investkaroindia.in offers the same if not more at one tenth of the cost
Do check it out.
I have used SOIC in the past
Posts in category Value Pickr
Using Artificial Intelligence/Machine Learning to improve Decision Making Skills and enhance Predictive Analysis (20-10-2024)
Good list of tools to utilize in stock and industry research covered in detail by Ishmohit.
BLS International (20-10-2024)
I wonder if any profitability numbers such as EBIDTA are available for VFS Global. We could have done a comparative valuation for BLS, then. Might be difficult to get since it’s privately held.
Newgen Software (20-10-2024)
I’m in the software business so understand your point. It may not always be true but generally it’s usually the case with companies with unique advantage (e.g. network effect, monopoly etc). With NewGen there is no clear trend in their margin trajectory and their OMs have been ups and downs.
There are other factors one need to look into to assess how much operating leverage a software company can unlock with growing sales than making a broad-brush determination.
For example, what’s the software revenue component in a typical deal size and how much is services? Higher portion of the first is good while more of the latter is bad.
Second is how much of their product sales is on Cloud vs how much on-prem? The first is lower margin but better annuity business than the latter.
Finally how much of their business comes through single source vs tenders? In the latter, margins again tend to be lower.
As I mentioned, having seen their offering up close, I don’t think NewGen really has any moat. There are plenty of document management system providers in the market who offer similar software. And that’s reflected in their uneven and lower margins (20-24%) for a very long time although revenue growth has been in decent double digit.
But that doesn’t make things bad for NewGen per se. If I were to choose between a great company in a bad sector and a not so great company in a great sector, I’d always invest in the latter because I get the advantage of rising tide.
Newgen in my view falls in the second category. It has got tide under it with growing digitalization in the world. So I expect stock to do well in the near future and that’s reason I continue to hold it while being aware of its strengths and limitations.
Methanol Engine/Methanol blend (20-10-2024)
NTPC and Tecnimont sign MOU to explore possibility to develop Green Methanol Production.
What are the other companies producing (or beneficiaries) sustainable methanol in India?
Praj, Thermax, BHEL, NTPC, Deepak Fertilizers, RCF, GNFC
Axis bank – Turnaround imminent (20-10-2024)
Axis Bank –
Q2 FY 25 results and concall updates –
Deposits @ 10.37 lakh cr, up 14 pc YoY ( CASA deposits grew by 5 pc, CASA ratio of 41 pc )
Advances @ 10.00 lakh cr, up 11 pc YoY
NII @ 13.48k cr, up 9 pc YoY
Non interest income @ 6.72k cr, up 34 pc YoY
Operating expenses @ 9.5k cr, up 9 pc YoY
Operating profits @ 10.7k cr, up 24 pc YoY
PAT @ 6.91k cr, up 15 pc YoY
Consol RoA @ 1.92 vs 1.83
Consol RoE @ 18.08 vs 18.67 pc
Gross NPAs @ 1.44 vs 1.73
Net NPAs @ 0.34 vs 0.36
Total provisions ( specific + standard + additional + contingent ) stand at 153 pc of Gross NPAs
NIMs @ 3.99 vs 4.11 pc YoY
Cost of Funds @ 5.45 vs 5.17 pc YoY
Total Branches @ 5577 on 30 Sep 25 vs 5377 on 31 Mar 24 (opened 150 branches in Q2 and 50 branches in Q1)
Breakdown of loan book –
Retail loans – 5.98 lakh cr, up 15 pc YoY
SME loans – 1.10 lakh cr, up 16 pc YoY
Corporate loans – 2.90 lakh cr, up 3 pc YoY
Gross slippages ( annualised ) @ 1.78 pc vs 1.97 pc QoQ vs 1.49 pc YoY
Net slippages ( annualised ) @ 0.96 vs 1.37 pc QoQ vs 0.59 pc YoY
Net credit cost @ 0.54 pc down from 0.97 pc in Q1
Fall in Gross and Net slippages on a QoQ and YoY basis is a key positive
Integration of Citi Bank’s entire portfolio with Axis bank completed in Jul 24. Behaviour of customers ( in terms of banking transactions post acquisition ) is satisfying
Cost / Income @ 47.29 pc, down 207 bps YoY
Bank’s head count has increased by around 4000 employees vs Sep 23 – due opening of new branches and hiring related to improve the bank’s IT infrastructure
Aim to open a total of 500 branches in the current FY
Most of the slippages are originating from the unsecured retail lending part of the book. Bank is monitoring the same and taking actions as deemed fit
Breakup of the retail loan book –
Home loans – 1.67 lakh cr, up 5 pc
Rural loans – 89.6k cr, up 20 pc
Personal loans – 75.4k cr, up 23 pc
Auto loans – 58.7k cr, up 6 pc
LAP – 67.2k cr, up 25 pc
SBB – 61.9k cr, up 23 pc
Credit Cards – 43.7k cr, up 22 pc
Commercial Equipment loans – 11.6k cr, up 4 pc
Others – 22.7k cr, up 26 pc
Total – 5.99 lakh cr, up 15 pc
71 pc of the retail book is secured, 29 pc is unsecured
Bank aims to accelerate the secured part of retail lending and calibrate the unsecured part of it – so as to best manage
Bank is maintaining its discipline on deposit rates. They intend to maintain this discipline going forward as well ( provided the mkt players behave responsibly )
In Q2, operating expenses went up by 9 pc. Bank expects this kind of moderate growth in costs to continue going forward as well
Expect the growth rates in home loans to remain moderate as the risk adjusted returns in this segment are on the lower side ( due lower yield on home loans ) – hence is Bank is going slow on them
The bank is not in a position to give a guidance weather the stress in unsecured – retail slippages has peaked or not
Small and Mid corporate book has been growing smartly for the Bank for last 5 yrs. In all likelihood, the same is likely to continue in the future as well. According to the management, MSME should turn out to be the best banking area for the next decade !!!
Bank believes that it can keep growing its loan book at rates 3-4 pc above the systemic credit growth. That should mean a loan growth in the vicinity of 14-16 pc. Q2 is an aberration. They believe that they can achieve these numbers for the full FY
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
Great articles to read on the web (20-10-2024)
“The past wasn’t as good as you remember. The present isn’t as bad as you think. The future will be better than you anticipate.”
Raghav Productivity Enhancers (RPEL) (20-10-2024)
good point, a drop in 1 to 4% will be noticed but 20% drop and no action at all means, someone is not managing operations really well. and NOT reporting it to management in a way that requires materially significant disclosure.