Dividends versus buybacks – which is a better choice?

When TCS announced its second round of buyback of shares worth Rs.16,000 crore, it has once again raised the debate on how should companies in India reward shareholders. Broadly, there are two ways of...
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Can you monetize your shares without selling them?

Over the last 10 years you have painstakingly created a solid equity portfolio consisting of a mix of blue chip stocks and quality mid cap stocks. Your portfolio value has multiplied and you realize t...
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Short term returns versus long term returns: How to balance?

Returns on investments are for the short term and the long term. Some investments generate trading returns in a very short span of time. Some investments like Wipro and Havells can give phenomenal ret...
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Bonus versus stock splits – How they compare?

Do Bonus and stock split create value for shareholders? Let us start with the unbelievable story of how Wipro created wealth over the years. Had you bought 100 shares of Wipro in 1980 at a price of Rs...
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Understanding the link between ROE and ROCE in analyzing stocks…

In the world of finance there are a good number of ratios to evaluate companies. There are profitability ratios, efficiency ratios, solvency ratios and liquidity ratios. Within the gamut of profitabil...
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10 questions you need to ask about a company’s fundamentals…

If you are an equity investor what would you typically rely on? You would rely on a research report or on technical calls. Let us leave out technical calls for the time being as our focus is more on l...
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Why cash flow statements of a company are crucial?

For a very long time, the two principal financial statements for Indian companies were the Income Statement and the Balance sheet. While the income statement took stock of the income and expense flows...
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FIGURING FINANCIAL REPORTS

As per disclosure norms set by SEBI, companies have to report their financial performance on a quarterly and annual basis. Apart from financial data, the annual report also contains valuable informati...
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FUNDAMENTAL RESEARCH

HOW DO I KNOW ABOUT THE POTENTIAL INCREASE IN THE VALUE OF MY SECURITIES (SHARES, BONDS, ETC.)?  You can use the method of Fundamental Research to find the potential increase in the value of y...
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