The EPFO data for Aug looks interesting. Big change in employee figures. Correlates to the new plant that got operational in Solan.
Posts in category Value Pickr
Maruti Suzuki – Leader in Passenger Vehicles (29-09-2023)
ask yourself and people around you, how much weightage they give to Traffic Jam when purchasing new car
Va Tech Wabag (29-09-2023)
I might have limited understanding of this ratio but Wabag has declared and is actively working to move towards asset light model having burnt their hands before. I think it should mean if they pull it off over the next 5 years and beyond, the ratio should improve. They also avoid financing the projects from their pocket. The question being where they can do it successfully.
I’ve heard them refer to themselves as water technology company rather than water utility/infrastructure company.
Va Tech Wabag (29-09-2023)
Hi, one of the issues that I see with Va tech is a non-lucrative business. I usually look at Ebitda/Total Assets ratio to gauge if a company can utilize debt to grow in case of a growth scenario. The company’s ebitda/total asset ratio has always hovered around 7.5% which means if they take debt at interest rates more than 7.5% that will incrementally diminish shareholder earnings (present interest rates for corporate clients are at 9%+). The company in its present form is unable to use debt to grow and thus I remain skeptical on any potential for realized growth unless something inherently changes in the business.
Hindustan Zinc – Galvanize Capital of Investors? (29-09-2023)
HZL notifies Stock Exchanges about potential demerger of core businesses. Will be interesting to see GoI’s take on restructuring considering that GoI did not approve the earlier intiative of acquisition of Vedanta’s overseas mines. This is different and may help ascribe loans to resepctive businessess , which is a key element in the entire Vedanta Group.
TCPL Packaging Ltd. — Statistical Facts & Figures — Views Invited (29-09-2023)
started tracking this business and found that it started doing well recently:
profit after tax jumped to 100+ cr which was in the range of 30 to 4o from years , what changed significantly in FY2023 that the profit jumped 2x ? and is it sustainable ? if anyone has deep dived in this business can comment on this …
Va Tech Wabag (29-09-2023)
Va Tech at current market Cap of about 2900 crs presents an interesting opportunity. Run by a passionate technocrat promoter, it is in the field of water mgt. Water is a scarce resource, & will be more so in the future. The Co. is in the exciting space of water recycling, creating wealth from waste. It is only a matter of time before it becomes mandatory for all manufacturers to become zero discharge, more so when the technology is available at a reasonable cost. In addition to re-cycling water, Va Tech has been in the field of desalination for the last several years, providing drinking water to the city of Chennai. With the vast coastline that we have, the scope for growth in the business is clearly huge.
The business has been explained in some detail by @ganeshrpl above. There is also sufficient data/ articles etc. available on this thread itself for those interested in building conviction.
The current valuations are indeed attractive. Adjusted for the one time hit taken in Q4 of 22-23 for long pending dues, the Company is available at a trailing multiple of 10! The huge amounts written off will in all probability be recovered sometime in the future, but that is not central to the basic investment thesis here, but rather the huge growth opportunities available in the water infrastructure space, together with a meaningful increase in valuations/ multiple of the Co. make it a compelling story!
Priyank’s Portfolio (29-09-2023)
SEPTEMBER EOM UPDATE
SUMMARY
- Added Shyam Metalliks while exiting Sparc/Vindya/RACL/FDC/Kovai
- No of holdings now stand at 22 (including MF)
- Avg MarketCap to Sales (for direct equity): 2.8
- Net uptick: 25.81%
- During the month some equities/bonds were getting sold at very low prices so I took entries with a short-term POV. However, have exited them now with some profit (ex: GS2052, AllCargo etc)
ALLOCATION
| MCap/Sales | Names | Invested % | Net Returns | FPD > 1 |
|---|---|---|---|---|
| PPFAS🔒 | 20.33% | 20.60% | Yes | |
| 0.98 | Godrej Agrovet🔒 | 8.68% | 6.36% | |
| 1.51 | Triveni Engg | 6.95% | 38.06% | |
| 0.70 | BCL Industries | 5.76% | 11.29% | |
| 1.46 | Exide Industries | 5.25% | 1.23% | |
| 2.25 | Sansera Engineering🔒 | 5.02% | 22.65% | |
| 7.23 | Ami Organics | 4.78% | 8.18% | |
| 2.15 | Gokaldas (GOKEK) | 4.57% | 103.58% | |
| 2.72 | Greenpanel🔒 | 4.49% | 4.30% | Yes |
| 3.12 | Max India Ltd🔒 | 4.34% | 18.41% | |
| 3.00 | Lupin | 3.80% | 33.80% | |
| 12.20 | M.K.Ventures🔒 | 3.51% | 5.82% | |
| 0.72 | TATA Motors – DVR | 3.46% | 7.00% | |
| 5.19 | Borosil Renewables | 3.38% | -11.75% | |
| 2.18 | L&T | 3.25% | 148.56% | Yes |
| 2.89 | Shyam Metallics | 2.77% | 0.08% | |
| 2.31 | TIIL🔒 | 2.75% | 59.94% | |
| 3.69 | Ion Exchange | 2.56% | 73.04% | Yes |
| 0.63 | Cosmo First🔒 | 1.80% | 2.83% | |
| 1.14 | MMP Industries | 1.18% | 78.79% | |
| 5.36 | Niyogin Fintech | 1.01% | -11.38% | |
| 2.07 | Banka Bioloo | 0.37% | 4.43% |
-
FPD>1: First purchase date was 365 days ago. May have added more / sold some at a later time
-
SHYAM METALICS: Needs a detailed post – will write later. (over the weekend hopefully)
-
RACL Geartech
Exited somewhere between 60% to 80% uptick (it was insignificant so didn’t care to remember). Bet size was getting insignificant with time (not comfortable adding at this valuation). Secondly, at 4 times Market Cap to Sales, chances of valuation re-rating were low (for comparison, Sansera is 2.2 times). -
FDC (< 1year)
Exited at around 15% percent uptick. The re-rating could have limited upside from here onwards. -
Vindhya Telelinks / Sparc Electrex
Bought them to study since they looked interesting – but – too many unknowns and unable to put the needed time. -
Kovai Medical
Very consistently growing business but if I had to pay these valuations, why not target faster-growing companies? I still like this so maybe I’ll review at lower valuations.
Looking interesting: Private Banks, Natural Gas, Textiles, Water
Disclaimer: Views are personal and nothing I say is a recommendation. I often go wrong and may even change my views without informing anyone.