Other current liabilities have decreased sharply from 110 cr to 11 cr. Major contribution to this comes from Customer Advances. This could be a strategic move by the management to increase the margins. since their receivables is in comfortable position and they have enough cash balance, they might have taken this decision to improve margins (higher selling price)
Posts in category Value Pickr
Indian terrain—play on consumption (08-11-2015)
Couldn't agree more Vardha. Crisply captured in a concise manner.
Regards.
Discl: Invested.
MPS Ltd (08-11-2015)
Anil wonderful questions - infact, I attended the AGM in chennai and had the some concerns about this getting commoditized. To counter this, much like infosys, MPS is adopting a platform approach where they take on a customer's entire process on their software and keep re-engineering their work processes to increase automation. So, it sort of becomes a platform led BPO operation which is very sticky and can deliver good returns - think eclerx.
if anyone, Nishith understands this game and I remain bullish on him delivering - he understands profitability and cash flows and is not running after building an empire and the impression I got of him is that he is a patient, shrewd guy who can wait for the right opportunities. I see an analogy with eclerx - lots of tuck in acquisitions each of which kicked in operating leverage 18-24 months post the acquisition - resulting in a 25 % compounder ahead.
Also, MPS could ultimately become an acquisition for a larger guy which nishith may be open to - given he understands the importance of growth.
I am invested in MPS and looking to add slowly - I see it as a modestly asymmetric bet - little downside and decent upside with optionality from acquisitions.
Indian terrain—play on consumption (08-11-2015)
I thought numbers were average - EPS is up purely because of debt reduction and other income not so much because of operational efficiency.
Said all of this, I think indian terrain will do well - however, there's an extra risk that I am cognizant of - which is a linear growth in their receivables as unlike aditya birla nuvo, they control the last mile inventory which addds margins but adds significant costs and IMHO adds a lot of risk. This kind of operating leverage can cut both ways and can become a disaster if sales drops
I prefer a cash and carry, negative or a low WC model which is hugely cash accretive. Let's see how Q3 pans out.
Avanti Feeds (08-11-2015)
trade payables have increased by a whopping Rs. 110 Cr. but then it could be a reclassification issue - given other current liabilities have shrunk massively. so, my guess is not that.
Provisions have jumped up 100% from 9 Cr. to 22 Cr. - so that could flow into write-offs assuming that this is on their inventory or hits on products they shipped already. that's an worrisome sign IMHO.
Screener.in: The destination for Intelligent Screening & Reporting in India (08-11-2015)
Hi,
Please add the D/E for 10 years in the BS table
Ramco system (08-11-2015)
I hold ramco from 150 levels - the key determinant would be how well they do in the US market where they are up against the large guys in this industry - workday, oracle. while they have the advantage of a india developed product, the customer friendliness remains to be seen. Operating leverage is massive in this business and this can go to about 25 % EBITDA at a teen growth. So, if they can do about Rs. 400 Cr. by FY 17 and do a 25 % margin, EBITDA should be about Rs 100 Cr. - so at this level, it looks fairly valued.
Deccan Cement : Dull company.Dull business.Big wealth creation opportunity (08-11-2015)
One reason i see inc in profit is due to fall in power cost to sales Ratio.. Any update on that front
Debt has reduced from 295 cr to 159 in five years ( approx 100 cr )though in starting thread its written 359 cr..
.
Technocraft industries (08-11-2015)
I am not sure about the objective of the Buyback announced by the Management few days back. The
At the buyback price of 270 for 52.26 Lakhs shares, the outflow is Rs. 141 Crores.
I could think of the following reasons for the management to go in for the buy back:
The Management thinks that the share is undervalued in the market, and would like to bring up the market price to a fair value. (or)
The promoters need funds for meeting some personal commitments / investments. (or)
The company does not need any additional funds for expansion. Hence, by returning the idle funds to the share holders, RoE can be improved. (or)
The Promoters intend to participate in the buyback as well implies they want to take out the cash from the company. I believe the risks mentioned in my previous post seems to be realizing since management themselves don't feel the room to expand or increase operational efficiencies.
Discl. Tracking position
Jagran prakashan (08-11-2015)
Thanks hitesh for the reply. I am looking at db corp even though i feel growth will be atleast couple of years away