The main issue is business is highly cyclical… I am working in the shipping industry for last 23 years ( presently Captain of large crude carriers ). Have seen many cycles of boom and bust in shipping… When things go downhill no one knows how long the negative sentiments will last…Shipping is an asset heavy industry with constant increasing of regulations and upgrade requirements. So if the market goes bad owners will still need to spend money to keep their fleet servicable. They will themselves not know for how long and only companies with very deep pockets survive. Have seen many big ship owners going bankrupt when times are difficult. These are possibly the reason why market do not tend to give high multiples to these earnings.
Posts in category Value Pickr
PDS Limited – A platform for entrepreneurs (16-05-2024)
I have gone through their annual reports, investor presentations, concalls, online videos, full form of PDS is never mentioned anywhere. I guessed it as Pallak Deepak Seth Multinational, asked the IR team for confirmation they never got back. Doesn’t have bearing on the company’s performance just on my sense of completion.
Piccadily Agro Industries Ltd (16-05-2024)
Piccadily will gain entry into CSD and CPC canteens in this financial year and this will add significant volumes as defence market is quite big for Indian single malts and Amrut,Paul John ( 3 Variants ) and Radico with Rampur Select and Royal Ranthambore has huge shares in defence markets . Also as imported brands not being there due govts vocal for local brands Indian Single Malts enjoy huge traction in CSD and CPC markets. Amrut and Radico are facing lots of issues in supplying as they are out of matured spirits so this expansion should serve Indri well.
Eco Recycling Limited (Ecoreco (16-05-2024)
See, the demand is there and they are in a very strong position to capture the demand, Look at their certifications and quality checks.
They are experienced as well,
Q4 numbers were underwhelming, but lets see how next quarter turns out.
Their investments were mostly equity investmetns which i think they are yet to divest fully.
RPT i am not really sure what to make of
Medi Assist Healthcare Services Limited (16-05-2024)
Fantastic results by the company
Combining AI and Equity Market (16-05-2024)
As of now i have not done it, but i am trying to build an Website for it, as soon as i became successful in it, i would share it here
Combining AI and Equity Market (16-05-2024)
Definitely, but only if you share your mail id
Combining AI and Equity Market (16-05-2024)
I was using Gemini, in API format not in UI
Matrimony.com Ltd – Lot of opportunity to grow (16-05-2024)
Q4 2024 and 2024 annual results were announced a couple of days back.
Core matrimony business topline is growing at ~8% CAGR in the last 3 years. The growth comes primarily from higher # of paid users, which have also increased by 8% CAGR. There does not seem to be a big shift in market share between the 3 players or a pricing change or offline→ online movement.
On the other hand, EBITDA has not kept pace with revenue increase because increased intensity on marketing expenses (increased from 22% to ~40%)
An interesting point to note is that out of the INR 50 Cr PAT in FY 2024; INR 26 CR is from interest income from their INR ~340 CR cash pile.
Potential triggers:
- Irrational competition reduces and marketing spending comes back to 20-30% range
- Able to re-invent and open new markets with Jodi or Luv (2+ years)
- Find a new revenue stream through ads/other partnerships
- Breakout with wedding services marketplace (looks unlikely as they have already invested 5 years)
I am going to stay invested for some more time. I believe consolidation will happen in this business and margins will improve. Plus they have a good shot at making other segments big.
Disclosure – Invested and hence biased