So what would be forward eps?
Posts in category Value Pickr
The HS Portfolio (19-06-2024)
Was just looking at Differentials between US listed companies and the Indian subs of the same for research purposes over the last week.
Cummins Inc
Market Cap: $37 B
Revenue: $32 B
Net Income: $1.94 B
ROE: 19.6%
P/S: 1.3
PE: 18
Cummins India
Market Cap: $12B
Revenue: ~$1.1 B
PAT: ~$200 Million (other income of $50 million)
ROE: 28.8%
P/S: 12
PE: 63
Yes, Indian sub is growing faster at 30% vs 10% but P/S and PE are out of whack. And historical PE ratio is approximately 32. Yes, I know about CPCB4 series on engines.
Same story for ABB, Siemens, Hitachi and others where Indian subs are at PE of 80/100/120 vs Main company at sub 20 PE. The entire cap good space is indefensible in terms of pricing. Below I have attached chart for NSE MNC index PE ratio
The Green line refers to PE ratio and is almost touching 50 now. Would love alternative comments on this.
Samhi Hotels – Turnaround with Tailwinds (19-06-2024)
Got my hands on a report from Kotak, the revenue growth in FY2025 can be higher, as they have acquired additional ~950 keys and adjusted revenue for FY2024 was ~1050 crores. So my assumption is in FY2024 they may touch 125 crore to 150 crore in PAT, considering they will be saving 30 crores in ESOP expenses and the money they spent last year on integration of the additional ~950 rooms.
Gravita India success story (19-06-2024)
(post deleted by author)
Agro Tech Foods – A small cap MNC foods FMCG (19-06-2024)
such management changes need regulatory, exchange, court, shareholder approvals and other formalities like the Open Offer, etc. This will take 10-14 months on a average to complete, so wait till year end for better clarity.
Hindustan Aeronautics (HAL)- India’s Largest Defense Company (19-06-2024)
Exited 50% of holdings across family between yesterday and today.
Looks like top tick has been made in many defense stocks.
Will look to add once it settles into a more normalized PE
Samhi Hotels – Turnaround with Tailwinds (19-06-2024)
Hi, Neeraj… Thanx for pointing out… I totally missed it. Also, I would add that, I am bit skeptical about 200Cr interest payment in Fy25. I think it will be close to 150Cr, my thinking is that, Mgmt has already guided that, they could generate 225-250Cr FCF in Fy25 which I also agree looking at this year Cash flow. Plus they are guiding to reduce their net debt to EBITDA to 3.5x, (i assume they reduce it to 4x, so net debt will be 380*4=1520) Now, currently their interest rate is 9.8% which gives me an interest payment of ~150Cr. However, I have not considered any inorganic expansion. So things may change.
Thanx…
Changu Mangu The Bull – Portfolio (19-06-2024)
Today, I beg and double beg newer small cap investors to read this link, and the entire thread, if they can find time, if they want to keep their profits. Decision is one’s each own.
The more you read history, the more you know the future.
Best regards,
K.
Samhi Hotels – Turnaround with Tailwinds (19-06-2024)
As Per the management,the interest cost for FY25 will be 200cr and depreciation cost will be 130cr