What is MFI, is it Mutual Funds or else?
Posts in category Value Pickr
Electric Cars/Bus :: Call it a Disruption? (29-02-2024)
As per apple – (1) Demand for EVs has slowed in recent month as borrowing costs remain high, which has made the market increasingly competitive as major players try to win over customers. (2) In January, Tesla warned that its sales growth would be weaker this year than in 2023
I think hype over EV are euphoria than reality in future. Multiple headwind could disappoint many investors! Alternate fuel driven vehicles – CNG, Hydrogen, Biodiesel still good to go…Looks Hydrogen driven vehicles will be next trend to play…so many projects (real projects!) are coming on green hydrogen
Transindia Real State – warehouse bet (29-02-2024)
According to Grant Thornton that the logistics sector is already growing steadily at a rate of 10–12% YoY, contributing 14.4% to India’s GDP and employing more than 20 million people. The warehousing storage sector is growing even more rapidly, projecting a CAGR of 15.64% and a market size of USD 35 billion by 2027.
This is the only listed company which is purely a warehousing business. Warehousing business becomes more attractive because they have real assets which have really high value and can be liquidated easily because of their real estate value has they are located in prime locations.
Details of the company:
Market Cap: ₹ 1,367 Cr.
Current Price: ₹ 55.7
Stock P/E: 51.6
Debt: ₹ 68.7
OPM%: 50% (Approx)
Fixed Assets: 794crs
Pursuant to demerger, Transindia Real Estate Limited (“the Company”),
resulting company of Allcargo Logistics Limited, has signed a definitive agreement to sell its logistics park at Jhajjar in Haryana at an enterprise value of approximately ₹ 636.71 crore. The deal consummation will help Transindia Real Estate Limited (TREL) realize substantial value from this divestment and continue to have zero debt.
Additionally, the Company has also divested its 10% stake held in Malur Logistics & Industrial Parks Private Limited, Venkatapura Logistics & Industrial Parks Private Limited, Kalina Warehousing Private Limited, Panvel Warehousing Private Limited, and Allcargo Logistics & Industrial Park Private Limited, for an equity consideration of near ₹ 4.55 Crores.
As a result of this divestment, Transindia Real Estate Limited, will receive over ₹433.37 crore as cash proceeds. The company will deploy the capital to fuel its growth plans and expand its operations in various locations. The deal will also boost the company’s financial capabilities, paving the way for fresh investments in emerging business growth opportunities.
There is a good opportunity for investors to grab in a company with Mcap of Rs. 1300 crores will have a cash balance of Rs.450 crores and other assets(warehouses), this seems to be attractive has the company will come at a valuation of 1:1 when compared to assets.
At present company gets a Rental income of Rs. 100 to 120 crores per year where in many of the warehouses are still in development by the company.
This company shall be one of the most exciting companies in this sector and i have gradually started accumulating this share, it maybe a pre matured accumulation but it can work well.
Not a Recommendation do your own research
Image is attached relating to their warehouses in India.
Uploading: image.png…
Is small, micro cap sector over priced? (29-02-2024)
Stick to reasonably values scripts rather than chasing > 50 P/E small cap stocks
Investing Basics – Feel free to ask the most basic questions (29-02-2024)
Except for a few things, a lot of things change with time we spend in market, as we gain knowledge and experience. So, as you are at a early stage, focus on learning and investing as per your understanding.
If capital is a constraint, then you can think of exiting old ones which have not moved as per your expectation or which have gone down. If not, you can hold them for some more time and go forward with your latest picks. Until we have a broad understanding of things, whatever we do now can make us feel bad later – did not invest more as it got doubled, now it is 300% up, did not sell as it was 15% down, not it is 30% down. Even experienced investors are not always happy with their buying and selling decisions.
Members of this forum do this in different ways, you can check PF threads to see which style suits you. Hold on to something for years, letting something go after a few quarters, convinced and bought but found something better so exit, enter and exit where there is momentum, buy only which is deemed undervalued etc etc, many ways. And, as we gain experience, we grow as investors, we may have changed our styles and we may have become completely different investors.
Almost all have passed this phase, and this will be over with time.
“Polyplex Corporation “ Are Good Days Ahead? (29-02-2024)
Recently looked at the company and below are my first impressions.
The company has short term debt of 383cr and receivables of 882cr. The long term debt is 216Cr and investments are worth 230 Cr. Based on these I am guessing the debt position is pretty comfortable.
The cash available is 935Cr. Mcap is approx. 2700Cr. taking the difference the business is available for approx 1800Cr. Assuming that the FY24 sales will be 6000Cr, thats 0.3x P/S. That seems to be very cheap.
Further, the pain of lower realizations can persist for another year or 2, cant say for sure though, but in any case the current levels of OPMs are on the lower side compared to 10yr history.
Additionally, stake sale by promoter took place recently at around 1500/share, so anyone buying now is entering at much lower price, so that could also be a comforting factor.
So, there is a change in ownership in the offing, reversal of margins after couple of years is a good possibility, the share price can further correct for sometime which gives the buyer time to accumulate slowly and monitor the performance of the industry and company. Lastly there is some value left in terms of the valuation of the Thai subsidiary, but that also would keep going down as long as the pain in the industry continues, so not ascribing any value there.
Overall, looks like a value buy, and will demand lots of patience.
Disc: not invested, but thinking to invest.
Samhi Hotels – Turnaround with Tailwinds (29-02-2024)
Was going through Q3 concall of EIH where the management mentioned few snippets from the latest Howarth Report. (Full Report attached)
Avantel (29-02-2024)
Avantel Receives another order from Garden Reach Shipbuilders worth 5.48 Crore
c4d27caf-c9fc-45a0-bab1-50abee78380a.pdf (541.5 KB)