Today, MSCI announcement was perceived negatively by market as expectation was that inflow will happen at one go vs actual inflows in 2 tranches, stock bled heavily today on the news. I believe, it’s a great pick at these levels for long term investment as interest rates start coming down both in India and US. Also, HDFC will get higher weight over couple of months, so expect staggered buying by passive funds. This should easily take the stock to 1800 levels in next 2 months. Any thoughts?
Posts in category Value Pickr
Bulk Deals Bi-Weekly Log (13-08-2024)
Thanks for the insight
Ice make Refrigeration – Picks & shovels for cold storage infrastructure (13-08-2024)
Excellent work 
Even better if it were a google sheet.
SG Mart- Can it successfully create a marketplace? (13-08-2024)
Has anyone actually looked into their platform? Their website doesn’t work.
SG Mart- Can it successfully create a marketplace? (13-08-2024)
Yeah it is an online market place for construction material and its derivatives. The worrying thing for me is that in their current presentation they have specified that the no of active suppliers has gone down from 65 to 38 and the no of active customers has gone up. Customers going up is very good but why would no of suppliers go down so significantly?
I could not join the concall earlier today. If anybody was able to join then please share the details.
Hero Motor – Leader in two wheeler (13-08-2024)
Q1 Fy25 results
SG Mart- Can it successfully create a marketplace? (13-08-2024)
You mean like a marketplace model?
FAZE THREE LTD. –A Textile co. Rising From ASHES to GLORY (13-08-2024)
June’24 quarterly results are out. Topline growth seems promising but the EBITDA margins have taken a hit for the second time in a row. Margins are ~11%. I went through their presentation and they have given reasons behind the margin hit and those reasons seem to make sense. But does anyone know when will the margins be back to 16%+ levels ? In the latest credit rating report, they have specified that the EBITDA margins for the current year would be around 15-16% range. The company also adds up the other Income while considering their EBITDA margins so even with that calculation the margin is close to 12.5% for this quarter.
Any insights or details from anybody would be of great help.
Disc: Invested.
Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value (13-08-2024)
For a company management which likes doing PR on overdrive, it is very strange that they didn’t feel the need to tell the investor base the reason why they skipped the quarterly call. Their IR team had the time to prepare and send a doc yesterday what the Budget had for MSME’s, but hasn’t yet replied to my query on why no quarterly call. If there was ever a need for a call, it was now when suddenly there was negligible growth in AUM.
It is Mr. Nath who loves bringing Bajaj Finance into the picture while showing us the path to the pot of gold at the end of the rainbow, lets not get too excited. BF executed very well over many years, they were not capital constrained, and RBI had not put any speed breakers on Consumer lending during their initial growth phase.
Right now, interest rates are not our main problem, as its not very high by Indian standards.
IMHO Issue is
UC is slightly capital constrained. Not saying that they have no money, but they dont have ample amount to achieve 20K AUM at the original planned timeline, I feel. UC doesn’t have the backing of a big biz house, RBI has also asked Banks to go slow on lending to NBFCs and UC has yet to prove itself over a credit cycle that PE/Family offices will right big cheques to them when asked for.
Also, MSME lending has unique characteristics. It needs special categorization/handling like we have for HFC’s. RBI/Finance Ministry needs to do something about it, if we are to fill the huge credit gap.
What best UC can do is operate within the constraints till it catches some tailwind and be upfront about any issues rather than going MIA at the first indication of (possible) issue.
Disc: Invested – 2nd biggest holding. It has been a drag on PF.
PS: Had the share price been 30-40% higher, we wouldn’t be pontificating here. The Mgmt may have been considered as faultless. Share price dictates the sentiments for most investors.
Monthly Income Plan for 76 year old (13-08-2024)
Despite the presence of debt in hybrid funds, if markets fall, there may not be the expected 1% return. It is better to go for debt products. Better yet, you can consult a registered adviser to create a plan, considering the person’ age.