thank you for the write up, the step by step points makes it easy to understand for new investors…
Posts in category Value Pickr
Rain Industries – An oversold de-leveraging play (20-02-2024)
its Rain CFO. order was mentioned for RAIN plant only.
RHI Magnesita India Limited ( Orient Refractories ) – Speculation cum special situation (20-02-2024)
From what I recollect from the concall,
- Company exceeded their KPI targets set by the parent, making them eligible for more than 100 % bonus. Since provision is made only for 100 % bonus at the start of the year, balance provision for entire 9 month period was made in Q3, leading to higher employee costs. This creates a one-time bump in Q3 which will not recur in future quarters.
- Interest cost is higher due to adverse movement of the EUR to INR exchange rate. But this is a fully hedged loan and hence the excess will be reversed in future over the tenure of the loan.
- There was a workers’ strike in one of the factories. However, the management held their ground and after 9 days, the workers resumed work unconditionally. But 9 days production was lost in the process. Now the relations with the workers union are cordial.
- Company held back shipments to a customer who was delaying payments, leading to 5 % lower sales. The customer has now started making payments on time and shipments have resumed.
Thus, though the gross margins have improved, all of the above have led to lower EBIDTA and net margins. But as we can see, all the above are one offs which will hopefully not recur or get reversed in future.
DCX Systems Ltd (20-02-2024)
Got some queries on how this is different from Kavach.
Kavach is an anti-collision system for 2 trains running on the same Track.
DCX’s system is a driver alert system to detect any object in front of the track for a range of about 1.5KM, in all-weather conditions.
The end user may need both systems.
Globally, there is no other system like the one DCX will offer. The opportunity is tremendous, in my opinion.
Management has to deliver in Q4 and Q1FY25. If they execute the way they’re talking, then we are looking at an absolute gem in the making.
L&T – Bluechip, Value play, Digital giant in making (20-02-2024)
L&T should get a good share of this. They are a monopoly in pvt sector.
Current generation has been developed by DRDO and L&T.
Govt will definitely try to bring in other manufacturer for strategic reasons, may be defence PSU at Avadi which makes current T72 tanks.
RHI Magnesita India Limited ( Orient Refractories ) – Speculation cum special situation (20-02-2024)
Where they are invest money?
In recent concall MD and CEO of RHIM Parmod Sagar also told that EBITDA is decreasing due to investment. Can anybody tell me
Sujata’s portfolio (20-02-2024)
24 stocks is too much in any portfolio. Please maintain only 10-15 stocks. It will give you better visibility.
In the stocks, Manyavar will not have good sales in next 6 months.
Stock like Avlon tading at 75 PE will not be sustainable unless earnings double in next 2 years.
Please remove these 2.
The multibagger hunt: requirements & challenges (20-02-2024)
PAT down 45% YoY due to higher employee expenses