Another important question would be the funding option that Nirma would take to buy 75% of GLS + any amount of shares being tendered via open offer. Both put together amounts to almost 7000 crores (assuming entire 17.1% of public shares being tendered)
Nirma had already taken on debt for their earlier cement company acquisition. If they take additional debt now, they would definitely depend on dividend payment from GLS
Above framework can be used as a screener. I normally try to find companies which have good scores based on this framework. Once I do that and have bunch of stocks, I do the qualitative analysis on them which includes analysing growth potential, quality of management, any major corporate governance issues, guidance etc.
The other way it can be used to see how do the scores look like for companies you have in mind which have huge growth potential. If they have scored poorly but if you still have conviction, you can choose to ignore the poor scores and still invest in those stocks.
These screens will basically allow you to avoid companies which have low ROCE, huge debts, low debt paying capacity, huge proportion of sales required to cover fixed and variable costs. Such companies in the bull run may do good but as the situation gets worse, they are the ones who will be more fragile than others.
Hope it helps.
This Article from Morning Context (June 2022) captures some of the issues which might be playing out now (read the investor concall HDFC management had recently and the share selloff since then)
“Is HDFC’s merger with its subsidiary a bailout plan?”
Read more at: Is HDFC’s merger with its subsidiary a bailout plan?
Rumors about Glenmark selling the business are from March-April, so nothing new unseen has mentioned, it was always going to be a good for GLS due to conflict of interest going away. Please share your views than views of people from X (formerly Twitter)
The data is very confusing, especially in the absence of any guidance by the company. If egg prices in US has come down from 5$ to 1$ a dozen from Jan to June, then it is surprising to note that Q4 of last year and q1 of this year is showing highest ever profit by the company. May be this is due to contract pricing, which was executed later. In such a scenario, whether company is not duty bound to inform exchanges/ shareholders such drastic fall in prices? When SEBI is doing so many things, they should look into transparency and shareholder information as well. Shareholders, as part owners, have a right to know the business position of company.
The data is very confusing, especially in the absence of any guidance by the company. If egg prices in US has come down from 5$ to 1$ a dozen from Jan to June, then it is surprising to note that Q4 of last year and q1 of this year is showing highest ever profit by the company. May be this is due to contract pricing, which was executed later. In such a scenario, whether company is not duty bound to inform exchanges/ shareholders such drastic fall in prices? When SEBI is doing so many things, they should look into transparency and shareholder information as well. Shareholders, as part owners, have a right to know the business position of company.
Hi everyone, If anyone is tracking Aeroflex ltd please have some important insights
Hi everyone, If anyone is tracking Aeroflex ltd please have some important insights
Hi everyone,
If anyone is tracking chemtech industrial valves ltd please have some important insights
Hi everyone,
If anyone is tracking chemtech industrial valves ltd please have some important insights