155 articles on Investments & Markets, authored by the Finin2min editorial team.
Average ROCE can look strong because of old low-cost assets, while new projects earn weak returns.
Operating leverage magnifies both upside and downside once revenue moves around the break-even point.
Profit includes non-cash items and accruals; growth can consume cash even while reported earnings rise.
Cash flow can improve when receivables fall and inventory turns faster, but also when suppliers are paid later.
Surplus cash should go where it creates the highest per-share value after considering valuation, balance-sheet strength and opportunity set.
Goodwill records consideration above identifiable net assets and is not proof that strategic benefits will arrive.
Capitalising eligible cost delays expense recognition and can improve near-term profit, but aggressive policy raises future amortisation and impairment risk.
Interest, investment gains, fair-value movements and asset sales can lift profit without strengthening the core business.
High-return divisions can conceal loss-making experiments, while shared costs and transfer pricing affect reported segment margins.
An order book represents potential work, not guaranteed revenue, cash flow or profit.
Concentration can accelerate growth but creates renewal, pricing, receivable and capacity risk.
Reverse factoring can lengthen reported payables while a financier pays suppliers early, making operating cash flow look stronger.
Deferred tax assets can arise from losses and timing differences, but recognition depends on future profitability and evidence.
Transactions within a promoter group can be legitimate but require scrutiny because commercial independence may be weaker.
Salary, commission, rent, royalty and dividends extract value through different channels and create different incentives.
Large balances provide resilience and acquisition capacity but can depress returns if management lacks a disciplined deployment plan.
Borrowing to pay dividends can be rational in rare recapitalisations but dangerous when cash generation is weak.
A business can earn attractive capital returns through high margins, high asset turnover or a balanced combination.
Capex creates earnings only after commissioning, utilisation and unit economics reach viable levels.
Management forecasts are useful only when definitions, assumptions and historical accuracy are transparent.
A capital allocation scorecard turns narrative claims into a repeatable review of where cash came from and where it went.
What indian investors are being paid for taking equity uncertainty.
How earnings yield and bond yield create a cross-asset valuation test.
Why a rising benchmark can hide weak market participation.
How foreign flows and domestic sips interact in price formation.
Why foreign investors experience a different return after currency movement and hedging.
When a small group of stocks dominates a benchmark.
When a high-quality business becomes a poor investment because of price.
Whether the small-cap liquidity premium is a reward or an exit illusion.
Whether high ipo issuance affects secondary-market returns.
How to distinguish liquidity, diversification and negative signalling in promoter selling.
What large negotiated trades reveal about liquidity and price discovery.
How index inclusion changes demand through passive flows.
When smart-beta factors become crowded.
Why market price movement can mislead investors about underlying business risk.
Why large drawdowns require disproportionately larger gains to recover.
When expensive markets stay expensive and why simple averages fail.
Why terminal value can dominate discounted cash-flow valuation.
How risk-free rate, beta and country premium shape cost of equity in india.
Whether diversification deserves a discount or provides resilience.