Posts in category All News
Stock brokers raise upfront margins up to 80% in futures and options trades (28-08-2015)
Ashiana Housing – Banking on Tier II and III towns! (27-08-2015)
Hi Milind, AGM was attended by me.
AGM was presided by Vishal Gupta.
He was really concerned about the current real estate situation. They are working in 6 cities now, out of which they are really strong in 3 cities. The remaining 3 they will strengthen depending upon the response of their initial project. The internal relation between the brothers is really very strong. QIP money will be utilised as and when they find the opportunities. He refused to give any growth guidance.
23 dead as Madagascar troops battle cattle rustlers (27-08-2015)
AKZO Nobel – A sleeping giant – preparing for next wave of Growth (27-08-2015)
Let me tell you a true story.
I wanted to get my house painted. Big house. 4500 sq feet. 250000 worth of paint.
I called Dulux first. no response.
I called their call center. They said someone will contact me. No one did.
I left an email. no revert.
I called Asian Paints once, and they did everything from that point on.
I was holding Akzo...sold all my holdings.
If you think this team will make you money, forget it.
Control Print – Deservers attention? (27-08-2015)
Dear Niku
Sorry for missing your post earlier.
Any luck with meeting the Management?When is the AGM as it seems management will open their mouth in AGM only.
You can ask on why are receivables and inventory on the higher side?Why is cash flow negative?What has been the impact of recent strictness n banning of Maggi noodles by FSSAI?How are they faring against competition? Why was CFO sacked recently?Any more chances of warrant allotments to promoters or is the chapter finally over?How big is the opp size n whats the moat of the co?Any plans of expansion? was the Nalagarh plant taken on lease n will it be closed down n production shifted to the new Assam plant as the tax benefits are over?
In the recent carnage it was heartening to see that CP stood firm ...any instl entry here?can this Maruti turn into Mercedez ?we need to find out.Thanks
Buy Ashoka Buildcon, target Rs 210 (27-08-2015)
Initiate ‘buy’ on Ashoka Buildcon with a target price of Rs 210 per share.
Our March-2017 based SoTP values the core construction business at 6.5x EV/Ebitda, given its strong execution track record but weak starting backlog.
We estimate the recent build-operate-transfer additions (part of Ashoka Concessions) to yield returns below the 12% IRR committed on investments made by SBI Macquarie, leading to a shortfall of ~R12 per share.
This levers the SoTP to recovery in traffic (lifting of mining ban, economic recovery). Investible funds form 20% share of our SoTP, which once invested could yield higher value.
The stock may be volatile in near term, but will eventually reflect strong sectoral growth prospects. We build in 14% revenue CAGR and flat Ebitda margin over FY2015-18e for the construction business.
For the BOT business, we estimate 1) a steady-state traffic growth of 5.5%, 2) WPI inflation of 4.5% and (3) ebitda margin gradually improving to average ~80% over the period of concession. We build in extension of concession period for Sambalpur (six years), PNG (four years), Dhankuni (three years) and Belgaum projects (three years).
Ashoka Buildcon is an integrated roads BOT player with a strong EPC business (nil debt, material third-party exposure). On the strength of its EPC cash flows, the company has been able to fund most of its R800 crore of BOT investments over FY11-15.
While these recent BOT additions have not lived up to their potential, contribution of mature BOT projects has made the overall portfolio well-funded. Its BOT portfolio has limited downside risks as 1) all toll projects have been commissioned and 2) exposure to long distance, south-north traffic (DFC) is limited.
The company can be the biggest beneficiary of an uptick in ordering in roads, given its dual business exposure and access to ~R1,400 crore of cash inflows over FY2016-18e. This can help multiply its ordering and order backlog over this period.