Are Profit Making Companies Really Better Than The Loss Making Ones?

Are Profit Making Companies Really Better Than The Loss Making Ones?

31 comments: Aprilkets In April 2017 : Movers & Shakers Of The Month

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  • ahmad        
    B.subba reddy
    oct 29,2017 at 09:56 - Reply

    Very useful analysis

  • ahmad        
    R.B.Dawre
    oct 04,2017 at 04:01 - Reply

    Sir, Would you publishing an article " Shilpi Cable"?

    • ahmad        
      Team StockAxis
      oct 05,2017 at 11:30

      Hello Mr. Dawre,

      Greetings!

      Thank you for your comment. Our Advisor will contact you shortly.

      Happy Investing!

  • ahmad        
    anil goel
    aug 27,2017 at 12:25 - Reply

    you have published very informative areticle

    • ahmad        
      Team StockAxis
      aug 29,2017 at 03:01

      Hello Mr. Anil,

      Thank you so much for recognition. We really appreciate your encouragement and kind words and happy to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    anil goel
    aug 27,2017 at 12:23 - Reply

    IN MY EXPERIENCE as investor for years i have seen when company turnaround from loss to profit and pick it up for unbelievable return.sometimes investor pick and many times miss.its o.k

  • ahmad        
    Channdra shekhar Singh
    aug 19,2017 at 06:23 - Reply

    The case of Chennai petroleum was different. So one should be very careful while buying a share in storm and sudden surged profits shown and reports were easily accessible t anyone.

  • ahmad        
    Mr. Maxim Mascarenhas
    aug 17,2017 at 09:44 - Reply

    Superlative analysis. It makes great sense to read the comparison. I highly appreciate the efforts put by your team. If your team can analyse NBCC stock for me especially what is its future say 5 years from now.

    • ahmad        
      Team StockAxis
      aug 18,2017 at 01:21

      Hello Mr. Maxim Mascarenhas,

      Greetings!

      Thank you so much for appreciating our article and happy to see that you found our blog useful. Our Advisor will be in touch with you.

      Happy Investing!

  • ahmad        
    HARISH SHAH
    aug 17,2017 at 08:12 - Reply

    Hi , STOCK AXIS RESEARCH TEAM , Dear members, Once again EXCELLENT work done. Congratulations. Now GANPATI FESTIVALis coming. Every one attention goes to LALBAG CHA RAJA. there so many Rajas in and around Mumbai. Reason is Brand name created. Consider the person who is making LALBAG CHA RAJA,will be higly satisfied and self motivated. Team stock - Axis have done the similar work. Now coming back to Eicher Motors Ltd ,a company generating greater cash flow than profits over the years indicates its ability to deploy its cash to better use., My comment : Eicher Motors Ltd CMP IS RS.30847.65 TGT PRICE RS Edelweiss recommended buy rating on Eicher Motors with a target price of Rs 34,891 in its research report dated August 09, 2017. Forget Ricoh Group. look at Sunpharma, one should forget time being..... Harsh shah .

    • ahmad        
      Team StockAxis
      aug 18,2017 at 01:31

      Hello Mr. Harish,

      Greetings!

      It is pleasing to see that your kind, wonderful and encouraging remarks. Thank you so much. We feel luck, to got an opportunity to serve you.

      Happy Investing!

  • ahmad        
    Ramakant Tiwari
    aug 17,2017 at 11:48 - Reply

    I would like to have the similar article to read the banks and NBFC Balance Sheets.

    • ahmad        
      Team StockAxis
      aug 17,2017 at 01:33

      Hello Mr. Tiwari,

      We will surely try to do that. As a subscribed member, we offer you the privilege to directly connect to the Research Analysts and understand the same.

      Happy Investing!

  • ahmad        
    Ramakant Tiwari
    aug 17,2017 at 11:33 - Reply

    Articles like this are really good and informative. And gives an idea of how brilliantly the STOCK-AXIS team is working and reflects the in-depth knowledge of the team about the stock market analysis. This also gives an investor to understand the data which the STOCK-AXIS team provides time to time to members about the company. Thumbs to the team and I can rest assure now that my money will grow multiple under your directions. I will appreciate more such articles from you.

    • ahmad        
      Team StockAxis
      aug 17,2017 at 01:08

      Hello Mr. Tiwari,

      Greetings!

      Thank you so much for recognition. We really appreciate your encouragement and kind words and happy to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Dinesh kotecha
    aug 17,2017 at 01:01 - Reply

    insightful and highly analytical, educative article, when companies make losses and then with grit and determination go on reducing the losses and eventually turn it around into profits - operationally of course, that first sign of reducing losses and then turning around are times which are entry level points to give multiple returns over the same period which it has taken to stop incremental losses and then turning around by wiping all the losses. eg. if the company has taken 3 years to stop increasing losses and then another 4 years to turnaround then give it minimum 7 years after turnaround year, then see how you investment multiplies by minimum 7 times if not more. give a thought.....All the best..

    • ahmad        
      Team StockAxis
      aug 17,2017 at 01:10

      Hello Mr. Dinesh,

      Greetings!

      Thank you so much for recognition. We really appreciate your encouragement and kind words and happy to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Priyanka Passi
    aug 16,2017 at 11:48 - Reply

    I really appreciate your research insight. Please give me one multibagger story and I shall be yours for lifetime membership.

    • ahmad        
      Team StockAxis
      aug 17,2017 at 01:13

      Hello Ms. Priyanka,

      Greetings!

      Thank you so much for appreciating our article and happy to see that you found our blog useful. Our Advisor will be in touch with you.

      Happy Investing!

  • ahmad        
    Harish chander Bhatia
    aug 16,2017 at 11:23 - Reply

    What an analysis! Indeed it is prepared with the core of heart and a true excellence of author's brain, many congratulations for open-heart fiscal surgery of the company. A truly dedicated work

    • ahmad        
      Team StockAxis
      aug 17,2017 at 01:16

      Hello Mr. Harish,

      Greetings!

      Thank you so much for all the encouraging words. We are happy to see that you found our article useful.

      Happy Investing!

  • ahmad        
    Raj u K T S
    aug 16,2017 at 09:37 - Reply

    Excellent article for present market situations.Anything can be happens at any times in the market.

    • ahmad        
      Team StockAxis
      aug 17,2017 at 02:46

      Hello Mr. Raj,

      Greetings!

      Thank you for the appreciation.

      Happy Investing!

  • ahmad        
    abdul nazeer
    aug 16,2017 at 09:06 - Reply

    Excellent... helps to deep understanding of market

  • ahmad        
    Sana kishore dutt
    aug 16,2017 at 06:20 - Reply

    Danny good article What a powerful narrative witha point to drive home. Thanks a lot for letting us know the importance of cah healthy flows Looking forward to your next article.

    • ahmad        
      Team StockAxis
      aug 17,2017 at 02:51

      Hello Sana,

      Greetings!

      Thank you for the appreciation.

      Happy Investing!

  • ahmad        
    Hemant
    aug 16,2017 at 05:13 - Reply

    Very good article.

  • ahmad        
    Dharmesh Pandya
    aug 16,2017 at 04:46 - Reply

    Very good article.. Very much useful..

    • ahmad        
      Team StockAxis
      aug 17,2017 at 02:47

      Hello Mr. Dharmesh,

      Greetings!

      Happy to know that you found our article useful.

      Happy Investing!

  • ahmad        
    Dr. R. C. Goyal
    aug 16,2017 at 04:34 - Reply

    Very informative article shows depth of research work done.Please continue the good work being done. looking more such eye opening informations. Thanks again DR. R. C .Goyal

    • ahmad        
      Team StockAxis
      aug 17,2017 at 02:50

      Hello Dr. Goyal,

      Greetings!

      Thank you so much for all your encouraging words.

      Happy Investing!

  • ahmad        
    mohan mallissery
    aug 15,2017 at 10:06 - Reply

    Very informative Artie by a brilliant and hardworking research team. Must read article for beginners like me . Mohanan. Mallissery Kerala .(a new member)

    • ahmad        
      Team StockAxis
      aug 16,2017 at 12:48

      Dear Mr. Mohan,

      Thank you so much for appreciating the blog. We are happy to see that you found our article useful.

      Happy Investing!

  • ahmad        
    Bhavesh
    aug 10,2017 at 03:01 - Reply

    Excellent... Explanation of Business Fundamentals....

    • ahmad        
      Team StockAxis
      aug 16,2017 at 12:48

      Dear Mr. Bhavesh,

      Thank you so much for your appreciating remarks. We are happy to see that you found our article useful.

      Happy Investing!

  • ahmad        
    Ramnath Mandal
    aug 09,2017 at 09:45 - Reply

    Very nice and useful article. Well done.

    • ahmad        
      Team StockAxis
      aug 10,2017 at 11:12

      Hello Mr. Ramnath,

      We are very pleased to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    tukaram mejari
    aug 08,2017 at 11:22 - Reply

    Excellent article and helpful to investors

    • ahmad        
      Team StockAxis
      aug 09,2017 at 10:41

      Hello Mr. Tukaram,

      We are very pleased to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Ravi Nair
    aug 07,2017 at 11:15 - Reply

    Very informative & eye opening analysis.

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:19

      Hello Mr. Ravi,

      We are very pleased to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Moses J Karkhanawala
    aug 07,2017 at 10:18 - Reply

    Excellent article ! I appreciate the analytical approach of the research team with perfect illustrations

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:20

      Hello Mr. Moses,

      We are very pleased to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Deepak
    aug 07,2017 at 09:57 - Reply

    A very interesting, informative and well written article. Please post such analysis frequently.

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:22

      Hello Mr. Deepak,

      It is pleasing to see that the article was helpful to you!

      Also, feel free to get in touch with us in case of any queries related to stock market investments. We'll be happy to assist you.

      Happy Investing!

  • ahmad        
    v.shankarkumnar
    aug 07,2017 at 09:41 - Reply

    Really an excellent article that demonstrates' that all profit making companies are not worth investing' and ' all companies running under loss are worth not investing'....Being lecturer in Finance and accounting, I really catch the story of Eicher and Ricoh companies nice comparison, which is really an eye opener to investors...

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:25

      Hello Mr. V Shankarkumar,

      It is pleasing to see that you found the blog useful.

      Happy Investing!

  • ahmad        
    Vetri
    aug 07,2017 at 05:19 - Reply

    Nice article. Thanks for sharing.

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:26

      Hello Mr. Vetri,

      It is pleasing to see that you found the blog useful.

      Happy Investing!

  • ahmad        
    Thakurdas Chakraborty
    aug 07,2017 at 04:39 - Reply

    Hi! Do you think the cash flow concept would be equally applicable for financial institutions like bank? For example HDFC BANK. March 11, 12 , 13 , 15,16 had a negative cash flow from operations. Borrowing increased many fold. So, it is a bad company to invest.

    • ahmad        
      Thakurdas Chakraborty
      aug 17,2017 at 12:00

      Thanks a lot. For your valuable reply. Can you help me to understand the concept of intransic value. In the books and different websites I got nearly five theories. But I don't think these are good enough. Become of the hypothetical discounting concept. Instade of that if I follow your fundamental rating concept which is easy and readily available. How much safety margin do you follow? I'm an invester. I believe in the ownership of businesses. Thank you.

    • ahmad        
      Team StockAxis
      aug 10,2017 at 11:11

      Hello Mr Chakraborty,

      Banks cannot be compared with manufacturing companies. They both have completely different business model. Whereas cash flow from operating activities is an important component, if we look it into HDFC bank example or any other private bank say for example Yes Bank or Indusind Bank, they all had negative working capital in those period.

      This happened mainly due to banks have to maintain the CAR and for that they have to regularly raise funds from investors. This led to lesser borrowings and higher growth in Advances which led to negative cash flow. Banks have to face this every time the CAR goes down. As Cash flow for banks is calculated as PBT minus advances(Which was high during that period) + to it the borrowings(low as they had funds raised which needs to be deployed) this led to negative cash flow from operating activities.

      Happy Investing!

  • ahmad        
    bhimsen
    aug 07,2017 at 04:26 - Reply

    Perfect analysis.

  • ahmad        
    Faisal
    aug 07,2017 at 02:41 - Reply

    Wow... splended research!

    • ahmad        
      Team StockAxis
      aug 08,2017 at 05:28

      Hello Mr. Faisal,

      Thank you very much for such an appreciative remarks.

      Happy Investing!