http://techcircle.vccircle.com/2015/10/30/ride-sharing-app-lifto-raises-130k-in-angel-funding-2/
The treehouse burning up, he is pledging his stake . But he is ready to splurge money on some fancy tech startup !!
Posts in category Value Pickr
Corporate Fraud/Misdemeanor – Public Domain – India lessons (15-11-2015)
Treehouse education & accessories:
- Incessant pledging ( as early as Friday evening)
- Poor cashflows, high account receivables. Aggressive accounting : brought to light by a NGO
- Spiraling Debt : A increase of 60% in one quarter. This is after a equity dilution to QIP in march for 200cr!!
A easy to understand business. Throw in words like niche, scarcity premium , high growth(investment driven and not by internal accurals ), FII validation(easy money).
A perfect WEALTH DESTROYING machine.
Disclosure : Invested from 2012. Exited on friday.
Kaveri Seeds – Temporary thread for clarifications (15-11-2015)
Hi Sreedhar,
Where did you find this info?I can't see this in results.
Kaveri Seeds – Temporary thread for clarifications (15-11-2015)
The earnings call is scheduled for tomorrow at 2 PM IST (dial-in # 91 22 3938 1071).
Kaveri Seeds – Temporary thread for clarifications (15-11-2015)
its there at 2 pm .not sure .pl try 011-60001221
Deepak Fertilizers and Petrochemicals (15-11-2015)
About the company-
1. Products- INDUSTRIAL CHEMICALS- Iso Propyl Alcohol, methanol, Ammonium nitrate(AN), Dilute nitric acid(DNA), strong nitric acid(SNA), concentrated nitric acid, Propane, Hydrogen
FERTILIZERS- nitro phosphate 24:24:0,bentonite sulphur, bio fertilizers,water soluble fertilizers and select mixtures
MINING SERVICES AND CONSULTATIONS- Only manufacturer of Technical ammonium nitrate in India which is a key ingridient in mining industry
Holistic mining services provider of end to end solution in geology, mine consulting and contract mining
VALUE ADDED REAL ESTATE-
Ishanya – India’s first true Lifestyle Centre. Located in Pune, Western Maharashtra
Plant capacities-
Installed Capacity Unit (MTPA)
Ammonia -1,28,700
CNA- 1,38,600
DNA- 7,02,900
Methanol- 1,00,000
Iso Propyl Alcohol- 70,000
TAN (across Taloja & Srikakulam)- 4,69,000
CO2 - 33,000
Nitro Phosphate -2,29,500
Bentonite Sulphur- 25,000Company strengths-
Over three decades of technology depth, financial prudence
and human motivation
Multi-product portfolio spanning a variety of sectors – built in
resilience against economic downturns
Plants at Taloja, Western Maharashtra, India
100% Subsidiary – Smartchem Technologies at Srikakulam,
Andhra Pradesh
Ranked Fourth among chemicals manufacturers in India
Only manufacturer of 24:24:0 in India
Amongst market leaders in India for specialty products, water
solubles, specialty fertilisers and Sulphur Bentonite
Among the best recognised brands in the industry—Mahadhan
and Bhoodan— drawn across a wide range of fertiliser products
Network of 4,500 dealers and sub-dealers to ensure penetration
across 7 states – Maharashtra, Karnataka, Gujarat, Madhya
Pradesh, Punjab & Haryana
Strong farmer relationships through 12 Saarrthie centres serving
11,500 farmers
The only IPA and TAN manufacturer in India & the largest Nitric
Acid and AN producer in SEA
Assimilated world’s finest technologies available for products
DFPCL has invested resources in India for production of major
fruits such as grapes & banana. The advantages of these two major
crops in India are:
Large acreage under these two crops therefore good quantity of fruit
is available for marketing
Quality and supply chain is fairly streamlined with packing facilities.
DFPCL’s next mandate crop is Pomegranate
Pomegranate is grown almost round the year with 90% of the area in
Maharashtra – our current location
DFPCL’s agronomists will supervise for production and quality.
DFPCL’s outreach to major cities for domestic sale of fruits &
vegetables
Supply to major super markets as well as into whole sale trade
Proximity to the Middle-East markets as well
- NEW PROJECTS-
Recently announced two new projects in Agri-business at a total
investment of Rs. 415 crores
Capacity augmentation project at Taloja
Project will more than double the existing capacity at the integrated
fertiliser complex
Will enhance capacity of NPK grades complex fertilisers from 2,29,000
MTPA to 6,00,000 MTPA
Company will gain additional flexibility to produce all NP / NPK grades
with fortification of micro-nutrients
Greenfield Bentonite Sulphur plant
New BenSulf plant at Panipat in Haryana – Northern India
Plant will produce 32,000 MTPA of BenSulf
Both projects are expected to be completed in 30-months from
commencement
WEAKNESSES
Capital Intensive business
Average return on equity figures
Business employs a good amount of Debt
INTERESTING FACTS-
Liberal dividend policy
In May 14, the supply of natural gas from RIL,GAIL to Deepak's Fertilizers was stopped resulting in a huge blow for the company via cost over runs.
As a result the financial performance of the company in the past 6 qts has been poor. Net margins have fallen from 6-8% to 2%.
However when the gas supply resumes( as Delhi High court has directed the govt to do so in Jul and Oct this year), it will be a huge trigger for the company resulting in huge gains in EPS
Agressive promoter group buying in the company post the stock price correction (in Jan-Mar qtr, increasing the stake by 4.5% to 50%)
By all indications, gas supply should be restored next year and hence the earnings may explode.
Thus it can end up becoming a huge turnaround opportunity
Triveni Engineering – Special Situation- Loss making business hived off (15-11-2015)
The other sugar companies seem to have rallied much higher than Triveni. My sense is one big institutional investor holding 10% is a seller at higher levels and hence the cap in the price. The call is scheduled on 16th Nov and should provide more details on the sugar scenario and the possible steps the Govt. is taking to resolve the sugar industry problems. More later after the call.
Kaveri Seeds – Temporary thread for clarifications (15-11-2015)
Looks, management made a provision now of Rs 64 cr(Royalty-disputed amount) in Q2 and it may be the reason for increment in expenses. How to get Kaveri's results conference call info.
Thanks
Sreedhar M
Rain Industries – An oversold de-leveraging play (15-11-2015)
Good read. I have few points to make- a) You should look at the company from EV/EBITDA and my sense is it is not cheap. b) It trades at a lower multiple than its acquisitions- its last acquisition was some 7-8 times EV/EBITDA and hence the value destruction for the Rain shareholders. c) The Management is not shareholder friendly. In the last eights years, it has done two acquisitions with no change in equity valuation, no big dividend and very small buy back. Why is the Management not concerned about the low equity return to the shareholders? I agree that it does not matter if the company has not given returns in the past, but it does reflect the Management thinking and their low concern for the shareholders. I am sure all the existing institutional shareholders are also very disappointed.
Thomas Cook India-Will it move like Warren Buffet Stock (15-11-2015)
I dont understand why this is a corporate governance issue 'against' the minority shareholder.
Lets say you invest with a partnership where one partner is 80% and other 20%. There is some mis-understanding between the partners and now the junior partner wants a bigger share. The main partner has two options
a. Pick a fight on principle as the junior partner is going back on his work and see the value of the company suffer. So instead of have a 3X in 5 years, one is left with a 1.5 X
b. Be rational and give away 10% of the partnership, but ensure that we have a slight smaller piece of a larger pie.
As a minority shareholder, rationally thinking, what should we prefer ? option a 'feels' better, because it is equivalent to what we sometime go through when a hire an auto where after the reaching the destination the driver asks for more money 
on top of this the management has shared their thinking and have asked for approvals. This episode does not leave a good taste and creates an apprehension in mind (will this happen again ?). but how is this is a corporate governance issue ?