I think receivables are the main problem with these companies. They get the job done with big production houses but not get paid for many months as they are dependent on these production houses for vfx work. These production houses work on many projects simultaneously hence they provide work regularly to these companies but delay payment of previous work done. That’s why these companies are venturing into producing movies. Recently digikore also moved into production with jio. Phantom also have its own production house. One more point when the biggest vfx company of the world Dneg balance sheet is not good I don’t think so these companies will post good result. Sora is also a threat for them
Posts in category Value Pickr
IDFC First Bank Limited (30-05-2024)
I noticed that all the entities to whom the shares will be issued are insurance companies. Out of 6, 4 are life insurance companies. Does this say anything about the long term vision of these companies? Do they believe in the long term story of the bank?
TAAL Enterprise – cheap valueations (30-05-2024)
Decent growth in FY24 for the company. Consolidated FY24 EPS is now at Rs.119 vs Rs.100 in FY23. 19% growth in a tough year for other IT services company, is pretty commendable, although this is in niche Engg Design segment.
122Cr - Investments/Cash & Bank Balance,
Rev from ED Service is Rs.194 vs 159 ~22% growth,
PE at Rs,2600 is ~21. MCAP is 800Cr.
Link - FY24 Results
IDFC First Bank Limited (30-05-2024)
Pref issue for 3200 cr at 80.63
Arman Financial Services Ltd (30-05-2024)
In terms of trends, you see PAR 30-90 has moved up for all MFIs. Below is trend for CA Grameen. This was predicted by Arman management 2 quarters ago
NIM is higher for Arman and cost to income ratio is lowest amongst Satin, CA
What needs to be watched is GNPA/NNPA
Piccadily Agro Industries Ltd (30-05-2024)
Camikara 12Y old is available in the UK for £80 - £90.
Action construction equipment ltd (30-05-2024)
Themes of India: Construction Equipment Industry - Sudarshan Bhandari (smartkarma.com)
This is behind a paywall, so only for paid subscribers. But guess if articles start showing up, indirectly there is interest in Analyst community, lets hope its positive.
Phantom Digital Effects Limited (30-05-2024)
Decent results if we look at YoY. With this it will now be available at a PE of around 22, why is the pessimism, is it because of the AI threat? Or has the impact of job cuts at DNEG has spooked the investors? Even Basillic Fly is available around 20 PE, seems like the market is not willing to give any premium to this whole sector.
Arman Financial Services Ltd (30-05-2024)
Arman has the highest ROE amongst MFIs and this trend has more or less been sustained over the years. Can’t compare with MAS, which is more of a wholesaler for MFIs
Growth is more or less in line with CA and Satin, and on a smaller base. Arman grows its loan book conservatively, this has always been the case since Demonetization
Recent Growth has been driven by geographical and product expansion, into UP/Bihar new geographics and into MSME loans away from MFI, and now growing into LAP and Individual business loans. Management has been giving clear sequential numbers for each business in transcript and presentation.
Monte Carlo Fashions-Branded Apparel Stock at Good Valuation (30-05-2024)
I tend to disagree. Brand carries great aspirational value in Tier 2 and Tier 3 cities. Anyway no brand makes money from LFS and mall stores as rentals are extremely high and Metro guys buy in discount sales only .
Once you have sale, they will go to 4 floors etc.
One important thing that i have noticed with Monte Carlo is that their winter wear sizes and fits are designed for Indian population’s physical attributes which makes it popular.
My comments are based on experience from few stores in Tier 2 cities in Himachal and M.P.
Problem with Monte Carlo is that they are winter focused. I don’t know how they will address this issue but they need to find a solution.