I’m new to this so I might be wrong. Your return numbers are for a pure equity business where ROE = ROCE. Gearing will improve your FCFE and ROE numbers. Also in such a cyclical, high growth business does DCF even work? I’d only use it for strong stable businesses with no growth upsets on either side.
Posts in category Value Pickr
Gujarat State Petronet Limited (23-05-2024)
GSPL’s expectation was ~Rs 50/MMBTU. However, PNGRB has proposed ~ INR 18/MMBTU which is even lower than the current tariff of Rs 34/MMBTU. Hence, the reason for steep fall in stock price
Lt foods (daawat) (23-05-2024)
Especially walk on talk and not giving any over hipe and cautious when giving statement and executing what they have committed to investors. One point for that is they have committed to investors they will maintain debt /EBITA levels 2-3 times BY FY2025. if u check the metrics they have achieved a year back. that’s what the stand and they are doing quality acquisition and expanding the brand and specifically their distribution network in USA and Europe is different and thats why their margins are little less but customer relationship is very good… they have 50% market share in USA and 30% in Europe and dedicated packing plant at Europe. and they are expanding to middle east and now at 7% market share and India above 30%. one important point to note is ” THEY ARE TRANSOFMRING BUSINESS FROM COMMODITY TO FMCG COMPANY”. no false commitments and inventing new products with association of one university team ( i forgot name ). Once upon a time is 100% basmati rice company and now it’s not…as a investors that’s what we have to look into.
That’s why I believe the management.
IRM Energy – A new kid on the (listed CGD) block (23-05-2024)
Pretty average results.
But big red flag was license fee to the promoter. Below is from HDFCsec report
“License fee—a negative surprise: Q4 opex was higher on account of the
company making a provision for a license fee of INR 42.9mn. This license fee,
which was waived off until 31 Dec-2023, is paid to the promoter for usage of
the tradename “IRM”.
I don’t see any value in three letters IRM. Just a way for promoter to siphon off money.
Exited completely. (HDFCsec still maintains a TP of 630.)
SKM Egg Products – thinking out of the shell (23-05-2024)
Q4 numbers are disappointing on all fronts
VP Group Navi Mumbai (23-05-2024)
Kindly DM to join the group.
Mutual Funds I am investing (23-05-2024)
Many quant funds are doing very well now. Many of the quant is giving around 80% in last 1 year.
Cineline India – Picture abhi baaki hai (23-05-2024)
Results are out
- Just ok Result
- Looks like hotel is being sold for 270 CR
- Release calendar seems like dull
Great articles to read on the web (23-05-2024)
Looks like a tall order but good to see we are trying.
Sanghvi Movers (23-05-2024)
Perfectly possible what you are saying as its a cyclicality sector .Hence I am saying to gaze the business /terminal value every 2/3 years .Currently the tail wind is very strong .Please go thru yesterdays attached article
