The other sugar companies seem to have rallied much higher than Triveni. My sense is one big institutional investor holding 10% is a seller at higher levels and hence the cap in the price. The call is scheduled on 16th Nov and should provide more details on the sugar scenario and the possible steps the Govt. is taking to resolve the sugar industry problems. More later after the call.
Posts in category Value Pickr
Kaveri Seeds – Temporary thread for clarifications (15-11-2015)
Looks, management made a provision now of Rs 64 cr(Royalty-disputed amount) in Q2 and it may be the reason for increment in expenses. How to get Kaveri's results conference call info.
Thanks
Sreedhar M
Rain Industries – An oversold de-leveraging play (15-11-2015)
Good read. I have few points to make- a) You should look at the company from EV/EBITDA and my sense is it is not cheap. b) It trades at a lower multiple than its acquisitions- its last acquisition was some 7-8 times EV/EBITDA and hence the value destruction for the Rain shareholders. c) The Management is not shareholder friendly. In the last eights years, it has done two acquisitions with no change in equity valuation, no big dividend and very small buy back. Why is the Management not concerned about the low equity return to the shareholders? I agree that it does not matter if the company has not given returns in the past, but it does reflect the Management thinking and their low concern for the shareholders. I am sure all the existing institutional shareholders are also very disappointed.
Thomas Cook India-Will it move like Warren Buffet Stock (15-11-2015)
I dont understand why this is a corporate governance issue 'against' the minority shareholder.
Lets say you invest with a partnership where one partner is 80% and other 20%. There is some mis-understanding between the partners and now the junior partner wants a bigger share. The main partner has two options
a. Pick a fight on principle as the junior partner is going back on his work and see the value of the company suffer. So instead of have a 3X in 5 years, one is left with a 1.5 X
b. Be rational and give away 10% of the partnership, but ensure that we have a slight smaller piece of a larger pie.
As a minority shareholder, rationally thinking, what should we prefer ? option a 'feels' better, because it is equivalent to what we sometime go through when a hire an auto where after the reaching the destination the driver asks for more money
on top of this the management has shared their thinking and have asked for approvals. This episode does not leave a good taste and creates an apprehension in mind (will this happen again ?). but how is this is a corporate governance issue ?
Abbott India: MNC pharma play on increased consumer spending (15-11-2015)
While online reviews of products help you to form a general opinion, I believe they're not the best source to judge a PROFIT MAKING company. A lot of successful brands such as Dominos, Royal Enfield etc have their share of criticism on the internet but they proved to be great businesses to own in the past decade. While the concerns raised by the blogger maybe genuine, I believe interacting with actual customers would give us a better understanding of the product & company.
Views maybe biased.
Chemicals and Speciality Chem space in India (15-11-2015)
https://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/The%20Indian%20Chemical%20Industry%20-%20New%20Directions,%20New%20Hope%20(2003).pdf
This report by KPMG tho old but gives a decent overview abt how the chemical industry is gng to pan out over time.
Main categories are: Basic-Speciality-Knowledge Based. The third category is growing the fastest. Pharma and agrochemicals are part of knowledge based category. And the next big driver is biotechnology. Sorry dont have the link, but the report says that from abt 5 billion USD this has the potential to be 100 billion USD by2025.
Rgds
Chemicals and Speciality Chem space in India (15-11-2015)
https://www.kpmg.com/IN/en/IssuesAndInsights/ThoughtLeadership/The%20Indian%20Chemical%20Industry%20-%20New%20Directions,%20New%20Hope%20(2003).pdf
This report by KPMG tho old but gives a decent overview abt how the chemical industry is gng to pan out over time.
Main categories are: Basic-Speciality-Knowledge Based. The third category is growing the fastest. Pharma and agrochemicals are part of knowledge based category. And the next big driver is biotechnology. Sorry dont have the link, but the report says that from abt 5 billion USD this has the potential to be 100 billion USD by2025.
Rgds
Thomas Cook India-Will it move like Warren Buffet Stock (15-11-2015)
Also, the promoter holding has come down? Any idea why?
Thomas Cook India-Will it move like Warren Buffet Stock (15-11-2015)
Also, the promoter holding has come down? Any idea why?
The little book of common sense investing by John C Bogle (15-11-2015)
copied from my Blog:
There are tomes of books infavour of investing in Index Funds. One of the most common argument favouring index funds is their low transaction costs. The stocks in the index are changed in regular intervals to add/ delete stocks. This creates a churn rate in the Index funds. The average churn rate of index fund is around 33.42%, which is nearly 1/3rd stock every year. It nearly pokes hole in to the Buy and Hold strategy. Below is a table which examines the churn rate of various Nifty Indexes.
Index Name No of years No of stocks Total changes changes per yr Avg. change per yr wrt index size
Nifty 100 13 100 238 18.31 18.31%
Nifty 200 5 200 228 45.60 22.80%
Nifty 50 20 50 160 8.00 16.00%
Nifty 500 18 500 1837 102.06 20.41%
Nifty Alpha 50 3 50 240 80.00 160.00%
Nifty Auto 5 15 8 1.60 10.67%
Nifty Bank 16 15 22 1.38 9.17%
Nifty Commodities 5 30 14 2.80 9.33%
Nifty Dividend Opportunities 50 4 50 74 18.50 37.00%
Nifty Energy 11 10 18 1.64 16.36%
Nifty Financial Services 5 15 10 2.00 13.33%
Nifty FMCG 18 15 64 3.56 23.70%
Nifty Growth Sectors 15 2 15 10 5.00 33.33%
Nifty High Beta 50 3 50 84 28.00 56.00%
Nifty India Consumption 4 30 24 6.00 20.00%
Nifty Infrastructure 12 25 68 5.67 22.67%
Nifty IT 17 10 96 5.65 56.47%
Nifty Low Volatility 50 3 50 72 24.00 48.00%
Nifty Media 4 15 20 5.00 33.33%
Nifty Metal 5 15 24 4.80 32.00%
Nifty Midcap 100 11 100 346 31.45 31.45%
Nifty Midcap 50 12 50 226 18.83 37.67%
Nifty Midcap Liquid 15 1 15 14 14.00 93.33%
Nifty MNC 18 15 237 13.17 87.78%
Nifty Next 50 16 50 262 16.38 32.75%
Nifty Pharma 13 10 20 1.54 15.38%
Nifty PSE 18 20 94 5.22 26.11%
Nifty PSU Bank 11 12 4 0.36 3.03%
Nifty Realty 9 10 33 3.67 36.67%
Nifty Services Sector 16 30 80 5.00 16.67%
Nifty Smallcap 100 5 100 212 42.40 42.40%
Nifty100 Liquid 15 2 15 20 10.00 66.67%
Nifty50 Value 20 1 20 4 4.00 20.00%