Sometimes, research is more than just reading balance sheets, analysing quarterly results, and listening to company concalls.
Sometimes, you have to step outside the spreadsheet and check the ground reality of the product or service a company is offering.
I remember December 2023, when Polycab India, one of India’s leading manufacturers of wires and cables, was raided by Income Tax officials. The stock corrected nearly 33% in less than a month.
Like many investors, I wondered: How bad could the situation really be?
After the company issued its clarification around January 9, 2024, denying reports of tax evasion, I decided to look beyond the headlines and do some ground-level research.
Coincidentally, my home was undergoing major renovation at the time, including tiling and complete rewiring.
One day, I noticed a few Polycab boxes lying on the floor.
That gave me an opportunity.
I asked the mistry why he preferred Polycab and also asked how much business the brand did at local electrical shops compared with its competitors.
His response was quite clear.
He spoke about the brand’s quality, durability and fire safety. More importantly, he told me that electricians themselves often recommended Polycab because they trusted the product and had been using it for years.
That small conversation gave me something a balance sheet couldn't:
real-world customer feedback.
I became more confident in my thesis and picked up Polycab shares for my clients back then, when I was an Authorised Person with Angel One.
The stock eventually delivered around a 90% return in less than nine months.
The lesson for me was simple:
Sometimes the best research isn't found in a concall, a brokerage report, or on a TV panel.
Sometimes, it's standing on the floor of your own house, talking to the person actually using the product.
Before investing in a company, ask yourself:
Do customers actually like the product?
Would they recommend it?
Is the brand gaining or losing relevance on the ground?
What do retailers, distributors, electricians, mechanics or other end users think?
Because ultimately, businesses don't exist on spreadsheets.
They exist in the real world.
Sometimes, you have to step outside the spreadsheet and check the ground reality of the product or service a company is offering.
I remember December 2023, when Polycab India, one of India’s leading manufacturers of wires and cables, was raided by Income Tax officials. The stock corrected nearly 33% in less than a month.
Like many investors, I wondered: How bad could the situation really be?
After the company issued its clarification around January 9, 2024, denying reports of tax evasion, I decided to look beyond the headlines and do some ground-level research.
Coincidentally, my home was undergoing major renovation at the time, including tiling and complete rewiring.
One day, I noticed a few Polycab boxes lying on the floor.
That gave me an opportunity.
I asked the mistry why he preferred Polycab and also asked how much business the brand did at local electrical shops compared with its competitors.
His response was quite clear.
He spoke about the brand’s quality, durability and fire safety. More importantly, he told me that electricians themselves often recommended Polycab because they trusted the product and had been using it for years.
That small conversation gave me something a balance sheet couldn't:
real-world customer feedback.
I became more confident in my thesis and picked up Polycab shares for my clients back then, when I was an Authorised Person with Angel One.
The stock eventually delivered around a 90% return in less than nine months.
The lesson for me was simple:
Sometimes the best research isn't found in a concall, a brokerage report, or on a TV panel.
Sometimes, it's standing on the floor of your own house, talking to the person actually using the product.
Before investing in a company, ask yourself:
Do customers actually like the product?
Would they recommend it?
Is the brand gaining or losing relevance on the ground?
What do retailers, distributors, electricians, mechanics or other end users think?
Because ultimately, businesses don't exist on spreadsheets.
They exist in the real world.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.