audited financial statement march quarter
5cc903a1-b493-4700-87d9-75f00e50a4fd.pdf (3.9 MB)
Posts in category Value Pickr
DDev Plastiks Industries – A Smallcap Gem (20-05-2024)
Rategain – Fast Growing SaaS Leader (20-05-2024)
Not sure if Rategain will benefit from this trend. They have almost no exposure to the Indian hotel industry. If I recall correctly, India only contributes around 1% of their revenue. Most of their business comes from USA and Europe.
Avanti Feeds (20-05-2024)
I don’t agree its a good business as in it isn’t a good industry, look at the performance of any of the other listed players. There is no pricing power, RM cost is highly variable and volatile but governments are on your back all the time to not pass on price increases, working capital management is extremely challenging because of the kind of customers (look at Jain irrigation or any of the pipes players who largely cater to rural areas to understand what I mean).
Nevertheless there is a huge gap between how Avanti has done and how the its compatriots have performed. It may be management quality or it may be books not being pristine or a bit of both, I am simply unable to tell. Better to track and sit out till there are signs of cyclical turnaround which at the moment there are none.
Sahil’s Portfolio (20-05-2024)
This was helpful, but don’t you think these one liners it will clutter the tread? And will force the moderators to shut it down. Better to use it on ‘X’
Sanghvi Movers (20-05-2024)
Thank you for your explanation. I have 2 major caveats to your view:
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You are using 15% yield but that is just the revenue it generates. To calculate value, we need to see the amount of free cash flow it generates and not the revenue. As mentioned in my earlier calculations, a simplistic cash flow comes out to around 9% (this may actually go a little up or down with leverage but ignoring that for now)
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I feel 9% discount rate is quite low. I personally will not invest in a stock if I feel it will give me an average return of 9%. Using XIRR method, i would discount at at-least 13-15% which is the minimum return I feel is worth investing for (Usually I aim for even higher but since we are talking very long term I feel 13-15% seems like a reasonable discount rate)
Note: Again my own personal rough calculations and views. Please let me know if there are any errors.
Sahil’s Portfolio (20-05-2024)
This was helpful. Thanks
Sahil’s Portfolio (20-05-2024)
Thank you Sahil. Much helpful.