Thanks for bringing this up. It is good to wait for the dust to settle down and not a good idea to buy on the day it hits a 52 week low (unless some body did a fat finger trade). Its ok even if it means paying up an extra 10% for it.
Posts in category Value Pickr
Shaily Engineering Plastic (22-09-2015)
Can somebody explain what are the growth triggers from here? Is current capacity utilization that only growth avenue? If that's the case, looks fully valued.
Motherson sumi : Recent opportunity to buy (22-09-2015)
Typically a sell on a bad news for a fundamentally strong stock should be used to accumulate.
However, in this case it may be that these things might impact the company's revenues fundamentally. Some evaluation needs to be done on the impact. It may turn out to be a good opportunity based on the outcome.
In these situations a strong company will come back but will take time - example Titan. It is still struggling when compared to its previous growth rate/financial metrics.
How to find if Tax is paid by company properly or not (22-09-2015)
@nabilmoideen
Softwares by Ace Equity or Capital line or others can help you outwith specific queries.
Motherson sumi : Recent opportunity to buy (22-09-2015)
Motherson sumi needs no introduction to Floks here
Motherson Sumi today hit fresh 52 week low after one of it's main customer Volkswagon was caught in some irregularities for carbon emission in europe and may face the fine upto 18 billion dollars.
Moreover it's another main customer Maruti has change it's strategy of single vendor to multiple vendor to derisk the procurement. Maruti has stated it won't procure more than 70% of components from single vendor. Motherson sumi supplies 85% of Maruti components. ( source moneycontrol )
I think this provides the opportunity to load up the stock as it has hit fresh low amid the uncertanities listed.
It's a high quality management and always achieved it's five year projected targets.
Though management said it won't be much impacted with the volkswagon issue as it has only two plants in US.
Views invited by the fellow members.
Disc : Invested and added today @ 250 levels and forms 7% of portfolio
Skipper Ltd., distributing Power and Water, Is it a moat in making? (22-09-2015)
Skipper Limited:
Market Cap: 1519.40 Crores
Current Price: 149.5
Book Value: 29.70
Stock P/E: 16.41
Dividend Yield: 0.88%
Face Value 1.00
Return on capital employed: 30.11%
Debt to equity: 1.13
Interest Coverage: 15.09
Skipper is the market leader in power and water sectors, is among the fastest growing companies in the power Transmission & Distribution area, which offers huge potential that the management is confident of exploiting. Its all-encompassing presence in the value chain from angles to tower production and fasteners to EPC enhances cost efficiency, which coupled with market leadership will lead to better returns. The company plans to scale up each of its businesses with an asset-light model, and focus on increasing tower exports. It also plans to gain a strong foothold in monopoles, EPC and PVC pipes.
Skipper has strong presence in North East India in Power T&D and have 5 plants across India ( 2 in Howrah, 1 in Assam, 1 in Telangana, 1 in Bulandhshr).
Recently company has ventured in Water Distribution (PVC) as well. Currently, 80% sales is from Power T&D and PVC has 7% share in share. Company is expecting to increase PVC share in sales to 20% on expanding the PVC pipes business.
MY VIEWS:
a) Given thrust of government to increase power and electricity across India, Power distributors like Skipper will be benefitted and Hence, increase in sales.
b) Third largest capacity of TLT towers: Skipper by April’2015 will have total capacity of 1, 75,000 TPA (up from 1, 51,000 TPA) of tower manufacturing capacity. It is the third largest capacity post KEC & Kalpataru in the domestic space. It has three manufacturing plants in the state of West Bengal and assam. Given the huge capex plans in TLT infrastructure in the country, the demand for towers are expected to grow at rapid pace and Skipper is well placed to capture the opportunity. All the three manufacturing plants are approved by PGCIL. Also it will have added cost advantage due to same.
c) The Government’s thrust on water, irrigation, river management, improving sanitation, sewerage and urbanization the PVC pipes and fittings markets is expected to grow at much higher pace then its historical 8-10% CAGR rate and reach ~391 bn in FY19. Skipper’s PVC business will also increase with recent investment in Ahmedabad for same.
PS. I am tracking the stock and do not hold any share.
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (22-09-2015)
@madhug
I think you are late to catch on this. Management of almost all agrochemical firms have been indicating since last year of a slowdown in business. Dhanuka has slashed growth targets thrice over the last one year. The same is being echoed by research reports also
Varun 2020 portfolio – 2 strategies (22-09-2015)
Vivek -Thanks for the information. Quite disconcerting this article is. Lets see the development in future. I guess the AGM is scheduled on 29th Sept. Will take a call only after that.
Strides_Arcolab (22-09-2015)
this acquisition could be good in the longer run. However, in the immediate future the challenge is going to come from its significant emerging market exposure. This part of operations will face huge fx pressure in the coming months due to fed hike or overall eco weakness and that is keeping the market edgy. Even Australian exposure will face currency challenges due to commodity weakness but it can be hedged by moving manufacturing to India over the next one year. Only thing can save them is faster rump up of developed world formulations.
Strides_Arcolab (22-09-2015)
this acquisition could be good in the longer run. However, in the immediate future the challenge is going to come from its significant emerging market exposure. This part of operations will face huge fx pressure in the coming months due to fed hike or overall eco weakness and that is keeping the market edgy. Even Australian exposure will face currency challenges due to commodity weakness but it can be hedged by moving manufacturing to India over the next one year. Only thing can save them is faster rump up of developed world formulations.