Thanks for sharing your thoughts, more than benchmarking my thought is to look at opportunity cost. I have shared my thoughts on this earlier (see link below). My internal benchmarks are Nifty, Banyan Tree and MAPL as these three capture most styles that I like. I also used to benchmark against few other PMSes like 2Point2, Sageone, etc. but stopped doing that because my results were much better, especially during bad markets and most PMSes do well during good markets, and then give up a lot during bad markets. For e.g. during FY20 my folio went down by 17.38% vs average PMS losing between 30-50%.

There is only 1 PMS I know that had limited their downside during 2020 fall and yet matched the subsequent rise (Stallion). However, their style is quite different, they are very nimble folks and thats not my style.

You should only do it at smaller time frames, for longer time frames just compute IRR. Its more accurate.

IMHO, this is among the companies that is high on EBIDT and low on PBT.
Disc: Holding 20% of my portfolio in this company, long term ;-(

Thanks @Denny_David, but I don’t exactly follow. Possible for you to please use any year, say FY 23 to illustrate this with numbers for IZMO?

And what does ‘written down value of FA sold’ mean?
I take it that the depreciation they’ve mentioned in largely amortization as most of the FAs are intangible assets. Is this true?

Sorry for a lot of basic questions, and that you for your patience.

In fact, at 800cr valuation for Frog, and with 65% postbdolution holding for aiZMP, this stake itself will be worth 500cr for IZMO. Assign whatever holding company discpunt that you must.

The operating cash flow conversion looks amazing too, at over 100% over the last 4 years. On first principles, this does look like a no brainer if theyvare able tonachieve their growth guidance as RoEs will improve and the stock can re-rate.

However, the constant increase in intangible assets worries me a bit. I’m not sure what these are exactly, and how business critical they are. Also, the cash flow statements over the past few years have shown fixed asset purchases of 35cr, 24cr, 22cr and 29cr in FY 20 to FY23. However, on the balance sheet, I see a fixed asset increase of only 19cr, 5cr, 12cr and 18cr respectively. How does this reconcile?

P.S. Accounting is not my greatest suit and please educate me if I’m reading this wrong.

No positions yet

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