Hi Chirag,
Could you share the concall details please.
I wasn't able to find it on Kitex website or anyting on the web.
Thanks.
Posts in category Value Pickr
Hypothetical situation – Valuing unconsistent business (27-10-2015)
Below is given hypothetical situation.
Assume company ABC is having having FY15 profit of 100Cr, and the average P/E of industry in which business operates is 10 and current market cap is 1000Cr.
Given that you know and the company will have 10Cr profit in FY16, 200Cr in FY17, 10Cr in FY18 and 200Cr in FY19 and after that profit will be somewhere in range of 40-60 Cr for next 10 years which cannot be predicted exactly now but will be range bound.
How do someone value such business or on what earnings should multiple be applied? Most of the times market assign a value based on forward year earnings.
Now because each year earnings are so fluctuating what should be the base earnings which should be considered Current year? Next year? Average of 4 to 5 years?
Views please.
If this case study doesn't makes sense please flag the post so that it gets deleted.
Kitex Garments Limited (27-10-2015)
Hello guys,
There is a concall with the kitex management of Friday 30th October.
I have listed falling queries to raise before the management. If anybody has any more queries than please add to the list so that it get answered, and probably ends dilemma of fellow members for investment decisions.
- Why cash of 250 crores is lying idle ? ( Why not employed in some short term FMP's )
- Why there was no mention of merger with Kitex childrenwear?
- What could be the potential implication or threat by implementation of TPP ( Trans pacific partnership ) and how will company respond to it OR any plan B.
- Why topline is flat after 6 months? ( I know that majority sales takes place in Q3 and Q4 )
- Will be management be able to achieve the topline growth of 600 - 650 crores?
- Why Fabric contribution to the EBDITA is very less compared to the capital employed? ( 1 crore EBDITA compared to 73 crore capital employed ).
Your queries are most welcomed!!
Kitex Garments Limited (27-10-2015)
Every asset that has a cash flows will have an intrinsic value and from the intrinsic value you can compute intrinsic PE irrespective of small or mid or large cap.If value investing requires you to invest with a MoS,the prerequisite is you should know how to compute value first and then compare with price and take a call on buying or not. I just referenced PE for easy understanding and EPS just doesnt incrase 2 or 3 times just like that..What you cant measure yoi cant controls as stated by WB. If one dont know what the industry might look like then any number will fly and any value can be justified
Kitex Garments Limited (27-10-2015)
Dear Manish,
Technically it is relevant. But you are right fundamentally it is not relevant.
Kitex Garments Limited (27-10-2015)
There is nothing wrong in posting technical chart. But irrelevant comparison is not encouraged.
Kitex Garments Limited (27-10-2015)
Dear Manish,
I am not comparing here. I am only trying to tell that too on specific request, how following this line will help you to get out when there is a doubt or crisis. The point is in Kitex it has not happened whereas it has happened in case of KSCL.
In fact, I am not bothered about technicals as it is irrelevant in a fundamental forum. I posted this for the benefit of a particular member.
Why dont yu delete Kitex chart also. Can I do it
Rgds
Screener.in: The destination for Intelligent Screening & Reporting in India (27-10-2015)
Hi Ayush
You had a wonderful feature which allowed one to shift the columns of the watchlist. Can you re enable it please?
Alembic & Alembic Pharma (27-10-2015)
Super duper Q2 FY16 results. Orbit changing.
- Net Sales up 85% to Rs 1018 cr
- Net Profit up 274% to Rs 289 cr
- International Generics up 342% to Rs 559 cr
- API Business up 43% to Rs 137 cr
Kitex Garments Limited (27-10-2015)
It is not appropriate to compare two companies based on the charts. This does not add any value to the Kitex thread. Please refrain from doing so in future.