Ddev
Posts in category Value Pickr
Dharmaj ready to benefit from high demand for agrochemicals (12-08-2024)
Excellent number Q1FY25.
Https://forum.valuepickr.com/t/dharmaj-ready-to-benefit-from-high-demand-for-agrochemicals/122263 (12-08-2024)
(topic deleted by author)
Metro Brands – marketing footwear (12-08-2024)
Mediocre results once again. Though margins have improved, sales growth is negative which is surprising given the continuous store openings have they have been doing. The management has blamed a variety of factors for the revenue slowdown.
But how much do weddings contribute to Metro’s sales really? I don’t have the numbers but intuitively I don’t think it will be a material percentage. I am also unconvinced by this election holiday reason. Fila rollout also remains excruciatingly slow. Fila was acquired in end-2022, and here we are saying “in FY26, post stabilizing our Fila operations we will restart opening new Fila EBOs.”
For the first time probably, the concall ended in just 40 minutes.
(Disc: Holding)
Kamat Hotels (India) Ltd- A Possible Turnaround Story! (12-08-2024)
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Meh results. It seems like there’s some delay in opening or ramping up the hotels that the management has expected to open given the 400 Cr Sales guidance.
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Do keep in mind that Q1Fy25 was expected to be poor due to elections, heat wave and this was communicated by the management as well as other hospitality companies
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Costs have risen, probably because lease costs, hotel cutlery, linen, etc. costs have increased to acquire new properties. This has hit the EBITDA margin hard whereas sales haven’t increased on par.
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Finance costs should have reduced more, was expecting around ~7.2 Cr interest costs instead of the current 11.4 Cr. Not sure why the interest payment is higher.
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Still bullish but this will add more lead time for any possible re-rating of the stock.
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Also, the company has merged with other promoter companies which own some land in Ville Parle. Will need to check whether the valuation and shares issue to the company is at fair price. Promoter equity has increased considerably post this merger, hope the dilution is fair for minority holders.
| Jun-23 | Jun-24 | YoY | |
|---|---|---|---|
| Rev from Ops | 69.61 | 73.75 | 6% |
| Expenses | 46.53 | 60.46 | 30% |
| EBITDA | 33% | 18% | |
| Other income | 2.32 | 2.17 | |
| Total income | 71.93 | 75.92 | 6% |
| Finance Cost | 16.09 | 11.39 | -29% |
Sterling & Wilson Solar Ltd. – Will the Sun Keep Shining? (12-08-2024)
Any idea on how much the margins can improve if SW sales goes from 8000 crore to 14000 crore annually in next 3 years?
RACL Geartech Limited (12-08-2024)
Again Bad results, Opportunity cost of holding this is too much! Management guided for 550 crore,revenue is 106 crore in Q1 with reduced margins.
3B Blackbio DX Ltd (12-08-2024)
A good set of numbers (1QFY25)
https://www.bseindia.com/xml-data/corpfiling/AttachLive/60c7346c-7a1b-48b1-89c9-e6cc582b9364.pdf
Disc.: invested
Journey of a Small Cap investor! (12-08-2024)
Looking back on my last four years as a small-cap investor, I’ve learned a lot through both successes and setbacks. I’ve been focusing on small-cap companies with market caps between 100-2000 Cr and have avoided SMEs for now because of my portfolio size. During this time, I’ve seen some great returns, including a couple of 10-baggers, several 5-baggers, and a few stocks that have tripled from my buying price. I’ve held on to most of these, but I’ve also reduced or exited a few positions along the way, and in some cases, I’ve taken losses of up to 60%.
One thing that’s become clear to me is the need to know whether you’re approaching the market as a trader or an investor. If you’re trading, you might want to sell or cut back once you hit your target price. But if you’re investing, it’s important to really understand the company and believe in its story. If that story stays solid, it’s often best to hold on. However, when things start to change, you have to reevaluate and decide if it’s time to sell or reduce your stake.