@hitesh2710 bhai, How do you compare Torrent with Ajanta, given that you have studied both the companies and understand their business better than most other people? I have small position in both Torrent and Ajanta and trying to figure out how to build on these positions now that both are in the same price range, but Torrent seems to be attractive on valuation front while Ajanta looks to have had a better business model.
Posts in category Value Pickr
Forensics and the art of triangulation (11-09-2015)
Can some one find the latest annual reports of Amtek group companies and list which banks have exposures to them. Group debt is 23000 cr so I guess there will be many bankers at this funeral.
The AR are not there on BSE / company website. In fact, company website doesnt even have q42015 results...vigilant people got 3 months advance notice that shit is going to hit the ceiling !!
Stylam- Decent Fundamentals with Cheap Valuation (11-09-2015)
Hi Piyush,
Very good info you have provided. But one thing i would like to rectify. Total Employee Benefits Expense are Rs. 13,21,54,927 i.e.Rs 13 Crores not Rs 1.32 Crores. And the amount taken by Promoter/Directors + CS is 1.36 Cr. This is nearly 10% of total Employees cost. This is normal in case of SME business.
As far as the Panchcula Plot is concerned, this is given in Annual Report
"To put all the inventiveness measures under one roof, this includes development of new designs,
finding of new vendors, to study product dynamics and to explore market for export and domestic
business; at their separate location at Panchkula Technology Park, Haryana. The construction of
building having built-up areas of 20697.200 sq. mtrs is almost complete. The company has planned to
lease out portion of constructed building to other players for commercial office space and for service
sector businesses. The building will be operational before the close of this financial year."
It seems like they had bought plot in Good Times and got stuck with it. Now they are trying to construct
& lease it. Also will move their operations to that instead of their current office.
Generally the office space scenario is not as bad in real estate as compared to residential one. If they are able to lease out some good chunk of it then it would clearly add to bottom line as the plot cost has aleardy been paid couple of years ago and accounted for.
On the other hand if they had not done some construction, then the plot would have been seized by Developement Authority for non compliance. That would have been a big lose for them.
It seems that they were caught in Catch22 situation and this was the only way forward for them
Interesting to know about their real estate Activites of Amravati developers. Are they still doing it?
If they are, then this is a red flag and we need to be aware of. If you get any more info please update.
Disclosure : Invested
NCL Industries – Resumption of growth? (11-09-2015)
@remonc -
1. Agree with the fact that RoE has low for the last 2 years. RoE, RoCE #s should be looked at when the company is in stable environment. If you look at any company which was operating in a turbulent environment these #s will usually look sub-par. But if on a very conservative basis,if the company were to have a 60-62% capacity utilization and stable cement prices their RoCE #s would improve to ~28%.
Here is how I arrived @ 28%:
Total Capital Employed: - 461 Crores, Q1 PBIT @ 62% capacity utilization was ~33 crores. If you annualize this you get a rough PBIT of 133 crores. 133/461 = ~28%
What are the major variables/risk factors that would affect the above #s? - Cement Price Stability & Demand
Price Stability - As of today, cement prices have been stable in south and with much of Q2 behind us, we can safely assume Q2 south cement prices have remained stable.
Demand - NCL's customers are predominantly retail customers and demand is tepid and some of my friends point out that construction activity has not picked up yet in full swing. However, recently AP + Telangana government has started floating tenders for about 3MT cement.
These are the 2 big risk variables and if any one of these play out adversely, the above RoCE calculations would go for a toss. So if one is interested in NCL, he has to have a close eye on these two variables. Having said that, at current prices I feel there is reasonable MoS.
- Here is the break-up of pledged shares by the company after Q1 2016. As the company went into CDR, the promoter's shares were provided as collateral and hence these were pledged.
As Nikhil has pointed out in the earlier posts, promoters have started releasing these pledged shares.
@manish26: I will check Anjani and get back to you. But before I entered into NCL, i checked out the valuations of other AP based cement companies like Sagar Cements, Deccan Cements & KCP. I found that NCL was relatively attractive.
@getsach - NCL is a small player and hence this will not be available in Analyst's radar. So you will have to go through their annual report.
Thanks,
Ravi S
Disc - Invested. My views may be biased. Please do your due diligence.
Byke hospitality – Truly asset light? (11-09-2015)
Recent research report dated 9th Sep, 2015 from Angel Broking. Covered the Company beautifully. Please find below the link
http://breport.myiris.com/ABL/KOTSECUR_20150909.pdf
Porter five forces- competition from Oyo and Zo in the present market may impact the chartering business in a big way. Any comments?
Disc: Not invested yet.
NCL Industries – Resumption of growth? (11-09-2015)
Where I can find information about specific advantages for NCL over other cement player in state ?
Screener.in: The destination for Intelligent Screening & Reporting in India (11-09-2015)
The nos of Ajanta & Kaveri are updated at Screener.in. Poly Medicure nos are not updated on other sites also - may be taking some time with the data providers. Will check for Premco.
P. I. Industries Ltd. – A Unique Business Model can make it a Great Play on Agri & CSM Space (11-09-2015)
(post withdrawn by author, will be automatically deleted in 24 hours unless flagged)
VLS Finance limited (511333) (11-09-2015)
as per new ar 2014-15 holding value as on date 09-09-2015 comes around 920 cr of its listed investment and current mkt is 143 cr.
Screener.in: The destination for Intelligent Screening & Reporting in India (11-09-2015)
@ayushmit I can see from researchbytes.com that the ARs for Premco, Ajanta Pharma, Kaveri Seeds, Poly Medicure are published. But the screener is reflecting the numbers for Fy14-15 only for Ajanta Pharma. Any reasons?