Any idea why the stock price is still taking a beating? Results seem good and so does the commentary? Is it because of the capex which will not add to revenues until 2024?
Posts in category Value Pickr
Sigachi Industries Limited (26-07-2022)
Excellent set of questions in today’s call and response appears to be positive on 1% royalty, we have to track it.
In this call they said in nutraceuticals it is going to be B2B but in today’s call they are saying it is OTC / BTC
They just wanted to do everything along with their core competence, eg.
Alkali plants management
OTC products in Nutraceuticals (Will rely on contract manufacturing and sell on their name , I am not clear on this they said they leased a asset with 15 lakhs per month rent that asset will be used to manufacture and sometimes they said it is mainly taken from a 3rd party )
Ethonol - tone has changed they might not go ahead with this
CCS - Initial idea was setting up at Kurnool but they are setting up at Dahej (Looks like due to delays by AP government there will not be any investments in Kurnool )
All the capacities (under progress ones) will come online by FY24
CFO is jumping on everything 
Muthoot Finance (26-07-2022)
There are many reasons for that. Longevity of the business, sustainable growth, competitive advantage, market share, innovation in products, trustworthy and able management, other sectors not performing at the same time, institutional holding etc etc.
Often overlooked is the high PE period, when only a few sectors are relatively better performing, so many are flying to those counters where the activity starts and increase, safe haven buying. Look at Page Industries thread or other such threads to know more, such threads are great reads, because we get to see investors’ and outsiders’ point of view, optimism, biases, warnings everything exists. Some threads in VP are filled with such knowledge that they are no less to popular books of investing.
And of course the fall of PE, reversion to mean or sane levels will also have the reasons, institutions find other counters, increased competition, management’s guidance misses, turnaround of other sectors, so inevitably the high PE wont sustain if there is materialistic impact on the business, and it falls, or at least goes into time correction.
Not to mention the obvious that each company is different, and some stocks defy and sustain such elevated PEs, if not go even higher.
I am yet to experience everything said above, because I did not get the opportunity to experience all of it. Hence bull and bear markets both teach a lot of lessons.
Easy Trip Planners (Easemytrip) – An outlier in OTA (26-07-2022)
Emergency movie is being directed by Kangana Ranaut and is being produced by Renu Pitti and Kangana under the Ease My Trip and Manikarnika Films banners
Investing Basics – Feel free to ask the most basic questions (26-07-2022)
I don’t think there is any way to know from any mandatory disclosures. Many times analysts ask about it in the concall, or one can write to the company and enquire.
Indigrid InvIT: High yield on stable and predictable revenues (26-07-2022)
Q1 results are out
“Declaration of Q1 FY 23 distribution of INR 3.3 per unit comprising INR 3.0556 per unit in the form of Interest and INR 0.2444 per unit in the form of Principal payment.
The record date for this distribution will be August 01, 2022, and payment will be made on or before August 10, 2022”
Here is the media release (Co sec too is leaving ! but a sub has been found)
13.2 was the guidance and 3.3 in the 1st qtr, augurs well, I guess !! but they have to maintain this run rate (unlike last year, where Q1 was higher but it tapered off but within the guidance)
South Indian Bank (26-07-2022)
1st Quater result is out:
Spike in corporate provisions
Other things showing gradual improvement…
Sterlite Technologies | Digital India play (26-07-2022)
Yeah, ever since I’ve started following them in 2018, multiple long shot goals like $1B revenue, doubling revenue in 3 years etc., It’s very difficult to do scuttle-butt as it’s a B2B company.
But, looks like the industry has a lot of growth ahead and Sterlite tech does have differentiator technology and services.
Their sudden Q3-22 restatements were surprising, but in hindsight seems they had (have?) huge problems agreeing with Indian customers their work is done (sign-off) and getting invoices paid and if paid at the quoted rates. I’m guessing both their CEO/CFO exits may have been related to these Q3-22 revenue/profitability charges. They’re taking an year from Q322 till perhaps Q4-23 to reduce India dependence (unless it’s private sector) and increasing UK/US business.
To give them credit, they’d communicated both revenue/profitability hits till Q4FY23 or so right during their Q3FY22 call, but it was too late to sell at then recent high of 300
I booked a small partial profit at 190 but still largely invested from early 2020 levels and watching closely to add more.
Dolat Algotech Limited (26-07-2022)
Yes I agree. That’s why I allocated a small portion of my portfolio to this stock. I Invested purely based on numbers and I believe that the price was/is low enough for the investment to make sense. If they can match or hit 80-90% of Index returns, the prospect of investing makes sense. But there are reasons why one may avoid this stock.
Dolat Algotech Limited (26-07-2022)
My main gripe with Dolat is that it is completely opaque. Promoters have other companies also and lots of money just sloshing around. The business model is also not clear.
Neither is it clear how they will scale up.