Promoter buying selling 1 month before qtr result is pretty common. This is because trading window will close and no further transactions can take place.
Posts in category Value Pickr
Tips Industries Limited – Ready to RACE ahead! (31-12-2023)
Stance: Invested and bullish, hence biased. Looking to invest more.
What I understand from concalls – Management is risk averse. They have seen an industry phase when music labels were barely surviving when piracy was at its epitome.
Now the business model has completely changed in the music industry. However, management is still cautious. They are keeping 200 Cr for the same reasons I guess. For a typical business, it might look like the promoters are going horribly wrong and they are not investing the capital for growth.
But this business is different. The income is coming from the past 30 years’ repertoire, which management got it cheaply when the music industry was at its bottom. Also, the cost of acquisition of music has become increasingly difficult because of its higher value. Everyone has realized the gold mine it is. You buy music and earn forever.
Hence, the return on investment for present music won’t be that high.
Plus, growth is not entirely in the hands of management also. This is a business model where growth is driven by industry growth. Mostly an autopilot business like other digital businesses. Suddenly, no customer will stop listening to music from Tips. The more collaborations that will happen with paying platforms (Wynk, Instagram, etc.), the more will be the revenue.
There is oligopoly at the downstream side also. Lots of music platforms are fighting with each other – Amazon, Spotify, Resso, Wynk, etc.
Hence, no single platform has ability to arm-twist music label like Tips to reduce copyright fee in such a competitive industry.
Further, Tips expenses acquisition cost as a normal expense, not like depreciating assets – A practice followed by Saragama. So if they buy music this year. They will clear the expenses this year. There is no backlog.
This also shows how risk-averse management is. I feel they can be a bit forthcoming.
However, the key to win in this industry should be smart management of money. It’s like picking undervalued stocks (music). Don’t pay too much for “Quality music”. I feel the management can do so because of being risk averse.
Being risk-averse is great in this industry at this time. And remember the moat is fully expensed cheap past library, which is impossible to replicate.
Coastal Corp. ~2.5x capacity exp. 4x profits? Downcycle a risk (31-12-2023)
I am trying to gather some information on raw material for this ethanol plant. At the project initial stage Management assumed that FCI rice can be used at RM but now scenario is different, they should run with broken/damaged rice or 
. This may impact the margins as well till FCI supply resumes.
Management also confirmed in an interview that 400-450Cr revenue they are looking from Ethanol plant and q700cr from the shrimp business as they have started supplies to Japan and South Korea to derisk the USA businesses. Even if I ignore this growth in the shrimp business, ethanol plant can generate 40-50Cr EBITDA & can add ~ 30Cr to the bottom line.
Bulk Deals Bi-Weekly Log (31-12-2023)
Hi. Ajay Upadhyaya exited this in March 22. Where are you seeing his name in current year holders list?
IDFC First Bank Limited (31-12-2023)
As the letter itself says,
Mr. Suketu Kapadia who has
tendered his resignation as the Chief Internal Auditor (within the category of Senior Management) of the Bank, in order to head Internal Audit for one of India’s largest Banks.
This looks like a routine resignation to move to a better job opportunity.
Rishabh Instruments Ltd (31-12-2023)
and also if any body has idea what is market size of items in which Rishabh deals…such that we may know what may be growth of Rishabh if it grows
Rishabh Instruments Ltd (31-12-2023)
Thanks Harshit for starting this thread…I also have started tracking Rishabh about 15 days back… few more things which I would like to add:
PROS
(1) company has given a guidance of 700 Cr in CY although they already have achieved 352 Cr in H1 and historically H2 has been better than H1
(2) Rishabh is overseas based in Poland where it enjoys EU funds for innovations R& D which may be considered very good, Poland is one of most developed countries in EU ,22 % sale of Rishabh group comes from Poland
(3) Company sees huge scope in its newly rolled out solar inverters if it works company margin will increase drastically
Cons:
(1) Company has received a notice from tax authority, but they have challenged, although they have already made provision in B/S
(2) A expense in form of ESOP due to some legal requirement has to give company profitability will be affected upto FY 27 as every year they will pay foe ESOP till that year
Please add something if left out
Corporate Actions : Buyback , Market Purchase or Sell (31-12-2023)
Innovasynth Investment looks like a good candidate for corporate action – Backdoor entry with Raheja holding 36% in listed holding . The associate entity is in profit , there recent move of disclosure of associate company profit and management change is a good sign
Senco Gold: Upcoming gold story! (31-12-2023)
I think there’s a mistake. It should be the largest organised retail jewellery player in Eastern India.