27 results for “COVID-19”

Does a Governance-Event-Driven Valuation Discount Ever Go Away?

When a company goes through a governance event, its stock usually falls. Sometimes the stock price doesn’t recover, while other times it does. But, here is a more important question: when the price does recover, does it come back all the way? Read on to know what this means and why it is important.

Why Does Your Equity Portfolio Need Diversification Across Market Caps?

Portfolios tilted towards a single market cap are often far more dependent on market conditions than investors realize. We ran 15 years of TRI data across the Nifty 50, Nifty Mid Cap 150, and Nifty Small Cap 250. Read on to see what the numbers actually say.

[Podcast] A Structured Approach to Cash Calls

[Podcast] Investing in Unlisted Companies: What's the deal?

Are unlisted securities worth investing in? What are they? In this edition of the Capitalmind Podcast, Deepak and Shray dive into the world of unlisted securities, the complexities of investing in them, the different pluses and minuses you might want to know, and more...

What we should not learn from the SVB crisis

Silicon Valley Bank has gone under. And the government has rescued the depositors. What just happened? We take you through the journey of what the crisis was all about. And then, what we shouldn't take away from that crisis - and instead, what we should. Risk is eternal in banking, but it's true of nearly everything else we do too. It's not even like India's entirely immune, even if our system is better. Read on, there's a juicy long post for you.

Wealth Letter March 2023: Muddling Through Markets

🔆 12-Nov: NESCO, Nykaa, HDFC Twins & More

Podcast: Turbulent times - RBI thrives, Fed fumbles

. Markets are slaves of earnings and liquidity. Liquidity has taken prominence after the coronavirus outbreak. At first, central banks across the world increased liquidity by cutting rates and helping their populace to live through the pandemic. Then the after effects of increasing liquidity hit - increased inflation. Now, the same banks are sucking out liquidity by increasing interest rates to counter inflation. The looming after effect of increasing rates is the "r" word that is too pious to speak loudly. In this podcast, Deepak & Shray discuss the two central banks that impact us the most - RBI and FED (Federal Reserve System, USA). What makes this podcast interesting is that we are looking at everything from the lens of who does better - FED or RBI? .

CM Focused Factsheet: A strong FY22 and the FY23 roadmap

FY22 was a good year for the CM Focused portfolio, up 36.7%, while the Nifty 50 advanced by 19%. In this post, we'll break down the CM Focused Portfolio's performance and get into the underlying portfolio management process.

Edelweiss Housing Finance NCD review: Should you invest?

When fixed deposits offer only 5-6% interest, is the Edelweiss Housing Finance NCD issue that offers up to 9.7% interesting? What's the risk? Why would a housing finance company borrow at such a high rate? We explore.

Happy Diwali 2021! Our annual predictions, and last year's scorecard

Happy Diwali 2021! At Capitalmind, we like to react, not predict. But once a year, we throw that rule into a drawer and let our minds run amok, from conspiracy theories to whatever Elon Musk is consuming nowadays, and try to frame a picture of what is likely to happen. But we have a special thing that people with predictions often do not do.

This financial instrument earns 36% per year!

Indian Aviation: Pressure on profitability to continue

It has been over a year since the outbreak of novel coronavirus. The airline industry suffered losses to the tune of ₹ 19,000 crore. The industry has been through its worse, yet no casualty. In fact, the industry is set to welcome two new players – the second incarnation of Jet Airways and Rakesh Jhunjhunwala backed Akasa. Even in better times (than the last year), the “king of good times” had fallen. Now, though new airlines are about to launch, existing airlines are about to raise funds and every month the number of people opting to fly is on a rise, uncertainty prevails. The road to profitability is still hazy. So how did the industry survive and why earning profits is still some time away? Let’s find out.

EP39: Why we run a PMS and how we do it differently

What is a Portfolio Management Service? How does it really work? Do they actually benefit their clients? In this episode, Vashistha and Deepak explore PMS' through their experience of running one at Capitalmind. They explain how the operations work, the pros and cons of different fee structures, quantitative strategies and how PMS' are different from AIFs, Mutual Funds and Smallcases.

Go Airlines: IPO for survival?

"Desperate Times Call for Desperate Measures" The struggling Go Airlines – has just filed for an IPO. Devastated by the ongoing pandemic, the airline sector has struggled with rising costs. To stay afloat, promoters of India’s fourth-largest airline have chosen to tap the primary market. Should you look forward to invest? Short Answer: Promoters prefer to offer a slice of ownership in their enterprises when equity market conditions are favourable and they are able to set the price on the back of strong recent operational performance. Go Air doesn't have that luxury as it needs to raise money to reduce debt. Compared to its peers, Go Air has struggled, both to maintain market share, and to run operations profitably. Frequent leadership and auditor changes, disputes with promoters over brand rights haven't helped. While we await the IPO price bands to be announced, this is not a public issue to hold your breath for. Read on for our detailed take.

Medi Assist IPO: Riding the Health Insurance Wave

Medi Assist, the largest Third Party Administrator (TPA) in the country, has filed a Draft Red Herring Prospectus (DRHP) for an upcoming IPO. The Rakesh Jhunjhunwala backed company is offering 2.8 Crore Shares which is 40% of its Equity for sale.  Soumeet combs through the prospectus to get the specifics of the TPA business and ends with some questions for management.

The house view on Kovai Medical

Indigo Paints IPO: Should You Invest?

India’s fifth-largest paint company – Indigo Paints Ltd. – is looking to list on the Indian bourses as it opens its initial public offering on January 20. This will be among the first few IPOs of 2021. In the previous year 2020, as many as 15 companies made stock market debuts. Exiting investors will make a killing in this initial public offering. Sequoia Capital through its two funds will make gains in the range of 13 to 20 times its investment amount. Does it make sense for retail investors to buy? Short Answer: At such aggressive valuations, a lot of things need to fall in place, especially whem competing against one of the most efficient companies in India - Asian Paints. While the near-term high growth rate can be sustained, we remain skeptical of Indigo sustaining a similar growth rate in the long run. We would pass on this IPO.

How Capitalmind Portfolios did in 2020

Capitalmind subscribers get access to five core portfolios (three equity, one debt, and one index+Futures strategy). Each one is designed for distinct risk-return profiles and plays a role in an individual's asset allocation framework. In this post, we summarise the performance of the portfolios and other short-term ideas we closed in 2020.

2020 - A year to be grateful

Temporarily departing from our usual investment-related articles, the Capitalmind contributors compiled this, what each of us personally feels grateful for in 2020, and is looking forward to in 2021.

Burger King IPO: Should you invest?

Burger King opens for subscription on 2nd December,2020. In this post we look at the the IPO and the food services business in India. Burger King has been a late entrant in India, it set up its first restaurant in 2014. It has been aggressive in setting up outlets across the country having 249 operational outlets currently. Revenue growth has been impressive at 54% CAGR over the past 3 years, however it hasn't been profitable. It has had to resort to debt and equity dilution to fund its expansion. We take a look to see if the IPO makes sense to invest in.

Mirae Asset Arbitrage Fund: Should you invest?

Arbitrage funds are relatively tax-efficient instruments to park money because they are taxed as equity funds. However, they are not entirely risk-free compared to liquid funds.

Solara Active Pharma Sciences - From David to Goliath

TTK Healthcare: Keeping Skore in the condoms segment

Podcast #27: The run on debt mutual funds. Is your money safe?

The Midcap Carnage and Where There May Be Opportunity

Podcast #25: How do you invest through a panic?