Why Bank Of India is unseen by most of the investors?
Posts in category Value Pickr
Investment in Bank Of India (13-05-2024)
Satin Creditcare Network Ltd – Reaching out! (13-05-2024)
Satin Management has provided guidance indicating a significant decrease in Return on Assets (ROA) for the current fiscal year compared to the previous one. This is attributed to a slowdown in disbursements and an increase in stressed loans, particularly in Punjab. Should we interpret this as a sign of growth topping out and a deterioration in asset quality? This pattern has occurred multiple times in the past, and it seems the market is already factoring it in. As I’m not an expert in this sector, I would highly appreciate expert view on this matter.
Piramal Pharma Limited (13-05-2024)
Con Call Notes from Q4-FY24. CMP 154
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EBITA Margin 17%
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Interest cost not coming down in Q4 despite 1000 cr debt reduction in Q3-
- Overall rate has not come down
- Some interest on tax due to better outperformance (I did not get what it means, but it seems to be some sort of one-off part)
- Reduction in interest rate will contribute to lower interest rates in the future.
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Capex of $87 million
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Dahej capex is likely to come onstream by Q1-25
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Investment in key starting material, debottlenecking for CHG
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Capex will be similar to last year in FY25.
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Innovative business 50%. Grown by 20 CAGR over last 3/4 years
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40% of the order book is for integrated services (orders for more than one site)
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Once biotech funding improves, growth will come back from emerging companies. This is not reflected in the current guidance
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Visibility is higher than last year as compared to last yearly
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Due to nature, PPL high inventory during Q1-Q3 but it goes off as proudct is shiiped to clients.
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Peptide- Generic business is doing well and working towards getting into the on-patent business.
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18 months back, PPL saw funding issues with Bio-tech and hence pivoted to big pharma. This pivot has helped in Fy24 with more business from big pharma.
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PPL has been doing conjunction for over ten years
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Biosecure has increased interest from clients in innovative patent work.
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ADC- Number of large pharma visited in last six months. So expect to get business from them in the coming yearly
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Most of CDMO’s capabilities are in place. So, future capabilities will be more brownfield.
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Generic product capabilities are fungible for patent-related work if needed.
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High fixed-cost business. Increased sales drive professionalism. CDMO and ICH will be drivers of the increase in profitability in the future.
India Consumer Business
- New products launches in e-commerce. Once they are successful then PPL will launch in general trade. They kill them if they do not meet target.
CHG (Hospital Generic)
- Incurring non-recurring expenses related to CHG, so cost - Cost of 8-9$ million
Outlook for Fy25
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Early teen growth-
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CDMO will be better than CHG
This is the best slide to track the company performance
My Take
I get the impression the company is keen on expanding on patient businesses. Last year, two companies announced the commercialisation of two products. I think their business would have been a major driver of the increase in revenue for the patent business. As they launch their product in the market, and as the product gets better accepted, it is likely that these two recently launched products will give more business. I think the CDMO on-patent business shall be higher significantly again in FY25, even if there is no more product commercialisation in FY25.
Note- Invested
Rajesh’s portfolio (13-05-2024)
It’s below average but i will hold as they had not given any guidance and had said that will interact in a year… Rail capex is huge expecting a few big orders
Piccadily Agro Industries Ltd (13-05-2024)
Apologies for my out of turn attempt to answer …but here goes …
You should probably listen to the Spotify link in post no . 121. The thing is more complex than simple capacity of malt. Listen from 12 minutes onwards .Piccadily does not make only INDRI …they have other blended whiskies and they also sell a significant quantity of 2-3 years old malt to other whisky sellers as well. Currently they are reducing these external sales but that also means they are not so much constrained in capacity because of malts availabilty but they are constrained by number of casks in which they age the stuff . Currently they have 47000 casks and are going to add 55000 more by end of 2024 . While this indeed means the extra casks won’t get sold just now but the maturing period is also varying depending on the desired finish by the blender and that in turn that depends on their target market . So a bottle of indri bought in Belgium will taste different than one bought in Germany .So while currently they are selling 6 year old casks , since they do not provide any age statement , they can sell younger mix as well if the master blender deems it fit by mixing different casks .
So while it’s true that the expanded capacity will not get sold immediately, it’s also true that they are nowhere near the end of the ready stock since they have not even stopped selling malts to outsiders .That indicates that they do not foresee going out of stock for Indri in next 3 years at least since they are still selling some quantity of 3 year old malts to other breweries. .They are raising the money to buy the barrels for keeping inventory that will get sold in future just like they have kept inventory for past 11 years .
Disc… Invested .
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (13-05-2024)
Some institutions seem to have taken a principled stand against this daylight robbery but most others capitulated, unfortunately.
Zomato – Should you order? (13-05-2024)
Two Food Delivery Giants Comparison
Particulars | Doordash | Zomato |
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Market cap | $47B | $20B |
Revenue | $8.6B | $1.58B |
Annual net profit (latest) | $-0.558B | $43M (352 Cr.) |
Prev. Annual Net profit | $-1.36B | $-119M (-971 Cr.) (Loss) |
Free Cash Flow | $1.52B | $52.6M (431 Cr.) |
Cash, cash equivalents, and restricted cash | $3.247 (March 2024) | $1.46B (12,000 Cr.) (Feb 2024) (Concall) |
Gross Order Value | $65B * | $5.84B (47,918 Cr.) |
Price to Earnings (P/E) | – | 488 |
Price to Sales (P/S) (TTM) | 5.34 | 14.13 |
Price to Free Cash Flow (P/FCF) (TTM) | 30.92 | 397 |
- Doordash includes subscription fees in GOV, Zomato doesn’t
I did my best, but the numbers above may contain some slight unintentional inaccuracies. So, use your best judgment
Sandeep Patel: Investment Journey & Philosophy (13-05-2024)
Hi @spatel
Can you please share your portfolio updates. I really like your style of investing and curious to know your picks and how your portfolio is faring.
Addictive Learning Technology limited (LAWSIKHO) (13-05-2024)
Got the 1200Cr. figure from their Presentation will surely go through the interview. After the response I got from my friends, I have only been looking for reasons to invest.
It clearly says without launching new products, so technically they will have to diversify and diversification comes with the risk of diworsification. Just started digging deeper…let’s see where I land.
Combining AI and Equity Market (13-05-2024)
Can you share the GitHub link?