Pls let me know as well
Posts in category Value Pickr
ValuePickr Jaipur (25-05-2024)
Is this forum active in jaipur, if yes, how to attend the VP meets in jaipur, can any one pls guide.
Corporate Fraud/Misdemeanor – Public Domain – India lessons (25-05-2024)
Dear Sir, Could you please elaborate on the fraud in Wardwizard food. Thanks.
Tanla Platforms ~ Leading player in the fast-growing CPaaS market (25-05-2024)
Tanla has suffered from a serious of issues and when it overcomes one, the next one is there.
- 2 years back there was intense competition leading to revenue fall and margin loss in NLD business.
- While the above has stabilized now, ILD business has tanked over last few quarters. At one time Tanla had 75% of revenue in this market. Now it has 25% possibly. Hopefully in Q1FY25, it will stabilize.
- New platform launches have not performed in general. Wisely ATP is same boat.
- Vodafone-Idea deal which was delivering ~70crores GM, is gone and last 5-6Cr/qtr will come in Q1 and then the platform business losses will be over
- Industry went through consolidation. Each of the acquired players such as valuefirst or Kaleyra would have been giving business to Tanla. Even TeleSign would have been giving. These business would have already gone away, or if any of Telesign is left, will go away in Q1.
- So, it seems in a way all the bad things that could happen, will be over and done by in Q1FY25. Last 2 years havent been great and the entire benefit of buying Valuefirst business somehow got lost in all these.
- Now for good part (nothing great) -
a) the industry has gone thru consolidation. No one will presently want to do price wars. All acquirers will be wanting to bring up EBITDA. Competition intensity will be lower.
b) The NLD business (incl OTT) is still growing in range of ~15%. Once all disruptions are through, this growth will start showing. Tanla with laser focus on domestion enterprise business might overperform and add marginal marketshare.At stable gross margin of around 20%, it can hopefully, be predictable once again. The international business of Valuefirst is yet to be consolidated and it will give some drag as its EBITDA -ve or breakeven business.
c) Tanla seems to be doing well in OTT - this is re-assuring.
d) The platform business after Vi impact in Q1 can start showing 20-25% growth from Q2 without much help from Wisely ATP. If Wisely ATP deals happen it can do a crazy jig over next few quarters (but better not to count anything from it at this point - even the management is clueless on when business will happen - whether domestic or international)
Basically the business results would return to normalcy with steady growth. Few quarters of steady growth should be re-assuring for investors. If it can do some good acquisition to broadbase its business - it will be good. They generate good cash and investment requirement is not much. Unfortunately with Tanla’s standalone balance sheet they can’t do much of buy-back, unless they merge in karix and valuefirst. They need to figure out some good acquisitions either in CPaaS itself or in somewhat related space.
In short better days ahead, but great days can’t be there, unless platform start performing.
Microcap momentum portfolio (25-05-2024)
@visuarchie One question - Do you maintain different demat account for Microcap and Smallcap to see the portfolio performance? If yes, I believe you are following other strategy as well like Mid cap. So do you have separate demat account for that as well?
Vishnu Chemicals – Is Growth sustainable? (25-05-2024)
Back on Track?
Vishnu Chemicals reported strong sequential improvement in EBITDA (up by 55% Q-o-Q, 4% Y-oY) with highest ever absolute EBITDA in a quarter. EBITDA margin also improved to 21.2% during 4QFY24 (13.3% in Q3FY24, 18.1% in Q4FY23). This was achieved despite significant increase in freight cost and soft realizations. Good performance was driven by strong improvement in the Barium chemicals. PAT was subdued due to higher tax expense (mainly driven by Rs.7.5 cr deferred tax, which is a non-cash item).
Overall performance for the quarter looks impressive. Vishnu is one of the few chemical companies, which has reported decent quarterly performance in the sector which is facing headwinds.
FY24 performance as compared to FY23 is weak with decline of 14% in operating income, 12% in EBITDA and 26% in PAT. However, strong sequential recovery during 4QFY24 is a comforting factor.
Q4FY24 PR.pdf (913.0 KB)
The stock is trading at 20x FY24 earnings. It looks attractive considering resilient performance with indication of performance coming back on track, leadership position in Chromium and Barium Chemicals in India, continuous efforts towards forward and backward integration and overall growth prospects.
DIIs entered the stock for the first time during QIP issue in August 2023 and continue to gradually add. Stock is currently trading below QIP price of Rs.345.
Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be positively biased. I am not suggesting any investment action. The information provided above is for education purpose only.
ValuePickr Pune (25-05-2024)
please add me too in the group also interested in joining meet up
ValuePickr Pune (25-05-2024)
please add me too in the group also interested in joining meet up