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Global Business School & Research Centre

Guest Session on ‘Value Investing’

Friday, October 30, 2020 |Online |Guest Lecture

On 30th October, 2020, a guest lecture on ‘Value Investing’ was organized at Global Business School and Research Centre for MBA II- Finance specialisation students. For the guest session Mr. Warren Ignatius Lobo – The Wealth Manager at Phillip Capital India, was the invited speaker. Prof. (Dr.) Leena Dam, Professor and HOD Finance, GBSRC along with 40 students from finance specialisation attended the guest session. Prof. (Dr.) Leena Dam commenced the session by welcoming the guest Mr. Warren Lobo Ms. Gayatri Kshatriya, student MBA 3rd Semester, introduced the guest.

Thereafter, the session was handover to the speaker Mr. Warren Lobo. He started the session with a brief introduction about the key skills needed for the profile of equity research analysist/financial analyst. According to him Value Investing is about understanding business. He explained about the accounting basics – P/L Statement, Balance Sheet and Cash Flow Statement. He also talked about when a business generates free cash flow. He also explained the margin of safety built into purchase price comes from PE and margin of safety built into business of the company comes from self-sustainable growth and free cash flow forms the basis of value investing. He explained to how to calculate the benchmark p of a company. He also said a quote- “You never overpay for the stock”. After that, gave hands on experience in drawing up a financial model of a company and made students do it practically on excel. He told that self-sustainable growth is how one determines how much of inherent growth potential is built into the company. He also added that self -sustainable growth rate is much higher the sales growth rate. He concluded the session by saying that- “Whenever a company does not have sustainability built into the model it will feel the need to keep raising money and the company that keeps raising money is not good for a value investor”.

He kept the session interactive and energetic. The students asked a number of questions and he cleared their doubts regarding value investing. The session was full of knowledge and great learning. Students have greatly benefited by attending this session.

Ms. Shruti Prakash, student of MBA 3rd semester wound up the session by proposing the vote of thanks. In her speech, she thanked Hon’ble Secretary and Trustee of DPU, Dr. Chetan Chaudhari - Director GBSRC, for being enablers in organizing this Guest Session.