IMO It doesn’t look like 8Cr. It’s a ratio which means it could be 8100 times median salary.
Posts in category Value Pickr
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (06-06-2024)
InvIT REIT are strcutured product based on Cashflow. So Depreciation -Amortisation charge, which are major P&L item, are non-cashflow item. Since in equity, corporate is assume to run indefinite, it would need capex to surivive and grow and hence Maintenance Capex and Working capital requirement are deducted from Profit to calculate free cashflow to equity owners. However, Hybrid products (InvIT/REIT) work on current assets which are already financed from debt/equity mix and are owned. For instance, IRB InvIT have right to collect for say 15 years for Toll assets which is valued say Rs 90. So every year, as per accounting policy, there would be amortication charge of Rs 6. However, the InvIT has already paid for same. Future acquisition in IRB InvIT or any REIT/InvIT would be funded be new unit issuance or fresh debt . Hence, accounting proft or loss (after charging depreciation/amortisation) would be misleading. Hence, better way to look at Cashflow (defined as Net Distributable Cash flow or NCDF). The calculation of cashflow exclude cash avaiable from assets, less operating and maintance cash expenditure, less interest and principle payable to third party (for InvIT/REIT colnsolidated) and to parent (for InvIT REIT standalone subsidiary which normally cancell out on consolidation). Since future acquisition would be funded by new debt/equity mix, the current cashflow shall be look at net available cash (net of interest/princiapal repayment of exisiting loan and not depreciation which is accounting charge). or NCDF to get better perspective.
Hope these answer your query.
Please not that I am not REIT/InvIT expert and my understanding may be wrong.
Disclosure I am not SEBI Registerd advisor. I am not suggesting any investment action in REIT/InvIT. I have invested in IRB InvIT/India Grid InvIT/ Embassy REIT and Brookfield REIT. My view may be biased due to my investment. I am increase/decrease/exti from InvIT/REIT investment without informing forum.
Maithan Alloys Ltd (06-06-2024)
The co. has 1,788 Cr in investments, mostly in equities which they bought in the last few months. Full year revenue was 1729Cr. with a OPM of 7%. The margins are closer to the lowest margins the company has witnessed in last 10 years. They have switched on the furnace at Impex, which was turned off due to unviable operations. I guess the cycle must be turning, very low margins+starting the furnace. If I remove the investments from the m.cap (3300cr)…then the business which is debt free, is available at 1500 cr, thats P/S of 0.87 and could be a good investment idea.
What I dont like is the mgmt’s unwillingness to distribute the cash to the shareholders. They have made massive equity investments which they should not have done, unwise capital allocation.
Disc: very small allocation, not an advise
Mudit’s Portfolio (Stage Analysis + Relative Strength) (06-06-2024)
Right thing to do, we may expect some rupee depreciation going forward, Govt Capex will be lower for sure which may take all Modi stocks down by 30-40 % from here, auto anc, FMCG, Consumption is theme as crude price may drop.
Max India – Demerger, Will sum of parts be greater than single entity (06-06-2024)
This is Max India forum, not the Max healthcare.
Varroc Engineering Ltd (06-06-2024)
I bought it looking at PE, now it looks expensive… more like 40 PE
Hitesh portfolio (06-06-2024)
Hedging is like keeping pressing accelerator with one foot and break with the other because one is afraid of accident. It gives a false sense of security but in reality consuming a lot of fuel and damaging the car (plus one is not really not going anywhere).
Better to drive judiciously or in case of investment, build a portfolio that allows one to sleep peacefully and focus on their day work through market cycles. If one is worried about their portfolio at every event then probably they need to rethink their portfolio.