Posts in category Value Pickr
Rajratan Global – Focused Tyre Beadwire Company (07-09-2022)
No disclosure by company to exchange?
They are disclosing directly on TV.
Suven Pharma ~ Demerged CRAMS Arm of Suven Life Sciences (07-09-2022)
Sources share that the Promoters are evaluating options to sell Suven Pharma and have hired an investment bank to advise on majority stake sale in the company.
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“Sale of Suven Pharma is to raise funds for drug development in Suven Life Sciences which have so far been funded by the promoters through dividend earned from Suven Pharma,” a source added.
Glenmark Life Sciences (07-09-2022)
Personally, I feel the major reason for stock underperformance is lack of topline growth. Rest all parameters - margins, management credibility, industry segment etc are all good
Rajratan Global – Focused Tyre Beadwire Company (07-09-2022)
https://twitter.com/i/status/1567404147531718662
Rajratan has received Michelin approval. That is the reason for 11% move today.
https://www.screener.in/company/DSSL/ (07-09-2022)
Can anyone throw some light upon Dynacons Systems & Solutions Ltd.
IDFC First Bank Limited (07-09-2022)
Highlights of AGM 2022:
V. Vaidyanathan:
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“We expect RoE to tend upwards of 15%. That is how our business is fundamentally structured. When I saw 15, I mean upwards of 15, I mean 16, 17 percent return on equity, that is how the underlying economics are.”
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“Yield, cost of funds, operating costs all may come down a bit. Short point is that it is all making good return on equity. You keep compounding the machine, the bank will get to see very, very good equity.”
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“Our Board’s internal target for PAT was 1700 crore for this year, but frankly, we’re running a bit ahead of that.”
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“On the deposit side, we may be letting go of some fee here and there as it is a customer first bank and all that, but I’m telling you, the goodwill of the bank is amazing, just amazing. Because our employees reflect the goodwill. We rarely lose customers on the deposit side.”
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“We are very happy with our card business. We are touching about 1 million cards, and around 2 million cards, the profitability starts coming in. We think that by this year, that is by FY24, our internal estimate is that we should post 100 crore of profit, and by FY25, our internal estimate is – so please treat it with the skepticism you should because the numbers are not done yet – but our internal estimates are that it will cross like 400-500 crore of profit in the subsequent year. It’s peak takeoff. We have done 2-3 years of serious investment. But that’s how businesses are built.”
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“We think that our current mix is giving us a proper six percent NIM, no problem with that. If you ask us what our lookout is for 2023, we feel NIM six percent will probably be there. Now if you ask me to look far ahead into FY24, 25, 27, 28, well, I don’t know, it might come down, but at that point of time it could be because by that time mortgage may be a bigger proportion of the book and so on. But I can’t take a definite position on that.”
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“Only thing we don’t post is our Return on Equity. The only thing I tell you is that when we solve the issue of Return on Equity, I believe our bank will be valued what it deserves to be. And people like Morgan Stanley who are valuing us today at 30-34 bucks, they don’t understand the bank .”
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“We will open branches as and when required. We have given a guidance of 800 by FY25, we are far ahead of that. There is no fixed number from here on.”
Affordable Robotic & Automation Ltd – Niche business (07-09-2022)
Yes, unfortunately there is no new information. The delivery numbers yesterday and day before are high, 77% and 82% respectively - totaling to a little over 1 lakh shares. There are only about 20 lakh shares being traded (removing the promotor and large individual investor holdings), so it is likely that someone is building a large position.
This is the quickest up move I have seen on any position personally, 36% in a week since buying, so I’ll be honest I am a bit tempted to book out and see what happens. Will resist the temptation for as long as possible, and hope some more information comes to light soon through some disclosures. Lets see.
Mahanagar Gas Ltd – a natural monopoly (07-09-2022)
MGL is more focused on PNG, with someone business from CNG and lower business from industrial segment. But they do not have many circles. I guess they have only 3: Mumbai, Thane & Raigad
IGL has similar business as MGL. More of PNG / CNG and less of Industrial. They are largely concentrated around NCR. Recently they announced big capex but not sure where they will use this capex.
Gujarat Gas has more business from industrial area. Gujarat government, few years back, made it mandatory to use CNG as industrial fuel (banning Diesel). This seems to be 1 reason why its margins are low. Also, they buy more from open market. ( not sure how IGL & MGL buy).
Please note, around 70% of industrial sale of Gujarat Gas comes from Morbi reason which is the hub for ceramic manufacturing. Morbi, in turn, sale most of the produce to foreign market. For last 1.5 months, Morbi was shut down due to high inventory at consumer location. Also, because of Russia war, gas prices have shoot through the roof. Since GGL source is from open market, there cost increased and subsequently, there prices also increased. Because of this, 25% of Morbi has switched to Propane, as alternative to PNG. This has impacted there margin. But GGL has wide reach. Gujarat, MP, UP, Haryana, Rajasthan (Don’t remember the 6th state). Among all these negatives, GGL share price is up around 10% in last 1 month.
I hope this background helps. Please correct if, inadvertently, I stated incorrect fact.
Disc.: Invested in GGL / Exited MGL sometime back