Another thing that that i must add here is the ESOP mentioned above would lead to a dilution of about 3%. So, this has to be factored in the above mentioned calculations
Posts in category Value Pickr
Oriental Carbon and Chemicals Ltd (25-10-2015)
A few things to note:
Company may have some pricing power because of limited suppliers and long standing relationships.
Stake sale was to institutions that are known to be long term holders - good pedigree.
Indian terrain—play on consumption (25-10-2015)
Company has given a detailed explanation of related party transaction. In essence, it says that property with warehousing is being purchased, which was earlier already substantially leased by the company (~80%). The Company now requires the entire space The annual cost of lease was 1.6 crore and for full property, would have been 1.8 crore. In view of this, they are purchasing the property for no more than 16 crore.
The property is situated close to the factories and thus provides good synergies and integration. Purchase of any other property for warehousing would have been far away and would have added to logistical issues and cost of transport. Increased warehousing is required, by the way, due to expanded product line up and e-retailing requirements.
Century Ply – Khusiyon ka rangmanch (25-10-2015)
Thanks Abhishek.
I am going through the latest annual report (link below) and I must say it is one of the best reports I have read recently. Suggest fellow investors who are interested in this business to go through it.
http://www.centuryply.com/files/download/bee982e94e6d9ea
INDIGO ready for takeoff :airplane: (25-10-2015)
ex lent remark by gitanjali kedia of sptulsian.com......not applying in ipo
https://www.sptulsian.com/article/86170/interglobe-aviation-indigo
Shalibhadra Finance – Steady Growth NBFC (25-10-2015)
Great work manas. i am sold on the idea almost. growth is almost never an issue for such small businesses, if the management tries. and software change and rating, show that something has changed (quite important in my view). i guess PB etc is also not so important, as you rightly mentioned that branches are still operating at sub standard levels. divd is the strongest indicator of management intent... dont know what else to ask, may be one round of visiting the branch and trying to get a loan which will further prove a few things you have written... i am in mumbai, somebody from gujarat may be?
Eros international (25-10-2015)
Finally talked to Mr. Abhay ( Investor relation ). He was very polite and informative. He is ex - banker from top finance firms. I asked him about question raised on revenue from Dubai. He answered it well. Most of Media companies have offices in Dubai since there is tax incentive on Media contgent. Though the revenue shows in Dubai is large it does not have anything to do with number of subscribers. Infact sometimes Indian TV guys buy content in Dubai. Now the revenue number can be inflated in terms of forward booking hence receivable days are high. I am no expert in corporate finance and does not have any capacity to find if company is inflating revenue.
He was very firm in denying the allegation. He believes that they are target of short sellers who are creating rumor mongering. Same thing was done on netflix stocks in USA market.
I appreciate his willingness to talk to a small share holder. Got other insights on this stock.
Disc:- Have position in the stock.
Jyothy laboratories acquisition of henkel india (25-10-2015)
Another very important point to be kept in mind which is often ignored but has very very serious long term implications is the amount of amortization charged to the P&L account to arrive at net profit/EPS.
For this quarter as was for previous quarters....the amortization charged was rs 11 cr. This amortization was charged because JLL had acquired Henkel a few years ago.
If you think deeply, the brand/goodwill/franchise value of Henkel brands is only increasing under JLL. But still, as per GAAP, (ALAS!!!) they need to wear it down to zero in their balance sheet by charging it in their P&L account.
So, in order to calculate owner earnings (so to say....i m quoting warren buffett here) we can safely add back Rs 11 crore and hence actual net profit would be rs 49 cr instead of 38 cr....a jump of whopping 30%(aprox)
On an anualized basis ( if we double up the half year earnings of JLL and add 30%) the total nett profit will be Rs 84cr*2=Rs 164 cr plus 30%= 212cr (APROX)....which will amount to an EPS of Rs 12
If you also add Rs 36 cr charged on anual basis against ESOP as it will not exist by next year....you get a net profit of Rs 240cr and an EPS of Rs 13.5-14.
All this will make JLL really attractive!!!
Views on the analysis are invited from fellow members
Regars,
Ranvir Dehal
Omkar Speciality Chemcials Ltd — OSCL (25-10-2015)
How do u deal with the growing debt in company.
I was put off by the company because it has been constantly raising money from markets.
a. The company raised 80 crores through IPO in 2011
b. Raised another 80 odd crores from 2012 to 2015 through borrowings (and even now it continues)
c. There were talks about it going for a private placement and diluting stake to raise more money in current year
d. Not to forget promoter himself seems to be pledging shares for raising money for himself
My mistakes with the stock market (25-10-2015)
My key learning has been that just as there is such a thing as over diversifying your portfolio, there is also such a thing as over concentration. Get this balance right is still work in progress.