Hi harsh, Can you plz throw some points on future prospects of Amara Raja Batteries. Lead acid batteries is a decaying industry.
Posts in category Value Pickr
TCS – A very strange case for investing! (23-09-2022)
As of this quarter, the current industry attrition rate is from 19 to 27%. There’s been a slight moderation but not by much. And it’s still high at the low 20s. That’s 1 in 5 resigning albeit at the lower end of pay grade though.
NMDC-Value or Cyclical? (23-09-2022)
A cursory read on Shyam Steel ( TMT Bar Manufacturing Plants and Process with Latest Technology ) should give you the difference between what they are doing and what NMDC is doing.
NMDC starts from mining to beneficiation to handling its own logistics to shift the ores to the iron manufacturing plant to manufacturing iron then converting into crude steel and then to finished product. They have a lot of control over major cost inputs - iron ore, power and logistics. A lot of support / auxiliary facilities such as a massive investment in-house maintenance facilities / material testing labs, etc. will also play a big role in quality and cost controls. The only major input over which they have very little control is coking coal. Whereas, Shyam Steel starts their production from manufacturing of crude steel onwards. TMT bars have a different value proposition as compared to flat products or blooms / billets.
So when you read words like greenfield / brownfield in a news article, you first need to check greenfield / brownfield of what?
Comparing one plant to another without understanding the inputs, logistics and outputs of each plant will give inaccurate valuation. For example even within a single company like SAIL, their plants in Bhilai / Rourkela / Bokaro / Durgapur / Burnpur / Bhadravati / Chandrapur have very different value proposition. Each plant will need to be assessed & valued individually.
This reminds of the (in)famous public statement by the former CEO of Arcelor Mr. Guy Dolle, a few days after Mittal Steel announced plans to take over Arcelor in 2006 that “Mittal Steel made ‘eau de cologne’ while Arcelor created perfume”. While that comment was widely panned for sounding a bit racist, the crux is correct that you cannot value all steel plants equally on the basis of valuation/tonnage metric.
Building a long term portfolio (23-09-2022)
Thanks Ishu, just a quick query on KPIT and Tata ELexi, would you get bother by their PE?
Building a long term portfolio (23-09-2022)
Thanks Chaitanya!
Appreciate the advice.
SJS Enterprises Ltd (23-09-2022)
Transcript of 17th AGM proceedings. Lot of info on company and its future growth.
TCS – A very strange case for investing! (23-09-2022)
I don’t think this will increase attrition as the industry is no longer in the same situation as it was last year. Till last year, every outgoing employee had 2-3 offers in hand and they were calling the shots. Things have changed drastically in last 6-9 months. Aggressive hiring and pay cheques have moderated to a large extent. Also, in many companies almost 25-30% employees did not visit office at least once in last 2.5 years which has forced them to make it mandatory to WFO for 2-3 days during a week. This is not one off but a trend in motion currently which will keep the attrition on check specifically if the employees are looking for permanent WFH.
Raymond – The Complete Man (23-09-2022)
This was also confirmed by Raymond CFO is a recent interview with ET Now
Tinplate – Blasting through volumes, cyclically (23-09-2022)
All metal companies of Tata Group amalgamated into Tata Steel | Business Standard News.
The seven companies that will be merged into Tata Steel are Tata Steel Long Products Limited, The Tinplate Company of India Limited, Tata Metaliks Limited, TRF Limited, The Indian Steel & Wire Products Limited, Tata Steel Mining Limited, S & T Mining Company Limited.