Company has also started a new subsidiary in GIFT city to be engaged in leasing ships and there has been a change in one director position . The only thing that is unfavorable is the management commentary on not going aggressive on fleet expansion till the end of FY 25 as in current cycle prices aren’t favorable , so with too much cash on hand with too little deployment opportunites this quarter PAT of 905 Cr is very big base to grow from.
Posts in category Value Pickr
Cera SanitaryWare Ltd (13-05-2024)
Hi investor, does anyone know about the Building materials industry’s size?
JTL Industries – Fast Grower at an inflexion point (13-05-2024)
Let’s not forget a structural improvement over the years across other metrics - be it ROCE, ROE, Inventory days, Receivable days, etc etc. Its premium is based on a history of good return on incremental capital deployment albeit agree it is still on the higher side. It should take more than one or two bad quarters to derail this valuation.
That said, why does the company have such a horrible history of CFO to EBITDA? The 9 year cumulative PAT is 320 cr while 9 year cumulative CFO is negative 27.3…
PSP Projects – Construction Company (13-05-2024)
Can someone throw light on these statistics I got from comparing annual report of March 2018 with March 2023.
PS Patel’s compensation was 4.09 Cr as March 2018 and went up to 15 Cr as of March 2023. (Yet to get the latest figures). During the same time, the companies net profit went up from 42Cr to 133Cr. PS Patel’s compensation has improved 4x whereas the PAT has grown 3x. Ratio wise, the comp is > 10% of the PAT (even though < 10 % of EBIDTA) Is this desirable?
Few thoughts:
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Even after factoring in delayed revenue from projects such as SDB, why is the board giving so generous compensation to one individual?
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When the PAT fell ~20% YOY (FY '22 to FY '23), PS Patel’s compensation was seen rising from 14.8 Cr to 15.6 Cr for the same timeframe. Isn’t compensation linked to performance? What is in it for shareholders?
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From what I know, PS patel does not offer shares to employees. How can this organisation sustain from this one man army. This does not sound well.
Please help me understand if this is par for the course? These certainly don’t seem like a good situation.
Time technoplast (13-05-2024)
Insiders selling is a important indication - whether small or big.
Time techno is correcting more than market. Could it go to 215 levels?
Pharma || Hospitals || Diagnostics : Industry perspective (13-05-2024)
As far as healthcare sector is concerned, most governments tend towards populist policies. I think that’s mainly because doctors are not a vote bank, and hospitals don’t have a very strong lobby. This means regulatory overhang will always be there, irrespective of who comes to power. Universal price control will be difficult to implement. It will effectively kill high end work in the country. But like it was done for stents in heart disease, specific therapy costs are definitely candidates for capping.
Neuland Laboratories Limited – Transformation towards niche APIs? (13-05-2024)
Neuland results: Drop at quarterly level, but excellent if looked at an annual level.
To be fair management has always guided to view results at an annual level or a longer time frame.
Stock is taking a beating now.
I feel the growth story is still intact . It’s a value migration theme from prime API to CMS and specialty. With biosecure act the opportunities will only improve. Balance sheet is also improving .
Disc : Invested and is the highest weight in portfolio.
JTL Industries – Fast Grower at an inflexion point (13-05-2024)
There is a permanent change in debt-equity position. Equity has been diluted, debt reduced and balance cash kept in books. When ROE> cost of debt, why hurry to pay off debt? Is it becoz of some time compulsion to convert preferential allotment into equity?
This will naturally impact ROE and multiples.
Need to watch market’s reaction to results. The Q4 production data was a clear warning of what to expect ( i had pointed that out in my April 8 post), but market prefers to continue giving premium multiples.
Smallcap momentum portfolio (13-05-2024)
@SaurabhVj Corrected the cell reference. Thank you very much.