Side Notes by Zerodha Varsity

Apple, TSMC, and Nvidia have much higher PE ratios than Samsung despite Samsung competing directly with these players in the global markets. Samsung's revenues and operations are at comparable levels with the others. So, what is holding its PE Ratio back? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtu...

In 2024, people in Argentina carried bags or even suitcases filled with money for simple transactions. Inflation was as high as 287%. What structural issues pushed Argentina into a spiral of hyperinflation? What is the country doing now to correct its course? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.y...

Risk attracts a premium. A higher price is quoted if there is doubt about a customer's ability to pay up in time. The higher price is because the business wants a premium for assuming the risk. What if there is doubt about a country's ability to pay up? Perhaps that is what Adani Power was concerned about in its power supply deal with Bangladesh. Zerodha Varsity on Social Media: Instagram: https:/...

Cuba is called the sugar bowl of the world, but Brazil and India have overtaken it as the largest sugar producers. Why did Cuba fall back? It seems the Middle East might be taking lessons from such mistakes that Cuba and many other countries have made. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube....

When Bangladesh struggled to pay power bills, Adani Power cut power power supply to the country by half. Adani could do this because its power generation was being done in India. What would the Bangladesh government have done if Adani Power had a power generation unit in Bangladesh? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsit...

Palantir makes about 55% of its revenues from government contracts. That seems to be a lot of dependency on just one customer. Apple also apparently depends heavily on TSMC for semiconductor chips. That seems to be a lot of dependency on just one vendor. Is that a risk? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: ht...

Torrent Pharma's Q2FY25 revenues from Brazil were up 4%, but in constant currency terms, the same revenues were up 17%. The concept of constant currency comes up only when the business has operations in multiple countries. But what is the concept of constant currency? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: http...

Bad quality of earnings or reporting may not be unlawful, but is that enough? Why is it important to have good-quality earnings? As an investor, why is transparency in reporting important? And why does it make business sense to have the best quality of earnings? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://ww...

Dmart's trade receivables are small, but those of L&T are huge. Is it because of the difference in the nature of their business or the difference in their management? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube.com/@varsitybyzerodha Disclaimer: The stocks or financial instruments discussed in thi...

According to Warren Buffett, Coca-Cola and Apple enjoy economic moats. Coca-Cola’s brand identity is a moat, and Apple’s brand and product design are both moats. Any feature that makes it difficult for the competition to break into an existing business’s market share is called a moat. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVars...

Cybersecurity is mission-critical for TCS and Infosys, tech infrastructure and delivery agents are mission-critical for Zomato and Swiggy, and coal mining is mission-critical for Coal India. Any impact on the mission-critical factors can seriously hamper or even suspend the business. What are the mission-critical elements for TSMC? Zerodha Varsity on Social Media: Instagram: https://www.instagram....

Retailers, both online and offline, sell many products at a loss. Have you ever come across potatoes or sugar being sold for just 1 rupee per kilo? How do retailers make money if they offer such steep discounts? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube.com/@varsitybyzerodha Disclaimer: The sto...

The gross margins of tech companies are inherently different from those of most manufacturing companies. It is their different nature of business. But come to think of it, what really are the input costs for a technology company? Rules of thumb are good, but there always are "Side Notes." Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/Zerodha...

Yes Bank's investors have lost a little over 70% since a little before the Covid pandemic began. However, its market capitalization has been up 300% since then. Tune in to check out how stock price and the number of outstanding shares influence a stock's market cap. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https:...

Several listed companies do not have promoters. How do they work?  Is there an advantage to being family-run or professionally run? Isn't it difficult to imagine Reliance Industries without the Ambani family or the Adani group without the Adani family? Is there an investment case here? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVar...

Infosys’s market capitalization is about half of TCS’s. However, it has a larger weightage than TCS in the Nifty 50 index. The answer is in the free-float market capitalization of the two IT giants. But what makes their free-float market cap different? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube....

Vodafone Idea paid some dues for spectrum charges to the government in equity. In its early days, Facebook paid an artist to decorate its headquarters in equity. Why do companies pay in equity? And what sets the respective equity payments of Vodafone and Facebook apart? Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: ht...

Tata Steel's coal mines are captive, but Coal India's are not. What is the difference? Backward integration is suitable for Tata Steel but not for Tata Motors. What is the difference? This episode discusses how strategies must be tailored to industries. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube...

Toyota is credited with popularizing the just-in-time inventory management system, which helps save costs and improve efficiencies. However, the semiconductor shortage during the COVID-19 pandemic threw open some cracks in this approach. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube.com/@varsitybyz...

Colgate, Maggi, and Cadbury have become eponym brands or category-definers. Almost everyone knows these brands, but they still continue to spend heavily on advertisements. In fact, marketing is one of the biggest expenditures for consumer companies. This episode details the business case behind it. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.c...

With defense stocks all the rage this year, we came across Hindustan Aeronautics. It has a high leverage, but no debt. Tune in to explore how that is possible. Zerodha Varsity on Social Media: Instagram: https://www.instagram.com/zerodhavarsity/ X: https://x.com/ZerodhaVarsity YouTube: https://www.youtube.com/@varsitybyzerodha Disclaimer: The stocks or financial instruments discussed in this podca...