Attaching Basic version of excel for data from Screener. On 1st sheet data can be pasted as it is from page. 2nd sheet gives analysis of key financial ratios etc.

Make shift arrangement till excel download feature works on the website.

Regards

Ankush
dharamsi Moraji.xlsx (49.2 KB)

Hi

Just wanted to share my views on Vardhman

Recent Developments :

1. Raw material price Acrylonitrile has fallen from Rs.134 per kg (incl. duty ) in Sep 14 to Rs.83 per kg in Sep 15 due to crude effect. ACN is 90 % of Raw Material Cost.

2. Acrylic Fiber landed cost, as per import data is marginally down from Rs.180 to Rs.133 in the same period.

3. Anti Dumping Duty - Govt has imposed Anti Dumping duty on Acrylic Fiber imports from Thailand of USD 162 per MT w.e.f 1st June 2015 for a period of 5 years. This gives additional margin / EBIDTA of Rs.10 per kg. Thai Fiber Imports account for 65 % of total Acrylic Fiber imports during FY 2015.

Cumulative effect of the above - Positive to VAL due to increase in margin and lesser import volume. EBIDTA for FY 2016 - Rs.65 cr + approx

Currently, ACN landed cost is Rs.93 per kg and AF is Rs.157 per kg factoring Customs and Anti dumping Duty.

As a result, Delta (Diff between RMC and Fin Good) up from Rs.39 to Rs.64 per kg.

1. Promoter stake increased from 58 % to 75 % between 2013 and 2015 through Buyback and Market Purchases. A positive feature. Potential merger with Vardhaman Textiles owing to synergies?

Valuation :

Current market cap is Rs.240 cr. Cash equivalent as of 31st March 2015 is Rs.260 cr. Debt Free

Core business, EBITDA expected at INR 65 cr for FY 2016. Company available free Mcap (ex-cash).

Company has excellent Management Bandwidth, Debt free, cash rich, good EBIDTA outlook and very cheap valuation.

Something amiss ? Or is it a Hidden Gem?

Hi ayush, I am accessing screener.in from Muscat , not able to see export to excel tab , neither the new front end nor any of recent changes done. Are there any geographical restriction?

Spoke to a CTO/CIO in a listed pharma company, he felt that their service would be of interest to even non-US pharma companies as it may allow for management of compliance, proprietary data, etc. However, although he was on SAP, he did not seem eager to transfer to cloud in a hurry. Conclusion: for him the product was a 'vitamin' and not a 'painkiller'. However this needs further validation with other companies.

In simple terms, cloud impacts OpEx and a normal Data Center impacts the CapEx. Based on the requirements, either of the two strategies could be used. Most CIOCTOs I have talked to suggest a strategized approach to cloud. A few Indian companies I know actually stopped using cloud as the OpEx was prohibitively expensive for them.

What is the likelihood of Amazon providing the same services to end users in house and making 8k/others redundant?

This IMO is highly unlikely. Most product companies depend on implementation partners for implementing their products. This helps as implementation partners have better local connect with end customers. This is similar to having channel partners to sell your products in a particular area.

Who are the other approved vendors of these cloud providers?

This IMO is the important question. I believe most large Indian IT vendors could also provide these services. What 8k miles will bring to the table is a faster, more efficient and more experienced team. And, the fact that they are building up a suite of solutions which complement the cloud could help their end clients.

Disclaimer: Not Invested, Interested and still learning the business model

Currently there seems to be an overhang of lot of variables on kaveri. So till the time the uncertainties clear one by one, I think stock price may remain range bound.

And added to that the current market correction has provided some decent alternatives so fancy returning for kaveri may take some time.