Posts in category Value Pickr
Raymond – The Complete Man (01-04-2024)
got it – searched recent news but no announcements yet on final date.
Whats your estimate on the value that demerger can create?
L&T – Bluechip, Value play, Digital giant in making (01-04-2024)
Interesting initiatives
Investing Basics – Feel free to ask the most basic questions (01-04-2024)
The main reason for high valuation is high degree of operating leverage platform businesses tend to enjoy. These businesses tend to have very low marginal cost of production and a very healthy balance sheet due to minimal growth capital required and very short cash conversion cycles. All of this means that the percentage of accounting profit getting converted into free cash flows tends to be very high for a platform business. For example, most of the platform businesses (e.g. CDSL, BSE etc) have their sales/free cash flows ratio in lower single digit.
I also believe one shouldn’t look at price/earning (accounting profits, not real cash) in isolation while valuing a platform business. DCF discounts future cash flows (not accounting profits) and for platform businesses, cash flows tend to have much more robustness and predictability than an asset intensive business that require continuous infusion of CAPEX for revenue growth. And if your platform business happens to be in a fast growing sector, terminal value can also increase dramatically, resulting in higher present value of the business.
JTL Industries – Fast Grower at an inflexion point (01-04-2024)
How did you arrive at 20% YOY growth for Q4? I’ve taken the 12 month figs and reduced the 9 month figs to arrive at Q4.
L&T – Bluechip, Value play, Digital giant in making (01-04-2024)
L&T’s tech Avatar…a very detailed article on how the company is positioning itself for the future.
L&T – Bluechip, Value play, Digital giant in making (01-04-2024)
L&T’s tech Avatar…a very detailed article on how the company is positioning itself for the future.
Nila Infrastructures (01-04-2024)
today came across this stock Nila Spaces, anyone has any information as screener data for the last Q seems to be eye-catching