Capital, be it debt or equity, comes at a cost. It is, therefore, important to know if a company is generating enough returns to cover that cost. If the returns are higher than the cost, the company is adding value, else value is being lost. We use profitability ratios, such as return on assets, return...

Many stock market investors often wonder which is the best time to sell their stocks. Be it profits or loss, there are some situations when an investor takes the decision to sell. Many rely on instinct or impulse alone. However, consider these points to take a more prudent decision that wouldn’t...

Commonly used ratios As there are different measures of profit (such as gross profit, operating profit and net profit), we can calculate one profitability ratio corresponding to each measure of profit. These ratios are gross profit margin (GPM), operating profit margin (OPM) and net profit margin (NPM). Other...

Here are the synopsis from the detailed report published by ‘Economic Advisory Council to the Prime Minister’ on the ‘Economic Outlook for FY 2010-2011′ in India Growth Prospects 1. The performance of the Indian economy in 2009/10 greatly exceeded expectations. The farm sector...

Generally, companies buy back their shares when they perceive their own shares to be undervalued or when they have surplus cash for which there is no ready capital investment need. For example, Essar Oil, Reliance, Siemens and Infosys are some examples of companies that have bought back their shares....

Most stock market investors don’t have a clear understanding of what bonus issue means to them and what happens when spocks split. Here is an attempt to clarify the difference between bonus shares and stock splits and what they mean to ordinary investors. Bonus Issue In a bonus issue, a company...

Historically, Equity markets have been giving highest annual returns than all others asset classes for disciplined long term investors. Equities are even more rewarding and can create serious wealth for you, if you can identify right stocks at right price and stay invested in those for long term. So...

CMP: Rs 133 Target: Rs 239 Duration: 12 to 15 months (4 to 5 quarters) Here are the updates on ICSA (India) Ltd, based on a research report published by Systematix Institutional Research, which provided updates on: ICSA’s corporate strategy for their new SMART meters manufacturing facility New...

The Board of Directors is a group of people elected by the stockholders (the owners) to represent their interest. The primary responsibility of the board of directors is to protect the shareholders’ assets and ensure they receive a decent return on their investment. The board is responsible for...

Dividend is a portion of the profits that a company pays to its share holders. Companies that earn a profit can do one of three things: pay that profit out to shareholders, reinvest it in the business through expansion, debt reduction or share repurchases, or both. When a portion of the profit is paid...