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Posts in category Value Pickr
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (29-10-2015)
Timing: 02:00 pm IST on Thursday, October 29, 2015
Conference dial-in Primary number
+91 22 3938 1071/ +91 22 6746 8354
India Local access Number
6000 1221 (Accessible from all major carriers except BSNL/MTNL)
3940 3977 (Accessible from all carriers)
Yes bank (29-10-2015)
Q2 results -
http://www.moneycontrol.com/livefeed_pdf/Oct2015/Unaudited%20Financial%20Results%20Q2_YES%20Bank.pdf
CASA up 330 basis points from 22.5% to 25.2% . Interest rate on SA reduced to 6% from 7% wef 1st Nov.
CASA+Retail FD is 52.5% of total deposits compared to 42.9% an year ago
SA (saving deposits) grew 61.7% yoy.
The bank has better visibility than even the larger banks like icici and axis due to cash backs on snapdeal, amazon etc. , attractive interest rates, which in my view is the reason why the CASA+Retail FD is growing at a massive pace.
Even as of now, it has a long term(10 yr) RoE of 21.6%.
The above plus the emphasis of retail lending would help re-rate this stock over time imo and together with 20-25% growth, capital raising (via ADR) at good valuations hopefully, this stock can even quadruple in 3-4 years if all goes well.
Disc.: invested
Consolidated Vs Standalone Finanacial statements (29-10-2015)
I was going through AnantRaj Annual Report & can see
"Consolidated Financial statements" as well as "Standalone Financial statements."
Whats the difference & which one of these should we investigate......
Torrent Pharma Ltd (29-10-2015)
Torrent Pharma Q2 profit seen up 153% on Abilify boost
Hypothetical situation – Valuing unconsistent business (29-10-2015)
Hi Sunil,
In my limited and flawed view this is too hypothetical a scenario :).
Need to get into the specifics of the business the company is in (Business model, Competitive advantage, pricing power, relationship with suppliers etc). you would have to take a qualitative call on the nature of the business.
Purely from a valuation perspective, i have not been in favor of using earnings to arrive at a intrinsic value range (especially given the fact that Profits are so inconsistent across the years). For example what would explain a drop in profits from 200 cr to 10 cr the next year.
Maybe a safer way would be to determine the growth in book value factoring in future investments to be made and the dividend expected to be paid out. (Playing it safe assuming the company was to be liquidated what would the investors get out). In addition you should also look at Enterprise value of the company (which takes care of Cash balance and debt levels).
Also would be important to look at Cash Flow patterns (Free cash flows, Op cash flow and how much of the business is self funded for future growth without needing additional capital).
Regards,
Pulak
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (29-10-2015)
any updates on concall
Kitex Garments Limited (29-10-2015)
Hi, Is there a possibility that those of you who are able to participate in the call tomorrow can share the details of the call later with the forum ?
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (29-10-2015)
Absolutely, add a pinch of salt to management guidance and we get your eps estimates of 22-23.
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (29-10-2015)
I think one has to be a bit conservative in making assumptions and take management's guidance with a pinch of salt. I work with an eps estimate of 22-23 based on which current price of 660 odd is fair price. With bouts of pessimism and optimism, it will swing above and below this price unless something meaningful comes out in q3 q4 results.
Till that time I expect the stock to remain sideways within a range of 50-60 Rs plus or minus the fair current price.