Can you share the report?
Posts in category Value Pickr
Gujarat State Petronet Limited (23-05-2024)
Regulation risk is always there in such companies. PSE companies don’t care much about investors unless they want to divest, that’s the only time share price matters to them.
Sanghvi Movers (23-05-2024)
It was a simple example. Can do this for debt also.
Suppose 100 crores of incremental debt is taken and cranes are acquired. Assuming their is no time lag in acquiring after debt is taken and they get immediate delivery for simplicity.
From that the unit economics look like:
As per previous post, 20cr revenue, 12cr EBITDA.
Interest on 100cr according to me would be 9-12cr. Being optimistic and taking 9cr.
Gives us PBT 3cr and PAT/Cash flow of 2.25cr
But if we take into account effective depreciation, assuming 40 year life, 2.5cr will be depreciation which will be more than PAT/Cash flow. This is when we assume 9% interest on debt, but in reality is likely to be more.
Note: My personal rough calculations, might be errors
Kamat Hotels (India) Ltd- A Possible Turnaround Story! (23-05-2024)
Any idea if this is a positive for the company? Like can’t see any valuations for the companies being merged. Is the ratio fair?
Waaree Renewables – old Sangam Advisors – can it keep on renewing? (23-05-2024)
There are several truisms related to equity market that are universal in nature. One of them is “what goes up must come down and vice-versa”, all other things being equal. A variant of that is “what goes up harder must come down harder”, again all other things being equal.
In other words, whenever stock prices go out of sync with fundamentals and valuations, a correction (upward or downward) always happens.
Coming to Waaree Renewable. In one year earnings are only 3x while stock price is 13x. With all due respect company is not a unicorn and nothing they are doing is special or unique. So it beats me as to why a renewable business should get a P/E of 120 (that too after 40% correction).
52 week highs and all time highs strategy (23-05-2024)
Hi Vishal…One query, as I am learning and came across VCP and Minervini book recently.
The 2nd basic condition for VCP as well as overall momentum investing is the sector of the respective stock should also be in momentum.
But when i check hotel sector…
Indian Hotel seems to be in stage 3
Juniper hotels in stage 4
Mahindra holidays in stage 3…
Somewhere i read that the 50% upmove of stock is due to overall market and itse sector being in momemtum.
EIhotel is cleary in stage 2 and in VCP but its not from sector which is in momentum. That is the reason, even if I hold this stock in my PF, but have low confidence, which may prompt me to sell at any slight downfall. Please help me clear my doubt and pls say that I am reading it all wrong
Varun beverages fast growth duopoly business (23-05-2024)
Concall Notes - May 2024
Financial Performance:
- Consolidated sales revenue grew by 10.9% to Rs. 43,173 million in Q1 CY2024.
- Consolidated net realization per case increased by 3.5% to Rs. 179.7.
- Gross margins improved significantly by 385 basis points to 56.3%.
- EBITDA increased by 23.9% to Rs. 9,887.6 million.
- PAT grew by 24.9% to Rs. 5,479.8 million.
Operational Highlights:
- Three new greenfield facilities were commenced in Supa, Maharashtra; Gorakhpur, Uttar Pradesh; and Khordha, Odisha.
- Sustainability efforts include reducing sugar content and lightweighting packaging material.
- Entered into an Exclusive Snacks Appointment Agreement to manufacture and package Cheetos in Morocco by May 2025.
- Successfully completed the strategic acquisition of the Beverage Company (BevCo) in South Africa.
- Expecting the DRC greenfield plant to start production in the next quarter.
Future Growth Initiatives:
- Focused on three growth engines: South Africa, new territory of DRC, and snack food production in Morocco.
- Expecting favorable operating and financial leverage in CY25.
- Debt levels are well within norms, with a Debt-to-EBITDA ratio around 1 - 1.25.
Challenges and Opportunities:
- Delay in the Holi festival impacted the seasonality cycle in the first quarter.
- Market expansion plans in South Africa and DRC to capture growth opportunities.
- Continuous efforts to reduce sugar content and enhance sustainability practices.
Market Expansion:
- South Africa market potential is close to 1 billion cases with significant room for growth.
- DRC market has a population of over 100 million, aiming to capture a sizable market share.
- Focus on enhancing production capabilities and making new acquisitions to strengthen global presence.
Debt Management:
- Debt levels expected to stay consistent with Debt-to-Equity ratio around 0.5 - 0.7.
- Amortizing debt for BevCo acquisition and CAPEX in the next couple of months.
- Long-term strategy to maintain leverage ratios and enhance financial efficiency.
Industry Trends:
- Quick commerce and e-commerce channels still not prominent in the segment.
- Continuous focus on product innovation and market penetration to drive growth.
- Positive outlook on future growth potential driven by new projects and strategic acquisitions.
Source:Screener notes
Disc: Invested
ValuePickr Bengaluru (23-05-2024)
I would like to be a part of Valuepickr Bangalore WA group if it is active.