Mool Nivesh

India’s financial sector is a patchwork of diverse institutions, each created to address specific gaps in access, inclusion, and economic development. But why do we need such a variety—and what are the strengths and limitations of each? The Basic Need: One Size Doesn’t Fit All India’s population is not only vast but also incredibly diverse—urban and rural, rich and poor, literate and illiterate, salaried and self-employed. A single type of financial institution cannot cater to all these segments efficiently. For example, while commercial banks are well-equipped for large-scale, urban, and corporate banking, they often find it unprofitable and risky to serve remote rural areas, small borrowers, or those without formal documentation. How Different Institutions Meet Different Needs Commercial Banks  offer a full suite of services but prioritize profitability and risk management, often leaving the rural poor and informal sector underserved. Cooperative Banks  and  Regional Ru...

Terminal value  often dominates financial models, sometimes making up 60-100% of a company's valuation. Instead of seeing this as a model weakness, consider it a reflection of how equity investors truly profit: through  price appreciation . While we might receive some dividends, the bulk of our returns comes when the stock price climbs. Terminal value isn't just a number; it represents this future price appreciation, capturing the value of all cash flows a business generates beyond the explicit forecast period. The stronger a business's long-term growth potential, the more significant terminal value's contribution becomes. Embracing terminal value means focusing on the  long-term perspective . It highlights a company's enduring growth potential and differentiates truly quality businesses. A high terminal value isn't a red flag; it often signals strong future growth expectations. Consider Indian giants like  Asian Paints  or  Reliance Industries . Their valu...

Introducing "Lynch's Lessons: Investing Insights" where we delve into key takeaways from Peter Lynch's celebrated book, " Beating the Street ".  Each post offers straightforward guidelines to boost your investing skills. Learn how to make smarter financial decisions from one of the industry's top experts. Here are 5 of the 25 Golden Rules he shares in his book. • Investing is fun, exciting, and dangerous if you don’t do any work. • Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand. • Over the past three decades, the stock market has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd. • Behind every stock is a company. Find out what it’s doing. • Often, there is ...

Adapting to the ever-changing demands of the fashion business is critical for any successful retail organization. Since the market moves quickly, inventory management must be flexible to keep up with emerging trends and customer preferences. One of the biggest fashion and retail businesses in India, Aditya Birla Fashion and Retail Limited (ABFRL) carries a wide range of brands, from high-end luxury to reasonably priced casual wear, and serves a variety of consumers. In this blog post, we'll look at how ABFRL used the 12-season model to increase its inventory control and agility in the fast-paced fashion business. ABFRL is one of India's top fashion and retail businesses, with over 3,000 stores throughout the nation. It owns and operates several popular brands in India across various categories such as apparel, footwear, and accessories. Some of its well-known brands include Louis Philippe, Van Heusen, Allen Solly, Pantaloons, Shantanu and Nikhil, Sabyasachi, and the most recent...

  Hi,  in the second installment of this series,  w e will explore Charlie Munger's philosophy on self-improvement and personal growth. Charlie Munger, who serves as Warren Buffett's right-hand man, is well known for his wisdom and intellect. One of his most significant contributions to the subject of personal development and self-improvement is his four filters, which are meant to help people make better decisions and improve themselves. Due to the fact that they serve as a framework for self-evaluation and improvement, Charlie Munger refers to them as filters. Filtering out negative behaviors, thoughts, and attitudes while allowing positive ones to enter the mind can be done through forming good habits, avoiding being foolish, eliminating ignorance, and raising intellect. Let's take a closer look at each of them. Creating Good Habits is the first filter for improving oneself. Anyone who wants to become a better person must develop good habits. Our lives are buil...