Posts in category Value Pickr
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (11-05-2024)
All the REITs have declared the Q4 results and DPU. Indigrid and PGinvit are yet to declare theirs…I have updated the yield table below…(whoever has declared Q4, it is there; otherwise, it is from last year Q4)…in Nexus, there is approximation since they have not done a full 4 Q year…as always, this is my calculated sheet…there can be errors and I am open to feedback
Lt foods (daawat) (11-05-2024)
Sharing whatever little I understand considering last 5 years. India Gate is a strong brand of aged basmati rice which is reflected in their margin (14-21%) which fluctuates with RM cost and other factors. Chamanlal Setia does not age rice so OPM is lower but still fluctuates widely (8-14%). LT food appears to be following an approach to either invest profits back into strengthening business by innovations, efficiency etc. or passing on benefits to customers to maintain its 12% margin even in good years. Considering the risk scenario you mentioned, they should not need to put anything even in bad years as the margin in aged branded basmati rice from india gate is always northwards of 10%.
What if we dont find any gold underground ? (A Rational calculation attempt) (11-05-2024)
I am personally extremely Bullish not just on Gold but also Silver and other base metals. The way we are seeing extreme money printing by USA & High Debt levels, both globally and the way Japanese Yen is collapsing against the dollar.
There is increasing chance that the treasuries will soon not be viewed as a safe & stable asset. There is no alternative except GOLD.
Forget about getting out of gold in 15 years, What if the demand doubles the next year in Anticipation??? We will run out of Gold Mining within 7 years or less. I dont know how things will PAN OUT, but there seems to be a sense of urgency in Central Banks around the world to lap up Gold & Silver. Especially Russia, China & India.
I think there is a huge opportunity lying in abduance and nobody is aware. well not many.
P.E. Analytics Ltd (PROPEQUITY) – Another Data Analytics Platform for Real Estate Players (11-05-2024)
Interesting insights from the presentation -
• Client retention rate stood at 81% in FY 2024.
• Added over 8400+ residential and 950+ commercial and retail projects, exceeding 1,73,000+ projects and 57,500+ developers across 44 cities in residential, commercial and retail asset class.
• Cash reserves and liquid current assets have exceeded over Rs. 750 million as of 31st March, 2024. (Around 25% of current Market Cap)
• Subscription business revenues grew by 10%, consulting vertical was flat
• added 54 new clients in the subscription business, current annual subscription contracts stood at 215 as of 31st March, 2024.
• Revenues from valuation business have more than doubled from last financial year
• grown from 35 to 70+ clients (Banks, HFCs and NBFCs) in valuations and CRM vertical
• Adding new verticals in the valuation business, Auto Valuations and Plant and Machinery Valuations in FY 24-25.
• 369 employees in FY24. (195 in FY23)
• International expansion through Middle East
• Company is also looking for right projects to launch their Developer Asset Management Business. Completely asset light with no investments from Propequity’s balance sheet
IRB INVIT TRUST- new game in the town! (11-05-2024)
Another quarter and another DPU of Rs 2…not much has changed and IMHO…this is causing a negative bias in the price. It has steadily declined now, over the last few months…
I have updated the yield table with the latest (whoever has declared Q4, it is there; otherwise, it is from last year Q4)…in Nexus, there is approximation since they have not done a full 4 Q year…as always, this is my calculated sheet…there can be errors and I am open to feedback
Here is the investor call transcript
Rajesh’s portfolio (11-05-2024)
Can you please throw some more light on Techknow green like Revenue guidance, Promotor integrity, competitors, etc?
Unihealth Medical Consultancy – The Caplin of Hospitals? (11-05-2024)
They are generating less than 5% revenue from consulting business and their main clients for consultancy are not in African regions so no point in helping competitors grow.
Phillips Carbon Black (11-05-2024)
PCBL did Aquapharm acquisition followed by INR 448 Crs warrants issue (equity at maturity) which stands at around 7% of current net worth. Below is my brief thought process:
Thesis:
- Management is trying to move towards more stable margin business from commodity highly cyclical. They have selected market leader in the segment (2nd biggest globally). In case this works then we’ll see totally different PCBL in few yrs.
- Warrants at reasonable price is a signal that management is doing walk the talk. I have seen many companies issue warrants at quite cheap rates (as they get at older average price) when stock prices zoom, taking advantage of price movement. But PCBL seems to have not taken advantage of this. Also reason for this equity infusion was guided well in advance.
- Promoters are connected to chemical business. Though not openly revealed but Nov-2023 concall hint is there about know-how of opportunity in this acquisition.
- Valuations for Aquapharm are quite reasonable. As an optionality, in case this chemical company’s earnings/margins are right now temporarily suppressed due to overall chemical industry headwind, then it can be great acquisition.
Antithesis:
- It is definitely a divesification into unrelated business. Management will require able team to run this business.
- As new company acquisition is still its at early stage, no management guidance exists. Quantification of future size is difficult at this moment.
Overall:
I have taken small tracking position, mainly due to confidence and walk the talk from management. But definitely it’s an early stage, actual benefits will take some time.
Sahil’s Portfolio (11-05-2024)
Sahil sir, Your thesis on Addictive Learning Technology (Lawsikho) company.