Now PE of 70X looks extremely high for Page Industries, seeing its last 3 QTRS Growth rate of 20-25% .....Its slowing down definitely.
Exited the stock today after 3 years of Holding.
Now PE of 70X looks extremely high for Page Industries, seeing its last 3 QTRS Growth rate of 20-25% .....Its slowing down definitely.
Exited the stock today after 3 years of Holding.
ashwini
thanks - the way I thought about it was such short term provisions are also created for issues related to product liabilities - eg., warranty claims, deficiency in quality. Given that I know for a fact that there have been a few issues, is it possible that they created a provision which they will flow into the P & L whenever approrpriate (when litigation is complete or negotiation is done), so could it be a few containers of shrimps which are returned/of lower quality which will soon hit the PL.
your views would be enlightening.
Sorry - I do not hold any shares of Mastek / Majesco. thanks
IndiaNiveshSecuritiesLimited_MajescoLtd(MJCO)Q2FY16ResultUpdateNov_06_2015.pdf (300.1 KB)
Hello - Attaching Majeso report from India Nivesh. Target price 549. But India Nivesh forgot to subtract the share of Mastek Ltd. and of USA listed entity Majesco to arrive at the valuation of the India holding company Majesco valuation.
India's Majesco share is roughly 2/3rd so the target prices should be 549 *2/3 = ~ 366 rupees and not 549 rupees.
My two cents.
Awaiting comments
The kind of places tillers would sell need to have small holdings. So places like Punjab are out. The company sells quite a few units in Maharashtra but here the land holdings seems huge. As such Kerala is also a good market. Another places where tiller markets would be huge is Bihar, Bengal, Assam etc. But there the labour cost is so low that it beats having a tiller.
The industry seems only able to support that many players due to less sales.
Of the three power tillers listed in company's website, two are 600+ & one is 1000+ cc diesel engines. Compare it to motocycles (say bullets), the price seems justified, even less. Btw, the company licenses the technology from Mitsubishi.
As pointed out in point 1, most small land holders :
a. Work in their own fields
b. Have access to cheaper labour
c. Don't have the wherewithal to buy tillers even with the loan & the subsidy.
I have seen many a times that shareholders expect hefty dividends after a sale of business/land etc. But is it desirable? Asking because I am not competent to understand it.
If company has alternatives to build capacity in related or same business or they have capability to invest in business and make more money for us then I do not want one time dividend. If it is idle then I want it.
Thanks
Amol
Here https://www.screener.in/company/ZENTEC/ in the Pros & Cons it's written that the promoter's stake is down & promoter's stake is up.
What's going on here?
@hrishikesh
Hi, Since you have done extensive work on the company, can you please clarify some doubts for me?
You have moved ahead in your projections by creating an expense schedule assuming 50% gross profit margins. However can you please make me understand how can we get that by the current expenses schedule shown in the annual report. There are two major head of expenses in the Income Statement for 2015 i.e Employee costs & Other expenses. The former is 88% of sales while the latter is 26% of sales. Now while checking the schedules out of 530 crores of employee expenses for 2015 500 crores is for salaries which i believe include the expenditure for R&D as well. However is their any way of finding out how much from this expenditure goes under the head R&D and how much is normal employee cost. Secondly, of the Other expenditure of 158 crores for FY 15 30% is travelling expenditure while business promotion is just 10% of the head. Now, i just want to understand that should i take the promoter's word on the numbers or is their any way by which we can validate the projections through the accounts as well. I am very new to this sector hence the query
Q2 Results out:
Revenue up by 16% from 396 cr to 461 cr.
NP up by 21% from 49.90 cr to 60.2 cr
Pat margin increases to 13% from 12.5%.
Other income 48 lac vs 6.2 crores. (virtually nil other income this qtr)
Long term borrowings come down to 30.85 crores from 34.53 crs
Short-tem borrowings come down to 25.52 crores from 99.86 crores
Interim dividend of 21 for this quarter in addition to 19 paid in the previous quarter.
Page FY 16 Q2 results are out:
Revenue growth about 16% and Profit growth about 20%. It looks like Page is slowing down a bit. I'm concerned with the high valuations and as I see it upside is capped and is either open to a bit lower levels or under go time correction. 16% top line growth is good in this environment but I think the current valuations more than capture this kind of growth.
Balance sheet - Company paid off short term borrowings with the profits during the year, so finance costs may go down a bit in coming quarters.
It looks like there is minimal benefit of cotton prices falling so far on the P&L. So the full year EPS could be around 220. Also, I do not see any increase in other expenses where the company could be showing advertising expenses. Strange, something is amiss here for my brain.
As usual, dividend of 21 INR.
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