Prompt Corrective Action (PCA) framework is a tool by the Reserve Bank of India to for taking direct action on weak and troubled banks, so as to avoid banking failures which is negative for the health of the economy.

RBI brings banks under the PCA framework whenever they breaches the stipulated risk thresholds in the identified areas of monitoring, which includes capital, asset quality (net Non-Performing Assets ratio) and profitability, to ensure that corrective measures are taken in proper time and the banks are saved from going bust.

The main aim of the framework is to strengthen the financial health of the banking system by encouraging banks to abstain from riskier activities, improve operational efficiency and to focus on conserving capital. It gives RBI an opportunity to engage closely with the banks’ management to secure their financial health.

The Consumer Durable industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines as well as kitchen appliances.

It includes all those goods which are durable i.e. products whose life expectancy is at least 3 years and cannot be used up at once.

Power is one of the most crucial components for the economic growth of the country. India’s power sector is one of the most diversified power sectors in the world.

The source of power generation in our country are mainly through conventional sources such as coal, lignite, natural gas, hydro and nuclear power and non conventional sources such as wind, solar, agricultural and domestic wastes.

The significant increase in the consumption of power will drive the growth of the power sector.

The sustained economic growth in the country is driving the electricity demand.

Also the competitive intensity is increasing at both the market and supply side.

Understanding the fundamentals of the company from the financial statements and the reports published  is always a challenge for investors.  There are plethora of things related to the figure in financial statements.

And, it is always difficult to choose as to what to analyse from them.

In this podcast, we will understand as to what does the financial statement comprise of and what should an investor choose for his analysis.

You might find that while doing analysis before investing into any company investor’s use Operating Profit and Earnings before Interest & Tax (EBIT) interchangeably. It is necessary to understand the concept of Operating Profit vs EBIT.

Is this correct? Ask yourself.

Many times Operating Profit is confused with EBIT.

Between the two, helps you in understanding as to which is a better and reliable metric for the valuation of a company.

So let us understand the two.

The Indian real estate sector went through a roller coaster ride and was struggling with unsold inventory, low buyers’ confidence, delays in projects, and negative cash flows.

However, a number of growth-promoting regulatory developments and initiatives announced over the last two years, are helping to revive the sector and are expected to pave the way for strong sector growth in the future.  

Stock picking which meant taking a particular stock, and then blindly following the herd, sometimes luck shines, and at times I ended up exiting after making losses. 

Now the truth was, I was missing something more than important in my investments. It was the method of discipline and knowledge and doing stock selection very carefully. I learned that there are various ways to analyse investment decisions, fundamental analysis is one of the best methods to do so. 

As a matter of time, I learned how rewarding are long-term investments for wealth creation and short-term investments for meeting short-term goals.

To read, go to link : https://www.elearnmarkets.com/blog/right-method-of-stock-selection/

India is the largest consumer and the second largest producer of sugar, topped by Brazil. It is the second largest agro-based processing industry of the country, topped by cotton textile industry.

The Indian sugar industry is facing excess supply which has resulted in sugar price to go below the cost of production. The industry is worth more than Rs 80,000 crore with a total acreage of 50 lakh hectare of land under cultivation which is about 8% higher than 2017-18 sugar season’s.

Have you ever chosen your investment grade stocks just emphasizing more fundamental aspects of a company?

If yes, then you are not the only one. Many investors forget that the qualitative aspects, as discussed later in the article, as well hold an important role in valuing the company. Hence, ignoring qualitative aspects of a company can cost the investors profoundly. So through this blog, we will prevent you from ignoring any qualitative factor, by listing them below and emphasizing their impact on the present and future values of a company.

In 2016, the Centre had announced that the country would be adopting to be BS-VI norms in 2020 instead of BS-V altogether as it felt that there is an urgent need to shift to cleaner fuels in India in order to cut down pollution after CHINA’s instance.