Hi all – i have been looking at Vadilal inds and to me the financials look very good. Seems to be a good value buy. Has anyone else has studied the stock and has a view on it?

Q3 (Oct-Dec) has historically been their best Quarter. Quite logical since it is the Quarter that is heavy on Festivals and New Year Celebration.

Am now confident of a Bumper Q3 Result and a good overall FY result.

Lets not forget that Tips is bringing in the Number with desi Music Streaming platforms like Hungama, Gaana and Wynk missing from its customer list. By the way these Platforms are running in the Red and might go Belly up anytime. Which means that TIPS Industries won’t be effected.

Earlier this year, I was captivated by the intriguing concept of factor-based investing. Factors such as size (SMB), momentum, market risk (MKT), quality, and value can significantly account for asset performance. In India, however, options for such exposure are limited. After research, I selected a few funds—Nifty 50 Equal Weight, Nifty 200 Low Volatility, Nifty 50, and Nifty Next 50. For international diversification, I included the Nasdaq 100. I wished to included Nifty 200 Momentum 30 but there weren’t enough data points available.

Data Gathering:
To adhere to factor-based investing principles, I collected comprehensive data for these selected funds, extending back to mid-2018. My main objective was to construct an optimal portfolio that maximizes the Sharpe Ratio.

Analysis and Results:

• Sharpe Ratios of Individual Funds (in %):

  • Close_Nifty_50_Equal_Weight: 3.27%
  • Close_Nifty_50: 2.78%
  • Close_Nifty_Next_50: 2.24%
  • Close_Nifty_200_Low_Vol: 2.34%
  • Nasdaq iShares Close: 2.91%

• Standard Deviations of Individual Funds’ Returns (in %):

  • Close_Nifty_50_Equal_Weight: 1.22%
  • Close_Nifty_50: 1.23%
  • Close_Nifty_Next_50: 1.22%
  • Close_Nifty_200_Low_Vol: 1.01%
  • Nasdaq iShares Close: 1.49%

• Optimal Portfolio Weights:

  • Close_Nifty_50_Equal_Weight: 34.83%
  • Close_Nifty_50: 0.40%
  • Close_Nifty_Next_50: 0.15%
  • Close_Nifty_200_Low_Vol: 32.27%
  • Nasdaq iShares Close: 32.34%

– Optimal Portfolio Sharpe Ratio (in %): 63.3%

Discrepancy in Results:
Interestingly, the Sharpe Ratios I calculated are significantly higher than those reported on Value Research for the corresponding funds. This discrepancy could be due to different methodologies or data ranges. Importantly, a 7% risk-free rate was used, reflecting the current short-term bond yields in India.

Highlight:
The Sharpe Ratio of the optimal portfolio stands out significantly at 63.3%, indicating a potentially better risk-adjusted return compared to the individual funds. This increase in sharpe seems too good to be true, but the methodology checked out.

Conclusion and Invitation for Feedback:
While there’s a notable difference between the calculated and published Sharpe Ratios, the portfolio weights and the methodology are transparent. I welcome criticisms and thoughts from all quarters. Is this a viable approach to factor-based investing in India? Your insights are highly appreciated.

A fire broke out at Dharmaj Crop Guard DCGL Company of Wagra Saikha GIDC after an hour of effort, the fire brigade brought it under control.
Source:A fire broke out at Dharmaj Crop Guard DCGL Company of Wagra Saikha GIDC after an hour of effort, the fire brigade brought it under control. | વાગરા સાયખા GIDCની ધર્મજ ક્રોપ ગાર્ડ DCGL કંપનીમાં આગ લાગતા ફાયરબ્રિગેડે એક કલાકની જહેમત બાદ કાબૂમાં લીધી – Divya Bhaskar

the new valution adjustment starts getting reflected after record date of spin off is annouced… that is my observation…