@mokumra - wont the concept of holding company discount apply here.
PTC India will never sell PTC India FS holding. Hence the value realization here is difficult.
What are your thoughts on the power trading business standalone?
Posts in category Value Pickr
PTC India – A No Brainer (?) (30-09-2015)
GRUH Finance – mini HDFC (30-09-2015)
That is a totally silly logic.
Agreed that credit appraisal and risk management is different for affordable housing finance. But then credit appraisal and risk management is also significantly different for other asset classes - be it infra finance, auto finance, CV finance, project finance, etc. etc. Going by such logic - banks must have a separate subsidiary for each asset class....
The other question is why does NHB have to subsidize funding for HFCs.... You spin it into a positive... Unfortunately, that is not right.... The inherent riskiness of HFCs is the reason why they are provided subsidized funding by NHB... Minus the support from NHB, most HFCs would struggle to raise funds from banks...
There may be some exceptional HFCs (like Gruh)... But in general HFCs are considered highly risky..... Banks are less willing to lend to them... When banks want to do similar business as HFCs, they incorporate subsidiaries to do it.... Some banks (e.g. ICICI) are trying to sell off their HFC business.... It is a hyper-competitive area - there are already 60+ HFCs and another 60 - 80 are expected to start off in 2 years...
I am signing out of this discussion... Hope you can take this in the positive spirit... No amount of evidence can convince those who strictly don't want to be convinced..... 
GRUH Finance – mini HDFC (30-09-2015)
I think @richdreamz answered this well.
Did I say NHB funding is cheaper than CASA? NHB funding is cheaper than your normal borrowing. Any cheap funding is good for HFC's.
@PP1 : Overall I think you are emphasizing too much on just one point. affordable housing being operated as subsidiaries. I don't think thats negative point at all. Just a business decision. If you have any other negative points, please share.
Alembic & Alembic Pharma (30-09-2015)
Rohit,
I had put it in the excel which is there in the previous post. I have analysed all the DMFs filed by the company upto March 2015. Most of the time the company also files ANDAs for the filed DMFs. Their expected launches for FY16 and FY17 are also put in that excel.
Vikram Thermo (30-09-2015)
Hello everyone,
I am not sure if anyone is still following Vikram Thermo. I found this one on one of the custom screener on screener.in.
Regards to the above discussion, I would like to ask if anyone has been able to get in touch with the management. Also, sales figures FY 14-15 has seen a slide. I could not find an apt reason for the same in their AR. Seems to be a decent prospect if we can get hold of few things from the management.
Things to watch out for:
Reason for drop in sales in FY 14-15
Growth prospects
Capex plan
Client list, etc.
Hope you all chip in. Thanks!
US based NRI’s – How do you guys invest in equity now? (30-09-2015)
FATCA is ok with me even though i had some difficulty with foreign investment calculations. This is related to opening a demat account in india from US. ICICI is not allowing this and insisting on coming to india for US based nri's.
GRUH Finance – mini HDFC (30-09-2015)
So, why would banks not do their entire mortgage business as HFC? Why only the affordable housing finance?
And why do you think that NHB funding is cheaper than CASA?
Anyways, my words of caution was not directed at those who have 5% - 15% allocation to affordable housing finance. It was directed at those who have much higher - I see some people claiming 50+% allocations... Merely a caution - can't see why people feel so ruffled to hear this.
IDFC Special Situation September 2015 (30-09-2015)
Here are my numbers and logic. Am assuming market values are high level approx. on P/BV and not DCF
- IDFC's standalone business book value is 2640 crores
- IDFC Bank's book value is 13,300 crores
- Today's valuation is approx. 22,600 crores (~162 crore shares * 140 market price) = tomorrow's valuation (ignoring analyst's who are projecting the value and not today's price)
- Tomorrow's direct ownership of IDFC Bank (A) + IDFC's share of IDFC Bank (B) + Rest of IDFC (C) should be 22,600 to IDFC's today's shareholders.
- C = Rest of IDFC can be valued at 4000-6000 crores (fee driven business - 1.5 - 2.5 BV, a quick estimate, this can even be higher or lower - need to value the assets separately)
- A+ B = 16,600 - 18,600 crores
- B = A *.53 / .47 * .75 (53% is IDFC's share, 47% is direct by share holders, and assume a 25% holding company discount) = ~ .85 A
- 1.85 A = 16,600 - 18,600 -> A = 9,000 - 10,000 crores & B = 7,600 - 8,600 crores
- IDFC should be valued = B + C = 11,600 - 14,600 crores, at a per share level 70-90 (162 Crore shares)
- IDFC Bank shares would be valued at 55 - 60 (again A - 9000 - 10000 cores divided by 162 crore shares). Note am using the direct holding and direct ownership shares to calculate value.
Torrent Pharma Ltd (30-09-2015)
As per the ICICIdirect report dated 28 Sept on Alembic pharma, both Torrent and Alembic have a market share of ~10% each for Abilify. Apotex is still too small.