@hitesh2710 Sir please share any video/book from which a new investor can learn about how to read balance sheet, P&L etc and how any retail investor filter exceptional business and avoid its loss from company who is manipulating the data.
Posts in category Value Pickr
Linc Ltd: Writing the future of Bharat (15-12-2023)
The promoter group added a few 1000 shares in November end when the stock hit 675-700 range. Not sure how to read this, though listing of peers may render re-rating of Linc, considering there 2nd quarter blip was a one-off event.
NIIT Ltd (15-12-2023)
Sharing notes from Q2 FY24 concall
Business
- Revenue 381.9 crore, up 27%
- Excluding newly acquired company St. Charles, the revenue growth is up only 7%.
- Added 4 new customers. Total active customers are 85
- Renewed 4 customers out of which 2 were expansions
- Maintained a 100% renewal rate
- Visibility of $350 mn (~Rs 2870 crore) over two years
- Temporary increase in working capital due to transition of contracts from the parent entity to the new entity.
- Cash balance 585.5 crore. Net cash balance 480.9 crore
- Added 78 employees QoQ. Total headcount at 2468. The new addition was done to service customers added in the last quarter
Risk
- Uncertainty in demand continues for a longer time. In such cases, the company may have to rely on inorganic expansion. Fortunately, they have a decent cash balance of Rs 585 crore at their disposal.
Management
- Guided that revenue growth for FY 24 will be ~12% to 15%. Management expects 20%+ revenue growth in the long term but not immediately
- EBITDA margin will be 22% to 24%
- The acquisition approach is that NLSL looks to gain new clients, new geography or new capability. EIT InnoEnergy acquisition will help gain clients in the green energy sector. It is applicable for both large and small customers.
- AI will materially impact NLSL as well as their clients
- Management is actively looking for inorganic growth
- Expect headwinds in the near term. Per management, deal velocity has accelerated which is visible in new customer additions.
- St. Charles has performed better than expectations
- No challenge on supply side. They are able to hire and retain talent
- NLSL has 25% trainers in full-time roles and the rest on a contract basis. Note that apart from training, there are other services such as building content, managing schedules and programs, purchasing on behalf of customers and building technology
Titan Company Ltd : a three decade old company (15-12-2023)
Why market loves companies like Titan. They have shown that they can completely dominate all luxury segments in India.
But they are not limiting themselves with that. They are slowly laying growth path for two large segments.
This can easily be bigger than watches and get to 5000 crores in not so distant future.
- Precision manufacturing
Scaling to 10x i.e 5000 cr . Current revenue is 510 crore.
At 6x valuations we are looking at 60,000 crore mcap addition, which is 20% of current mcap outside their traditional biz.
Caplin Point Laboratories (15-12-2023)
yeah, you are right. But I’ve noticed one thing they are not telling you the reason for resignation. They only write personal reasons for resignation.
Bhansali Engineering Polymers – An Import Substitution Story! (15-12-2023)
Stock up 15% this week on good volumes. Is this move in anticipation of benefitting from rising trend in increasing collaborations with Japanese innovators?
ValuePickr- UAE (Dubai) (15-12-2023)
I know there are a lot of active ValuePickr members in UAE, but did not find any active UAE forum on the platform. As I am based in Dubai, will try and keep the meetups in Dubai to start with.
The idea is to connect once a month share learning and do some research together on Indian Equity. Initially, I will arrange for the venue and some logistics (and snacks for sure) to keep the group going. If anyone is interested connect with me by a message (DO NOT POST YOUR PHONE NUMBERS ON THE GROUP, PLEASE), I will create a WhatsApp group just for members later.
Please abide by these basic rules, and request you make this group a success for NRI’s in UAE.
Meetup group Rules.
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No messages to be posted in this group that are not related to the meetup. Kindly use forum.valuepickr.com for anything you want to share other than meetup.
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NEVER Promote excessively (buy/sell) any stocks or personal businesses.( Kindly Keep in Mind SEBI guidelines)
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During meetup limit discussion to Valuation methods, stock research/analysis, tools to use, etc.
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I will strongly not promote any day trading stuff on the group.
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Let’s keep the focus on Indian Listed equity, and not try and bring in other assets/regions.
Forum Co-Ordinator
Linc Ltd: Writing the future of Bharat (15-12-2023)
Views on the long consolidation?
Praveen’s Information Attic (Obervations, Lessons, Thoughts) (15-12-2023)
Few Thoughts regd the portfolio and expectations from current market
- Considering the Interest rate cuts to happen in US, FII flows into indian market should improve and I see the Market and my Portfolio to do well even though current valuations in the market are not too attractive (index wise). While at individual stock wise
- Most importantly Interest rate cuts should have very positive effect on IT stokcs and the rally has started. I feel that cos like Infy, Mastek, Mphasis, TCS giving >25% returns in next 1 year. This opportunity is tempting me but I already these stocks are trading at >20,25x valuation and so not cheap by any means. For that reason I’m refraining from selling some existing PF stocks to move into IT. My only existing IT investment is CIgniti tech. And Moldtek Technologies is into Construction activity in US (some kind of ER&D, but of inferior quality). I’ll see in future how this plays out
- K solves is an IT co which is trading at 37x FY24E which is too expensive. But considering the US interest rate scenario and the growth being > 40% it may give decent returns
Disc: No reco to buy or cell
Praveen