Thanks @ishanagarwal89 for those great set of questions on concall,
It is the first time I found vaidyanathan’s answers not convincing at all…
Bank has failed to deliver on promises of 40-45% growth in PPOP and on many other fronts…
No solid explanation about elevated provisions is a big worry…time to rethink about our investment thesis it seems…
Posts in category Value Pickr
IDFC First Bank Limited (20-01-2024)
RPSG Ventures – A proxy IT play and an emerging FMCG company (20-01-2024)
Its to fund the expenses of their sports division… largely IPL team and FMCG business.
South Indian Bank (20-01-2024)
Quick notes from SIB concall:
- Cost of funds → continue to rise due to deposit repricing, cost of deposit 5.18%
- Cost to income → As compared to peer, is higher; close to 62%; provided IBA rate settlement, accounted for 15%, but final settlement amount was 17% (additional Rs. 24 crore); even without this cost to income is still higher, management is looking to improve it – Looking to increase customer facing employee from 75% to 85% thus increasing branch productivity; can decrease cost to income
- CD Ratio → Currently ~78% CD ratio, deposits book grew 9% yoy; have some space to grow which can be P&L accretive
- Contraction of NIMs → NIMs currently is 3.19% on account of liabilities repricing faster than assets, squeezing the margins. Want to restructure balance sheet, have higher yielding assets.
- Will be targeting MSME and retail, in 3-4 years want to bring corporate loan book to near 30% from 38%, the 6-7% difference will be added to higher yielding assets (MSME, LAP etc.)
- Capital Raise → No decision has been taken yet
- Enhancing Portfolio Resilience → want to have more granular book
- Deposit Concentration → 62% of deposits come from Kerala
Jindal Stainless (Hisar) (20-01-2024)
Quick notes on Jindal Stainless concall:
- Rathi → by FY25 expect to have 70% utilization; this will have wire rods and rebars; expected run rate of 9-10k tonnes/month; 4-6k ebidta/tonne in FY25; 150crs of capex → some of it already incurred, in FY25 around 75crs of capex will happen
- Rabirun → in H1FY25 should be able to start the plant; current capacity of 4-5k tonnes/month, eventually want to make 8-10k tonnes/month in the pipe and tube segment; in the beginning i.e. H1FY25 will only have 1-1.5k tonnes/month volume; Approx 75crs of capex; 100% JSL material will be used (generally 50% 200 series, 50% 300 series)
- Iberjindal → in the future expect to have good demand when the European market rebounds; in FY22 did ebitda of 109crs, and PAT of 80crs; management is very bullish hence bought the stakes
- Jindal Coke → valuation hasn’t been decided, ebidta last quarter was 56crs, debt 450crs; net debt ~300crs
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Capex FY24 → earlier guidance was 3300crs which has been increased to 3600crs for two reasons
– Rabirun → 100crs
– NPI → tranche of $26million (225crs) being preponed to March - Pipe and tube business in the next five year will grow at 10-12% cagr
- Series 400 → every quarter 2-3% contribution is increasing; currently 25% contribution
- Freight Cost → not passing on the increase in cost right now, if the problem persist will pass
- Guidance → 19-20k ebitda/tonnes; see good demand in the domestic market
Harsha Engineers (20-01-2024)
Is there any other listed company that makes bearing cages?
E2E Networks Ltd – Listed small Cloud computing player (20-01-2024)
In simple terms- Tensoic built the Kan-Llama model and provided the training data.
E2E Networks provided the high-powered cloud platform with NVIDIA A100 GPUs to run the model. Xylem.AI provided their platform for deploying and running the model on E2E’s GPUs.The question arises whether Tir Platform of E2E network ( which also has AI/ML enhanced capabilities to run the model ) could also be used. It means E2E Networks has to further improve on capabilities, so all facilities are available to customer at one place.
Disclosure: Invested
Deep Value – RPSG Ventures (20-01-2024)
Does anyone know purpose of recent fund raise through prefer share to Promoters? Thank you.
AGI Greenpac- on the cusp of growth? (20-01-2024)
SBI don’t see it resolving soon. Read below news
Tega Industry – unheard story (20-01-2024)
f71ff4c6-5813-4641-8718-2a0528e73d79.pdf (223.3 KB)
ESOP by Tega