Microcap momentum portfolio (05-10-2024)
last week (30/09/2024 to 04/10/2024) we got -1.80% (loss) return if we invest equally in 25 shares.
Note : during (30/09/2024 to 04/10/2024) this period MicroCap Index -2.36% loss , Nifty-50 Index -4.45% loss
Shivalik Bimetal Controls Ltd (SBCL) (05-10-2024)
Thank you @Donald @dd1474 on the wonderful notes on Shivalik. I will try to simplify the technical aspects in the upcoming days. However the above quote has grabbed my attention. Forward integration to current sensing PCB modules can be done in 2 ways
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You take the OEM requirements on the current sensing modules and then bid with your prototypes, once you get approval the product goes to mass production. You effectively become a Tier 1.
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The other option is that you become a contract manufacturer for a Tier 1 , who based on your capability and pricing is not only buying your shunts , but asking you to fit it inside a PCB module and then send for further assembly. ( This could also be due to complicated and compact shunt design) .
For me point 1 is not too attractive as they would end up competing with their customers like Hella and Conti. Shivalik does not have the technical capability or experience to deal with an OEM directly.
Point 2 is very attractive as they are moving from a shunt design and manufacturer to a shunt system supplier . If they execute this well, one day they might as well have an in house current sensor module. Such position also allows Shivalik to go up the value chain and become more like Issabella Hutte in the current sensing space.
Disc: I have worked in this space in my previous job and hence I am extremely biased.
IT aims for the sky after Accenture’s Q4 results (05-10-2024)
Global firm Accenture’s fourth quarter results prove that the worst is behind for the Indian information technology (IT) sector, said analysts on Friday (September 27). While the pace and the broadness of recovery is debatable, they said Accenture’s results and revenue growth guidance for the next financial year (FY25) reduce downside risks for Indian IT companies.
Stock to watch: Vedanta shares in focus next week as board to consider fourth interim dividend on Oct 8 (05-10-2024)
Vedanta is set to consider and possibly approve its fourth interim dividend for FY25 during a board meeting on October 8, 2024. The record date for determining shareholder eligibility is October 16. The company has reached milestones in aluminium and zinc production. Shares closed unchanged at Rs 508.90 on Friday.
Avantel consolidated net profit rises 42.50% in the September 2024 quarter (05-10-2024)
Sales rise 42.50% to Rs 77.42 crore
PAC head Venugopal working to defame govt: Nishikant Dubey to LS Speaker (05-10-2024)
BJP MP Nishikant Dubey has accused Congress member and PAC chairman K C Venugopal of raising false issues to tarnish the central government and disrupt India’s economy. Venugopal is alleged to be misusing his position, targeting SEBI’s chairperson based on unverified claims by Hindenburg Research. This situation hints at potential tensions in upcoming committee meetings.
US Fed’s bold rate cut fuels optimism, but market caution grows over US elections and geopolitical risks (05-10-2024)
The Federal Reserve initiated a surprising rate cut while the US economy shows stable growth and cooling inflation. Chinese stimulus bolstered market sentiment, lifting equities and commodities. However, Middle East tensions and upcoming US elections inject fresh uncertainties. Investors are keen on Q4 earnings, with expectations for large caps to outperform. RBI’s upcoming policy decision is critical amid these dynamics.
Dev Accelerator plans Rs 125 cr IPO amid high demand for flexible office spaces (05-10-2024)
Dev Accelerator Ltd plans to raise around Rs 125 crore through an IPO. The company will use Rs 68.95 crore for fit-outs and security deposits in new centers. Rs 30 crore will go towards repaying certain borrowings. Funds will also support general corporate purposes, including expansion to major cities and enhancing infrastructure and technology.