Yes I agree (before QIP in sept to dec 2014 quarter - the promoter pledged shares rose to 100% - this is highly irresponsible of the promoter/management!) - there is lot more to it and unless some one ask the management directly - we would only be speculating
Posts in category Value Pickr
TCPL Packaging Ltd. — Statistical Facts & Figures — Views Invited (01-12-2015)
Emami expanding paper board capacity
Any one has idea how this affects the company?
Disc : Not invested yet
US based NRI’s – How do you guys invest in equity now? (01-12-2015)
Has anyone checked and using PIS account by Axis Bank? Seems like account can be opened by just mailing notarized documents to some US address.
http://www.axisbank.com/nri/usa-canada/investments/pis-account/features-benefits.aspx
Tree house education and accessories ltd. – Potential candidate for improvement in RoE (01-12-2015)
Ritesh,
ROE's have always been low even prior to IPO when K12 exposure had nto happened - and what does the promoter do with a Rs. 220 cr. loan is something that's beyond me - that's a lot of money to be taken out through a pledge -
Pledging was at an all time high just before QIP and reduced drastically - how, how did he repay Rs. 60 Cr. in one quarter (sum that's large enough even for an ambani).High pledging with money taken out for personal use just before QIP at an exalted price coupled with a crash immediately thereafter , a huge fall in pledging and repayment thereafter, points to some possibilities that we ought to think about. It means the promoter needed a lot ofmoney for a small period of time just before QIP.
I have no idea still why promoter needed Rs. 200 Cr. for himself and how he repaid it so quickly after QIP. Your calculation raises more questions than answerrs
Avanti Feeds (01-12-2015)
Hi Vamsi,
Thanks for the the heads up on the field situation at Nellore . Just had one question regarding your last statement. Considering October-November months are the time for harvesting 2nd crop and preparing for third crop in Nellore do you foresee the preparation of next crop be hindered only for 3rd crop of this financial year or also impact will be on 1st crop next year preparation of which normally starts around February. I am not talking about financial stress because of loss of 2nd crop of this season (I think most of the regular farmers would have savings/reserves from last few years bumper sales) but more about clearing the fields of flood waters.
Is there any rule for max gain weekly, monthly and yearly basis? (01-12-2015)
as per today "cap...I think BSE might have applied 20% for calculating Quarterly limit..
so in this case yearly limit also will be applied 20% cap calculation, Irrespective of intermittent circuit changes by BSE.
in short term it may have hiccups but in long term it will e very good.
Is there any rule for max gain weekly, monthly and yearly basis? (01-12-2015)
There is total confusion.
I guess we should be careful in posting something which we are not 100 % sure, esp regarding price limits targets etc, as this may impact small investor behaviour and may incur some losses.
Best regards
Santosh
Sarla Performance Fibres – Another Interesting Textile Story in Making? (01-12-2015)
Hi Abhishek, as I understand company passes only 5% benefit and takes only 5% hit from crude/raw material fluctuation. Rest they pass to customers. This is what your math also reflects. This policy of company reflects some significant bargaining power of company with customers. I understand that they are amongst very few specialty yarn manufacturers and not textile commodity trader so they are able to protect their margins (look at last 10 year margins).
From this quarter (Q3 FY2016) onwards around Rs. 3.5 cr. additional revenues will flow in from Nylon 66 sale.
Assuming crude remains at these levels, Co. is expected to report ~Rs. 350 cr. sales and Rs. 46 cr. net profit this year. Co. is planning to increase dividend also from this year!
In FY2017, if USA plant scales to 80-90% utilization levels then sales can fillip to ~Rs. 450 cr.
Tree house education and accessories ltd. – Potential candidate for improvement in RoE (01-12-2015)
Thanks for raising important questions. I am not expert but let me try to answer for the 2~4 questions from my analysis so far, Welcome corrections.
Low ROE-> Here we got to see the ROE is for the combined entity of the pre-schools and K-12. The K-12 is asset heavy and it is what denting the ROE. In the earlier calculations, the K-12 assets which constitute 43% is delivering only 0.04X Asset turnover, whereas the pre-schools business is around.45X. The company's plan is delivered and focus only on pre-schools. The company is in significant expansion phase now and that is also the reason for ordinary ROE's. After a while I think it should stable and ratio's should definitely improve. The better way is to check the per center profitability and breakeven period of the per center is less than 2 years. The centers earn anywhere b/w 30~120% return on their capital investment.
Consistent capital raising -> I think here the management is responsible for diverting funds to low asset turnover business such K-12. It invested heavily in the K-12 business fell short of the money and resorted to constantly raise money for expansion of the pre-schools. I think the investors are all just looking at the pre-school business and investing in them and pushing management to exit out of the K-12 assets which is holding the ROE. But again prudent management should have handled better and not ready to dilute equity at every instance.
Profitability -> Here again the blended numbers don't look good. But with day care facilities the profitability should improve. Even currently the company margins are very high in the upward of 60% for Gross and 28% for net margin. MT Educare numbers are much lower. But with the constant capital requirement and investments, this company hardly many any free cash which has to change.
Socially Responsible Investing? (01-12-2015)
I was going through this article: https://en.wikipedia.org/wiki/Socially_responsible_investing
I wondered if someone, who is really interested in ethics would try to avoid companies which sells products/services such as:
1) Tobacco/Cigarettes
2) Alcohol
3) Products made from killing of animals.
4) Gambling
I know many people would refute some of the points. But I am not here to preach anybody. I just wanted to know that if an investor wants to avoid products based on few or all checkpoints mentioned above, what kind of sectors/companies would he or she would have to filter out even if their future prospects look super good?
Some examples which come to my mind
1) VST Industries (Cigarettes)
2) Most Indian Pharma companies such as Granules India, Strides Arcolab, Torrent Pharma, Alembic Pharma which manufacture Gelatin based capsules. (Animal product)
3) Textile companies such as Orbit Exports (Natural silk obtained from animals)
4) Avanti feeds (Shrimps of course!)
5) United spirits (Alcohol)
Again, I know people would bombard with their logic on what is ethical and what is not. I welcome all of them 
But what interests me more is if people could contribute to the list, so a person who believes in some of the ethics doesn't innocently becomes a cause to violate the ones he or she adheres to.
Also, a list of stocks/sectors which don't infringe some or any of them would be awesome.