This stock seems to be attracting buyers lately. Looks inexpensive even now at the current price of Rs.34.70. Has anyone invested? Did anyone attend the AGM?
Disclosure: I've invested in this.
Posts in category Value Pickr
Deccan Cement : Dull company.Dull business.Big wealth creation opportunity (05-10-2015)
- Current Interest coverage ratio is 1.8 and it has never been > 3 in last 5 years.
- Tax paid last year is just 1.46 Cr against the PBT of 21.35 Cr. That's less than 10%.
- The EPS has fluctuated widely in last 5 years. If you take average of EPS for last 3 years, it comes to around 15. With that the P/E ratio comes to around 30x, not exactly cheap for cement business. Agreed that TTM EPS is more than 50 and with that 3 year average comes to 30. That's still P/E of 15 - not exactly cheap for cement business.
- CFO is consistently +ve and that's a good thing but net cash flow has flirted between +ve and -ve and that doesn't reflect promoter's conservativeness.
- Poor ROE and ROCE ratios. Working Capital days between 40-60 in last 5 years and that's again a good thing.
Disc: Not invested and not looking to
GRUH Finance – mini HDFC (05-10-2015)
its a hypothetical situation as mentioned before. I dont see gruh diluting equity soon.
Satin Creditcare Network Ltd – Reaching out! (05-10-2015)
The best part I like abt MFI business in India in general n Satin in particular is v little NPAs which is the most imp criteria for any financial organization. This hints that average BPL Indian is far more honest then average industrialist expert in creating NPAs for Indian banks.
Recent RBI regulatory supervision over MFIs post AP fiasco & advent of credit bureaus specializing in MFI like HighMark & Equifax have also helped.Seeding of these data by Aadhar will further strengthen the database.
Fact that MFIs like Satin helps the hapless villager in providing loans at v reasonable interest viz a vis usurious moneylender like Kanhaiya Lal of Mother India movie in income generation activities is also most imp.
Satin also has the advantage of being leader in most under penetrated states of UP,MP,Bihar,J&K ,Raj where the competition intensity is v less.As such opp size remains huge .CARE has been upgrading rating to BBB+.
Risk is non receipt of small bank license while most of competitors have got it,just enough CAR which may lead to imminent equity dilution due to huge growth & poor liquidity as 85-90% stake is with PE & promoters.
REPCO home finance – another Gruh in the making? (05-10-2015)
@kjshah18 : Great insight. In fact about a year back, I analyzed Canfin and did not invest due to declining NIM trend. Price was 450 then. I learned my lesson 
Screener.in: The destination for Intelligent Screening & Reporting in India (05-10-2015)
Hi Ayush,
There is some issue with data related to the following company:
SKM Egg Products Export (India) Ltd
Thanks and regards,
Nikhil
Cupid Ltd – Helping the world play safe! (05-10-2015)
the AGM was pretty good... the future of the company looks good....they r operating in a very large market with less competition & any increase in demand will result in additional revenues for the company.... some board members have expressed views regarding hedging my personal view is company should leave dollar exposure unhedged as many companies have incurred huge losses trying to have views on currency markets...& hedging can be done for 3 months revenue but what after that ?? ... rubber price fall will surely help....
GRUH Finance – mini HDFC (05-10-2015)
Hi HIteshbhai,
Can you please explain what is logic behind diluting equity by 30% and recalculating book value? I tried scratching my head but could not get around this.
Hitesh portfolio (05-10-2015)
GIC Hf is cheap compared to other HFCs but its growth has been tepid as compared to other HFCs which have been showing strong growth. And hence the disparity in valuations. Having said that downsides seem limited and thats what I had been feeling when stock price was hovering around 170 in recent corrections. Sometimes if u take care of downsides then upsides do take care of themselves. 
@bijoy, I dont track Godrej Inds.
GRUH Finance – mini HDFC (05-10-2015)
vishal, thats another way to look at things.
I had posted the hypothetical situation just so that people obsessed with price to book can have an alternative way of thinking.
Regarding dividend being reduced theoretically it can happen but looking at past track record it looks unlikely
Best way of raising capital if at all it is needed is to dilute capital at high BV>
But for Gruh, ROE is nearer to 30% and cost of capital (debt) would be close to 8-9% so I would not be too worried about leverage unless things start turning sour and NPAs start a rising trend.