Great. I have not looked into the numbers. So asked you. Thanks 
As almost everything related to the growth in revenues, operating leverage, exchange rate gains, etc have been talked about, I think we should also look for any negatives which may arise, just to understand the MOS the company has from levels here on.
In this regard, I would like to know the reason behind drop in sales in FY13-14. Sorry, if this has already been discussed. I had read the post long ago. Hence, I do not remember now. TIA
Posts in category Value Pickr
Cupid Ltd – Helping the world play safe! (05-10-2015)
Cupid Ltd – Helping the world play safe! (05-10-2015)
Hi Jigar - As per the recent order to the company for female condoms, the price worked out to be 18.5 INR as per calculation by a forum member and for retail the price is around 50 INR per piece as per online retailers websites. I assumed the price to be nearer to institutional sales as this is where the revenue would be coming from majority of it.
As for male condoms, the online prices are anywhere between 5 INR per piece to 15 INR as per amazon.in etc, I have assumed conservatively at 5 INR.
What are your observations?
Cupid Ltd – Helping the world play safe! (05-10-2015)
Hi Richdreamz,
Wanted to know how did you assume Rs.5 & Rs. 20 per unit sale price?
Cupid Ltd – Helping the world play safe! (05-10-2015)
As per the company the current capacity is 40 crore male condoms and 1.5 crore female condoms which could be equivalent to revenue of approximately,
(all in crores - price assumption as below)
(40 crore pieces *5 INR per piece) + (1.5 crore pieces *20 INR per piece) = 230 crore. FY15 Revenue 45 crore and FY 16E revenue 60 crore. Which means the company needs no capex until it becomes 3 times the current size?
Did not assume that a portion of male condom facility will be converted to female, in which case the revenue at 100% utilisation will be more than the above estimates.
Assumed a male condom price realisation to be 5 INR per piece and female condom to be 20 INR per piece.
Please suggest if there are any loopholes in the above calculation? There seems to be vast underutilisation of capacity as we speak. So company can take large orders without sweating if my above calculation is somewhere near to reality. @RajeevJ ji would be in a better position to offer some insights here.
Cupid Ltd – Helping the world play safe! (05-10-2015)
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Cupid Ltd – Helping the world play safe! (05-10-2015)
I think you meant 'pledged shares will be REVOKED' and 'it will be risky if INR APPRECIATES'
Just correcting so that somebody else doesn't misread it.
Rgds,
HR.
REPCO home finance – another Gruh in the making? (05-10-2015)
Nikhil nim is function of leverage , spread is not.
let me explain if comp has 100 Rs. as capital and 400 Rs. of debt and has advances of 500 Rs. lets assume cost of funds at 8% and yield at 10% so spread is 2%
nim in Rs. will be (500*10%) - (400*8%) = 18 Rs.
nim as % of advances will be 18/400 = 4.5%
now if they have lower leverage say instead of 400Rs. debt 350 Rs and capital of 150 Rs.
(assuming same cost of fund and yield)
nim will be (500*10%) -(350*8%) = 22 Rs.
nim in % will be 22/350 = 6.2%
REPCO home finance – another Gruh in the making? (05-10-2015)
@nikrod12 , pls help with the following -
If a bank earns say 7% on its tier 1 capital lent to the govt. , does no other borrowing and lending, what is the NIM in this case? (7%?)
REPCO home finance – another Gruh in the making? (05-10-2015)
Just to clarify NIM is not function of leverage. NIM is function of cost of funds and yield you generate on assets.
Leverage is how much assets/loans you give out on your capital base. Increasing/decreasing amount of loans will not have any effect on NIM.
And yes ROA is most important measure to judge performance of financials.
My richdreamz portfolio – visit my portfolio to learn together! (05-10-2015)
I have recently entered Cupid Ltd. Very small portion of the portfolio, may increase with my conviction. I have no fresh cash, so these are just portfolio adjustments.
I have explained in a small post the rationale behind the entry. I think, we have enough revenue visibility for next 2 years with positive order wins as we go along, margin expansion will kick in, promoter pledge coming down, dividend started coming in from the company. All signs of a typical TURN AROUND in place. Not much capex, so free cash flow over next 2-3 years unless company wants to invest big in new product lines that that company is talking about.