The focus is on examining how psychological biases influence investor decisions, often resulting in less-than-optimal returns. Identifying and addressing these biases is crucial for making sound investment choices and securing long-term financial success.
Posts in category All News
Tips Industries Limited – Ready to RACE ahead! (09-11-2024)
Hey Akshat
I am curious to know how did you come about indentifying true value of TIPS music.
Like whats your rational behind selling at 935?
I personally feel that it has a long way to go from here.
The industry projected size as per the managment is 12-15k crores for next 3-4 years
And if you look 10-15 years down the line the industry size can easily be 30-40 or 50 thousand crores
Assuming 10% market share for TIPS revenue for next 3-4 year comes out to be 1200-1500 crores and profit to be around 600-750 crores and it will still trade around 60-70 PE because look at the historic 10year median PE of all the consumer facing FMCG companies they are all at 60-70 median PE range.
So I believe considering such a strong bull market I believe a business like TIPS with so 100+ ROCE and 70+ ROE and 50-60% PAT margin once this story unfolds in the broader markets with many media channels covering it will explode like anything.
I feel once the euphoria hits the market will price in 10-15 years of earnings in next 2-4years
I might be wrong but I feel music industry has lots of room to grow multifold from here.
And companies like TIPS will keep on trading at high PE range of 50-70 for years to come.
Just want to have a health discussion on that.
Open to newer perspectives.
Jupiter Wagons Q2 PAT rises 9% YoY to Rs 90 cr (09-11-2024)
Jupiter Wagons reported 9.34% increase in consolidated net profit to Rs 89.74 crore in Q2 FY25 as compared to Rs 82.07 crore recorded in Q2 FY24.
Mangalam Organics Ltd. – A promising Pine chemistry story (09-11-2024)
Results do seem underwhelming and probably driven by the underperformance in B2B segment. As per the investor presentation, B2C is not part of standalone financials. As per the results, standalone profitability has hardly budged from Q1Fy25 nos – INR 198 lakhs PBT in Q2FY25 vs INR 183 lakhs in Q1FY25. Probably couldn’t renew contracts / get hikes from large institutional buyers. Even presentation emphasizes primarily on RM cost reduction as profitability driver. Additionally, couldn’t come across if their plant is US FDA approved, something that players like OAL and Privi emphasis upon, wherein they manage some premium for quality.
Vishnu Chemicals – Is Growth sustainable? (09-11-2024)
Proposed acquisition of Chrome Mining Complex
Vishnu Chemicals has signed a definitive agreement to acquire a Chrome Mining Complex in South Africa, comprising of chrome mine along with Processing, Mining and Infrastructure assets for a total consideration of approx Rs.84 cr. The acquisition is expected to be completed within 12 months, subject to closing conditions and regulatory approvals.
Once acquisition is completed and mine & processing plant are restored, this is expected to provide benefit in terms of backward integration and stable supply of chrome ore raw material.
Vishnu has been gradually expanding its existing manufacturing capacities and also expanding capabilities through both forward and backward integration, via organic and inorganic routes. This is second inorganic initiative in the current financial year. While the hunger to grow and desire to make the business more robust is visible; delivery of results through these initiatives is to be seen, which is very critical from long term perspective.
Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be biased. I am not suggesting any investment action. The information provided above is for education purpose only.
No fundamental challenges to India’s growth story despite FPI selling, says NSE Chief Business Officer (09-11-2024)
National Stock Exchange (NSE) Chief Business Officer, Sriram Krishnan, downplayed concerns regarding recent foreign portfolio investor (FPI) selling in Indian stock markets. He emphasized India’s strong economic fundamentals and attractiveness as an investment destination. Krishnan also mentioned the NSE’s ongoing investor education initiatives, particularly targeting young investors, and confirmed the exchange is awaiting regulatory approval for its anticipated IPO.
Two stock recommendations from Rajesh Palviya for next week (09-11-2024)
“On the higher side, 24,350, 24,400 are the major resistance areas. Until Nifty crosses 24,400, I think comfort would not return on the street in terms of Nifty as well as in the sectoral indices. So, 24,400 needs to cross on a weekly closing basis, then only we can see some short covering action or some follow-up buying action. Till then, sell-on-rise is the strategy for Nifty.”
Tips Industries Limited – Ready to RACE ahead! (09-11-2024)
Stance – Exited my entire holding at 935.
Tips Music is a great quality play. But, valuations have to be considered. The value of any asset is the sum of all future discounted cash flows. For me, the price and value of Tips are matching right now. This has nothing to do with stock performance. The price may outpace the value in the short to medium term. But I was not comfortable in holding Tips Music anymore.
You are correct that Tips and Saregama can not be compared based on PE because their product mix is different and they have a different expensing policy.
I hope I get a chance to re-enter in the business in the future at the right valuations.