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Long Term & Short Term Investing Always Invest Minimum For 4.8 Year. You Can Get Better Then Mutual Fund Longterm Investing Minimum Time is 4.8 Year. For Longterm Investment I Prefer 1000-1500 CR Market Cap Company Below 3 Year I Invest in SME /MicroCap. Small Company High Risk So Can’t Assume 5-10 Year Plan. Disclaimer : This is NOT Investment Advice. This Post is Meant for Learning Purposes Only. Invest Your Capital at Your Own Risk. Happy Learning. Cheers!! Shyorawat Arun Singh ❤️ (@Shyorawat_ArunSingh) Founder : Shyorawat Capital

Conservative V/s Balanced Portfolio Hi mates, By this post i am trying to explain the what are the Conservative and Balanced portfolios what are the differences and how they work so let's start from the introduction i am sharing below. ⚡what is a conservative portfolio As such, a conservative investment portfolio will have a larger proportion of low-risk, fixed-income investments and a smaller smattering of high-quality stocks or funds. A conservative strategy necessitates investment in the safest short-term instruments, such as Treasury bills and certificates of deposit. usually A conservative portfolio targets an asset allocation of 70% in defensive assets, and 30% in growth assets: This portfolio is recommended for investors who are uncomfortable with investment risk, and/or require modest returns to meet their objectives. 💡how it works Conservative investing prioritizes preserving the purchasing power of one's capital with the least amount of risk. Conservative investment strategies will typically include a relatively high weighting to low-risk securities such as Treasuries and other high-quality bonds, money markets, and cash equivalents. One may adopt a conservative outlook in response to a shortening time horizon (including older age), the need for current income over growth, or a view that asset prices will decline. ⚡what is a balanced portfolio. A balanced portfolio is a crucial element for any investor looking to build a long-term investment strategy. In essence, it refers to a diversified portfolio that includes a mix of different asset classes, such as stocks, bonds, and cash, with the aim of reducing risk and maximizing returns. 💡how it works A balanced investment strategy is one that seeks a balance between capital preservation and growth. It is used by investors with moderate risk tolerance and generally consists of a fairly equal mixture of stocks and bonds. Balanced investment strategies sit at the middle of the risk-reward spectrum. ⚡difference The more conservative your investments, the steadier your returns will be, while a portfolio that's more aggressive is apt to experience more of a roller coaster effect, typified by higher highs, but potentially lower lows. ⚡Elements Typically the conservative portfolio contains defensive assets high in allocation (70-80%) like cash, bonds fixed interest and rest is in growth assets (infrastructure and listed real estate stocks) While a balanced portfolio includes different financial assets, such as stocks, bonds, mutual funds, real estate, bank fixed deposits, etc., that investors hold for a particular period. ⚡ Which one for whom Generally, more conservative investment options tend to work best for those who need shorter terms or need to reduce overall risk exposure. These include your emergency funds, savings for an upcoming vacation or other short-term While the Balanced portfolios are good for suitable for a medium-term horizon and are ideal for investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts this type of mutual fund invests into each asset class usually must remain within a set minimum and maximum. ⚡So the essence of this publication is that before making any kind of investment, you should identify your needs and ability to take risk so that you can enjoy the investment made by you and can consume it at the right time, Wishing you a happy investment journey. Best Regards- Amit

Unlocking Secrets of Booming Hotel Industry: Essential Research!Discovering the Potential of the Booming Hotel Industry: Vital Perspectives for Hotel Industry Research! Overview of the Tourism and Hotel Sector ~ Tourism has become very important in India. It brings in a lot of money from other countries and helps create jobs. The increase in tourists also means more business for hotels. ~ India is becoming a popular tourist destination and is ranked 6th in tourism and hospitality by the World Economic Forum. This is according to a report by the World Travel and Tourism Council (WTTC). ~ The tourism and hospitality industry in India is one of the top 10 industries that receives the most foreign investment. According to government data, the hotel and tourism sector received around $16.6 billion of foreign investment from April 2000 to September 2022. ~The Indian government is trying to make India a big tourism destination. They have a plan called " Project Mausam " to connect with other countries in the Indian Ocean and bring back old cultural and economic ties. Also, they have made it easier for tourists from 161 countries to visit India by offering electronic visas. ~A significant surge in India, thereby propelling the hospitality sector to thrive. This is primarily due to a marked increase in the volume of foreign and domestic travelers, leading to a corresponding increase in the demand for lodgings. Budget hotels have emerged as prevalent trend in India. Furthermore, international hotel companies have increasingly commenced considering the establishment of such hotels in India, given the latent source of growth that arises from the extant disparity between the burgeoning influx of tourists and the insufficient number of rooms to accommodate them. -=-=-=-= "Supply" ⁎ It has been predicted that the hospitality sector will be unable to keep pace with the sustained growth of the economy, projected to grow at an annual rate of 7%. In the coming five years, it is anticipated that around 40 multinational corporations within the hotel industry will establish a presence in India, yet the industry still remains unable to fulfill the long term demand. -=-=-=-= "Demand" ⁎ The burgeoning nature of tourism industry in India can be attributed to the burgeoning influx of both business and leisure travelers, along with the noticeable proliferation of medical tourism. During the apogee of the tourism season, from November to March, there is a discernible increase in demand. This can only be comprehended by those with an erudite background in the field. -=-=-=-= "Entrance Hindrances" ⁎ High Capital Intensity, Brand Recognition, Zoning and Regulatory Restrictions, Strong Competition, Economies of Scale, Customer Relationships -=-=-=-= "New cycle begun" ⁎ Travel within India is starting to recover and travel businesses have seen a big increase in earnings. Right now, the industry is almost back to its normal levels with occupancy at 63-65%. This new trend is just starting, India to host G20 Summit in Sept 2023, hold over 200 meetings. international travelers geopolitical events and global economy, which should support the hotel RevPAR growth. which will help hotels earn more money. -=-=-=-= ⁎ The IMF predicts that India's economy will grow rapidly in the next few years. They expect India to have the highest growth rate, with a projected 7.4% in FY22-23 and 6.1% in FY23-24. ⁎ After removal of international travel restrictions, domestic travel remains the preferred choice for Indian nationals. Travel is not limited to pilgrimages only anymore and to places of one’s relatives as travellers are now more inclined to visit leisure and holiday destinations. Corporate travel has taken a new leap in the country, factoring in the growing economic activities. In fact, the pandemic has evolved a new work cum travel option in the form of workations, staycations and bleisure travel, which has further aided the domestic travel and hotel industry. Young people are starting to save money for travel and taking their trips more seriously. ⁎ Social media is also making people more aware of new places to visit. India has many places that could become great tourist destinations if developed. The demand for hotel rooms in India has increased dramatically, going up from 25,000 rooms per day to 90,000 rooms per day. This suggests that more and more people are traveling and choosing to stay in hotels, which is a positive trend for the tourism industry in the country. -=-=-=-= We will learn how to differentiate between a fundamentally strong hotel from a weaker one. ⁎ Examination of the Comprehensive Structure of India's Hotel Industry at a Macro Level. The Indian hotel sector is characterized by a highly fragmented landscape, with each city accommodating a mixture of both domestic and international chains and a considerable number of unbranded, predominantly family run establishments. The Ministry of Tourism classifies these establishments via the allocation of stars, such as standard, star, and heritage. In the branded segment, while the majority of the supply was once concentrated in high end properties, the shift towards a greater number of domestic travelers over the last decade has resulted in the proliferation of mid range branded hotels, which has accordingly expanded the room supply. This increase in supply has been derived from the conversion of non branded establishments and new construction projects. the Indian hotel industry operates in a crowded environment. This further constrains the pricing power of the industry. ⁎ The demand for hotels changes depending on the economy and the time of year. When the economy is doing well, people have more money to spend on vacations or business trips, which means more business for hotels. But when the economy is not doing well, people spend less money on these services, which can make it difficult for hotel companies to make money. This can be a big risk for the hotel business. ⁎ In the hotel industry, the demand for rooms can vary greatly throughout the year. Despite this, expenses such as power, lighting, and salaries are constant and can make up to 70% of a hotel's costs. Investors should be aware of this volatility and the fact that a hotel's quarter on quarter performance may fluctuate. ⁎ Starting a hotel requires a substantial amount of capital, including the cost of acquiring land and constructing the building. The process also involves obtaining local government approvals, negotiating contracts, and can take anywhere from four to six years. The long gestation period and two to three years it takes for a hotel to reach optimal operations makes the industry challenging. ⁎ There are ways to reduce the capital requirements, such as through a management contract model where the management of the hotel is separated from its ownership. This allows for the risk of operating a hotel to be shared among different entities, though the macro business risks of competition, funding cycles, and seasonality still remain. Despite these challenges, the hotel industry remains attractive. -=-=-=-= Some point to help us understand the comparison between different hotel companies. First Revenue Per Available Room (RevPAR) . The Revenue Per Available Room (RevPAR) depicts the revenue generated from a single room, regardless of its occupancy status. It encompasses unsold or unoccupied rooms, thereby providing a precise representation. The four major hotel companies in the study, NSE:INDHOTEL , NSE:CHALET , NSE:EIHOTEL & NSE:LEMONTREE , All strive to maximize their RevPAR, as it reflects not only the pricing of the rooms but also their occupancy rate. The company Charlotte has already surpassed its pre-COVID-19 RevPAR levels. Let's look at example The average sales price is approx. Rs. 4600 and unit costs are Rs. 1800 per room while occupancy rate is 80%. We can calculate RevPAR as follows: 200*(RevPAR/Unit Costs)+(1800/Unit Costs) = 1000+3400=3472 -=-=-=-= Second the Occupancy Rate . The Occupancy Rate is the number of Occupied rooms divided by the number of available rooms. when the COVID-19 pandemic hit, the Occupancy Rate for both branded and unbranded hotels went way down in FY22. We will see some major hotel companies. NSE:INDHOTEL "IHCL" includes (Taj Hotels, Vivanta Hotels, Ginger Hotels & Seleqtions Hotels) NSE:EIHOTEL include (Oberoi Hotels, Trident Hotels & Maidens Hotels) NSE:CHALET include (The Westin, Novotel Hotel and Resort, Marriott Hotels & Four Points) Lemon Tree Hotels Include (Aurika Hotels, keys Select & Redfox) There has been a substantial improvement in occupancy rates, Some companies already. reached pre COVID-19 levels high. Let's look at example Hotel has total 100 rooms and the average room rate (ARR) is 2,500 INR per room. The hotel's total room revenue for a given day is 100 rooms * 2,500 INR = 2,50,000 INR. Hotel has an occupancy rate of 80%, this means that 80 rooms are occupied and the hotel earns 80 rooms * 2,500 INR = 2,00,000 INR in revenue from occupied rooms (Revenue from occupied rooms / Total room revenue) * 100 -=-=-=-= Third Average Room Rate (ARR). The ARR calculates the average rental revenue per occupied room dividing the total revenue by the number of rooms occupied. COVID-19 pandemic had an impact on the ARR. Indian Hotels falls under the luxury and upscale category, Lemon Tree is a mid scale or economic brand, And Oberoi, Trident Hotels, are undergoing a process of reestablishment, with Indian Hotels having already reached its desired state. Let's look at example The Average Room Rate (ARR) is the average rate of a hotel room per night. Calculated by dividing the total revenue generated from the sale of rooms by the number of rooms sold. If hotel generates revenue of ₹500,000 from the sale of 100 rooms in a month, the ARR would be ₹5,000 per room per night (500,000/100). -=-=-=-= Sector overview or Business overview The hotel industry experiences marked fluctuations in profitability margins due to its cyclical nature. As a quadrant business, the evaluation of performance should be based on two key metrics: EBITDA margin and Return on Capital Employed (ROCE). The EBITDA margin, which represents the proportion of profits within a company's sales, holds significant significance across various industries. The four major hotel chains, including Lemon Tree, have experienced an improvement in margins through cost reduction measures. The objective for these companies is to attain a 33% EBITDA margin by 2025. The efficiency with which hotels allocate capital is equally important, as demonstrated by the ROCE metric. With the recent normalization, increase in consumer demand, and heightened operating margins, it is anticipated that the ROCE will settle within a range of 12-15%, after considering debt reduction. We have leveraged expectations. This is an important aspect because hotels are capital intensive. A company's balance sheet determines the level of stress its cash flows can sustain, especially during downturns. High leverage reduces a hotel company's financial flexibility, which also dilutes its efforts to raise funds for future projects. -=-=-=-= Key Ratios Analysis 1. Leverage Ratios The Debt to Equity ratio is a financial metric that compares a company's total debt to its total equity. It is used to measure a company's financial leverage and its ability to pay off its debt obligations. ⁎ Debt/EBITDA ratio is a financial metric that measures a company's ability to pay off its debt obligations with its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio is used to evaluate the financial health of a company, particularly its debt burden and ability to service its debt obligations. 2. Liquidity Ratios The current ratio used to determine a company's ability to pay its short term obligations. It is calculated by dividing the company's current assets by its current liabilities ⁎ The Cash ratio is financial ratio that measures a company's ability to pay off its current liabilities using only its most liquid assets, such as cash and cash equivalents. This ratio provides an indication of a company's liquidity and short term financial health. When evaluating a hotel investment, it's important to consider whether there is a well-established and financially strong promoter group backing the company. promoter can help the hotel deal with difficulties in a more timely manner and even negotiate better rates from suppliers. This can be the difference between survival and bankruptcy, as we saw in the past when as many as 40% of hotels and restaurants in India shut down permanently. Indian Hotels Limited and Lemon Tree Hotels, among other prominent hospitality companies in India, enjoy the advantage of having formidable backing from influential promoters and substantial institutional support, respectively. As of December 2022, the percentage of promoter stake in Lemon Tree Hotels that was pledged had declined from 29.39% (December 2021) to a current value of 11.9%. Thank you for reading my analysis of the hotel industry. I hope it provided valuable insights into the performance and trends of the sector. If you have any questions or comments, feel free to leave them below. Jai hind 🇮🇳

What are ratios to analyse any banking stocks HAPPY REPUBLIC DAY 🇮🇳 Today we will study ratios for analysing any banking/ non- banking stock. Key Ratios are - 1. Net Interest Margin (NIM) 2. Provision Non Performing Assets (PNPA) 3. Loan to Assets Ratio 4. Return on Assets Ratio (ROA) 5. Capital Adequacy Ratio 6. Gross NPA 7. Net NPA 8. CASA Ratio 9. Cost to Income ratio --------------------------------------------------------------------- 1. Net Interest Margin (NIM) 1. Net Interest Margin = ( Investment Income – Interest Expenses ) / Average Earning Assets. 2. Positive Net Interest Margin shows that bank is earning more money in the form of interest than its cost of funding investments. 3. There are several factors that affect bank NIM. One of the most significant is interest rates. When interest rates are high, banks are able to earn more from loans and investments, which increases their NIM. When interest rates low, banks earning will loans and investments decrease, which lead lower NIM. 4. In summary, Net Interest Margin is important measure of bank's profitability and its ability to generate income from its existing assets. NIM is affected by interest rates and competition. Banks with a high NIM are generally considered strong financial position and better to grow and invest in new opportunities. Let's look at example Bank in India has total assets of ₹1,00,000 crore consist of loans and investments. The bank has total deposits of ₹80,000 crore and it pays interest rate of 4% on savings accounts and 6% on Fix Deposit The bank total interest income for the period is ₹2,400 crore which is earned by loans and investments. The bank total interest expense for period is ₹1,600 crore, which is paid to depositors. To check the NIM we take the bank net interest income (NII) of ₹800 crore (₹2,400 crore in interest income - ₹1,600 crore interest expense) and divide by the bank average earning assets of ₹90,000 crore (average of total assets and total deposits). NIM = NII / Average Earning Assets NIM = ₹800 crore / ₹90,000 crore NIM = 0.89% Bank NIM is 0.89% every ₹100 of assets the bank is earning ₹0.89 of net interest income. This NIM is a measure of the bank efficiency in generating income from assets and can be used to compare it with other banks and over time. NIM in India will be lower than developed countries due to lower lending rates and high competition among bank. -=-=-=-= 2. Provision Non Performing Assets (PNPA) 1. An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank. 2. Provision for Non Performing Assets (NPA). The amount keep aside by bank, to cover it's potential losses from loans and other credit related assets that have been non performing.These provisions are made when a bank expects that some of its borrowers will default on their loans, and the bank needs to set aside funds to cover the potential loss. 3. In summary, Provision for Non Performing Assets (NPA) Banks are required to make provisions for NPA on a regular basis, quarterly basis, amount of provisions is disclosed in the financial statements. Provision for NPA is an important measure of a bank's financial health, Help bank to absorb the impact of loan defaults and manage credit risk. Provisions for NPA is closely watched by investors, analysts, and regulators, it helps them to assess the bank's credit risk. Let's look at example Bank total loans of ₹50,000 crore. ₹2,000 crore classified Non performing Assets (NPA) borrowers defaulted their payments more than 90 days. Bank required to set aside certain percentage of the NPA loans as PNPA as per the Reserve Bank of India's guidelines. The current PNPA provisioning ratio is 15%. To get PNPA we multiply the NPA loans of ₹2,000 crore with the PNPA provisioning ratio of 15%. PNPA = NPA loans x PNPA provisioning ratio PNPA = INR 2,000 crore x 15% PNPA = INR 300 crore -=-=-=-= 3. Loan to Assets Ratio 1. Loan to Assets ratio can help investors obtain complete analysis of bank's operations. Banks that have relatively higher Loan to Assets ratio banks with lower levels of Loan to Assets ratios derive a relatively larger portion of their total incomes from more diversified, noninterest earning sources, such as asset management or trading. Banks with lower Loan to Assets ratios may fare better when interest rates are low or credit is tight. 2. In summary, Loan to Asset ratio is financial metric compares bank total loans to total assets. It's used to measure bank leverage assess the level of risk associated with lending activities. Higher Loan to Assets ratio indicates that a bank is more heavily reliant on lending and is more leveraged and risky, while a lower ratio indicates that the bank is less risky. Let's look at example Bank has total assets ₹1,00,000 crore, total loans ₹70,000 crore. to get Loan to Assets Ratio we divide the total loans by the total assets. Loan to Asset Ratio = Total Loans / Total Assets Loan to Asset Ratio = ₹70,000 crore / ₹1,00,000 crore. Loan to Asset Ratio = 0.7. Bank's Loan to Assets Ratio is 0.7 / 70% (0.7*100) bank assets in form of loans. A higher Ratio indicates that bank is heavily invested in lending activities, which can be sign of more aggressive lending strategy. it's also increases the risk of default. Than higher risk of NPA. Banks required to maintain minimum level of Capital Adequacy Ratio as per the Reserve Bank of India's (RBI) guidelines. -=-=-=-= 4. Return on Assets Ratio (ROA) 1. Return on Assets = Net Income / Total Assets 2. The higher ratio means assets are well managed and low ratio means resources didn't used effectively compared to the industry and competitors. 3. In summary, ROA is financial ratio measures profitability of company in relation to total assets. It is calculated by dividing the company's net income by its total assets. This ratio is useful to compare the performance of company with its peers in the same industry. It is an important metric used to evaluate a company's overall efficiency and performance but it's important to keep in mind that high ROA not necessarily mean that company have strong financial position. Let's look at example Bank has total assets of ₹100 billion and net income of ₹5 billion. To get ROA we divide the net income by total assets. ROA = Net Income / Total Assets ROA = ₹5 billion / ₹100 billion ROA = 0.05 or 5%. Bank ROA is 5% For every ₹100 billion of assets, the bank generates ₹5 billion of net income. Higher ROA show that bank is profitable and efficient in utilizing assets. It's important to note this ratio is sensitive to the size of the bank It's better to compare the ROA of a bank with other banks of similar size. -=-=-=-= 5. Capital Adequacy Ratio 1. The Capital Adequacy Ratio helps make sure banks have enough capital to protect depositors money. 2. Banks are required to maintain a certain level of Capital Adequacy Ratio as per the regulations set by central bank to ensure that they have sufficient capital to meet the potential losses and continue their operations even in adverse situations. 3. It helps maintain the stability of the financial system by ensuring that banks can withstand in unexpected situation. Let's look at example In India, the Reserve Bank of India (RBI) sets the minimum Capital Adequacy Ratio for banks at 9%. which means that they must hold capital worth at least 9% of their total risk-weighted assets. Bank in India with total assets of ₹‎100 billion and risk-weighted assets of ₹‎80 billion must maintain minimum capital of ₹‎7.2 billion (9% of ₹‎80 billion) to meet the Capital Adequacy Ratio requirement set by the RBI. It's important to note that, the Banks with a higher Capital Adequacy Ratio are considered to have a better ability to absorb unexpected losses. -=-=-=-= 6. Gross NPA 1. Gross Non Performing Assets (GNPA) is refer to the total value of loans or advances that have been classified as Non Performing Assets. These are loans or advances the borrower has defaulted on repayment or interest for certain time. loan is classified as an NPA if the borrower has not made any payment for period of 90 days or more. 2. A high ratio of GNPA to total loans indicates a higher level of credit risk and potentially weaker financial condition for the bank. Let's look at example Bank has total loans of ₹‎100 billion and ₹‎20 billion are classified Non Performing Assets (NPA). The bank Gross Non Performing Assets (GNPA) would be INR 20 billion. we see the ratio of GNPA to total loans we get 0.2 (₹‎20 billion / ₹‎100 billion). This ratio of 20% indicates that 20% of the bank loans are classified as NPA. This high ratio may indicate the bank is facing high level of credit risk it could be cause for concern. It's important to note that Gross NPA ratio is used in conjunction with other financial indicators to understand overall financial health of bank and single indicator may not enough to make a conclusion. -=-=-=-= 7. Net NPA 1. Any financial security owned by a bank is considered an asset. The interest we pay on loans is the primary source of income for banks these loans are classified as assets for bank's. when borrowers can't repay the amount these assets are classified as Non Performing Assets (NPA) because they are not generating any income for the bank's. 2.If loan provided by bank is overdue more than 90 days from the borrower end comes under NPA. If loan amount is unpaid more than 1 year from due date then it's a doubtful debt and if it’s unpaid more than 3 years then loss of an asset or default account. Net Non-Performing Asset = Gross NPA – Provisions. Gross NPA = Total Gross NPA/Total Loans given. Impact of NPA Due to higher NPA rates, banks will suffer significant revenue losses that will potentially affect their brand image. insufficient funds, banks will have to increase the interest rates on loans to maintain their profit margin. Let's look at example Bank has total loans of ₹100 billion and ₹20 billion are classified as Non Performing Assets (NPA). The bank is required to make provisions for ₹10 billion against these NPA. The bank Gross Non-Performing Assets (GNPA) would be ₹20 billion and Net Non Performing Assets (Net NPA) would be ₹10 billion (₹20 billion - ₹10 billion). If we see the ratio of Net NPA to total loans we get 0.1 (INR 10 billion / INR 100 billion). This ratio of 10% indicates that 10% of the bank's loans classified as NPA after making necessary provisioning. This ratio gives a clearer picture of bank's financial health than just Gross NPA ratio as it takes into account the provisions made against NPA. -=-=-=-= 8. CASA Ratio 1. CASA (Current Account and Saving Account) it is measure the proportion of bank deposits that are in the form of current and savings accounts. 2. The ratio is calculated by dividing the total value of current and savings account deposits by the total deposits. It is typically expressed as percentage. Higher CASA ratio indicates that bank have larger proportion of stable deposits. This is because banks can use these deposits to fund their lending activities at a lower cost which improves bank's net interest margin. Let's look at example Bank has total deposits of ₹200 billion and ₹150 billion in form of current and savings accounts. The bank CASA ratio would be 75%. This ratio indicates that three fourth of the bank deposits are in the form of current and savings accounts which are considered the stable form of deposits. This high ratio is considered positive sign. Stable deposits can used to fund lending activities lower cost. High CASA ratio the bank will have access to cheaper funding which will improve it's net interest margin. This means that the bank will be able to offer loans at a lower rate of interest. which will make it more competitive in the market and attract more customers. And bank will also have more stable funding which will make it less vulnerable to market fluctuations and interest rate changes. Asset quality, capital adequacy play important roles in assessing a bank's overall financial condition. -=-=-=-= 9. Cost to Income ratio 1. Cost to Income Ratio (CIR) measure company efficiency by comparing it's operating expenses to it's revenue. calculated by dividing the total operating expenses by the total revenue and expressed in percentage. 2. Lower (CIR) indicates that company more efficient in managing expenses and able to generate more income for every unit of expenses. while higher (CIR) indicates that company less efficient in managing it's expenses and is generating less income for every unit of expenses. Let's look at example Bank A with a high CIR. Bank has total operating expenses of ₹10 billion and total revenue of ₹15 billion. The bank's CIR is 67% (₹10 billion / ₹15 billion). High CIR indicates that the bank is not very efficient in managing its expenses and is generating less income for every unit of expenses. The bank may need to review its cost structure and implement measures to reduce expenses in order to increase its efficiency and profitability. Bank B with a low CIR: A bank has total operating expenses of ₹5 billion and total revenue of ₹15 billion. The bank CIR is 33% (₹5 billion / ₹15 billion). This low CIR indicates that the bank is efficient in managing its expenses and is able to generate more income for every unit of expenses. The bank able to invest in growth opportunities and increase profitability. I hope you found this helpful. Please like and comment. Keep Learning, Thank you for reading!

E-Commerce Aggregators Index There was humongous craze of some of the IPOs which came last year like Paytm, Zomato,Policybazar etc. But the primary concern was always high valuations of these loss making startups. In the meantime from November 2021 these companies have eroded great wealth of their investors. I made an index to track performance of so called web or app based aggregators. Say we are in year 2035 and some of these companies are producing huge profits and have become giant entities. This index will track the stock performances of these companies. I have kept the base price of Index at ₹1500 and base date as 6 May 2022. As it is clear from the chart they have underformed nifty by almost 40%. But that is in past and let us see how they perform in future. Company name its weightage in index and buying price is shown below. E.g. Nykaa have been allocated ₹300 out of ₹1500 and matrimony.com have been allocated ₹30 in the index. Nykaa 20% @₹1539 Naukri 20% @₹3898.05 Zomato 15% @₹60.50 Paytm 15% @₹568 Policybzr 10% @₹617 Indiamart 7% @₹4418.7 Easy trip 7% @₹385 Justdial 4% @₹751.45 Matrimony 2% @₹737

Little Champs Index The following index is made from small cap stocks from the Marcellus Little Champs portfolio. The base price is kept at 10000 and the base date is kept as 8th December 2021. There are 10 stocks each having 10% weightage. Stocks are 1.Garware Technical Fibres 2.GMM Pfaudler 3.Galaxy Surfactants 4.Mas Financial 5.Amrutanjan Health 6.Mold Tek packaging 7.Suprajit Engg 8.Vmart 9.LaOpala 10.Lumax Industries. There are some more stocks such as Ultramarine, DCB Bank etc. This index has performed in line with the BSE Smallcap index in last 2 years. It will be interesting to see how things go from here after a great rally in Smallcap universe.