I have exited today. If they lose the case, it’ll wipe off the entire company. If they win, it’ll take a couple of years for the judgement to come. With so many other companies to invest in, I don’t see the point in hanging around here for the law to take its course. Cheers.
Posts in category Value Pickr
Mazagon Dock: aptly called “Ship Builder to the Nation” (25-09-2023)
Pak gets Chinese Submarine. India flexes it’s muscle with 2,00,000 Crore plan to counter Dragon in Indian Ocean.
India is forced to augment it’s Navy fleet. While this may Augur well for defence stocks for next one decade, if Modi Govt’s Strategy of Atma nirbhar Bharat and increased defence budget continues.
In my view , even if there is change in Govt at center , i don’t think anyone will ignore our nation’s defence capability and cut defence spends.
However , the stocks have run up quite a lot during last one year when the stocks were available @10-12 P/E. Currently all the 3 shipping stocks are trading at near to all time high @ 40 P/E discounting future earnings and market would like to watch next few quarters to re-rate.
Key risks:
(1) Though the Q1 performance was very good. we should not expect the same performance Sequentially though annual growth could be expected due to long gestation period of ships.
Any degrowth could lead to drop in price could be a buying opportunity or any sharp correction in mid cap sector could lead to price drop.
(2) The plan to augment the fleet need to get converted in to order from Navy and the order needs to be executed and execution should result in to profit for which market would like to see.
(3) PSU’s normally slow in execution, but these 3 companies have capability to execute and urgent defence requirement could force them to execue.
discl: invested at low level and still holding, no transaction since last 2 months. not a buy sell recommendation. Pl do your own assessment before buying & selling
Adlabs Entertainment : Smoother Ride Ahead? (25-09-2023)
AGM Notes 2022-23
Opening Remark:
- Company is now debt-free.
- Achieved the highest-ever revenue of ₹250 crore and ₹100 crore EBITDA.
- Opened a new location, Aquaimagicaa, in Surat.
- Attracted 11 million visitors (footfall) in FY2023.
- Expansion plans include adding 6 water rides to Imagicaa, a large banquet facility, and introducing a new fountain show for visitors at Imagicaa.
- Initiating the setup of a captive solar plant.
Q&A Session:
- Capex (capital expenditure) for the solar park is approximately ₹44 crore.
- Q1 (first quarter) performance is seasonal due to winter.
- Company is looking to expand in North India through organic and inorganic growth strategies.
- Aquaimagicaa in Surat achieved ₹11 crore EBITDA in Q1.
- NPA (Non-Performing Asset) default curve is fully addressed.
- Commenting on the merger or acquisition of WetNjoy and Imagicaa is too early at this stage.
- The company plans to add 2 to 3 parks within the next 5 to 7 years to Imagicaa.
- Negative depreciation is observed due to net impact (annual depreciation is ₹90 crore, with a reversal of ₹140 crore for impairment, resulting in a net impact of -₹51 crore).
- The company has added a water fountain show at night, enhancing the visitor experience.
Advanced Enzyme Technologies Ltd – The Enzyme company (25-09-2023)
One of the promoter group has exited the business and has been selling in the open market. I don’t think Advenza can directly compete with AETL. Mgmt. had informed the same in one of the concalls. Also, enzyme is a high-entry barrier business with a long gestation period, product testing and approvals, switching costs, and a long customer acquisition cycle. A significant concern that persists, however, is the lack of growth, which has been elusive for the past few quarters.
Disc: Biased. Invested in self, family, and client accounts.
Introducing StockInsights.ai: AI-Powered Equity Research Tool (25-09-2023)
This is great, can see myself using it a fair bit! From a Diligence perspective, I think it will be helpful if you can add something in terms of “frequently asked questions” or “tips and tricks”. Possibly, even provide a couple of ‘real examples’.
National Peroxide (25-09-2023)
On the National Peroxide demerger, today is the record date and can see that Market cap is still 955 odd crores, which is more than sum of the holdings of BBTC and bombay dyeing,which adds upto 800 crores. Are we missing something please.
Thanks
Linc Ltd: Writing the future of Bharat (25-09-2023)
Benchmark was French Stationery Major BIC’s valuation to Cello…Linc was damn cheap and Mitsubishi was holding a chunk into it…Thought Mitsubishi will do the same with Linc…though it didn’t happened, tracking company for few years builds conviction…consumer company,building brand,good management was enough for me hold for long…though topline was not growing…Pentonic changed that alongwith Deli distribution…future seems tobe exciting with Morris deal and Kenya Manufacturing…following para from Concall :
- In the quarter gone by your company formed a subsidiary company, Morris Linc private limited the objective is
to form a joint venture between Linc and Morris. Morris which is a leading global writing instrument and
stationery player based out of South Korea having a portfolio of a few patented products in the writing instrument
category was looking to start get some manufacturing in India. They found Linc to be an ideal partner for this
venture. Linc will be the majority shareholder with an extra golden share.
Dis. Holding and totally biased…