Hi, Vishwa and Abhinav, this is because the holding period for the new shares starts from the day of their allotment and not from the day of purchase of the original share, so you'll have to hold the new shares for another year before you get the benefits of long-term capital gains. And you can't offset the losses arising from the sale of the original share against the short-term gains from the sale of the new shares. It's a taxation flaw that needs fixing. You can also read this explainer: https://www.thehindubusinessline.com/portfolio/personal-finance/when-bonus-issue-becomes-a-tax-issue/article66184802.ece

Seetharaman G

Noted, Mayank. Thanks! Appreciate the feedback.

Seetharaman G

I couldn't agree more :) It has become a conveniently amorphous term.

Seetharaman G

Hi, Mayank, thanks for the comment. I'm aware that CarTrade has posted profits in the past, but it was loss-making in FY22. Nevertheless, I was referring to tech companies that are comparable to Nykaa in size (revenue, market cap). CarTrade is much smaller. But I get your point, I should have been clearer.

Seetharaman G

Hi, Kartik, the revenue figure is only for Westlife, and Westlife only operates roughly 340 stores in the west and south. A different franchisee handles the north and east. And the total revenue is for FY22, when there were fewer stores, and the revenue per store is for the second quarter of FY23.

Seetharaman G

Hi, Kumar, thanks for the feedback. Hardcastle is a wholly owned subsidiary of Westlife. There was a time when they were separate entities, but that was until 2012. I do get your point that Hardcastle is the name some associate with McDonald's, but for readers and retail investors not familiar with it, it's Westlife that matters. Having said that, thanks once again for the note.

Seetharaman G

Hi, Vansh, that's to do with with fast food in general. No one can say McDonald's has the best burger or Domino's has the best pizza.

Seetharaman G

Hi, Varun, Borosil is a solar-glass manufacturer, and unlike Indian module makers, it operates in a space where it has a 40% market share.

Seetharaman G

No, as we mentioned in the piece, it's still at a 40% discount.

Seetharaman G

I had the same question, Vansh. But this is to do with how investment firms record the change in the value of their portfolio in their P&L. You can see this doc: https://www.mca.gov.in/Ministry/notification/pdf/AS_13.pdf

Seetharaman G

The people I spoke with said that it's because there was anticipation of mergers of smaller Tata companies, which is what happened with the Tata Steel announcement. But as with many other stocks, it's hard to arrive at a definitive answer.

Seetharaman G

Thanks for your feedback. We have nothing against Tata Investment Corporation. It means as much to us as any other company :) Our conclusion was based on our analysis of the stock, its fundamentals, shareholding pattern, etc.

Seetharaman G