This is great. Does anyone know how much one can earn from shorts? is it same = 10p/ song?
Posts in category Value Pickr
Marshall Machines Limited (01-09-2022)
Results have been pathetic last year. But in the last few days, the volume has increased a lot. Some buying is going on for reasons not known to us.
Easy Trip Planners (Easemytrip) – An outlier in OTA (01-09-2022)
Need experts view or thoughts, why is that co raising funds and vesting into non-convertible
debt instruments along with warrants and convertible securities debt, and when significant reserves are piled in, why nt use this funds to do the same, please shed some light and additionally what is the balance sheet impact with this?
Hindware Home Innovation Ltd on to rapid growth post demerger? (01-09-2022)
Q1 FY 23 conf call details
- Figures are on consolidated basis
- Margins were impacted higher input and commodity prices
- Top line growth 98%
- EBITDA growth ~200%
- Building products section grew at 102%
- Building products EBIT grew 105% YoY
- Building products margins at 8%
- Brass and fuel and power price increases
- price hikes taken
- Plastic pipes top line grew at 96%
- retail business top line grew at 48%
- retail margin is 1%
- sanityware and faucets - 20% earnings from new products
- added 75 new distributors
- sanityware and faucets
- pipes - brownfield and greenfield expansion on track
- consumer appliances growth was 92%
- consumer appliances cooling products grew by 200%
- EBITDA hit due to PVC price change is ~7cr
- EBIT for plastic pipes is 5.6% vs 7.2% YoY
- EBIT for sanityware and faucets 13.2% vs 7.6% YoY
- Add 13cr to building products and that’s the normalised EBITDA margin
- 10% value migration to CPVC
- Retail margins would only move to ~4% because of price hikes
- industry leading margins to be achieved by Q3 in sanitaryware
- sanitaryware plant worked at 84% capacity
- faucets plant at 56%
- pipes plant at 35% capacity
- efficiency and acquisition margin impact should be visible in 12 months if cost price stabilises
- 37% is outsourced in sanitaryware and 50% in faucets
NMDC-Value or Cyclical? (01-09-2022)
Any idea why NMDC not able to scale up its pellet plant even after almost 5 years of operation?
NMDC-Value or Cyclical? (01-09-2022)
Thanks, @Viral. I was keen to know whether disturbance due to Naxalite activity is still a significant factor. ’ Lloyds Metals & Energy Ltd’ could partially operate their mines for multiple years due to a similar situation. For example - From the AR of FY13-14: “due to insurrection by Naxals near Surjagarh Iron Ore Mine in which one of the official of the Company was killed, the Mining Operations of the Company at Surjagarh Iron Ore Mine at Surjagarh Village, Gadchiroli District, Maharashtra has been temporarily discontinued w.e.f. July, 2013 and the same facts has been informed to the concerned Govt. Authority.”
Best Agrolife – Think Big, Think Best! (01-09-2022)
Key positive
Company has given a guidance of revenues of Rs1500crs + for FY23, 20% + margins and Rs220crs PAT in this interview. At Rs220crs PAT company is trading at current price of Rs1265 at Rs2991crs (market cap)/ Rs220crs = 13.6x P/E FY23. 1Q profit at Rs40crs.
Key negative
Stretched working capital because company growing fast and introducing new products. Unlike to normalize till compant growth slows down and company focusses on WC instead of just growth
NMDC-Value or Cyclical? (01-09-2022)
@Surender : Your question isn’t very clear, but I’m assuming that you are referring to the bidding for the prospective privatisation of the steel plant. Firstly, I definitely would not make any investment decision on based on this news considering the government’s sketchy track record of PSU privatisation (BPCL, SCI, BEML, etc.). The poor accessibility was the history of the location and not the current status. The mines are operational since several years and thousands of crores of equipment have been delivered to the steel plant. So it is obvious that the roads have been built by now. Both Transport Corporation of India (TCI) and Associated Road Carriers (ARC) have full fledged transport hubs in Jagdalpur. You can look up their Branch Office Locator for PIN Code 494001. Having said that, the rail network is still quite poor in this region owing to a topography of dense forests. So there is scope for improvement of road / rail infrastructure. But that’s not really in direct control of NMDC.
That’s why you need to study their Slurry Pipeline and Pellet Plant projects which will make the evacuation of the ores a lot easier. I will have to write a separate post on both of these, else this will become a very long essay.
@Gothamcapital: Same reply for your query as above; that I would not make any investment decision on whether any high profile investor / government is buying or selling shares of the company. This is because we have no prior information regarding what price and volume did they enter or exit. By the time the news comes out in public, it is stale and mostly irrelevant.
Regarding the core iron ore mining business, I would not base any investment decisions on the price movement of iron ore as that is akin to astrology.
In order to invest in these types of companies, please study the following:
- Ore quality (concentration of minerals) and quantity of extractable reserves
- Ease of extraction (surface level ores or deep underground mines)
- Ease of evacuation (connectivity to the location of consumption)
- Longevity of the mining license and royalty pay-out to the Government
- Long term tie ups with downstream consumers and ability to be a price maker instead of being a pure price taker (no one can completely dictate prices, but at least they should have some bargaining power)
- Track record of the miner (following environment / safety norms / accidents, etc, relationship with government & people around the plant)
NMDC controls nearly 30% of the iron ore market in India. So it has decent bargaining power, especially with the smaller buyers that they can sell through auctions, since JSW and Arcelor Mittal (former Essar Steel) are now trying to use their own captive mines.
The biggest hit on NMDC’s profitability is the increase in Royalties. From Rs. 2969 crores in March 2021, it has gone up to Rs. 9,986 crores in March 2022.
If the government gets too greedy with royalties / levies / taxes, it can be trouble for the entire mining industry and not just NMDC (remember telecom licences?). On the flip side, it also means that new entrants will find it that much tougher to venture into the mining business and compete with the incumbents.
I read a lot of comments from the investor community that all commodity business are brutal and that any tom-dick-harry can come and suddenly increasing supply. However, that is not a very accurate way of assessing the business especially in the backdrop of high pro-ESG stand by governments, investors and public sentiment. It takes years to operationalise mines or steel plants and start commercial production.
This doesn’t mean that steels and mining businesses should be trading at P/B of 4 or 5. However, I feel that the present share prices are unduly pessimistic. With 12% dividend yield, the current prices offer decent margin of safety ( I of course could be wrong and you need to do your own research).
Piramal Enterprises Ltd (01-09-2022)
Yes one can sell on ex basis from 30th August ,but give delivery on 2nd September. Now suppose you sell today then pay in is on 5th Sept, but you can deliver tomorrow to your broker. The main thing is shares should be there in demat account on record date i.e today.