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Posts in category Value Pickr
Bloom Dekor- A plywood and lamination microcap (18-10-2015)
I invite @Donald @ayushmit @MoneyWorks4ME @vml @pratyushmittal and others in making the case easy for me and others to understand in this business
Bloom Dekor- A plywood and lamination microcap (18-10-2015)
http://www.bloomdekor.com/products/ is the website of the company. With that out of the way, Lets look at the ratios and take some confidence before I introduce you to the nature of the business.
Market Cap.:
₹ 19.83 Cr.
Book Value:
₹ 25.40
Stock P/E:
8.16
Dividend Yield:
2.07%
Face Value:
₹ 10.00
Enterprise Value:
₹ 48.20
EPS:
₹ 3.55
Graham Number:
₹ 45.04
EBIT:
₹ 6.63 Cr.
EVEBITDA:
5.09
PEG Ratio:
-1.23
Debt to equity:
1.81
OPM:
15.22%
Return on equity:
4.25%
Return on assets:
8.07%
Average return on equity 5Years:
0.37%
Dividend Payout Ratio:
59.42%
Exports percentage Now:
0.00%- It used to export earlier
Exports percentage 5Years back:
21.58%
Promoter holding:
52.02%
Piotroski score:
7.00
Altman Z Score:
1.86
Profit growth 5Years:
-6.62%
Profit growth:
248.17%
YOY Quarterly profit growth:
176.36%
CROIC:
14.13%
OPM 5Year:
8.58%
Sales growth 3Years:
5.40%
Operating cash flow 5years:
₹ 27.45 Cr.
Average return on capital employed 10Years:
7.11%
Average return on capital employed 3Years:
8.59%
Return on invested capital:
12.03%
Investing cash flow 10years:
₹ -24.79 Cr.
Cash from operations last year:
₹ 3.95 Cr.
Inventory:
₹ 32.34 Cr.
Days Inventory Outstanding:
193.58
Profit growth 3Years:
6.37%
Market Cap to Sales(Kenneth Adrande metric):smile:
0.32
Now the funny thing is Times of India has a holding in this company. It has been doing well for itself as the above ratios state and most of all its a small company, so small that price action can make it hit either circuit filters on Index. Its known to a few as a door making and a designer company. It is involved in e-commerce and selling advise online. Its brands are Bloom and Olive. They are a company from Gujarat and have a solitary plant where they make the products from wood and its wastes. It has branches in all major metros.
On the plant, this is what they say:
A long awaited continuation of the prelude, a brand new collection with the same values.
Elegant and contemporary, yet reminiscent of the classic. Authentic
wood-grains offer immense warmth and satisfaction. Interiors of today
demand a fresh look, where one’s eye is always in search of the
not-so-seen.
URBAWUD collection intends to address this need, to assist designers
create contemporary interiors for the existing urban lifestyle and
tastes.
Bloom Dekor is proud to present this special range of Laminates that
also include improvised colour tones of authentic wood-grains.
Address:
Bloom Dekor Limited
2/F, Sumel, S.G. Highway, Thaltej,
Ahmedabad – 380 059,
Gujarat (India)
Big news is that, it pays dividend and quiet frequently. Its also growing its OPM very consistently and generates cash flows.5262250315.pdf (2.7 MB) Take a good look at this awesome looking design of Annual Report and pass comments on the quality of it. What Bennet and Coleman knows that we dnot know, lets find out?
Payment Banking – Disrupting Banking (18-10-2015)
I have always been bullish on the Indian financial sector. My logic is simple. Any industry where there is a very large disconnect between demand and supply is bound to do well. India is a cash / credit starved nation and any business which provides credit to people and businesses will do well over a very very long time.
The history of Indian banking is very interesting. Refer to Banking in India on wikipedia for a good overview. By now, most people are used to the ubiquitous ATM machines and do not consider private banks as fly-by-night operators who will take their money and run away. We are at the cusp of the third major wave in Indian banking (nationalisation in the 70s and privatisation in the 90s being the first two). With the 11 new licenses given out by RBI for new payment banks, the playing field has been (once again) forever changed. Ten years down the line, banking will not be the same as today. Brace yourself for a huge disruption in the coming years.
So what are payment banks? For simplicity's sake, it is a "technology driven bank", mainly mobile based which will cover most of the services provided by a regular bank except giving loans. They can take deposits of upto Rs 1 Lakh and pay interest on it, provide debit cards, transfer money from one account to another.
The 11 players who have got the licenses include some very very prominent names - Airtel, Vodafone, Aditya Birla Nuvo, Reliance, Mahindra, India Post, Dilip Sanghvi (promoter of Sun Pharma), Paytm, Cholamandalam and NSDL. All of them are big players in their own fields. Three of them stand out distinctly - India Post, Airtel and Vodafone. Their reach and penetration is really unmatched. Just as an example, Vodafone m-pesa accounts for more than 50% of the GDP of Kenya on its platform.
Already, we are seeing a beginning of "Uber"isation of services. Players like Vodafone & Airtel who are already there with you. It is so much more convenient if you can just use the mobile to pay for your kirana purchases or on public transport or at petrol pumps.
Where does that leave the existing banks? The existing large players will push strongly on their apps (HDFC, ICICI, SBI etc). The brunt of the disruption in my opinion will be borne by the mid sized PSU banks and the smaller private banks. We already saw a DCB Bank being routed on the bourses because they accepted the increased competition from these new players. There will be more to come. The age of easy-CASA money may be behind us. The mid sized banks would now have to tie-up with some of these payment banks or invest heavily in their own app infrastructure.
Let us keep an eye out for the trio - Airtel, Vodafone and India Post for the next leg of banking disruption.
CCL Products (18-10-2015)
Relaince's own private label Coffee(Reliance Kaffe) sold at Reliance Mart/Fresh outlets is manufactured by CCL.
A 50gms packet of Reliance Kaffe( with 70% coffee & 30% chicory mix) is priced Rs.89 same as of Nescafe Premium (of same blend) but Relinace Kaffe is giving "Buy one & get one offer" so effectively it is being sold at half the price of Nescafe Premium with same blend
I bought one Reliance Kaffe to home. My father like it a lot then Nescafe. He felt it had more of Natural Coffee essence then Nescafe and suggested to bring this brand from next time
Neo Corp-Growth Machine in Technical Textiles(CAGR 45%)! (18-10-2015)
Hello All,
Pleasant SURPRISE from the Q2 SHP. FII has entered this stock with 0.21% holding they have added in Q2----which gives us more confidence on the company as FII has invested only after checking the company books with highly professionals/analysts/CAs, and also they have contacted the Neo management directly to know the company in detail and future plans------so everything looks fine now and if FII increased the stake in coming days, this stock might give very good return in less time-------hoping for the best------Happy Investing----Cheers!!!!!!!!
RPG LIFESCIENCES – Change in Governance and Performance (18-10-2015)
I think RPG Life fits well in classic "cigar-butt investing" of Ben Graham. Here is a company with market cap of Rs 300 Crore having land value of Rs. 200 Crores and annual sales of 300 Crores. New CEO bringing in focus on asset utilization and better profitability with possibility of upside due to US FDA approval makes it really "heads I win. tails I don't so much" type of deal.
Having said that, their past gives very less confidence as they were mediocre company for most of its existence with lack of focus and forming small part of large group with focus on tyres, power transmission and software. Since this is relatively small standalone business in large group of companies, turning around this company and selling out to other pharma biggie could be option explored by the group.
Disc : I am invested in this company from lower levels so my views could be biased
Top 5 Picks – optimistically, for the next 50 years (18-10-2015)
Hi Abhishek,
Point noted regarding Bel, mindtree and bata. And I would keep that risk in mind while evaluating Bel in the future.
On a lighter note, I'll be overjoyed with a near 20% cagr for the next 10y. That's equivalent to my best mutual fund!
Regards,
S
Piramal Healthcare (18-10-2015)
Ajay Piramal is shrewd businessman who knows how to buy out-of-fashion business cheaply and how to sell them high after turning them around. He has done that with pharmaceuticals and now he is trying his hand at Financials.
Due to his interests in pharma, financials and IT, analysts have always struggled to value his company. Since research firms have analysts dedicated to one area, they need to put 3 analysts to track Piramal Enterprise. . Also you would not see AP or his deputies coming on air and explaining their numbers or proving guidance on future plans. Hence IMHO Piramal would never be a stock market darling.
I came across interesting article in Mint on AP's and hence felt like sharing with fellow Valuepickr's
Disc - invested for last one year so my views could be biased
Top 5 Picks – optimistically, for the next 50 years (18-10-2015)
Interesting concept. Building a portfolio for the next 50 years. I don't think I can think of a good way of doing it. One way to approach would be to look at history and see what has remained constant over the last 50 years. But so much has changed in the last 50 years that it is going to become a very academic exercise. Also, unless you have a family trust which you want to perpetuate, there is very little point in trying to do a 50-year exercise.
Coming to the stocks you have, they are all "good". Will they be all multibaggers? I am not so sure. 10 years down the line will you make money on these? Most likely. Will it be more than say 20% CAGR? May not be.
I don't follow most of the stocks closely, and know only about MindTree, Bata & BEL. MindTree has no competitive advantage over its peers. Bata has a good brand so will likely do well. Trick is getting in at the right price. BEL has technical advantages now. Over time, that will go away, as the L&Ts, Tatas, M&Ms & Reliances of the world get into the fray (along with the global majors). So, BEL is a toss-up between going the HMT way or the ONGC / SBI way. Needs to be carefully monitored.