Weekly Fin-Fun Newsletter #121

Stock & CE, Movie of the Week, Starts guide to Mumbai, Momentum Investing and more..

When you can accept the uncomfortable thoughts, emotions and the outcomes that come with trading and choose not to engage or fight it. That is when you will succeed! - Alan Edward

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• Markets

Nifty and Gold still above averages..

Nifty longs above 22630 levels.

Inclusions and exclusions in #Nifty over FY18-FY24

• Stock of the Week

Welspun Enterprises - CMP 372

Welspun Enterprises Limited (WEL) , formerly known as Welspun Projects Ltd., is a part of the USD 2.7 billion Welspun Group. The Company operates in the infrastructure space with investments in oil & gas.

In the infrastructure space, WEL is focused on the road and water sectors. While the Company’s main focus is on Hybrid Annuity Model (HAM) projects as a developer, it also takes up value accretive projects in the BOT-Toll and EPC space. ^[1]

Perks

1. P/E ratio is 13.0

2. D/E is 0.32

3. P/E ratio is 13.0003 which is lower than it's Industry P/E 31.55

4. Interest Coverage ratio 7.24 is higher than last year's Interest Coverage Ratio 2.27

5. D/E 0.32 has reduced as compared to last year's D/E 1.41

6. Stock has given a return of 141.84% in last 52 Weeks

7. ROCE is 23.2%

8. ROCE 23.2% has increased as compared to last year's ROCE 4.58%

9. ROE is 33.11%

10. ROE 23.2% has increased as compared to last year's ROE 4.58%

11. ROCE 23.2% is higher than 5 years ROCE average 13.0%

12. ROE 33.11% is higher than 5 years ROE average 13.56%

13. PEG ratio is 0.83

14. NPM is 26.21%

15. Net Profit Margin (PAT Margin) 26.21% has improved as compared to last year's NPM 9.31%

16. Dividend Yield is 2.47%

17. Free Cash Flow yield is 34.51%

18. Company has a negative Cash Conversion Days of -353.42

19. Annual Sales has grown by 105.48%

20. Annual Profit has grown over by 478.4%

21. 3 Years Sales CAGR is 15.58%

22. 3 Years Profit CAGR is 79.03%

23. Quarterly Profit has grown over by 36.35% QoQ

24. FII have increased their stakes by 0.1% in the latest quarter (4.47% to 4.57%)

25. Retail/Public have reduced their stakes by 0.25% in the latest quarter (2.25% to 2.0%)

• CE of the Week

PEL 940 CE CMP 52, stops 40 levels

• Interesting Reads and Tweets

Amazing starter guide to Mumbai/Bombay by Plum

Investing Mastery Through Deliberate Practice

Even the World’s Most-Envied Retirement Plan Is Falling Short

You can download the scanner after signup here

• Movie of the Week

Laapataa Ladies on Netflix