.
Dive deeper into each of the stock before investing.