Can you please make a valuation case study which how investment banks value a company. There are many valuation techniques such as Multiples with EBITDA, Discounting Cash flow etc . But very confused real time what valuation process will corporates follow in valuing a company,
Sir I am following you from last month and I loved all your videos and your explanation. If I could suggest you one thing about your videos it will be the duration of videos.. please make it a little short ❤️
Hey, Akshat, loved the video! Just wanted to ask something. Suppose the company’s revenue is increasing and assets too but if the company’s liabilities are simultaneously increasing then in that case, what should be the view for the stock?
Akshat: "The demand and supply of the stock is not dependent on the fundamentals of the stock at all" Adani: "zor zor se chillake sabko scheme bata de"
Hey Akshat, I have been an employee of ITC for around 7years. I know the company inside out and truely believe in it. one important points for you: The main reason ITC gives out dividends is not what you mentioned in the video. It is because ITC provides lots of company shares to its employees, specially higher management. Dividends is part of the pay package. Also, it pays dividends to keep the dividend yield high to generate some retail interest.
You are absolutely correct brother...my grandfather worked in ITC around 1990s ...he had 7000 shares..which pays my father a dividend of around 70000 per year...it's a wonderful company
Guys ur happy with it bcoz u work or worked earlier.......but every1 doesn't work for ITC...they invest for return.......don't talk like ITC now......do ur job on ITC don't question on stock trades.....U know nothing abt market
Sorry to say this, you gotta learn a lot in Stock market then. A pack of Ciggy has 10 Ciggys n u r getting 1 share of ITC in that case,if that's the yardstick to come to such conclusion. How about knowing ITC's equity base and free float is of 1,100 Cr. Number of shares. No promoter so all of it can come to the market, atleast 8% via SUUTI for sure. What r u calculating mate? Let me also make u realize that you can get 5 kg of potatoes, Onions and a few 1/2 Kg of 2,3 vegetables for a pack of Ciggys at approx 250/- . Shouldn't people quit it to eat more, but do they ?? 🤣😂.
@@deepeshsao1008 Any valuation is a set of assumptions, which may or may not go wrong. What I wrote here is my conviction, and I'm not trying to impose it on anyone.
g= br growth is a function of retention ratio and rate of return. ITC doesnt retain much money as they pay a lot of dividends.. The reason they dont grow a lot and Price doesn't move up
Sir, Namaskaram. Your research on ITC is extensive and worthy of investment guidance. It's FMCG business growes faster and market share increases. The company being diversified overall profit growth is attractive. The pricing of FMCG products is consumer friendly at good quality. So the inherent capital value of FMCG business is also to be considered. The profit margins in tobacco is appropriately adjusted with the margin of FMCG products, hence ITC FMCG products are attractive.
Hey Akshat, simplified very well about Stock analysis. 1. Stock is fundamentally good when revenue and cash flow is good. 2. Stock price moves based on Economic term Supply vs demand, stock price increase if demand is more than supply and vice a versa. 3. Ppl bet on stock if they believe in growth opportunities of a company. 4. Safe stock which have good dividend (5-7%)with good fundamental. 5. Stock as just started focusing on FMCG sector and have very strong (50%) distribution channel in india inspite of new gaints entering in FMCG.
I liked the analysis. What you said about FMCG play is correct. FMCG makes money from brand recognition. Now about I TC' s FMCG business, I have a feeling that it is not being pushed hard enough at an operational level because the revenue that comes from cigarettes is a mental backstop because of which there is a mental lethargy to groom FMCG to its full potential. First thing, it must do is to spin off this into a different company ,which will make its management committed to growing that business. Second aspect of ITC Ltd , which I have heard few people talk about is its shareholders. Dominant shareholders are Indian institutions. There is no promoter group. Some years ago, the foreign stakeholder ,I think, it was probably British American Tobacco company , wanted to do a take over but was fiercely resisted by Indian managers. And the Indian institutions had voted with the managers. From then on, it is truly a public company. It looks to me because of the cash generation that you talked about, the managers see no need to diversity into newer areas such as technology, retail, financial services etc. What I find missing in ITC Ltd is the entrepreneurial hunger which is the hallmark of a promoter led company.So, an investor does not expect to reap massive upsides which comes from growth. A company similar to ITC in shareholders is L&T Ltd. However, this company has behaved differently because it's revenue comes from engineering and construction in which there are many players and this company has had to remain lean and agile and competitive to stay in business and maintain its market share. ITC has not faced similar challenges in its mainstay business, which is why it became indifferent to rather competitive growth, like newer areas and increasing the profit share from such areas. Now, many funds would refrain from taking stake in ITC because it is basically selling a sin good, cigarette. My take is ITC Ltd must become a holding company all its businesses must be spun off into different companies who work to maximize revenue from their respective operations. Initially, there may be some derating but say three four years down the line, the group will be controlling some very profit making businesses and brands. My viewpoint, Mr. Akshat. You may argue otherwise.
That sounds great. As for stocks and investing in general, I'm a relative novice. I'm doing research and looking for ways to invest money that are profitable
Valuation of any company can be done in various ways but the most prominent is DCF(Discounted Cash flow) which means the present value of the firm from the future cashflows. LOVING YOUR CONTENT AKSHAT!!
As a busy person, investing and getting returns was all I ever wanted so I could still retain my job. Although I never believed this at first but then after my cash out of $9,755 I don’t need new evidence
It literally feels like I am back to school days while listening to your video. Excited about new things what teacher is going to teach and making important notes just like I used to make in school.
Since tge company is paying is paying very high dividends, investors tend to book profits playing short term. The dividend distribution is quarterly and players make a kill at that time. Only if the company acquire very good local brands and distribute them well, they would be able to come out of this. Further, it is high time they do something with their real estate, which is giving them meagre returns. With spacious hotels, they can make some extra money by wisely using the land for agri products.
I think there is no point in fearing about an end to the cigarettes. If it is a case at all, government should concentrate on Vimal which causes apparent/visual harm to the society's cleanliness in the first place!!
I really wonder why such videos were not available back when I started investing 2 years back. The first stock I bought was ITC. 500shares @287. Just been waiting since then to even break even now( not even considering OC,TvM etc). But pls keep on making such informational videos for other stocks as well.
That’s a video by someone who has gone to take up right education and not just do trading ! Excellent correlation and rationales. Thanks for the insights. Appreciate your efforts.
Great analysis ! I have 550 ITC gonna hold and keep accumating around 200 levels till I have 1000 ITC and just leave it for few years ! This is my defensive bet to reduce risk in my portfolio
THANK YOU SOMUCH SIR FOR THE SOUND AND INDEPTH ANALYSIS OF ITC STOCK. YOUR STYLE TOO OF EXPLAINING IS THAT OF A SENIOR COLLEGE PROFESSOR. EVEN A BEGINNER COULD UNDERSTAND YOUR LUCID TALK.
Block buster video, people can learn a lot of things like looking at company fundamentals, what to do when fundamentals are good but growth is ascertain, when to use range bound trading.Thanks for the informative videos, please keep going
Such a long build up only to eventually suggest playing Trading game with the stock. And it makes no sense to invest for Dividends on a risky asset like equity if it just about beats FD returns.
All points are relevant. Only concern is the management. They could have been more prudent in so many ways. 1. Name change as the name ITC makes the company extremely undiversified. 2. Why does the management sleeps when the share price is consolidating for 5 yrs or more now? 3. Why not the management go for a buyback, say Rs 300 per share with it's FCF and make investors happy and also fresh investors enter the stock? It can also issue bonus shares instead of just high dividends and also rename the company for the positive vibes on it's FMCG. 4. If I was in the management, I would first position myself as an FMCG player along with others primarily and ensure all my brands gain traction in the sunrise industries and keep my sunset industry to very minimum exposure. Also would have invested all my revenue into high growth driven products instead of sleeping over it. 5. It is such a humungous task to reach such exorbitant FCFs for any company and wasting them is the biggest sin in the corporate world instead of focussing and investing it on high growth prospects & sunrise industries.
Akshat, the entire explanation on ITC was bang on and I agree it is a like a pendulum swinging back and forth within the support and resistance band for quite sometime. However, I thought you will throw some light on peer comparison with respect to cigarette industry. Because what confuses or rather surprises me is that the other peer companies operating at a much lower market share in Cigarette business such as Godfrey Philips etc are valued at much higher share price than the market leader ITC having 84% of the revenue and profits coming from cigarettes. If one looks at ITC as a cigarette company which obviously it is, then it is definitely undervalued compared to others however investors are confused with this Multi brand and are expecting some euphoria in the FMCG segment which is new for them. Infact in 90’s ITC had three or four different entities and still it didn’t rocket 🚀 I think it’s the government stakes and the negative sentiments towards its business for no reason is affecting its demand side. Only high net worth and risk averse individuals are sticking to this stock. The day swing traders and intraday traders would look at it, things might change. Another surprising thing is DII and FIIs are also invested but still it has not moved.
Beautiful explanation covering so many aspects!! Not even knowing what technical analysis was, I applied this support-resistance funda in the Maruti stock in the early months of my investing/trading journey, feels so good to get your validation!! I love how you are getting into the basic concepts, I think that could be a real edge over the existing finance channels since the viewers can now relate more
@@AkshatZayn Thank you for the reply, could you please review "Newgen software" , as per my knowledge fundamentals of the company are good, revenue is growing, PAT is growing, recent results were good, still stock price is falling drastically, I'm not able to make it why ? Thanks in advance ☺
We need teachers like you ❤️❤️ Keep up the good work ..very different from the other finance youtubers …perks of being a mangt consultant ..would love to see more videos where we combine economics and finance !!
The reason for ITC being sluggish on stock market is that BAT Industries United Kingdom (which was major share holder of ITC ) tried to take over management control of ITC from Indian professional management few years back, but with the help of Indian PSU Banks and LIC (which are also ,major share holders in the ITC ) Indian professional management thwarted attempts of BAT Industries, United Kingdom to take over management control. This has infuriated Foreign Institutional Investors and they have distanced themselves from ITC.
Hey Akshat. I was skeptical about keeping my ITC shares before this video, but now I might just invest more whenever it reaches the 200 levels. Thanks for the video. Hope you can present a video on the new upcoming IT shares likes Mind Tree, Happiest Minds, Mastek, Mphasis against LnT Technology
I have held it from 15 years still have confidence in the stock.,but recently the management has increased it salary substancially, they should be paid as per companies profitability from the new sectors the company is invested.
Every ITC investor must ask few questions before investing:- Would you wish to remain invested in a Company which doesn't know what to do with the excess cash flow? Acquire Damn it. Extremely high free float, 0% Promoter. SUUTI has 8% Stake and GOI needs money. Midcap and Small Cape are doing much better and the cycle has just started for Capital goods and Infrastructure. Last but not the least Dividends are now taxable, not sure how much retail investor can buy and rely on Dividend especially when the corretion is twice as steep as what u r been paid. Would not keep it on my demat even for free. 🤣😂 Eye Opener :- Even if u make 3X from here in let's say 3-4 years, was 10-12 years worth a wait ?? So thanks but no thanks.But for Akshat... 👍🙏👏
@akshatCheck ITC's inventory days. If even a single parameter of any company's stock is not favorable, then please do not invest. When you are talking of a long term investment, we are here to buy gold at a peanuts price and not at a diamond's price.
Present value of free cash flow =pvfcf also itc too much supply of shares their promoter holding is zero that's too much supply of shares which is not creating demand
I love the end part of this graphical analysis, I wish you would teach us more about how to read these graphs and take decisions, I think there are more things which you have and I hope you'll share with us in future.
This is the problem with short term investors , the gains should come in a few months or should continuously go upwards. Playing the waiting game for things to turn around is a rare trait.
18:40 - I had once seen Reliance selling it's own branded sugar instead of Taj Mahal or others in Reliance Fresh. P.S. - Do consider jaggery, thread mishri over sugar as they are soluble natural sugars 👍❤️
I used to watch a lot youtubers ragrding stocks but no 1 explain anything with logic and fundamentals. You and @parimalade are the ones who talk with figures, show the future prospectives and then the technical perspective is always in line.
ITC is my monthly salary stock. 😁 i do the same way as u said bro. If u invest 2L u can make 20k easily every month. Which covers my trade gaps for my position trades 🙏 good analysis bro.
@Stoned 2Core yes bro. I have allocated some fund specially for ITC 10 to 15 is max move and will back to 200 again. No need to fear that itc will crash. Divided is jus a bonus.
@@nareshmiriyala7431 last feb i got ₹5 and last year ₹10 bro. It is the compounding tat will create money not the trade. We are investing bro so makfe sure we choose good sttock instead of uppercircuit stock
Valuation model - Discounted cash flow or Revenue multiples for easier projection PV of FCF - Net Present Value Can you also take us through the importance of IRR (Internal rate of return)
Wonderful analysis. After a longtime I felt that I am in Economics class. Explanation is so simple and all the points are crisp and clear. You have wonderful teaching skills. 🙏
Amazing video, always Akshat. Please talk more about cases over coffee. I'll surely be subscribing to it but need to understand it more. Kudos to the amazing work! ❤️
Hi how would you invest inheritance in this volatile market? Real estate or in equities that one already owns. Am not too happy investing in tech companies.Am a long term investor. Your take?
Explanation is crisp and to the point. Being a novice in stock market, learning a lot from your explanations and analysis. Great motivator and teacher. Keep it up.
It's amazing that you're publishing such high quality content on UA-cam and helping young people like myself who are new to this game become financially aware. These concepts are something which we never learn in the typical indian academic setups. Thanks a lot!!
Akshat, good analysis and I agree that the stock is one that will give returns in the long run. The management however should have handled the FMCG business better. That distribution in India will go omnichannnel was evident about 4 to 5 years ago and they should have put in that extra effort to grow the business and make it more profitable. They have a well qualified team to do so...they just need to be more focused...anyway I guess this is a wake up call and I hope they bring in more profit from the FMCG business. Competition is expected to get stronger but the market will keep growing with consumption. ITC has to work its way out...
Thank you so much for this video. Apart from the ITC stock, I learn so many lessons on fundamental analysis from this video. Truly a must subscribe channel for people who love to trade and invest in stocks
I never knew ITC 85% profits are driven by selling cigarettes I don't care if ITC skyrockets . I m just gonna sell it Thanks for the effective fundamental analysis
ITC has a dividend yield of 10-12% How I am going to play it is wait and watch. When the party starts due to FMCG business growth, I will then join the party. Till then use my capital in high growth sectors and companies. Like Zomato maybe ;)
@@128a51achd hey just commented for fun.....apart from this i know itc is good fundamental stock once the govt changes then we can see a good moments in itc
Ironically Zomato's ad popped up two times while watching the video. On a lighter note, Akshat is making money from Zomato even while giving it a cold shoulder.
I do the fundamental analysis of stocks on Tickertape. Check it out!
ttape.in/tQ8PHO7jQgb
Can you please make a valuation case study which how investment banks value a company. There are many valuation techniques such as Multiples with EBITDA, Discounting Cash flow etc . But very confused real time what valuation process will corporates follow in valuing a company,
Sir I am following you from last month and I loved all your videos and your explanation. If I could suggest you one thing about your videos it will be the duration of videos.. please make it a little short ❤️
I always have the ethical dilemma while buying ITC as it's making fortunes by selling cigarettes.
Does anyone else feel that?
Hey, Akshat, loved the video! Just wanted to ask something. Suppose the company’s revenue is increasing and assets too but if the company’s liabilities are simultaneously increasing then in that case, what should be the view for the stock?
Hi Akshat In the calculation shown how does brokerage come in picture? Won't the return be less than 7% in that case unlike in your calculations?
Akshat: "The demand and supply of the stock is not dependent on the fundamentals of the stock at all"
Adani: "zor zor se chillake sabko scheme bata de"
😂
INVESTING IN CRYPTO NOW SHOULD BE IN EVERY WISE INDIVIDUAL'S LIST, IN SOME MONTHS TIME YOU WILL BE ECSTATIC WITH THE DECISION YOU MADE TODAY.
Most intelligent words I've heard,
Crypto is the new gold,
I'm a huge fan of crypto, I hold some few coins in my wallet.
The rich get wealthier as they trade the poor remain and get even more poorer because of skepticism and fear of taking risk,
The fruitfulness of your trading lies on the account manager or the expert,
Hey Akshat, I have been an employee of ITC for around 7years. I know the company inside out and truely believe in it.
one important points for you:
The main reason ITC gives out dividends is not what you mentioned in the video. It is because ITC provides lots of company shares to its employees, specially higher management. Dividends is part of the pay package. Also, it pays dividends to keep the dividend yield high to generate some retail interest.
So what is the reason the price not moving?
You are absolutely correct brother...my grandfather worked in ITC around 1990s ...he had 7000 shares..which pays my father a dividend of around 70000 per year...it's a wonderful company
Guys ur happy with it bcoz u work or worked earlier.......but every1 doesn't work for ITC...they invest for return.......don't talk like ITC now......do ur job on ITC don't question on stock trades.....U know nothing abt market
Ooh plz cut that word....who invest for dividend..... May b a person like u does
@@bijoypaul7138 oo where's your egg shell baby boy?..kal ka anda aphame batayega market kya hai
Just entering Stock markets, will be buying ITC shares in a few days at support level. Your video inspired me. Thanks.
ITC share price is still cheaper than a pack of cigarettes! I will still stay invested.
My god 😂. Epic.. 😂😂😂
LoL 😂
Sorry to say this, you gotta learn a lot in Stock market then. A pack of Ciggy has 10 Ciggys n u r getting 1 share of ITC in that case,if that's the yardstick to come to such conclusion. How about knowing ITC's equity base and free float is of 1,100 Cr. Number of shares. No promoter so all of it can come to the market, atleast 8% via SUUTI for sure. What r u calculating mate?
Let me also make u realize that you can get 5 kg of potatoes, Onions and a few 1/2 Kg of 2,3 vegetables for a pack of Ciggys at approx 250/- . Shouldn't people quit it to eat more, but do they ?? 🤣😂.
Bro ITC have IT in it
It will be rocket 🤘🤣
@@deepeshsao1008
Any valuation is a set of assumptions, which may or may not go wrong. What I wrote here is my conviction, and I'm not trying to impose it on anyone.
g= br
growth is a function of retention ratio and rate of return.
ITC doesnt retain much money as they pay a lot of dividends..
The reason they dont grow a lot
and Price doesn't move up
Payment every week! After so many bad experiences online with different account managers, I finally build my trust in a real mentor.
on telegram
leeroy walker
Me too 🙌
Lol bots 😂
I also found real bots lol 😂😂😂
Sir, Namaskaram.
Your research on ITC is extensive and worthy of investment guidance. It's FMCG business growes faster and market share increases. The company being diversified overall profit growth is attractive. The pricing of FMCG products is consumer friendly at good quality. So the inherent capital value of FMCG business is also to be considered. The profit margins in tobacco is appropriately adjusted with the margin of FMCG products, hence ITC FMCG products are attractive.
PV of FCF = Present value of future cash flow
Hey Akshat, simplified very well about Stock analysis.
1. Stock is fundamentally good when revenue and cash flow is good.
2. Stock price moves based on Economic term Supply vs demand, stock price increase if demand is more than supply and vice a versa.
3. Ppl bet on stock if they believe in growth opportunities of a company.
4. Safe stock which have good dividend (5-7%)with good
fundamental.
5. Stock as just started focusing on FMCG sector and have very strong (50%) distribution channel in india inspite of new gaints entering in FMCG.
5:30 Present value of future cash flow that company is going to generate
Used by Warren Buffett as well
DCF Model!
I liked the analysis. What you said about FMCG play is correct. FMCG makes money from brand recognition. Now about I TC' s FMCG business, I have a feeling that it is not being pushed hard enough at an operational level because the revenue that comes from cigarettes is a mental backstop because of which there is a mental lethargy to groom FMCG to its full potential. First thing, it must do is to spin off this into a different company ,which will make its management committed to growing that business. Second aspect of ITC Ltd , which I have heard few people talk about is its shareholders. Dominant shareholders are Indian institutions. There is no promoter group. Some years ago, the foreign stakeholder ,I think, it was probably British American Tobacco company , wanted to do a take over but was fiercely resisted by Indian managers. And the Indian institutions had voted with the managers. From then on, it is truly a public company. It looks to me because of the cash generation that you talked about, the managers see no need to diversity into newer areas such as technology, retail, financial services etc. What I find missing in ITC Ltd is the entrepreneurial hunger which is the hallmark of a promoter led company.So, an investor does not expect to reap massive upsides which comes from growth.
A company similar to ITC in shareholders is L&T Ltd. However, this company has behaved differently because it's revenue comes from engineering and construction in which there are many players and this company has had to remain lean and agile and competitive to stay in business and maintain its market share. ITC has not faced similar challenges in its mainstay business, which is why it became indifferent to rather competitive growth, like newer areas and increasing the profit share from such areas.
Now, many funds would refrain from taking stake in ITC because it is basically selling a sin good, cigarette.
My take is ITC Ltd must become a holding company all its businesses must be spun off into different companies who work to maximize revenue from their respective operations. Initially, there may be some derating but say three four years down the line, the group will be controlling some very profit making businesses and brands.
My viewpoint, Mr. Akshat. You may argue otherwise.
The market are going crazy at this time. And thanks for the stock tips, I'm adding it to the ones getting me thousands of profits.
That sounds great. As for stocks and investing in general, I'm a relative novice. I'm doing research and looking for ways to invest money that are profitable
I'm not a financial expert, but I do know that investing is the best way to earn extra cash right now. Also, be sure to play your cards right.........
This is a good way to earn extra money and build a solid retirement portfolio, according to 1. My portfolio generates an additional $3k per week.
How did make that much? Did you buy stocks and hold them for a period of time?
@@carolinebarjavel6924
Stock picks, portfolio diversification, and trading strategies from my financial advisor that have kept me going.
I actually like the way explain, ur fluency, ur English . And to the fact u speak about stocks, real life , great work boss
even I am betting that itc can become multibagger
Valuation of any company can be done in various ways but the most prominent is DCF(Discounted Cash flow) which means the present value of the firm from the future cashflows.
LOVING YOUR CONTENT AKSHAT!!
I hold a lot of ITC shares since a year! Fully believe in the long term investment of its growth👍
1st view. Just 14 yrs old and watching your videos and love your Zomato analysis. Please give it a ❤️
Amazing. You'll be a millionaire/Billionaire. Kudos :)
Yaa zomato analysis is superb
You're not old enough to invest baby
All u said is correct sir, but their way of sharing profit with investors in the form of dividend...needs appreciation......!!
As a busy person, investing and getting returns was all I ever wanted so I could still retain my job. Although I never believed this at first but then after my cash out of $9,755 I don’t need new evidence
on telegram
leeroy walker
PV of FCF means........ Present Value of Future cash Flow
It literally feels like I am back to school days while listening to your video. Excited about new things what teacher is going to teach and making important notes just like I used to make in school.
Since tge company is paying is paying very high dividends, investors tend to book profits playing short term. The dividend distribution is quarterly and players make a kill at that time. Only if the company acquire very good local brands and distribute them well, they would be able to come out of this. Further, it is high time they do something with their real estate, which is giving them meagre returns. With spacious hotels, they can make some extra money by wisely using the land for agri products.
I think there is no point in fearing about an end to the cigarettes. If it is a case at all, government should concentrate on Vimal which causes apparent/visual harm to the society's cleanliness in the first place!!
Amazing Akshat! I knew about you from some other website, and chanced upon your channel here. Glad I did.
I really wonder why such videos were not available back when I started investing 2 years back. The first stock I bought was ITC. 500shares @287. Just been waiting since then to even break even now( not even considering OC,TvM etc). But pls keep on making such informational videos for other stocks as well.
Hi Virat bhai , big fan ! 100 century please
Enjoy dividend atleast 😁
@@supriyokumar8802 useless dividend,capital destroyer
@@shankeykumar2742 don't worry it will rise
Happy now?💀
That’s a video by someone who has gone to take up right education and not just do trading ! Excellent correlation and rationales. Thanks for the insights. Appreciate your efforts.
Am holding some shares and happy am working with the ITC.
Great analysis Akshat 👍🏻 . What about HOTELS??
Much needed video at this time I would say. PV= Present Value? Zomato is the stock which recently got listed. Loss making company.
Great analysis ! I have 550 ITC gonna hold and keep accumating around 200 levels till I have 1000 ITC and just leave it for few years ! This is my defensive bet to reduce risk in my portfolio
Same I'm also procuring
How long can you hold is the question. HUL consolidated just like ITC for ten years before it gave a breakout.
Lol. Then wait for 10 years.
@@kim-o-san pessimistic
I mean look at the chart it's below pre covid levels, I am sure it can reach 300 levels in 1 year or so. Just needs some good news and it will fly
THANK YOU SOMUCH SIR FOR THE SOUND AND INDEPTH ANALYSIS OF ITC STOCK. YOUR STYLE TOO OF EXPLAINING IS THAT OF A SENIOR COLLEGE PROFESSOR. EVEN A BEGINNER COULD UNDERSTAND YOUR LUCID TALK.
In the next calendar year, we can definitely expect either a value unlocking by ITC, or the company may issue bonus shares.
Block buster video, people can learn a lot of things like looking at company fundamentals, what to do when fundamentals are good but growth is ascertain, when to use range bound trading.Thanks for the informative videos, please keep going
Such a long build up only to eventually suggest playing Trading game with the stock.
And it makes no sense to invest for Dividends on a risky asset like equity if it just about beats FD returns.
All points are relevant. Only concern is the management. They could have been more prudent in so many ways.
1. Name change as the name ITC makes the company extremely undiversified.
2. Why does the management sleeps when the share price is consolidating for 5 yrs or more now?
3. Why not the management go for a buyback, say Rs 300 per share with it's FCF and make investors happy and also fresh investors enter the stock? It can also issue bonus shares instead of just high dividends and also rename the company for the positive vibes on it's FMCG.
4. If I was in the management, I would first position myself as an FMCG player along with others primarily and ensure all my brands gain traction in the sunrise industries and keep my sunset industry to very minimum exposure. Also would have invested all my revenue into high growth driven products instead of sleeping over it.
5. It is such a humungous task to reach such exorbitant FCFs for any company and wasting them is the biggest sin in the corporate world instead of focussing and investing it on high growth prospects & sunrise industries.
10:42 Zomato be like, hey enough Akshat! 😂
Hahahaha 😂
😂😂 lol
Akshat, the entire explanation on ITC was bang on and I agree it is a like a pendulum swinging back and forth within the support and resistance band for quite sometime. However, I thought you will throw some light on peer comparison with respect to cigarette industry. Because what confuses or rather surprises me is that the other peer companies operating at a much lower market share in Cigarette business such as Godfrey Philips etc are valued at much higher share price than the market leader ITC having 84% of the revenue and profits coming from cigarettes. If one looks at ITC as a cigarette company which obviously it is, then it is definitely undervalued compared to others however investors are confused with this Multi brand and are expecting some euphoria in the FMCG segment which is new for them.
Infact in 90’s ITC had three or four different entities and still it didn’t rocket 🚀
I think it’s the government stakes and the negative sentiments towards its business for no reason is affecting its demand side. Only high net worth and risk averse individuals are sticking to this stock. The day swing traders and intraday traders would look at it, things might change.
Another surprising thing is DII and FIIs are also invested but still it has not moved.
Beautiful explanation covering so many aspects!! Not even knowing what technical analysis was, I applied this support-resistance funda in the Maruti stock in the early months of my investing/trading journey, feels so good to get your validation!!
I love how you are getting into the basic concepts, I think that could be a real edge over the existing finance channels since the viewers can now relate more
Glad it was helpful!
Hi
I liked the explanation.
I'm a Big investor and put my money in ITC
I think I will stay put for long term.
Thank you, feeling safe being invested in ITC n will continue to hold because of decent dividends and it acts as defensive stock in my portfolio 👍
Glad you found it helpful :)
@@AkshatZayn Thank you for the reply, could you please review "Newgen software" , as per my knowledge fundamentals of the company are good, revenue is growing, PAT is growing, recent results were good, still stock price is falling drastically, I'm not able to make it why ?
Thanks in advance ☺
@@AkshatZayn It doesn't look right analysis. See the stock price now. Its 272 which means more than 25% from the level you suggested to sell.
one eye opener msg from this video is " demand and supply not dependent on fundamentals " very true sir
We need teachers like you ❤️❤️
Keep up the good work ..very different from the other finance youtubers …perks of being a mangt consultant ..would love to see more videos where we combine economics and finance !!
he was selling crypto and if you had invested , you would have lost a fortune. he's bad advice
The reason for ITC being sluggish on stock market is that BAT Industries United Kingdom (which was major share holder of ITC ) tried to take over management control of ITC from Indian professional management few years back, but with the help of Indian PSU Banks and LIC (which are also ,major share holders in the ITC ) Indian professional management thwarted attempts of BAT Industries, United Kingdom to take over management control. This has infuriated Foreign Institutional Investors and they have distanced themselves from ITC.
Hey Akshat. I was skeptical about keeping my ITC shares before this video, but now I might just invest more whenever it reaches the 200 levels. Thanks for the video. Hope you can present a video on the new upcoming IT shares likes Mind Tree, Happiest Minds, Mastek, Mphasis against LnT Technology
`Watch at 1.5x`
Really love this. Saves time and also makes the video more interesting.
Thanks.
Akshat please share a list of 10-15 portfolio stocks with can give 25%-30% cagr growth in next 10 years.
GMM, Granules, Galaxy Surf looks good for the next 3-5 yrs. 10 years is a too long time.
I have held it from 15 years still have confidence in the stock.,but recently the management has increased it salary substancially, they should be paid as per companies profitability from the new sectors the company is invested.
Present Value of Future Cashflow (DCF Valuation, I guess)
Zomato
You're absolutely correct
Every ITC investor must ask few questions before investing:-
Would you wish to remain invested in a Company which doesn't know what to do with the excess cash flow? Acquire Damn it.
Extremely high free float, 0% Promoter. SUUTI has 8% Stake and GOI needs money.
Midcap and Small Cape are doing much better and the cycle has just started for Capital goods and Infrastructure.
Last but not the least Dividends are now taxable, not sure how much retail investor can buy and rely on Dividend especially when the corretion is twice as steep as what u r been paid. Would not keep it on my demat even for free. 🤣😂
Eye Opener :- Even if u make 3X from here in let's say 3-4 years, was 10-12 years worth a wait ?? So thanks but no thanks.But for Akshat... 👍🙏👏
I have stayed invested in ITC for the last 43 years. The journey has been very rewarding
You can be good supportive for us when we guys invested in ITC
@akshatCheck ITC's inventory days. If even a single parameter of any company's stock is not favorable, then please do not invest. When you are talking of a long term investment, we are here to buy gold at a peanuts price and not at a diamond's price.
Why was this channel hiding from me for so long? 👌🏽
Present value of free cash flow =pvfcf also itc too much supply of shares their promoter holding is zero that's too much supply of shares which is not creating demand
I love the end part of this graphical analysis, I wish you would teach us more about how to read these graphs and take decisions, I think there are more things which you have and I hope you'll share with us in future.
This is the problem with short term investors , the gains should come in a few months or should continuously go upwards.
Playing the waiting game for things to turn around is a rare trait.
Good analysis of ITC.Very good startegy suggested to play this stock. 👍
Thanks Rajoo :)
18:40 - I had once seen Reliance selling it's own branded sugar instead of Taj Mahal or others in Reliance Fresh.
P.S. - Do consider jaggery, thread mishri over sugar as they are soluble natural sugars 👍❤️
Hey akshat whu dont u share ur journey to insead(educational background) in the next video
Btw i freking love your videos ✌️
Thanks Kush :)
Will definitely try to cover it in my future videos
I am a shareholder and try to buy most ITC FMCG products including cigs.
I don't smoke but investing in itc feels the same way. That way I am a chain-investor.
@Pińnéd by Ákshát Shrívastavá Fake.
Spammer.
We are educated now.
So get away From sending messages from Fake ID
I used to watch a lot youtubers ragrding stocks but no 1 explain anything with logic and fundamentals. You and @parimalade are the ones who talk with figures, show the future prospectives and then the technical perspective is always in line.
Informative video!! Would request you to make more videos involving finance, economics and stock market mechanism in conjunction!
Thanks Vinayak
Will definitely do that :)
ITC in FMCG is Actually building its brand , brand value . It could be a golden goose in future which then can drive the price of ITC in 3-5 years
Ans 1 - present value of free cashflows.
Ans 2 - Zomato 😂😂
No one can explain better than this about itc stock / fundamental analysis... Thanks for all the clarifications...
ITC is my monthly salary stock. 😁 i do the same way as u said bro. If u invest 2L u can make 20k easily every month. Which covers my trade gaps for my position trades 🙏 good analysis bro.
@Stoned 2Core yes bro. I have allocated some fund specially for ITC 10 to 15 is max move and will back to 200 again. No need to fear that itc will crash. Divided is jus a bonus.
Shell I buy ITC Today 212 rupees
Each share how much dividend will give approximately
Dividend half yearly or yearly
@@nareshmiriyala7431 last feb i got ₹5 and last year ₹10 bro. It is the compounding tat will create money not the trade. We are investing bro so makfe sure we choose good sttock instead of uppercircuit stock
Thank you bro
For information
I will buy today itself 🙂
@@nareshmiriyala7431 i think u can wait until it comes below 205 bro.
Valuation model - Discounted cash flow or Revenue multiples for easier projection
PV of FCF - Net Present Value
Can you also take us through the importance of IRR (Internal rate of return)
Really Good presentation sir. One can easily see the passion for stock market analysis in your eyes. Please keep doing more such sessions 😊👍
Thanks for meanimgfull and depth analysis.
Wonderful analysis. After a longtime I felt that I am in Economics class. Explanation is so simple and all the points are crisp and clear. You have wonderful teaching skills. 🙏
For the first time I heard you sir. You are best impartial analyst. I will keep ITC
Amazing video, always Akshat. Please talk more about cases over coffee. I'll surely be subscribing to it but need to understand it more. Kudos to the amazing work! ❤️
Hi how would you invest inheritance in this volatile market? Real estate or in equities that one already owns. Am not too happy investing in tech companies.Am a long term investor. Your take?
Deman and supply is always never balance . Some time it balance . Some time it had arbitration .
Present Value of Future Cash Flow. Also loved this point - "Demand and Supply is not dependent on fundamentals"
Glad you liked it Siddharth :)
Explanation is crisp and to the point. Being a novice in stock market, learning a lot from your explanations and analysis. Great motivator and teacher. Keep it up.
Present value of future cash flows by discounting at my opportunity cost
It's amazing that you're publishing such high quality content on UA-cam and helping young people like myself who are new to this game become financially aware. These concepts are something which we never learn in the typical indian academic setups. Thanks a lot!!
Thanks a lott. You make even difficult theories easy for any layman to understand.I am looking forward for more, Keep it up!
Hey nicely explained. Really liked the wet you explained it....
Just buy on 200-203 and shortsell on 210-215😂.
Do this back and forth
Dcf model. Learnt this from ashwath damodaran sirs youtube channel
You have given us the proper holistic approach thanks Akshat!!
The primary reasons why ITC is not moving is due to ESG framework for many institutional investors now a days.
Would love to hear your Insead journey
Thanks a lot Akshat. Pls make more and more videos like this.
ITC is so stable that itc can be used as a form of money😂
🤣🤣🤣 this comment made my day!
So true.
Should be used as 200 rupee note.
Stablecoin, lolol
Well this is exactly what I have done. Parked all my cash that I don't want to deploy yet to specific companies in ITC :)
@@vineetjain3222 i am doing the same
Akshat, good analysis and I agree that the stock is one that will give returns in the long run. The management however should have handled the FMCG business better. That distribution in India will go omnichannnel was evident about 4 to 5 years ago and they should have put in that extra effort to grow the business and make it more profitable. They have a well qualified team to do so...they just need to be more focused...anyway I guess this is a wake up call and I hope they bring in more profit from the FMCG business. Competition is expected to get stronger but the market will keep growing with consumption. ITC has to work its way out...
Another reason for demand not being high could be because of the tax on the dividend....just a thought..hopefully this stock becomes a big buy soon...
Thank you so much for this video. Apart from the ITC stock, I learn so many lessons on fundamental analysis from this video. Truly a must subscribe channel for people who love to trade and invest in stocks
Hi Akshat please make video on how to do fundamental analysis in IT Sector and which stocks to pick for long term.
Sometimes it feel s like Akshat is personally pissed off with the valuation of Zomato :-)
Same.. this made me just book the listing gains and saye bye to Zomato 😂😂
@@aabhasagrawal410 lucky you got it
He is logical.You have a choice to disagree.
At least you got it. It's my straight 4ty IPO rejection. 😭 Don't know how to land with an IPO. 🙃
@@siuuuuuMyth book from 4to 5 demat account
I never knew ITC 85% profits are driven by selling cigarettes
I don't care if ITC skyrockets . I m just gonna sell it
Thanks for the effective fundamental analysis
Wish you were my Economics/Finance professor in my college 😂😂
ITC has a dividend yield of 10-12%
How I am going to play it is wait and watch. When the party starts due to FMCG business growth, I will then join the party. Till then use my capital in high growth sectors and companies. Like Zomato maybe ;)
10 years later itc CMP at 200 but their overall dividend will be 2000😂
🤣
Most irresponsible comments
@@128a51achd hey just commented for fun.....apart from this i know itc is good fundamental stock once the govt changes then we can see a good moments in itc
ITC need to build the chain of supermarkets of their own brand like DMART to utilise their cash flow , they can do it very easily
ITC can be used as stable coin in crypto 😂
LoL
I see simplicity in your explanation which is very good to see . I wish you all the best
Ironically Zomato's ad popped up two times while watching the video.
On a lighter note, Akshat is making money from Zomato even while giving it a cold shoulder.
Damn bro... Your analysis on ITC was best amongst all youtubers videos that I have seen..you deserve 1 million subscribers...
What bad timing, just today the stock soared by 2.61% 😅
@Pińnéd by Ákshát Shrívastavá why are you using foreign number while in India.
Oo sorry.
You are not real. Fake😁😁