Thanks Hitesh. That was quick
Posts in category Value Pickr
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
Thanks Hitesh. That was quick
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
I feel PI is a much superior business model as compared to dhanuka.
Not looked at dhanuka for a while now.
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
I feel PI is a much superior business model as compared to dhanuka.
Not looked at dhanuka for a while now.
Kitex Garments Limited (30-10-2015)
There is no harm in dissecting an issue and discussing if it brings out better clarity which is what VP is known for. Here people have real money at stake and people are not playing paper cricket. Truth will come out only through proactive analysis.
If the management does NOT reply to concerns in a straight forward manner there bound to be questions asked and repeatedly.
When management knows that investor community is uneasy and if they are not doing anything wrong, what stops them in clarifying their position in a crystal clear manner -
- We have cash of X amount in Y Bank with Z a/c number (if can be disclosed) and we are hoarding this cash because of W, U, V reasons. If W, U,V are not logical then investors will take appropriate decision to be part of the business or not though equity stake.
Please don't taunt as real money is at stake here. Some could have made this as a part of core holding and IF there is any issue exiting will be difficult and could lead to financial loss.
I absolutely have no stake here, so please don't misunderstand my post. Even MPS has money of 178 crore and management AND investors know exactly why that much cash is there. People are not over analysing the cash with MPS right? There is clarity in MPS and that makes holding the stock comfortable. So when so many people are analysing, then there is some reason to it. Only in hindsight we can tell if this analysis was hyper or lower. I hold MPS. Sorry if I hurt any sentiments here.
Moderators: Delete the post if you felt this is over the board.
Kitex Garments Limited (30-10-2015)
There is no harm in dissecting an issue and discussing if it brings out better clarity which is what VP is known for. Here people have real money at stake and people are not playing paper cricket. Truth will come out only through proactive analysis.
If the management does NOT reply to concerns in a straight forward manner there bound to be questions asked and repeatedly.
When management knows that investor community is uneasy and if they are not doing anything wrong, what stops them in clarifying their position in a crystal clear manner -
- We have cash of X amount in Y Bank with Z a/c number (if can be disclosed) and we are hoarding this cash because of W, U, V reasons. If W, U,V are not logical then investors will take appropriate decision to be part of the business or not though equity stake.
Please don't taunt as real money is at stake here. Some could have made this as a part of core holding and IF there is any issue exiting will be difficult and could lead to financial loss.
I absolutely have no stake here, so please don't misunderstand my post. Even MPS has money of 178 crore and management AND investors know exactly why that much cash is there. People are not over analysing the cash with MPS right? There is clarity in MPS and that makes holding the stock comfortable. So when so many people are analysing, then there is some reason to it. Only in hindsight we can tell if this analysis was hyper or lower. I hold MPS. Sorry if I hurt any sentiments here.
Moderators: Delete the post if you felt this is over the board.
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
Hi Hitesh, do you still track Dhanuka ? How do you see business model and growth prospects of Dhanuka as compared to PI ?
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (30-10-2015)
Hi Hitesh, do you still track Dhanuka ? How do you see business model and growth prospects of Dhanuka as compared to PI ?
Kitex Garments Limited (30-10-2015)
Its not even over analysis but hyper analysis. Same points, same arguments and clearly this thread is on path of getting closed again!!
My points:
Cash Issue
Yes, timing the exchange rate is extremely difficult. It seems management is wasting time trying to find the right rate to transfer. However, those who think that they should just transfer are also guilty of the same crime which is wasting their own precious time. If if seems so obvious that any USD should be converted to INR because of interest differential, your obviousness contradicts a host of global fund managers head on. Everyone in the world today wants to just buy USD and sell all other currencies including high yielding emerging market once. Interest rate parity is what should be considered and not the interest rate differential. Based on interest rate parity, the rate differential should be compensated by currency movements in long run.Merger
I think this is the best move by the management to get KCL listed first. As they said, any valuations given to KCL would have been treated as cheating to minority shareholders unless it was free of cost. Best to let market discover it.Other way to think about this is trust should be mutual. Management would probably have given better then fair valuations to the minority shareholders, but because people have started questioning their every small move, they stopped trusting the market and have decided to list it focusing more on transparency ( intangible benefit) than giving a tangible benefit. To me, (with my presumption that management is brilliant), this has been a negative news today and the benefits would go to management as well as the KCL Ipo applicants.Growth
One thing which is not clear is whether the guidance is to double volumes or the value in next 3-4 years. I thought it was to double the production, which translates to higher sales growth and margin growth if branded business is successful. But today, they mentioned 525 crores getting doubled to 1050 which seems a tab bit lower growth for the company trading at slightly richer valuations.And yes, I too feel the valuations are bit richer.Corp Governance
With a history of growing sales by approx 5 times, profits by approx 20 times and dividends by 10 times in last 10 years without raising a Rupee from the market, I do not have reasons to doubt management integrity. Just that the management is not very polished, and gets carried away by the analysts who try to extract too much information. To me transparency is good, but it seems there would be lesser questions on corporate governance if they stopped disclosing or explaining things....Some Fun
Just to give something to discuss for the Kitex's critics. How about a conspiracy theory that they have cooked all the books for so many years and given the dividends etc. to make KCL ipo successful. There was no ENY advice, no three alternatives, the end goal was always KCL listing!!
Admin: Sorry for the taunt, could not resist myself after reading so many repetitive posts. No intention of being disrespectful to the points raised by anyone, but to the fact that same points are being discussed again and again.
Disclosure: Invested less then 5% of portfolio.
Kitex Garments Limited (30-10-2015)
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