Hi,
Please look at break up of Cash&Bank Balance in Annual Report. 65-70% of Cash is FD against MM, Borrowings and Guarantees.
Posts in category Value Pickr
Modern Shares & Stockbrokers – Cash Balance is Less than Market Cap? (26-10-2015)
Kitex Garments Limited (26-10-2015)
Whenever in doubt, please refer what legends have said. I am just reproducing what Mr Warren Buffet said. It applies in this context. Instead of worrying about so many things like technical charts, qtrly results, half-yearly results, cash balances, other income, etc , lets ask one question Is it a wonderful business to be in. If yes, dont waver. If No , just sell and forget.
“That factor so overrides anything else. If you’re right about the business, you’ll make a lot of money … the timing part of it is a very tricky thing. I don’t worry about any given event if I have a wonderful business … With a wonderful business, you can figure out what will happen, you cannot figure out when it will happen. You don’t want to focus too much on “when”, you want to focus on “what”. If you’re right about “what”, you don’t have to worry about “when” very much”.
It is the business where the cost of final product is not expensive for a consumer but a necessity and in addition to love factor. Just compare AIA.
Has any factor changed the tag " wonderful busines" . Then highlight that factor .
Rgds,
Indian terrain—play on consumption (26-10-2015)
Points to ponder -
What's the point of purchasing Rs. 16 crore property and saving Rs. 1.8 crores in rentals and making additional Rs. 1.8 crore expense as interest cost. Interest considered at 11.25%. (Management made it clear that property purchase wont be done from QIP funds, but from internal accruals and borrowed funds). Not sure but the move seems to help sinking Celebrity fashions, not at all good move for Indian Terrain.
If this move was planned, why did they repay long term debt of 16 crores in Feb-March?? Again taking Rs. 16 crore fresh loan would involve 1.5% expense (processing fee, mortgage charges, pledge charges, legal documentation, valuation etc.)
What are companies future plans to use the unused Rs. 60 crores of QIP funds??
Indian terrain—play on consumption (26-10-2015)
You are correct, 9 years of rent. It will not be 15 because company needs more space and wants to take the entire facility.
Top 5 picks for 10 year horizon (26-10-2015)
Hi,
I think it depends on whether you want to inject new capital or do you want to change your horses. If it's the earlier case and you are willing to be extermely patient then conservatively speaking, I think one might think to buy it at 100 -110 levels in case the market takes a nosedive. If its the latter case, then I don't have much to say as it gets too complicated.
Indian terrain—play on consumption (26-10-2015)
It would almost be 9 yrs of rent I think on Rs 1.8 Crs. and 15 times present rent of Rs 1.2 Crs. None the less. Its just that I take any mgmt's justification on related party transactions with a pinch of salt.
Regards.
Top 5 picks for 10 year horizon (26-10-2015)
Hi Samir,
I think India is facing an energy and water crisis from quite a time. Sooner or later in the next 20 years this demand would have to be met. Be it through renewable sources of energy or the traditional coal way. But I think the main take away from the fact is whatever be the source, you need to invest on infrastructure for more dense and remote connectivity. So power transmission and water supply channels would have to increase dramatically. Being a newbie, I am sure this might be sounding amature as I am not providing any numbers but just a hand waiving argument but I think companies like Skipper Ltd have a bright future as their product portfolio caters specifically towards that. Although this market is regulated, I still think there is a huge scope to grow within this regulation as the demand is getting more inelastic in nature progressively.
Modern Shares & Stockbrokers – Cash Balance is Less than Market Cap? (26-10-2015)
Hi,
Was analyzing Modern Shares & Stockbrokers and found the following details
- Company market cap is 4.54 Crores
- Dividend Paying for past many years
- Cash in Company 14.85 Crores
Cash to market cap is very attractive. Any trap in this stock ?
Top 5 picks for 10 year horizon (26-10-2015)
Hello All,
I have been looking at Granules India for a few weeks now and had the following 2 questions on the stock,
What is the reason for the company availing additional debt ? Is it for expansion ? It seems that with the profits and corresponding accruals they should have been very comfortable financing the expansion through internal accruals
Post split what would be a good price to get into this stock ?
Thanks
Top 5 picks for 10 year horizon (26-10-2015)
Hi Nishant,
Good Picks. I am invested in Granules India and Repco (around 5% for each of my total stock portfolio). It could be more if I have to consider my Mutual Funds (done through SIP). Not sure how they record this in the forum. May be the moderators can help...
I still feel that 67% allocation of the overall 25% - > 16.75% of your overall financial portfolio is higher for a single stock. While I may not be able to comment much on your remaining portfolio. But it is like trying to assess a student on how well prepared is he in Mathematics when he seems to be confident in other subjects 
One thing is that you seem to be very well covered on the pharma space. Have you looked into other areas that could be the themes for growth in the coming decade. Few thoughts that I feel can be looked at -
1.) Affordable housing and smart cities
2.) Renewable energy for sustenance - Solar & Wind
3.) Great opportunity for Indian Pharma - Continues
4.) Textiles - Can it be the Next Pharma
5.) E-com Boom - I am a little scared after the dot com burst though....
6.) Commodity trading in India
7.) Make- in- India (Theme played by the existing government)
8.) Growth of Quick- Service Restaurants Industry in India
9.) Digitization (Theme played by the existing government)
Members any thoughts?