Workshop On Stock Market

A workshop on stock market was conducted for finance students in the Management Block, CIML on 12^th September 2019. The speakers were Mr Sagar Shah, Founder and Advisor Trueshine and Mr Akshay Doshi, Founder, StockPulse, Mumbai. 

Mr Sagar Shah, Founder and Advisor at Trushine Advisor LLP  is a detail-oriented financial analyst with background leveraging mms in finance credentials and experience on value investing, financial reporting and analysis, equity valuation, portfolio management, corporate finance, fixed income and alternative investments.

He is knowledgeable and dedicated professional with love for finance at the core and engineered to research and think out of the box solutions to challenging problems. He has a lot of experience in analyzing and evaluating investment possibilities, market trends and stocks.

Mr Akshay Doshi, Founder at StockPulse, Mumbai is passionate about financial markets and trading in equity market. As a technical analyst, who started trading equities back in mid of 2014, he has expertise in analyzing market trends and identifying investment/trading opportunities based on advanced charting techniques.

The topics covered were investment Vs speculation, strategies to choose winning stocks, magic of compounding, accounting gimmicks, basics of financial statement analysis, the most important thing was capital allocation and it ended with a case study on Indian Promoters Vs MNC’s Promoters.

Mr Sagar Shah informed that Trushine advisors, provide impeccable financial solutions and services to a wide spectrum of customers with varied needs, ranging from equities and mutual funds to wealth management and depository services. The value added services include distribution of mutual funds, IPOs, and portfolio management services.

Regarding Investment Vs Speculation Mr Sagar did a comparative study and mentioned that day trading is a specialised skill. They make use of expensive software, hardware and news services for the same. He asserted that long-term investing is for everyone and the retail investor should look to invest in stocks through mutual funds. He rightly pointed out that a stock is not just a ticker symbol or an electronic blip rather it is an ownership interest in an actual business, with an underlying value that does not depend on its share price. He also mentioned that it depends upon top level management, parent company’s support, research and development, access to global market, visibility of the business and corporate governance.

The students were told how to choose winning stocks and were guided to buy through an approach developed by Peter Lynch. The underlying theme of this approach is to find those products and services which are used by consumers’ every day and buy those companies at reasonable valuation and hold it for long term. Mr Sagar gave examples of Colgate Palmolive Limited, Hindustan Unilever Limited, Page Industries Limited, Nestle India Limited, Britannia Industries Limited and many more to explain the concept.

Mr Sagar was able to make the students understand why one should hold for long term. He categorically mentioned that to make good money in the market, one has to be patient to get reward of compounding. Regarding capital allocation he articulated that a number of frameworks can be used for shortlisting and selecting companies for investments. One such framework is to see how the company allocates capital over a period of time. The cash flow generated can be used in multiple ways such as dividends or buyback, investing in the current business, investing in a new line of business, acquisitions or cash hoarding.

Another lecture by Mr Akshay Doshi from StockPulse was equally informative. He touched upon reasons why 90% of people are unsuccessful in the market. It was pointed out that multiple factors play a pivotal role such as wrong advice, trading based on tips, investing because successful people have bought it or trading based on news. He gave valuable inputs on what to do in order to win in the stock market. Mr Akshay spoke at length, giving suitable examples, on the need for technical analysis. He rightly said that it is applicable to any market, easy to identify trends and support and resistance, it can be useful in intraday trading, positional trading, and long term investing also and helps to time the entry and exit into the market.  

The workshop was quite informative and one could find a balanced policy concept related to stock market. The integrated management time-frame while dealing with stock market was well received by the students. It was noticed that a synchronized transitional flexible approach could be applied. The students were apparently impressed by basics of financial statement analysis. They were responsive and asked some relevant questions and could understand systematized organization in a stock market. It tested their capability to understand parallel functional options. The workshop was immensely successful in driving across the point and the students got a meaningful insight into the nuances of dealing with stock market. It was coordinated by CRM, JK Pandey.