114 Comments
Aug 31Liked by Shankar Nath

Really impressed by this analysis on Zaggle and the earlier newsletters on BLS, SAMHI and others. Frankly I didn't find anyone sharing such insights and detailed analysis on the social media like you Shankar sir ji.

On other note, I got allotment of Zaggle shares in its IPO last year and I still hold them. Even I found their business model and segment unique (with my very limited knowledge) and you too confirmed the same.

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Thank you! I'm happy you like my work 🙌 .. appreciate the kind words

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I am very much impressed with your analysis and simple but clear way of expression. I missed BLS but may be trying out Zaggle since I like new tech applications. Will you be updating developments on your older suggestions in the future or will we be left on our own to add or exit these companies.

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Thank you very much, Sanjiv ji. I'm glad you like my work .. it's nice to know many investors are building upon my research and investing their capital. What gets featured in the newsletter are ideas where I have high conviction

With re: your query:

1. I'm working on a monetization format for this newsletter -- a mix of advertising and nominal subscription charge

2. I'm also keen on bringing out a premium subscription which'll include a) important updates to existing stories (via a closed online community), b) monthly discussions (group video calls) and c) a monthly stock list of different strategies like GARP, magic formula, shameless portfolio etc.

It might take me a few months to put this together, sorry about that -- but when it's released, I'm sure it will add a lot more value to my readers.

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Sep 1Liked by Shankar Nath

I would happily subscribe for the kind of quality that you provide.

A request is to keep the subscription prices affordable.

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Sep 1·edited Sep 1Author

Thank you very much! 🙌

Just to pick your brains --

1. What do you feel is affordable (per month) in the context of the value I provide?

2. And very importantly, I don't want to be the cheapest provider of quality services -- I am ok being the 2nd most affordable provider. So please let me know the cheapest subscription you have come across in this line of work (share link if possible)

I purposefully inserted question 2 to base a context to your answer to question 1. Please try and answer both questions -- actually 3 questions :

1a) Monthly subscription for just the newsletter (atleast 52 issues in an year)

1b) Monthly subscription for i) newsletter + ii) updates + iii) videocall + iv) strategy stock update

2. Worthy competitor with pricing for benchmarking

Thanks!

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Sir. I'll answer from my perspective

Currently I haven't subscribed to any such content for a price. I'm not as satisfied/ confident as the content that you provide.

These are some of the subscriptions that I have willfully taken and would be comfortable with a similar price range

YouTube - 150/month

Netflix - 150/month

Google Cloud - 150/month

1a) I would get the idea and the concepts from your news letter. I would prefer to go back and do my own home work and go through reports/ screener/ earnings calls/ industry comparison etc..

So I would be willing for a price of 100/month for just the newsletters.

1b) Since this has much more value and would take lesser effort from my side, I would be willing for higher price range

150 to 220/ month

2) These might be some of the creators in the field that I closely follow. They might be a reference

Rahul Jain - 160/ month

Sahil Bhadviya - 160 to 600/month

Labour Law Advisor - 300/month

Akshay Shrivastava - 160/month

Rachna Ranade - 60 to 400/ month

SOIC membership - 1250/ month (I feel it's expensive)

Yadna investment - 1000/ month range (I feel it's expensive)

Shashank Udupa - 200/ month

1percentclub Sharan Hedge - 500/ session

Sovrenn - 300/ month

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Sep 1·edited Sep 1Author

Thanks for sharing this. I know all these creators (except Mr. Jain), I'll find exact specifics of what they offer & the effort put around it.

Two questions:

1. Let's keep SOIC aside as Ishmohit is better than me & has been pushing me to start this newsletter for sometime now. Anyone else from this list, you feel is most comparable to what I do?

2. As an individual (forget what the others want), what do you expect to achieve from this subscription? Profit of 10k, 1lac, 10lakhs in a year?

The reason I ask this is to gauge if this subscription needs to be restricted to a certain set of readers who can visualize the value. E.g. the avg. smallcase user invests around ₹25,000/mo (₹3 lakhs for the year), so paying ₹5,000 is acceptable for the user as it's like 1.4% (assuming 20% return)

Further, I appreciate you taking the time to compile the list in your message. I'm certain you've noticed -- most of the channels you've listed here are 1M+ subscribers with an average pricing of ₹300/mo and this pricing is for the JOIN button on Youtube. But in the same list, the player with one of the least count of subscribers is SOIC and they charge the highest at ₹15,000/year & yet, they have a large loyal subscriber base because of the value SOIC offers.

My point -- the mechanics of pricing is not based on just cost; there's --

a) value offered (can you turn my newsletter ideas into ₹1 lakh/year or ₹10 lakhs/year?)

b) quality of content (I don't need to say more; effort always shows)

c) unit economics (there are costs involved at the creators end)

d) passion (couldn't find a better word :) but the fact that I'm responding to yours & every comment shows how much I mean this)

.. and many more variables

I'm sure I'll be able to figure this out. The good part is -- being a producer of content & also a consumer of content -- puts me at a better position to think about everyone's interest including mine

Thanks Shantanu ji, this was a good exercise. And things are a lot more clearer to me

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1. They do provide some quality content. They seem to go more stock specific. In comparison to your newsletters being stock specific. But I don't believe that they are as versatile/ eye opening as you do. Even with the concepts/ research/ backtracking examples/ valuation exercises. What you teach has been easier to grasp. Also due to the kind of graphics that is displayed on the videos/ newsletters.

2. I think I would fall somewhere in between 10k to 1Lakh.

The example you have provided can fit my case.

Will be able to invest 3 Lakhs per annum (+/- 50k) buffer.

Assuming 20% returns

I would be more comfortable with 1% fees or lesser.

300/ month or lesser.

I think I should work work more on increasing my active income so that I would be more comfortable to give as fees. But that's a different topic.

I agree about the Ishmohit part. He's great.

I try to follow almost all of his videos. But one more point is that they seems to be lengthier and sometimes I don't completely watch them/ watch at 2x/ skip some parts.

That is also an issue with my attention span :)

I get your point on the pricing

a) Since in my case I have lesser capital to invest. Even if I assume I get 52 suggestions in a year, the sum capital invested distributes into a few among the suggestions and I may not be able to know which would provide me the most in returns.

b) no doubts/ questions here

c) this would reduce as the number of subscribers increase.

I have personally suggested your channel to all my family and the friends that I interact with :)

But I agree it is valid that cost is a factor.

d) you're an exceptional content creator that I have come across who responds fully and very promptly to all people.

I have mad respect for the kind of time/ efforts that it takes to do so.

By this exercise I have also been able to get your perspective for deciding the pricing.

But my only concern was point 2a. The kind of profits that I can generate from the kind of distributed investment that I make.

I am also aware that there are people who may be ones with a lot a capital to invest on. (Like the ones who moved BLS international)

They are making out a lot more returns.

I am just thinking it would have been better if the people subscribing would be charged proportionately based on the amounts that they are investing. Like a mutual fund with expense ratio being paid.

But such a structure is not possible I guess.

Thanks for taking out time for reading and replying to my comments.

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Shankar Ji, this all sounds amazing! I would definitely subscribe as well.

I’d love to know how the development is coming along and if you have any timeline in mind for when the premium subscription might be available.

Thanks! :)

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Thank you Akash ji for your support 🙌

It's a bit slow but here's what I have so far --

1. I'm applying for the SEBI RA license next week. This will become important for much of the future initiatives

2. I'll be starting with webinars with the 1st one happening in January. I'll start with mutual funds as I receive 8-10 requests for a 1:1 paid consultation every week and I have to convey my inability to work individually with them

3. I'll start a community from February. I feel there's a need for this with lots of value-adds available for subscribers. For instance -- the stocks I have featured in the newsletter may have important updates every month or quarter and right now, there's now way of conveying this. I can have this here. Similarly there are stocks which are ripe to be bought but because there's no story, I don't include them in the newsletter. I can have it in this platform. Plus there will be discussions online, webinars, physical meetups etc. This will be core of my offering -- a community aiming to learn and discuss and grow together

Hope this gives you a sense

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THanks for the update -- really appreciate it! Looking forward to joining the community! :)

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Nov 17Liked by Shankar Nath

Shankar Nath ji, loved your analysis......for the past few weeks I was also studying this company and with margin expansion from 9 to 16% plus topline doubling in the next 2 years......this looks like a fairly valued bet at 4-5 price to sales.....your conviction reinforced my thinking....let's hope zaggle becomes as big as we think!

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Thank you! Glad you like my work! 🙌

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I have only one doubt though.....cash flow from operations are negative since past 2 years...why is the company not generating cash.....couldnt find the reason anywhere...

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Nov 18·edited Nov 18Author

Hello Saumitra ji, there's a simple theory for it. We already know that Zaggle is a fast growing company (over 50% sales growth) and we also know that most of the spends by companies happen in Q4 -- it might be the case with your company too. Which means, a big chunk of money flows out during Q4 but by the time the accounts are settled, its Q1.

Now the thing with cashflow from operations that you see, it's a number that's reported as of 31st of March. It's like me assuming your income based on what's in your bank account on the 30th of the month and not the 1st of the month. Some companies which are young and growing can be caught on something like this -- but in a few years, when Zaggle would reduce growth and after it has diversified operations to US market (in US, the Q4 is Oct - Dec), I feel this negative CFO point will be taken care of. Anyways, this is one metric one should watch out for

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Oct 13Liked by Shankar Nath

Thanks for sharing nice analysis. This definitely helps us deep dive in good investment opportunity.

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Most welcome 🙌 .. I'm glad you like my work! Yes, the idea is to present an opportunity (after scanning through 50-60 companies every week) and to identify the key drivers. I'll encourage you to do a second level of research in your own time

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Oct 6Liked by Shankar Nath

Great write up Shankar ji!

The stock is up 30% over last 30 days. But it's still looking very promising. I read the concall transcript, and this looks like a great opportunity. I do have one question: hypothetically speaking, would you be comfortable making a big lumpsum investment at these valuations, or would you invest in staggered way?

I don't mind drawdowns, and PE will come down if the company delivers a PAT growth of 50%+ in the coming quarters (assuming the stock doesn't appreciate in price).

I'm just trying to pick your brain. How would you approach this? Would you bet on some correction or be willing to put a substantial amount at these levels?

Thanks so much! :)

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Thank you, glad you liked it. I would prefer investing progressively .. put some, see what the next quarter results show, if comfortable put some more and so on. That's how I invest .. I've observed I make more money when averaging up. A good example is Himadri Specialty. Started buying at 42 rupees but it did not deter me to buy more at even 420 rupees, today it's at 630 something. Hope this helps!

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Thank you so much -- it cerntainly helps!

Another question: any plans on making stock-specific videos? Or does it not align with the theme of your channel?

Thanks! :)

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Sep 22Liked by Shankar Nath

Great Analysis shankarji, no one shair this type of info 👏 👍 👌.

Keep sharing this kind of articles and educate us with this type of way of thinking 🤔

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Thank you. I'm glad you like my work 🙌

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Sep 14Liked by Shankar Nath

Fantastic newsletter, Shankar. Have been following your YouTube channel for a while now. All the stocks you've spoken of in the newsletter have already seen a run up (unfortunately for me :-( )

Might need to wait a bit to get a better entry point. Would you agree?

If you do decide to monetise this newsletter, I would definitely be a subscriber. More power to you!

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Thank you very much 🙌 .. I'm glad you like my work.

I don't use any technical parameters to decide entry or exit points -- so difficult to predict next moves for the stocks .. sorry! But over time, I've built this practice of not looking so much at the past and focussing just on the future. For example - Himadri Speciality is a stock I bought a couple years back when valuations were favourable. This was at ₹42/share. Then after a few quarters, I found merit in the numbers again (this time seen from a growth lens). The price was no longer in the 40s, it was now ₹420/share. But a 10x it didn't stop me from buying more as the past was no longer relevant at that point. Now that same stock is ₹600/share. The point I want to make is -- kindly measure up your thesis on where the stock might be. If it's likely to double from 10 to 20 .. and if missed the 10 mark & the stock is at 11 -- would you wait for it to drop to 10 or perhaps be contended with a +9 gain per your thesis of 20. That's how you might want to look at it. Hope this helps

Thank you! Yes, I will be monetizing the newsletter starting December. There is now a lot more confidence in my research and I've started investing in a stronger build-out. I now have a researcher, have subscribed to paid tools, am negotiating for a community platform etc. -- would like to continue building this for many years. It's something I'll enjoy

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Sep 12Liked by Shankar Nath

What a call and analysis for zaggle and bls . Good work as always

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Thank you! Even SAMHI did well .. it's up 12% in 28 days (4 weeks) 🤗

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Sep 12Liked by Shankar Nath

What a run up . Fantastic

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Sep 12·edited Sep 12Author

Thank you! Hope you picked some yourself

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Yes I did . Thanks

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I am student currently pursuing my graduate degree in economics and just gave my CFA L1 examination. I have always been interested in equity markets and your approach of spreading knowledge and analysis is quite easy to understand and helpful in conducting my own analysis. Thankyou sir, also would love to subscribe to the upcoming paid newsletter as soon as possible. Keep up the good work

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Thank you very much, Karan ji .. I'm happy you're liking my work & it's helping you build upon your knowledge. Wishing you the best with your studies & forthcoming CFA Level II examinations

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Sep 1Liked by Shankar Nath

Sir do u have a small case that we can confidently invest in.

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I don't have a smallcase presently. I might bring in something next year

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Sep 1Liked by Shankar Nath

Very impressive. Rarely get this kind of analysis in depth anywhere.

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Thank you! 🙌

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Sep 1Liked by Shankar Nath

Incredible analysis and view points Shankar. Really appreciate the depth of analysis :)

Thank you.

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Thank you! 🙌

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Sep 1Liked by Shankar Nath

Exllent analysis Shankar Ji,you changed my view..keep up the good work..

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Thank you very much 🙌

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Sep 1Liked by Shankar Nath

Excellent work again sir, the more i read your newsletters the more i get inspired by your thoughtfullness & understanding . thankyou for sharing such knowledgeable stuff with us. keep up the good work .

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Most welcome. I'm glad you like my work!

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Sep 1Liked by Shankar Nath

Great analysis Shankar, I recently joined your newsletter subscription few weeks back and find it informative. You are a man of great knowledge. Apart from that, I also did analysis on screener a month back and added small positions on my portfolio. I jumped upon this stick while watching ishmohit video where he discussed great quaterly results . Kudos to both of you 👏 doing great job in simplifying stock market.

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Thank you, I'm glad you like my work 🙌

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