Numbers looked amazing.
Stock has taken beating post numbers.
Seems street is getting concerned over margin contraction.
Don’t understand why company is borrowing at high intrest costs.
Fredun compensation is a ?
Posts in category Value Pickr
Fredun Pharmaceuticals – A good microcap with great potential? (13-05-2024)
Satin Creditcare Network Ltd – Reaching out! (13-05-2024)
Hope this saves time for would-be investors thinking of researching this company.
IRB INVIT TRUST- new game in the town! (13-05-2024)
what does this mean, the duration of the invit is 15 yrs? What does it mean for invit shareholders?
Goldiam International : A rare shareholder friendly and debt free Jewelry company (13-05-2024)
De Beers lab grown diamond jewellery brand Lightbox has announced substantial reduction in prices.
The brands standard line(I to J colour) now sells at $500 per carat from earlier price of $800 per carat.
stones with D to F colour and excellent cut will sell at $900 per carat down 40% from previous price of $1500.
LGD prices were already in downtrend from last one year and the present significant price cuts can further impact revenue of LGD players like Goldiam and Renaissance. How LGD market will evolve with ongoing price cuts and shift from natural to LGD will be interesting to watch.
discl: no holding at present. Have traded in the recent past.
Gravita India success story (13-05-2024)
(post deleted by author)
Time technoplast (13-05-2024)
On the contrary, Insider selling is rarely an indicator at all.
Varun beverages fast growth duopoly business (13-05-2024)
Any thoughts on
4 different CFOs in past 5 years?
TAAL Enterprise – cheap valueations (13-05-2024)
Is the below published to exchanges yet? I dont see TAAL enterprises mentioned, but TAAL group & TAAL Tech, so where is this acquisition landing in?
Fine Organics – Niche Player in Specialty Chemical (13-05-2024)
Q4FY24 Conf Call Notes [1st ever call]:
- Red sea crisis has increased shipping lead time by 1~1.5 months. Seems small challenge compared to COVID experience.
- All plants running at optimum capacity except Patalganga (started in FY22), which still has some room for capacity ramp up and might need 3~4 yrs to fully utilize.
- Incorporated WOS [Fine Organic SEZ Pvt Ltd] in MH SEZ area, allocated land ~30 acres. After possession of the plot, EC will be applied. Post EC approval, activity to set-up export oriented mfg facility will be initiated. Post land allotment, capacity and investment plan will be announced.
- FY23 was an aberration. There was disruption on the supply side with volatility in the raw material. Hence, FY24 performance is not comparable to FY23.
- Thailand plant’s trial production (small capacity) for one of the product commissioning is expected by the end of Jun24…After that, we need to observe for almost a quarter to decide further course of action about overall capacity needs.
- Europe demand remains subdued.
- 20~22% sustainable historical margins.
- Intend to have a plant outside India. Also, looking for acquisition.
- Before commercialization, a new product takes 3~4 yrs to get approvals.
- Cash Usage Plan: Business growth – New SEZ plant, Plant outside India, and working actively for acquisition (traits: complementary to existing chemistry, new market/customers) opportunities. We may need to borrow more money.
- Key challenge: Long approval (customer as well as regulatory) cycle.
- Will continue to host conf calls at the end of the year.
Source: Fine Organics | Investor | Investor Presentations
Disc: No position
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (13-05-2024)
REITs are a great asset class in theory, but they will be good investments only if they are managed and governed well. Based on recent track record, I strongly believe that this asset class is doomed to fail in India unless regulators make significant changes to the way they are structured here.
The biggest problem in my opinion is that REIT managements have consistently betrayed one of the most important and fundamental principles of management: to always act in the best interest of shareholders. In fact, I would argue that they have actively destroyed value for shareholders, only to benefit their sponsors – primarily by diluting existing shareholders through underpriced preferential allotments, to acquire potentially overpriced assets from sponsors. I am sure that in a more mature jurisdiction, they would face legal consequences for the kind of actions they have done here.
(Perhaps I am guilty of over-generalization here, but Indigird InvIT is the only entity from the REIT/InvIT universe in India I would consider as an exception to this.)
Potential solutions? Perhaps mandating the NAV as the minimum floor prices for equity raises would help. Or the entire manager/sponsor/trustee structure need to be changed.
Regarding Embassy: I exited all my remaining holdings the day they announced the equity raise. (I had trimmed a significant portion a few months ago when it appeared overvalued compared to peers.) I will consider adding a position again after the QIP is done.