Stock Market Education

  Financial Ratios - Leverage Ratios. Leverage ratios measure the extent to which a company relies on debt financing in comparison to equity financing in its capital structure. Debt involves borrowing money to be repaid, plus interest, while equity involves raising money by selling interests in the company.Companies normally prefer debt financing rather than equity financing. This is because of the cost of debt is lower than the cost of equity mainly because of one important fact that interest payment on debt in tax deductible while the dividend paid to the equity shareholders is taxable. However, debt creates with it a requirement for fixed payment in form of interest. That's not all;debt must at some point be repaid.In a situation when proceeds of debt can yield much higher return than the cost of debt, it may be wise to take on debt to fund the growth of the company. But at the same time if a company takes on too much of debt then the interest paid on the debt, then it m...

  FLEX FOODS LTD.   CMP 62 ENTRY 58 TO 60 STOPLOSS 40 TARGET 120++ TIME: 24 MONTHS Incorporated in 1990, Noida based Flex Foods Limited cultivates &processes food products in India. It offers vacuum freeze dried, air-dried, frozen, and individually quick frozen product range of mushrooms, herbs, spices, fruits, and vegetables; and canned button mushrooms in various shapes and sizes.The company also provides thyme, basil, parsley, dill, mint, sage, savory, pickle, chervil,marjoram, rosemary, chives, and oregano culinary herbs. It exports its products to the United States, Europe, Asia, and other countries. In its pursuit to supply high quality product to its customers, Flex Foods Limited sources its raw material through contract farming through a dedicated network of 500 farmers. This is done in about 2500 acres of land in and around Dehradun, providing the farmers with the high quality seeds, imparting best farm practices, following strict MRL and assured buying at th...

  AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: 25.10.2020 From the close of previou s week our markets opened gap up on 1st day. After a gap up, our markets managed to close nearly where it opened for the day and that sets a good tone for the week ahead. 2nd day of the week, we saw some up move in the beginning but by the day end much of it got fizzled out. Wednesday was one peculiar day where we opened gap up and survived upper thrust but in final 2 hours, we saw a serious down move and before any market participants finds the reasons for it, we did   saw a great recovery from the day's low. Down move and up move happened in a quick succession leaving every traders in the jeopardy. Thursday and Friday were just a regular moves which finally led our benchmark NIFTY gaining +1.43% and BANKNIFTY gaining +4.03% for the week. The good news came from MIDCAP and SMALLCAP which silently outperformed the NIFTY with the gains of +3.09% and +2.65% respectively. From the sectors,REALTY moved ...

  Financial Ratios - Liquidity Ratios   Inventory Turnover Ratio: - Inventory turnover ratio is the ratio of Cost of Goods Sold to the Average Inventory. This ratio helps us to analyze  how popular are companies products. If the company's products are really popular the inventory turnover ratio would be high otherwise it will be low.   Inventory Turnover Ratio = Net Sales / Average Inventory   Inventory Number of Days: - Inventory Number of Days tells us about How much time (days) the company takes to convert its inventory into cash.   Inventory Number of Days = 365 / Inventory Turnover Ratio On one hand, a lower number can indicate that company's products are fast moving and popular which is a good sign but on other hand it can also indicate that the company has a limited production capacity which is not a good sign. This can be due to inability to expand business due to shortage of funds or inability to raise fresh money, shortage of raw mat...

  ADITYA BIRLA MONEY LTD CMP 43 ENTRY 40 TO 42 STOPLOSS 32 TARGET 65++ TIME: 12 MONTHS Aditya Birla Money Limited (ABML), a subsidiary of Aditya Birla Capital Limited is currently engaged in the business of securities broking and is registered as a stock broker with SEBI. It offers equity and derivatives trading through NSE and BSE and holds PMS license from SEBI and offers portfolio management services. ABML is also registered as a Depository Participant with National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL). It also holds SEBI license as a research analyst and an investment adviser. ABML also holds an ARN code issued by AMFI and is registered with CDSL as an e-Repository for holding insurance policies in electronic form. It has a pan India distribution network of over 41 branches spread across Andhra Pradesh, Chandigarh, Rajasthan, Chhattisgarh, Madhya Pradesh, UP, West Bengal, Punjab, Maharashtra, Kerala, Karnataka, Delhi, ...

  Last week I said "12000-12050 could be act as speed breaker for short term, Any dips near 11660 will had be buying opportunity." The Nifty has made low of 11661 on Thursday and it was bounced from that level. I believe from today festive session has start that leads to consumer spending which will support sentiments of economy and market. On technical chart point of view, big red candle on daily chart indicates weakness however as per technical analysis theory any trend reversal pattern has need confirmation. But the follow-up bearish signal was missing on Friday. So I believe Nifty will continue it’s up move for 12200-12500 in near term. On down-side 11660-11600 zone would act as strong support zone. 11950-12050 would act as resistance for next week. On option point of view, Nifty 11700 and 11800 put option indicating short build up. It means that short term trader are expecting bullish move on market. While Nifty 12000 call has highest open interest positions means 12000-...

                           Financial Ratios- Liquidity Ratio As the name indicates, these financial ratios help us to evaluate the ability of the management to use its assets and manage its liabilities effectively. Commonly used Management Efficiency Ratios include –   1. Fixed Asset Turnover Ratio 2. Working Capital Turnover Ratio 3. Total Asset Turnover Ratio 4. Inventory Turnover Ratio 5. Inventory Number of Days 6. Receivables Turnover Ratio 7. Days of Sales Outstanding   Fixed Asset Turnover Ratio: The fixed-asset turnover ratio is the ratio of net sales to the fixed assets of the company. Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets This ratio is used to measure the operating performance of the company, i.e., how efficiently a company is producing sales with its machines and equipment. In general, a higher fixed-asset turnover ratio indicates that a company ha...

                        CAREER POINT LTD   CMP 179 ENTRY 170 TO 180 STOPLOSS 140 TARGET 350++ TIME: 36 MONTHS Career Point Limited is a leading Indian education company with diversified and integrated solutions across the education value chain. With a strong foundation of academic excellence since year 1993, Career Point caters to the needs of a student throughout the life cycle of a student (K.G. to Ph.D.). The company focuses on creating a bright future with strong foundations while delivering great value to each stakeholder. Career Point operates in both the Formal and Informal education streams including Pre-school, School Education, Test-Prep, e-Learning, Higher Education and Vocational Education. While transforming lives through the power of education, CP Universe has become a benchmark in education space through unique teaching aids, ultimate personal care and continued focus on the responsibility that students...

We have witnessed a stupendous move everyday one after other this week. The surprising thing was the Gap up openings that we witnessed literally every day starting from Monday. The first day rally came due to gap up and final close was quite lower than the day's top. Next 2 days were nice gap ups and yet higher close. Thursday expiry day was continuous up move throughout the day but at the end a quick down move and then an up spurt was seen. Friday was no different where though out the day we witnessed slow and steady up move. Friday finally summed up creating 7 straight higher closing sessions and the best weekly gains of last 4 months. NIFTY and BANKNIFTY gained +4.36% and +7.20% for the week. MIDCAP and SMALLCAP hardly did anything compare to their larger counterparts with -0.19% and +0.26% respectively. NIFTY IT and FINANCE were continuous outperformer with weekly gains of +8.59% and +6.38% respectively   Technically Speaking :- Please see the attached chart 1of NIFTY which...

  Financial Ratios = liquidity Ratios Liquidity measures how quickly assets are converted into cash. These ratios are used to evaluate the company's ability to meet short-term obligations without raising external capital. They affect the credibility of the company as well as the credit rating of the company. It indicates the financial stability of the company.   Some of the commonly used Liquidity Ratios include   1. Current Ratio 2. Quick Ratio 3. Cash Ratio   Current Ratios: Current ratio is calculated by dividing current assets with current liabilities.  This shows the liquidity position, i.e., how equipped is the company in meeting its short-term obligations with short-term assets. A higher figure signals that the company's day-to-day operations will not get affected by working capital issues. A current ratio of less than one is a matter of concern.   Current Ratio = Current Assets / Current Liabilities Sometimes companies find it diff...

                                            MAAN ALUMINIUM   CMP 72 ENTRY 65 TO 70 STOP LOSS  50 TARGET 100-110 TIME: 12 MONTHS Incorporated in 1989, New Delhi based Maan Aluminium Limited manufactures and sells aluminum extruded products in India.It offers aluminum profiles; geometrical shapes and architectural hardware; AC grills and diffusers; and other special shapes, tools, dies, and cuts aluminum products. The company serves OEMs and various organizations of the Indian government. It also exports its products to the United States, Europe, and the Middle East. Maan has an annual capacity of 9,000 metric tons under one roof with three hydraulic extrusion presses of 900, 1,200 and 1,450 tons which are  controlled by Microprocessor based technology and programmable logic control (PLC) system. They have a fully integrated plant with a Billet casting and Die m...

WEEKLY MARKET OVERVIEW   *AAKASHAYA PATRA WEEKLY MARKET OVERVIEW:* 04.10.2020 The bounce-back which started from the 200dma went from strength to strength, as the Bulls recovered much of the lost ground in style. In the process, both the indices overcame the 20dma and 50dma, resulting in Short term as well as Medium term Trend turning Upwards. If the Nifty manages to surpass 11618, then it can result in failure of Bearish Head & Shoulders pattern and a retest of recent top of Nifty at 11794. On the downside, we have strong Support in the form of Bullish Gap at 11347-11295 which is also a strong confluence zone.   Technically Speaking:- Sensex opened the week at 37756, made a high of 38738, low of 37544 and closed the week at 38697. Thus it closed the week with a gain of 1309 points. At the same time the Nifty opened the week at 11140, made a high of 11428, low of 11099 and closed the week at 11416. Thus the Nifty closed the week with a gain of 366 points. On the dail...