Hi @sahil_vi, can you recommend some resources to help me learn more about banks please? Thank you for your contributions to the community.
Posts in category Value Pickr
Tar’s Portfolio and Information Attic (01-08-2022)
“Can you elaborate on the relative strength vs sectoral index or broader market index”
Krsnaa Diagnostics – what is the diagnosis? (01-08-2022)
Hello.
Logically, if we see some of the latest order wins,
Delhi
Punjab
Rajasthan
Maharashtra
A common factor - non bjp governments.
Disclosure - Invested and believe in business model, but need to think whether to be part of political goal scoring or not.
Similar situation in not so recent past - GVK Airport
Regards
Malkd’s Core Portfolio (01-08-2022)
It’s along expected lines…as mentioned in my posts above though i was tracking it and hoping for a sub 120 entry price to guarantee a good dividend yield for what should be a tough few quarters/years since the quality of the company isn’t the best. I didn’t blink even at rs. 129. Now that it’s 160+ I’m going to give it a hard pass until and unless it somehow goes to that sub 120 level.
Krsnaa Diagnostics – what is the diagnosis? (01-08-2022)
This says 100million.
Something seems not right to me related to these articles.
Varun beverages fast growth duopoly business (01-08-2022)
BUSINESS: Varun Beverages
Stock code BSE 540180
Stock code NSE VBL
ABOUT COMPANY
Varun Beverages Limited (VBL or Company) is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Mountain Dew Ice, Seven-Up Nimbooz Masala Soda, Evervess, Sting, Gatorade and Slice Fizzy Drinks. PepsiCo NCB brands produced and sold by the Company include Tropicana Slice, Tropicana Juices (100%, Delight, Essentials), Nimbooz, as well as packaged drinking water under the brand Aquafina. VBL has been associated with PepsiCo since the 1990s . As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has 31 manufacturing plants in India and 6 manufacturing plants in international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and Zimbabwe).
HISTORY
• 1995- Incorporation of our Company as public limited company.
• 1996-VBL started operation at Jaipur in 1996.
• 1999- Started operations in Alwar, Jodhpur and Kosi.
• 2013- Company acquired the business of manufacturing and marketing of soft drink beverages in Delhi, India.
• 2014- Capital infusion of ` 4,500 million by Promoter Group.
• 2015- Business transfer agreement through which our Company acquired Pepsi India’s business of manufacturing, marketing, selling and distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh, Uttarakhand, Himachal Pradesh, Haryana, Punjab and the Union Territory of Chandigarh.
• 2015- Incorporation of Varun Beverages (Zimbabwe) (Private) Limited
• 2016- Acquired entire shareholding of Arctic International Private Limited in Varun Beverages (Zambia) Limited.
• 2016- VBL was successfully listed on Indian Stock Exchanges – NSE & BSE.
• 2017- Acquired Odisha and parts of Madhya Pradesh along with two manufacturing units at Bargarh.
• 2018- Acquired Chhattisgarh, Bihar and Jharkhand along with two manufacturing units at Cuttack (Odisha) and Jamshedpur (Jharkhand).
• 2018- Entered into a strategic partnership for selling and distribution of the larger Tropicana portfolio that includes Tropicana Juices (100%, Delight, Essentials), Gatorade and Quaker Value-Added Dairy in territories across North and East India
• 2018- Established a green field production facility in Zimbabwe, an untapped market with huge potential.
• 2019- Concluded the acquisition of PepsiCo India’s previously franchised sub-territories of the State of Maharashtra (designated parts), Karnataka (designated parts) and Madhya Pradesh (designated parts).
• 2019- Concluded the acquisition of West and South India sub-territories from PepsiCo.
KEY HIGHLIGHTS
• 37state-of-the-art production facilities.
• 90+ depots
• 2,500+ owned vehicles
• 1,500+ primary distributors
• Installed 800,000+ visi-coolers.
• Three division CDS 71%, Water 22% & Juice 7%.
• Auditor M/s. Walker Chandiok & Co. LLP fee is 6.80
PRODUCT & SEGMENTS
PLANT & CAPACITY
REVENUE BREAKUP
• CSD constituted 73%, JBD 9% and Packaged Drinking Water 18% in Q2 CY2022
RAW MATERIAL
• PET CHIPS – 66000 MT for packaging of finished goods. (Crude derivatives)
• SUGAR- one of the key raw materials.
• PETROLEUM- transportation of finished goods.
• PULP
COMPETITORS
• COCA-COLA
CAPEX PLANS
1200 cr for CY 23
SUBSIDIES
• Varun Beverages (Nepal) Pvt Ltd
• Varun Beverages Morocco SA
• Varun Beverages Lanka (Pvt) Ltd
• Varun Beverages (Zambia) Ltd
• Varun Beverages (Zimbabwe) (Pvt) Ltd
• Ole Springs Bottlers (Pvt) Ltd
• Lunarmech Technologies Pvt Ltd
MOAT
• Barrier to Entry as its mainly duopoly market.
• Brand- Pepsi co brand name
• Distribution channel is very strong 90 depots, 1500+ distributors 2500+ owned vehicle.
MANAGEMENT
I. BOARD OF DIRECTORS & REMUNERATION
• Ravi Jaipuria (Promoter & Chairman)
• Varun Jaipuria (Whole-time Director)
• Raj Gandhi (Whole-time Director)
• Kapil Agarwal (Whole-time Director and CEO)
• Rajinder Jeet Singh Bagga (Whole-time Director)
• Dr. Naresh Trehan (Independent Director)
• Dr. Ravi Gupta (Independent Director)
• Pradeep Sardana (Independent Director)
• Rashmi Dhariwal (Independent Director)
• Sita Khosla (Independent Director)
II. PROMETERS HOLDINGS
III. Remunerations
Positon Name Remuneration (million)
Promoter & Chairman Ravi Jaipuria
Whole-time Director Varun Jaipuria 43.69
Whole-time Director Raj Gandhi 41.6
CEO Kapil Agarwal 68.34
Whole-time Director Rajinder Jeet Singh Bagga 31.59
Independent Director Dr. Naresh Trehan
Independent Director Dr. Ravi Gupta 1
Independent Director Pradeep Sardana 0.4
Independent Director Rashmi Dhariwal 1.3
Independent Director Sita Khosla 0.9
188.82
WEAKNESS & THREATS
• Duplicate vat bill case in Nepal on company employees.
• Promoters have continuously decreased holdings.
• PET resins is a crude derivatives which effect margins.
• Have acquired almost whole India, so after few years sales growth may be slow.
• Debt of 3000 cr.
• Licensing deal with Pepsi may not materialize in future (very little chance)
STRENTHG & OPPOURTUNITY
• Duopoly sector only two brands in CDS. Juice is also consolidated market.
• Have continuously reduced debt from 1.5 times in CY18 to 0.6 times in CY21.
• Brand of Pepsi.
• Great distribution channel.
• Company can acquire Africa talks going on for Congo.
THESIS.
• Operating leverage – CY22 sales growth will be high due to low base year and acquisitions of south & west territory.
• Deleverage – debt of 3000 cr which will be reduced by 40% in CY22.
Krsnaa Diagnostics – what is the diagnosis? (01-08-2022)
If any cash or bullion is found in the premises, it is seized, including in any bank lockers. Apart from that, there is no immediate monetary loss. Business will continue as usual. The undisclosed income is not the actual amount that will have to be paid by the assessee. The assessment will be completed by 31.03.2024 after which the actual demand of tax will be sent to the assessee. Assessee can deposit 20% of the demand and go in appeal which can take several years. If the assessee does appeal, no penalty will be levied till the disposal of appeals-first before the Commissioner (Appeals) and after that the ITAT if the assessee loses the first appeal. If the assessee does not get relief after these two appeal stages, penalty will be levied. The assessee can again appeal the penalty levied after depositing 20% of the penalty amount. The assessee can also go in further appeal before the High Court and Supreme Court against the assessment and penalty orders. That can take years to decades. The total tax+interest+penalty can even be higher than the total undisclosed income found & finally upheld after all the appeal processes.
Since the company is B2G, it probably had to bribe Govt people to win the tenders and get it’s payments release in time. That bribe money was off the books and thus, was paid through unaccounted business income which is being talked about in the media. Most B2G companies, especially those dealing with states and local authorities do this since their tender wins and payment release is all in the hands of Govt officials.
Tips Industries Limited – Ready to RACE ahead! (01-08-2022)
anyone have today’s concall summery ?
Krsnaa Diagnostics – what is the diagnosis? (01-08-2022)
100 crores undisclosed income is financially baffling to me! How exactly is that even possible? A 1500 crore company with 68 crores in PAT for fy22 with 100 crores of income off the books is mind boggling. Didn’t expect it to be that high.
Also how do these cases work as I’m unfamiliar with the Indian Tax code. Do they take away the 100 crores? Or do they just charge the tax on it + penalty?
If the income is only taxed isn’t it a financial net gain as it is off the books? Of course on the other side it adds another facet of risk to b2g, but financially? I feel like I’m reading this wrong.
Disc - invested as largest position(35%). Havent sold anything.