ac investment research

Should I Buy NSE:SHRIPISTON Stock? (19% Forecasted Return) | SHRIPISTON Shriram Pistons & Rings Limited Stock Forecast



If we believe a company would use cash trapped at a foreign subsidiary to meet debt maturities or other liquidity uses at that foreign subsidiary, we would include this cash as a source of liquidity up to the amount of the corresponding use. We generally haircut the cash to be included under sources when a material proportion of a group's cash is held in a different part of the structure than where the debt is located, and we believe the cash may not be fully fungible within the group.Other factors we consider include a company's frequency of debt issuance and market access, especially during times of company-specific stress or credit market turbulence. We estimate SHRIPISTON Shriram Pistons & Rings Limited stock forecast parameters by: Commodity Channel Index with Paired T-Test because of derivatives receivables represent more than 0.5% of total assets for entities reporting under U.S. GAAP (19% Forecasted Return)

NSE:SHRIPISTON Stock Forecast (Buy or Sell) as of 21 Jun 2022 for (n+1 year)

Stock: SHRIPISTON Shriram Pistons & Rings Limited

Time series to forecast n: 21 Jun 2022 for (n+1 year)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for SHRIPISTON Shriram Pistons & Rings Limited

  • Very infrequently, an issuer might pass the stress test only because we assume the issuer will execute a well-documented risk-mitigation plan that would alleviate the default risk associated with the stress. That plan must be credible and approved by the issuer's board of directors, and the issuer must have clear incentives (that outweigh any drawbacks) to execute such a plan and be able and willing to do so under the stress scenario.
  • If the amount of DTAs arising from temporary differences exceeds 10% of intermediate ACE, we deduct from intermediate ACE the amount of these DTAs in excess of the 10% threshold that are not considered "readily convertible." We consider DTAs arising from temporary differences as "readily convertible" if they are convertible into claims against the government to be settled in the form of liquid assets (for example, cash or government bonds) without delay at the time the institution incurs a loss--and we expect the government to be able and willing to deliver the liquid assets. DTAs that can only be netted against other taxes due over time or that are only converted in the event of liquidation are an example of DTAs we do not consider "readily convertible." Therefore, the amounts of these types of DTAs in excess of the 10% threshold are deducted from intermediate ACE. The amount of DTAs we consider for this deduction is net of DTLs when the regulator allows such netting.
  • We apply a 688% risk weight to investments in mutual funds and other collective investment undertakings if the underlying exposures are not disclosed. This risk weight is the average of risk weights for listed securities in equity market groups 1 and 2, reflecting that mutual funds tend to invest in reasonably liquid markets.
  • We apply risk weights to two different types of equity investments: listed securities and unlisted securities. RACF classifies listed equity investments into four equity market groups by country, based on several factors such as the volatility we have observed in that country's main stock market index over the past 30 years, the level of stress in the economy experienced in the worst one-year performance of the domestic index, the BICRA capital markets assessment, the foreign currency sovereign rating, and the inclusion of the country in one of the MSCI world indices.
  • The methodologies described for calculating TAC and determining RWAs are based on the typical Pillar 3 or U.S. GAAP disclosures for financial institutions around the globe. When Pillar 3 reports are not available outside the U.S., we typically find published accounts that follow IFRS, but some firms may present their accounts in a generally accepted format that is governed by their home jurisdictions and that may differ from both IFRS and U.S. GAAP standards.
  • The analysis of operational and administrative risks generally considers the possibility that a servicer may become unable or unwilling to perform its duties during the life of the transaction. In that vein, the analysis may consider both the potential for hiring a substitute or successor servicer and any arrangements that provide for a designated backup servicer. That portion of the analysis would typically consider the sufficiency of the servicing fee to attract a substitute, the seniority of the fee in the payment priorities, and the availability of substitute servicers.
  • For prudentially regulated entities, if a hybrid can only absorb losses in a Nonviability scenario--for example, at a breach of the minimum regulatory capital standard required to maintain its license--then we assess it as having no equity content.

Assumptions Underlying The Forecast Model for SHRIPISTON Shriram Pistons & Rings Limited

If a company has a credit put that causes debt acceleration or collateral posting due to a downgrade of three notches or less, we would include these requirements under uses of liquidity, per paragraph 30 of the liquidity criteria. For example, if a 'BBB' rated company had a credit put that was triggered with a downgrade to speculative grade, we would include the corresponding cash requirement under uses of liquidity. This is because the criteria evaluate a company's liquidity position during times of stress, when potential downgrades are more likely.

Frequently Asked QuestionsQ: Is SHRIPISTON Shriram Pistons & Rings Limited stock buy or sell?
A: If we believe a company would use cash trapped at a foreign subsidiary to meet debt maturities or other liquidity uses at that foreign subsidiary, we would include this cash as a source of liquidity up to the amount of the corresponding use. We generally haircut the cash to be included under sources when a material proportion of a group's cash is held in a different part of the structure than where the debt is located, and we believe the cash may not be fully fungible within the group.
Q: Is SHRIPISTON Shriram Pistons & Rings Limited stock expected to go up?
A: Other factors we consider include a company's frequency of debt issuance and market access, especially during times of company-specific stress or credit market turbulence.
Q: What is the forecast for SHRIPISTON Shriram Pistons & Rings Limited ?
A: If a company has a credit put that causes debt acceleration or collateral posting due to a downgrade of three notches or less, we would include these requirements under uses of liquidity, per paragraph 30 of the liquidity criteria. For example, if a 'BBB' rated company had a credit put that was triggered with a downgrade to speculative grade, we would include the corresponding cash requirement under uses of liquidity. This is because the criteria evaluate a company's liquidity position during times of stress, when potential downgrades are more likely.
Q: What is the consensus rating of SHRIPISTON Shriram Pistons & Rings Limited ?
A: The consensus rating for SHRIPISTON Shriram Pistons & Rings Limited is 74.
Q: What are the risks of investing SHRIPISTON Shriram Pistons & Rings Limited ?
A: We use risk analysis for SHRIPISTON Shriram Pistons & Rings Limited because of derivatives receivables represent more than 0.5% of total assets for entities reporting under U.S. GAAP


AC Investment Research

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