Numbers if don’t match there is a story to be uncovered. Other key number to look at other than financials is the regular MIS in form of stock, book debt statement and creditors statement. Listing some common practises which helped understand the business better and identify signs which helped decision- Compare the difference between the… Continue reading CREDIT SERIES-6- MIS-match in numbers
Take a look at the below numbers. Good, Bad or ugly seeing years 1-3 ? On face of it, will fall in last two categories on first glance. There were lot of factors playing at same time in it- Extraordinary income and expenses. Fluctuating sales. High borrowing vs sales. But also what this company continued… Continue reading Credit Series-5- Everything looking bad is not always bad.
Case –II – Stock Market Data Market movement of share prices and market cap is one of the most intelligent indexes especially if it’s a homogenous business and there is adequate free float. So there was this company which was into lending for a certain asset class. Key performance indicators of the lending business –… Continue reading CREDIT SERIES-4- MARKET INTELLIGENCE
If market intelligence points to something, explore that further We have all been caught with surprise on a number of occasions when an account always repaying on time suddenly starts delaying. So my experience is that it is something which starts showing signs in other areas as well before it starts in the delay mode.… Continue reading CREDIT SERIES-3- MARKET INTELLIGENCE
Case II – Related party numbers and merger/de merger stories This company is into supplying capital goods to various industries. Their factory, biggest in Asia on some parameters and being covered by a prominent international news channel on their documentary. This business had two parts – one pure material supply and another material supply+installation+other services.… Continue reading CREDIT SERIES-2- Numbers are numbers
Case I- Compare peer profitability and understand leverage This was one of the key auto ancillary player. Fantastic profitability and excellent rating. I was doing a research on the margins across the value chain in this industry few years back. Even the most niche and sophisticated product in auto ancillary chain was not making the… Continue reading CREDIT SERIES-1- Numbers are numbers
Spending 13 years in similar domain can be boring or can be interesting. So here I will be sharing some interesting observations I came across in this period. To start with these are the points I came across while doing credit/ risk assessment over this period. For those not part of BFSI, these are the… Continue reading Credit Series- Introduction