May 30, 2009

Detailed analysis spreadsheet – LMW

I typically do a detailed analysis of any company before committing a decent amount of money to the idea.

I have
uploaded a detailed analysis of BEL (bharat electronics) and balmer lawrie in the past. I use this spreadsheet as a checklist and template for a detailed analysis. The spreadsheet is simple (though time consuming) and can be done by anyone. The spreadsheet ensures that I think through the idea in detail, but does not prevent me from making stupid decisions everytime.

It however takes a couple of days of complete this spreadsheet and in the end I post the summary of the analysis via a post on the idea. I have
posted an analysis of LMW (lakshmi machine works) in the past and you can download the spreadsheet analysis from here. This spreadsheet was generated at the time i published the post on the company. Suggestion – do look at the sensitivity tab in the spreadsheet.

I have been toying with idea of how I can publish these spreadsheets on an ongoing basis. I have done them for free till date and am not interested in charging or making money off them. I actually find the idea of selling stock tips quite repelling.

At the same time I plan to leverage my work for other means such as charity. I am still working on that idea and will post in detail when I have done the necessary groundwork on it.


My plan is to connect with a well know charity and use my website and stock ideas to encourage contributions. If my blog and the stock ideas have been useful to readers, I hope they will contribute to a good cause in exchange. This will ofcourse be 'voluntary' and I have no plans of commercializing this blog, which is clearly a personal passion for me.


please feel free to leave a comment or email me on my plan.

25 comments:

mkd said...

Nice idea.

I am sure that lot of people benefit from your analysis and comments.

Many of them would definitely like to contribute in a meaningful way.

drmadhupv said...

dear rohit,
lots of people like me have immensely benefited from ur blog and always waiting say thank u
contributing in some way to ur plan would be a great way of paying our gurudakshina

Rohit Chauhan said...

Hi mkd,drmadhupv

thanks for your comment.
encouraging to know your views.
I have been thinking on these lines and working a bit on it for quite sometime and hopefully i can come with some plan by which we can benefit those who are not as lucky and fortunate as us.
ofcourse it will be voluntary and will be upto the individual reader.

Anonymous said...

I chanced upon your blog and found it very informative. The event blogs are striking enough to have a feel of the event, so, I would like to have a little chit-chat on your blogging interests. And even we are coming up with an event on startups on June 6th. So, can I have your contact details? Looking forward to hear from you.

Contact me on : devarchit@siliconindia.com

sumi said...

Hey Rohit,

Like the contribution idea. Also like the fact that your blog has no clutter so we can easily focus on your posts. Went through the valuation of LMW its so extensive. I figured there are 2 intrinsic worths one from the dcf sheet and the other valuations sheet. Still learning so a little confused.

SNM said...

Hi Rohit, I have started to follow your blog for the past 2 weeks and find it very useful to start embarking on my own investing journey.

You might want to try google docs to upload your files easily. I haven't used the application integrated with a blog so I cannot help you further.

Best of Luck and look forward to your future posts. Perhaps one day I too can start putting up my thoughts.

Rohit Chauhan said...

Hi sumi
the blog structure is by intention. i have tried to keep the clutter low ..no point in providing news and other links ..one can find that via google easily.
the two instrinsic values are two different approaches to arriving at the same number. if both approaches give the same answer, then one can be more confident that the intrinsic value is accurate

regards
rohit

Rohit Chauhan said...

Hi snm
i am aware of google docs ..however i prefer to load the files directly on the google groups to allow everyone to download as needed
and best of luck on your blogging plans

regards
rohit

Rohit Chauhan said...

To whoever posted this comment - if we are assuming growth, then we should not be considering maintenance capex , but growth capex ?

my response - you are perfectly right. this is a subtle point in my spreadsheet, so good of you to catch that. The impact of the above would be that the intrinsic value is overstated by a bit.

karthik said...

Hi Rohit,

I was researching a little bit on Index funds through value research wesite. The best fund for the past 5 years has been ICICI index fund but they are charging 1 % entry fee, isnt it too high for index fund?

KD said...

Hi Rohit,
I have been following this blog regularly and must say, its quite interesting. I have just started following "Value inv" concept, thanks to some good books on the topic I have read. I have seen that u have also refrred to them in yr blog. I have found this: Intelligent investor, Security analysis, Common stock and uncommon profit, Warren Buffett way, WB portfolio - interesting and educating.Can i share some of the thoughts I have got on those with you at yr e-mail ID or this blog?

Sam said...

Hi Rohit,

The excel templates for valuation are just awesome. Thanks for your efforts.

I was just looking at the BEL valuation file and a lot of numbers did not coincide with the BEL Annual report. If you could please link/markup/comment one of your valuation files with its corresponding annual report, it would be great. Something like a tutorial for entering values in your valution file, So that we know which numbers to pick from which places in the Annual Report

Thanks
Sam

Vic said...

Hi Rohit,

You read my mind, I was thinking along similar lines.

This will be awesome. I mean I'm familiar with this idea but never seen anybody doing in Finance/Investing..:-)

I agree with Sumi, I find your website easy to navigate and clutter free. For example, I don't like Barel Karson's website anymore due to all ads etc.

Count me in All the Way!! :-) Well at least till this mortal body' demise, rest Will can take care of..:-)

Thanks,

Vikas

Rohit Chauhan said...

Hi karthik
1% load on an index fund is quite high. also check the ongoing fee ..i think icici fee for that is high too

regards
rohit

Rohit Chauhan said...

Hi KD
Please go ahead and leave your thoughts as a comment

hi sam
can you let me know which numbers did not match. would be diffcult and time consuming for me to create a guide for my spreadsheet

regards
rohit

Rohit Chauhan said...

Hi vikas
appreciate your sentiment. thanks !

regards
rohit

Vic said...

Hi Karthik,

You might want to look at No Load Index Funds as well.

Or ETFs with low ER.

Vikas

Anonymous said...

Good Idea....on a good work

Yash

karthik said...

Hi Rohit/Vikas,

Thanks a lot.. I think Nifty BEES ETF looks like the best fit for my purpose.. But how do I buy it?..Iam not able to locate it in ICICI direct MF purchase list. Also this doesnt have SIP option right?

Manish said...

Hi Rohit, I want to joing the Google Group on which you keep on posting your analysis. Could you kinldy show me the way to be a memeber. Thanks in advance..

Alok said...

I wish Morgan Stanleys of the world did charity with stock ideas they sold. They would not be in such a position as they are today.

As you sow so you reap.

Rohit- You have a bright future.



Alok

Rohit Chauhan said...

Hi yash
thanks for the comment

karthik - nifty bees are bought and sold like shares. they are not mutual funds. check the equity option to buy the same.. and you cannot put SIP in that

Hi manish
you can go to the google groups and sign up. it does not require an approval from me

regards
rohit

Rohit Chauhan said...

Hi alok
it would be great if morgan stanelys of the world were not as greedy ..anyway stock picks are revenue for them ..so would not expect them to give their product for free.

anway, hopefully this blog and the community around it will do a little good for the society beyond just stock picks :)

regards
rohit

Vivek Venugopalan said...

Rohit:
Would you care for a link exchange? I run a personal finance blog at http://desimoney.blogspot.com. Just leave a comment and let me know.

Vivek

Anwar said...

Hi Rohit,

I was reading a book "The Warren Buffet Way" was quite influenced by the logic behind purchase of Washington post. Hence started analyzing Deccan Chronicle holdings because it is the most beaten down stock. I felt it has lot of value because it generates lot of free cash without requiring large capex. Can you analyze and let us all know.