There are many mills which still have cane dues to pay. Farmers and Govt. both have realised that price is one thing but they should get the money also !! a few weeks back farmers were protesting at a govt mill in UP for paying cane dues !!
For the sector to survive Govt has to take balanced view. Sugar companies have already put new ethanol plants on hold due to inconsistent ethanol policy.
The sector has to go the Brazil way or else it will not be good for farmers – sugar cane is the most profitable -low risk crop in India.
Posts in category Value Pickr
Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains! (30-11-2023)
Shakti Pumps – solar shakti (power)! (30-11-2023)
I think it is clear from the con call that for this 50k pumps, shakti will going to be sole supplier and for that portal is getting ready. Otherwise management would have stated it in con call.
Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value (30-11-2023)
They do secure lending to SMEs at ~14%. Which is actually aligned with market range. My family being once part of the informal lending system can say that these kind of yields are actually inline.
Even today, good businesses do not mind taking credit at 12-15% range in cash (& goes unaccounted from formal P&L reporting). Now for credit taken from likes of Ugro, the interest expenses becomes part of formal P&L and hence net-net beneficial for the debtor (vis-a-vis informal loan).
Usually in any sector, whenever informal and formal competes, formal business suffers because of compliance, tax costs etc. Herein, UGRO is competing head-on with informal lenders & this makes it a unique proposition for them (they just need to keep their asset quality, credit cost in control).
Long term investment strategy (Buy, hold but don’t forget) (30-11-2023)
Equity market earnings grow slower than GDP due to entrepreneurial capitalism driving GDP growth, not existing enterprises. Historical data suggests a 2% lag in US stock prices and dividends compared to macroeconomic growth. For future returns, consider a dividend rate of 1.5-2% and dividend growth 2-3% less than India’s nominal GDP growth. Source: William Bernstein and Rober Arnott, “Earnings Growth: The 2% dilution”, Financial Analysts Journal, 2003.
Long term investment strategy (Buy, hold but don’t forget) (29-11-2023)
Earnings of equity market must grow slower than GDP because the growth of existing enterprises contributes only part of GDP growth. The role of entrepreneurial capitalism, the creation of new enterprises, is a key driver of GDP growth, and it does not contribute to the growth in earnings and dividends of existing enterprises.
During the 20th century, growth in US stock prices and dividends was 2% less than underlying macroeconomic growth.
Source: William Bernstein and Rober Arnott, “Earnings Growth: The 2% dilution”, Financial Analysts Journal, 2003.
The total return of the market (broad market index like nifty 500) is comprised of dividend & divided growth in a long time frame. The best assumption to make to calculate future return is dividend rate at 1.5 to 2% and for dividend growth rate 2 to 3% less than the nominal GDP growth rate of India.
TCS opportunity (29-11-2023)
For buyback on proportionate basis, is it in the proportion of shares tendered or the shares held as of record date?
Thank you
Praveen
SmallCap Hunter : Trying to find the dark horses with triggers (29-11-2023)
Now you can say that you were too early to exit Integra Eng