Posts in category Value Pickr
DDev Plastiks Industries – A Smallcap Gem (18-06-2024)
PPT MAY 24 DDEV PLASTIKS.pdf (3.9 MB)
CONCALL TRANSCRIPT DDEV MAY 24.pdf (791.6 KB)
STORY SEEMS INTACT FOR DDEV PLASTIKS
PG Electroplast – Potential for cooler returns? (18-06-2024)
60 PE would be reasonable for such growth company, PE is down from 80 levels in 2021-2022 to 37 levels in Mar’24.
There was some correction after Q3 call where management cautioned about the growth prospects due to in house capacity building by brands, but they keep on acquiring the new customers and introducing new products to maintain the growth.
Q4 comments are very strong and growth would continue for medium term.
Indiabulls Housing – A compounder from here? (18-06-2024)
Can’t speak for the Indian markets, but in American and Chinese equities the examples are dime a dozen. ESOP is not the issue, but they still dilute the shareholders, what you need for the ESOP to be really viable are buybacks, that way not only the shareholders but also the employees who have become shareholders will be incentivized in the long run as the value of their shares grow. Tencent is one good example, massive buybacks. AZO, NVR, ORLY are some good US examples, bought back more than 50% of the company in some cases, total cannibals.
As long as the ESOPs are not excessively dilutive, they shouldn’t be a concern. 0.5% is not much imo and there are companies that dilute twice that even after accounting for buybacks.
Muthoot Microfin Limited is it next JP Morgan? (18-06-2024)
The guidance provided by the company and Institutions interest seems company rerating /PE expansion is in place.
Dreamfolks services limited( DFS) (18-06-2024)
I disagree with the article writer view.
Pax numbers may be down by some 0.1 M on QoQ but it will be normalized in 2-3 quarters as people get used to this spend based lounge access as its not a big task.
Maharashtra seamless-a value plus cyclical play (18-06-2024)
I just checked sceener, and looks like the net income / net profit they have is a little wrong. What screener is doing is simply taking the profit before tax and then directly taking consolidated net profit. While this is good enough in most cases, MAHSEAMLES has a Non-Controlling/Minority Interest, we add this in a consolidated statement, but for net profit attributable to shareholders, we need to subtract it.
I just went through the annual reports, and there is almost 1,961Cr of minority interest over these years that does not reflect on Screener. The remaining 985Cr can be explained due to tax rate, what Screener seems to be doing is that they are taking profit before tax and then taking consolidated profit after tax without subtracting minority interest and using the above two created a plug for tax rate, which is why it is negative during some years.
I just redid the calculation, this time without rounding decimals, Cumulative earnings were 2,965.3Cr, their investments were 2,087.7Cr with which they increased earnings by 833.6Cr, so redeployed 70.4% @ 39.9% returns, multiply that and again, compounding value at 28.1%, hope this adds context.
Lic housing finance (18-06-2024)
Can you please shed more light on this? Is the market anticipating that if the stock rises fast these PE firms will exit causing the stock to crash again?