ok ..what would you do if you are in the management's place as the facts stand today (assuming you cannot turn the clock )
We have two bad options ...which one do you choose ?
Posts in category Value Pickr
Thomas Cook India-Will it move like Warren Buffet Stock (16-11-2015)
NCL Industries – Resumption of growth? (16-11-2015)
The article is dated 30th October. Today, 17 days after the article is published, the prices have only came down somewhat for most south cement companies.
Nagarjuna cement is still being sold at Rs 325/bag by online retailer in Hyderabad. In October it was being sold for Rs. 340/bag. The realizations are definitely lower than before.
So one shall be watchful but no need to panic yet. Things may improve if historical trends hold true and demand improves post Diwali till June.
Disclosure : - I hold NCL
Ajanta Pharma (16-11-2015)
Ajanta Pharma USA Inc. has launched Montelukast sodium oral granules in US market.
Approval was received in august.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=56ba66d2-4cd3-41a0-b4b4-718b9bd224b1
Dynemic Products (16-11-2015)
Yes. Results were bad and stock had corrected. Today it fell in sympathy to peer Vidhi's poor results. I would stay put. But each make their own choice.
Vidhi Dyestuff Management Meet (16-11-2015)
Just to clarify, 20% EBIDTA margins is what VDML plans to achieve in next few years and may not be the steady state margins in the near term. Last year was exceptional and their Manufacturing margins were above 20%, however, as always one should never make a steady state margin assumptions on one year number. The only thing we can infer from past data is that EBIDTA margins from manufacturing operations is consistently improving and inching towards their stated goal of 20% which will be achieved over next few years.
My take on Vidhi's result was that management had indicated that their trading operations will be discontinued and hence topline was bound to fall. Also, the EBIDTA in absolute terms was bound to fall as well. What seems to support the hypothesis is the EBIDTA margin by almost 300 & 200 basis point YoY and QoQ.
Dynemic Products (16-11-2015)
This quater result is very bad and today also stock hammered. Please suggest to hold or exist from this stock.
Ujaas Energy – Value Migration to Solar Power (16-11-2015)
Hi Chintan, Assem and other contributors,
Excellent work done. I have few questions -
--> Are the profit margins in this business so low? Only 16%? Till I know this business is very lucrative.
--> There is one company - EIL which is an elephant in EPc works. It ranks no.1 in entire Asia (till I know). It has started entering into solar plants. It provides EPC services as well as owns solar parks like Ujaas does. Being Govt entity, I feel it will have an added advantage over other market players. It has more than 16 patents in its name, good past track record and good govt. backing.
--> This business can be a multibagger..But implementation of REC/RPO, net metering, solar cells manufacturing and only EPC service outsourced by clients going for more than 10MW projects - are issues which need to be taken care of.
--> Who are the competitors of Ujaas?
Disc: Not invested. New to solar business. So please pardon me for any mistakes. Want to have more clarity on this business and its future course.
REPCO home finance – another Gruh in the making? (16-11-2015)
Valuing Repco on book basis say at 2.5 times book would mean a price of ~300 rs. That would mean a PE of 11-12( FY16 basis) and PE of 8-9(on FY17 basis) which would be absurd( for a business growing at and expected to grow at ~30% going forward and not only this ....with lot of relative certainty and safety).
REPCO home finance – another Gruh in the making? (16-11-2015)
As Gruh is not raising fresh capital for years and its gives out good dividend its P/BV ratio is very very high.
KSE Limited — Interesting Business (16-11-2015)
From Dr. Vijay's Blog
KSE Limited has been growing its sales at a decent pace of 15-20% year on year since last 10 years (FY2005-14). However, profitability of the company is very low. Operating profit margins (OPM) are barely 2-4% and net profit margins (NPM) are in the range of 1-2%. Moreover, profitability margins (both OPM & NPM) have been fluctuating wildly in the past.
Such low fluctuating margins are usually found in trading companies, which have very low pricing power with the customers. They are not able to pass on the increased cost of their raw materials to customers and thereby suffer in terms of low profitability.
An investor needs to be wary as companies with low profitability turn to losses very soon, in tough business environments.
I think all these concerns are very much valid and these are now showing up in the Quarterly result of the company due to which prices are going down.
Discl: Not Invested