Currently Even ULIP Plans have commission ranging from 2 % to 10% only. Gone are the days of 25 to 35% commission still Bank people are selling ULIPS aggressively then they will surely sell Mediclaim where commission rate is 15 % ( not 10%) Also there are other Fringe benefits and competitions by which another 5 to 10 % is given indirectly.So it still is quite attractive compared to mutual funds and Ulip products for Banks
Posts in category Value Pickr
ICICI Lombard – Quality franchise in under penetrated industry (02-08-2022)
If life Insurers are allowed to sell Health Insurance products, specially Mediclaim, then it will have huge impact on current Health insurer. The most adverse effect will be on Star Health as most of Star Health agents are from LIC of India agents. Once LIC themselves start Mediclaim all these 12 lakh LIC agents will sell LIC mediclaim Instead of Star Health and Care Mediclaim.
What type of businesses will not make money ? Socialist businesses in a country…..My learnings (02-08-2022)
In case of PSUs ,irrespective of whether it makes profit or not,its shareholders will not make money.Employees of PSUs make more money than its shareholders.These are just proxies of govt and run as welfare schemes.stock available at 6% dividend yield and at 9 times PE are not sufficient condition to be a value buy .It only shows that the stock is at good price.But for being a value buy the stock must have the ability to attract high PE multiple.
For example ,can power grid increase its tariff with 20% CAGR ? Govt will not allow it ?
For example even if LIC has good cash flow ,how is it matter if it takes pathetic calls like buying IDBI bank.Tomorrow govt will tell power grid to buy another bankrupt company.
If such things are happening ,then why would anybody buy PSUs ?
If you are talking about Reliance,I personally do not like capital intensive businesses and the businesses in which key management personnel appear with politicians and in media.
I just like silent cash machines …companies who make money silently.
Tips Industries Limited – Ready to RACE ahead! (02-08-2022)
As a teenager from the 1990’s, there are a few songs from TIPS that takes me on a different trip. I wouldn’t touch a streaming service that doesn’t have those songs.
Yes I too noticed some SAREGAMA owned Tracks that did appear on TIPS OFFICIAL YouTube channel. HERO, SAUDAGAR, KARZ. Puzzled Why!!
Deepak Nitrite (02-08-2022)
Surprised to see no exceptional item/provision for loss. My experience with incidents like fire, flood etc is that, at first , companies say its all covered by insurance and hence no impact on bottom-line. Then, few quarters down the line, get surprised by seeing big one time hit once insurance amounts get finalized. Don’t know why they don’t make some upfront provision when everyone is prepared (since news is fresh in their mind). Guess conservative accounting is out of fashion these days… 
Shivalik Bimetal Controls Ltd (SBCL) (02-08-2022)
My assumption is that since Indian Bank has first charge of almost every property of the company(present & future) as a security for the secured term loan, its not easy for a small company to get another secured loan on the same set of assets from another bank. Whether anybody else would be willing to lend the sum at lower interest rate is the question that needs to be answered before deciding that its a red flag. 3 years ago the yearly profit was 4 crores . I would say that for a company based in far flung Solan , it would not be very easy to get an unsecured 7 crores from anyone else .
Disc: Invested and I have no degree in finance or accounting.
Shivalik Bimetal Controls Ltd (SBCL) (02-08-2022)
I take your point. Unfortunately, I am not very good at detailed balance sheet analysis.
I have seen related party loans in micro/small caps a very common thing.
I generally ignore it if it is not large enough.
For example you can read NGL Fine Chem AR. There are quite a few RPTs. Still a great value creator the stock has been and I would rate management as A+.
Regards,
Raj
Disc: Invested. No trading in last one year.
Deepak Nitrite (02-08-2022)
Deepak nitrite #deepak
Despite operation stopage at one of plant for 1 month. Manage to get good top line growth.
Bottom line below expectations.
#deepaknitrite https://twitter.com/momentum_stock/status/1554478617350275077/photo/1
What type of businesses will not make money ? Socialist businesses in a country…..My learnings (02-08-2022)
There are few companies from the above list which will still make money…
Power transmission companies (powergrid)
Private freight train operators(concor)
Other than these 2 I agree with most of the above points. We have to ignore any business which have price sensitivity. Government control the final price at which it’s sold to general public…
Let’s say oil and Electricity companies have 3 division…
Producing
Transmission or refining
Distribution to public…
From the above 3. First and last company will always have price pressure. But the transmission or refinery business will have good cashflow… Example reliance… When most of the companies were going after oil drilling and petrol pumps. Ambani decided to stay in refinery because he know where he can make money…
Above are just my view. Correct me if am wrong
Godawari Power – Any Trackers? (02-08-2022)
There is another upside which you missed in my view.
That’s inflation and fall in purchasing power of INR.
I mentioned it earlier and in India, everything nearly doubles in price every 7-8 years irrespective of what happens in China or Russia.
Meanwhile average pellet prices have increased today to 9100-9200 per tonne.
High grade pellet is at 10200-10300 per tonne.