Last week, I asked a few questions – but didn’t get satisfactory answers. but Macquarie helps!
Current business is trading at ~2x book value.
Disc: no holding. closely tracking to see if the evidence so far merits an action.
Posts in category Value Pickr
Tata Steel – Would be merger be of any value? (13-02-2024)
Withdrawal of TRF’s merger with Tata Steel has triggered quiet a rally in TRF. I tend to agree with the upmove
My simple thesis on this name:
- Withdrawal of merger is a clear indication that the worst is behind – both financially and operationally
- A CHP (Coal Handling Plat) manufacturer, it is likely to be a beneficiary of growing thermal power need in the country. TRF is a vendor to BHEL who has been winning significant quantum of thermal power orders. Those should start to reflect in its vendor books as well.
- At 14x trailing PER, it is one of the cheapest stock among peer set.
- Finally, despite recent run-up, market cap is just INR 530cr. For a Tata Company, that should indicate signicant upside potential.
Happy to hear others’ views.
Globus Spirits (13-02-2024)
For the first time, since I’m looking at it, they’ve taken a good decision of not expanding capacity of ethanol. I think this should bring more focus on Consumer biz. Need to watch out as it is not easy to build a consumer brand.
Disc. Not invested at all and not planning to anytime soon.
Zen technologies – A micro cap in the defense space! (13-02-2024)
I have found this on the website of a magazine name ProjectX. The news item is dated it’s from 10/Sep/2023. This news item talks about 160cr Anti drone contract award to Zen technology. What is of interest of us in this? The interesting thing is the prerequisite for award is 60% of indigenous content and Indian IP.
So, Can we conclude that all the components and firmware(software) cann’t be imported?
Zensar technologies (13-02-2024)
Thanks Hemant for your valuable insights about the margins normalizing. It is difficult for an outsider to view the industry dynamics. I have also been invested in Zensar since 2022 ,average cost being around 280. I have also been invested in OFSS since 2021 from 3000 levels and never sold, it now comprises 5% of my Pf. I liked the stickiness of the OFSS product and once a bank onboards OFSS it may not able to leave it in the long run or the costs may be very high. As fund mamagers are now dissing HDFC/Kotak/icici… I think it would be now prudent to buy at around 10-15% fall from here.
Tips Industries Limited – Ready to RACE ahead! (13-02-2024)
Was going through Pershing’s (PSH) 2023 annual ppt, wherein they discussed Universal Music group’s thesis and opportunity at hand
Disc: Invested from 2021 levels (position size here). No transactions in last-30 days.
Zen technologies – A micro cap in the defense space! (13-02-2024)
So only option is to ask them on the IP for anti-drones in the concall .
Rajesh Exports: Time to examine this story seriously? (13-02-2024)
Loll never seen this happen. Atleast mention the reason the dividend was not approved.
PI Industries – Superior Business Model (13-02-2024)
Surplus cash is Rs. 32,926 million. Refer page 6 result press release.