Posts in category All News
Equity dominates FPI investments in July, exceeding debt by 3.6x (14-07-2024)
Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value (14-07-2024)
Both businesses are different. One is B2B lender (MSME) and 2nd one is a retail lender.
Natco Pharma: Focusing On Complex Products (14-07-2024)
Hi folks, new to investing and recently started to analyze pharma sector and this company, what I have learned is: this company has built a strong position in the value chain. It is expanding geographically into new market areas outside India. The Revlimid patent is expiring in the coming months (i guess its 20 months or so) but they have some ideas that they are working on. Kothur plant has recieved a warning letter but they say the risk can be mitigated through other plants.
Looks like this company is still undervalued compared to peers as of today. Company has guided 20%+ profit growth YoY for FY25
Rajeev Nannapaneni: This year, we did about Rs. 1,388 crores profit. I think going forward next year, we at least see if all goes well and there are not too many surprises, we should do greater than 20% growth for the year.
Why this company is still given low P/E compared to peers? What am i missing? Or are there any other metrics to look at beside P/E?
Tripura: Shutdown against CPI-M Zilla Parishad candidate’s murder evokes little response (14-07-2024)
No Contact America (14-07-2024)
Everest Kanto Cylinders Ltd. – A long runway ahead! (14-07-2024)
Supplies to Bajaj seem to be very small right now. Once volumes pick up there will be other suppliers also. EKC will most likely lose out on this opportunity also.
In investing the most important criteria is management quality. Bad management will let go of all opportunities as in the case of EKC. And good management can create opportunities where there are few.
For the past few years, the management has been consistently saying the composite cylinders will not be competition - and while EKC had capability to make composite they chose not to. And companies like Time Techno and Supreme are making huge margins in composite cylinders and demand is exceeding capacity. EKC capacity utilisation is 60% !!
Wonder what happened to the new plant in Gujarat… there is no talk of it now.
Even the success of Egypt plant is doubtful. Capacity utilisation of Dubai plants is low - what will do with new plant in Egypt?
HDFC Bank- we understand your world (14-07-2024)
Personally, I bank with both ICICI and HDFC and find the implementation of net banking better with ICICI. However, my concern is about loans made today with banks and how many of these loans might end up as NPAs tomorrow. We can’t know for sure, but I hope HDFC performs like they have performed in the past and have made sensible decisions when underwriting loans.
Would it be correct to say that we are in that stage of the debt cycle when the loans are given out, bank loan books are growing? If yes, then we will have to wait when the debt cycle reverses from the present stage and some of these loans go bad.
Isn’t it better to invest when the sentiments are bad for a company? I am hoping HDFC Bank can figure out the issues in the future. Even if the bank takes a few years to do this, it shouldn’t matter for investing with a long-term perspective. It just gives us more time to increase our stake if we choose to.
Disclosure: Invested in both HDFC and ICICI. HDFC is more of a recent investment than ICICI.