source for this news please? Was wondering why the price was rising over the last few days.
Posts in category Value Pickr
Hitesh portfolio (02-09-2022)
Hitesh sir,
what are your views on kalyan jewellers
KPIT – CASE (connected, autonomous, shared, electric) – Focused Automotive Play (02-09-2022)
Sounds fine to me. While looking at the figures I was also in doubt whether these were reimbursements by Sentient or investments by KPIT.
They should clarify to Exchanges that media articles giving credit to KPIT for Hydrogen powered bus launches are incorrect.
KPIT – CASE (connected, autonomous, shared, electric) – Focused Automotive Play (02-09-2022)
Hi, I got the below reply. It says the money was paid from Sentient to KPIT not the other way around. Not sure how sentient was able to give that money. I think the reply is fine. What you think?
Dear Investor,
Trust you are doing well.
We value and appreciate your investment in KPIT.
Apologies for a late revert on this.
Since the year 2019-20, KPIT Technologies Limited has sharpened its business focus only in the field of the automotive embedded software development. Till then
KPIT was also engaged in development of technologies for generation of hydrogen from bio-mass, non-lithium battery chemistry which could be safe and affordable as well as fuel cells. None of these products were in the new focus that the company had decided for itself since they had minimal embedded software content. Moreover, these products were in the initial R and D stage and so the technologies were not saleable.
Sentient Labs Pvt Ltd is a research and development focused company. From the beginning of the year 2020-21, Sentient took over the further development of the above hardware-led research activities. Sentient would now be actively seeking different models for monetization, including bringing a majority investment from operating or financial investors. Sentient along with the new investors will decide on the appropriate way forward, either as a complete product licensing or outright sale to third parties or other monetization opportunities. The new majority investor or operating partner along with Sentient will explore appropriate options for building an independent management team, along with new investors. KPIT has not made any investments in these non-software research areas since 2020-21 either by itself or through Sentient. All Investments made before 2021 have been fully written off.
The financial transactions reported in the years 2021-22 and 2020-21 represent reimbursement of costs incurred by KPIT on behalf of Sentient, for which KPIT has received advance from Sentient Labs.
Having said that, if Sentient is able to register profits either by licensing or outright sale or any other monetization model, those gains will flow to KPIT through a separate royalty arrangement with KPIT, subsequently.
Thus to summarize:
KPIT has no intent and focus on Hardware Business
Sentient is an independent entity with focus on the above
The financial transactions between Sentient and KPIT are only money paid by Sentient to KPIT for the work done by KPIT for Sentient. These are at arm’s length and Sentient always pays advance money to ensure KPIT is never out of the money.
Whenever (and if) Sentient is able to make profits on the technology, the gains will flow to KPIT.
We had clarified the above in our quarterly Investor Update for Q1FY2022. Please have a look at page 16 and page 17 of the attached Investor Update. This is also available on the exchanges as well as KPIT website.
Trust this clears your queries.
Please give me a call on my cell () if you need any further clarifications.
regards,
Sunil Phansalkar
Head Investor Relations
KPIT Technologies
Smart Contract Platforms Thread — Web3 Wars (02-09-2022)
Logan and Zach give you a number of reasons why Web3 startups are doomed to fail. Even Pomp, one of the biggest Bitcoin advocates was careful to not turn into a debate and moderated the conversation.
https://www.youtube.com/embed/zwo1crQOsH0
Here’s the count down for Ethereum Merge, 11 more days left for Ethereum to transition to Proof of Stake.
Omkar’s Portfolio Analysis and Discussion (02-09-2022)
Plan is to own - Kotak bank + HDFC bank + Bajaj finserv - around 10% each
Omkar’s Portfolio Analysis and Discussion (02-09-2022)
Hi - We have discussed this before
Hitesh portfolio (02-09-2022)
There are a couple of developments in the stock today.
1)They released their annual report which says no dividend for this year,which is strange because they tripled their profits and have always paid dividend for the past 10 years(except one year).I was hoping for a buyback because they were at peak promoter holding.They are 50 year old company with other group companies rated at A,A,BB .
2)They want to increase their revenue by 2025 to 1600 cr from 1150 cr now.
3)They have investment and cash of around 900 crore,which could go up in a couple of years depending on market situation.Let us assume it up by 50 percent,it would be around 1350 crore and the remaining business would also add value to the market capitalization.This is not a holding company.
Their present P/E is 3.10 .I feel this has sufficient margin of safety.
Disclosure:Invested.
Edelweiss Financial Services (02-09-2022)
Someone asked them the same question in 2/3 con calls back, they said focus in on growth first and then buy back.
Currently they have two business which are loss making- Life Insurnace and GI. Combinely they generate loss of 300 cr. On top of that they need capital of around 250 cr per year.
Edelweiss does not have a excess cash. Also if they raised money and do a buy back, it will further strain their balance sheet. Their core business (all in total) are generating enough profit to float over on a consolidated basis, so they cannot afford to make any more mistake or they need bit of strenght for a rainy day. So I guess they would shy away from Buy back for a considerable amount of time.
I am glad that they are not thinking of selling a stake in AIF, which is ready to deliver good results going forward IMO.