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Posts tagged Value Pickr
Time technoplast (13-05-2024)
On the contrary, Insider selling is rarely an indicator at all.
TAAL Enterprise – cheap valueations (13-05-2024)
Is the below published to exchanges yet? I dont see TAAL enterprises mentioned, but TAAL group & TAAL Tech, so where is this acquisition landing in?
Fine Organics – Niche Player in Specialty Chemical (13-05-2024)
Q4FY24 Conf Call Notes [1st ever call]:
- Red sea crisis has increased shipping lead time by 1~1.5 months. Seems small challenge compared to COVID experience.
- All plants running at optimum capacity except Patalganga (started in FY22), which still has some room for capacity ramp up and might need 3~4 yrs to fully utilize.
- Incorporated WOS [Fine Organic SEZ Pvt Ltd] in MH SEZ area, allocated land ~30 acres. After possession of the plot, EC will be applied. Post EC approval, activity to set-up export oriented mfg facility will be initiated. Post land allotment, capacity and investment plan will be announced.
- FY23 was an aberration. There was disruption on the supply side with volatility in the raw material. Hence, FY24 performance is not comparable to FY23.
- Thailand plant’s trial production (small capacity) for one of the product commissioning is expected by the end of Jun24…After that, we need to observe for almost a quarter to decide further course of action about overall capacity needs.
- Europe demand remains subdued.
- 20~22% sustainable historical margins.
- Intend to have a plant outside India. Also, looking for acquisition.
- Before commercialization, a new product takes 3~4 yrs to get approvals.
- Cash Usage Plan: Business growth - New SEZ plant, Plant outside India, and working actively for acquisition (traits: complementary to existing chemistry, new market/customers) opportunities. We may need to borrow more money.
- Key challenge: Long approval (customer as well as regulatory) cycle.
- Will continue to host conf calls at the end of the year.
Source: Fine Organics | Investor | Investor Presentations
Disc: No position
Embassy REIT: Is this “Blackstone” promoted REIT is real diamond? (13-05-2024)
REITs are a great asset class in theory, but they will be good investments only if they are managed and governed well. Based on recent track record, I strongly believe that this asset class is doomed to fail in India unless regulators make significant changes to the way they are structured here.
The biggest problem in my opinion is that REIT managements have consistently betrayed one of the most important and fundamental principles of management: to always act in the best interest of shareholders. In fact, I would argue that they have actively destroyed value for shareholders, only to benefit their sponsors - primarily by diluting existing shareholders through underpriced preferential allotments, to acquire potentially overpriced assets from sponsors. I am sure that in a more mature jurisdiction, they would face legal consequences for the kind of actions they have done here.
(Perhaps I am guilty of over-generalization here, but Indigird InvIT is the only entity from the REIT/InvIT universe in India I would consider as an exception to this.)
Potential solutions? Perhaps mandating the NAV as the minimum floor prices for equity raises would help. Or the entire manager/sponsor/trustee structure need to be changed.
Regarding Embassy: I exited all my remaining holdings the day they announced the equity raise. (I had trimmed a significant portion a few months ago when it appeared overvalued compared to peers.) I will consider adding a position again after the QIP is done.
BSE (Bombay Stock Exchange)- Bet on Financialization? (13-05-2024)
Outreach campaign
The BSE is heard to be reaching out to custodial participants (CPs), trying to persuade them to switch to its clearing corporation ICCL. But the bourse is not having much luck on that front. While it has managed to grow its derivatives volumes exponentially, CPs don’t see any merit in shifting because the charges are the same. But the bigger hurdle is the SEBI rule that CPs can sign up with only one clearing corporation. That is because inter-operability across both clearing houses does away with the need for CPs to sign up with more than one clearing house. BSE’s challenge right now is that it is hurting from a higher SEBI turnover fee as well as the clearing charges it has to pay for the trades cleared by the NSE-owned NSCCL. NSE too is seeing its SEBI turnover fee rising faster than premium turnover, but the charges it pays to NCCL ultimately reflects in its consolidated financials. Source
ICCL Q4 results.
Zomato – Should you order? (13-05-2024)
Zomato has decided to voluntarily surrender the online payment aggregator license it wa sissied in Nov 2021. Deworsification cancelled.
PGINVIT impairment of investments in subsidiaries and book value (13-05-2024)
Even if the capital is not returned back (which is not the fact as rightly pointed out by @Rezang_La), the corpus that will get accumulated by reinvesting the distribution amount (Rs 3 per quarter) will be Rs 3110 for a single share of PGINVIT with permanent loss of capital which is Rs 100.
If Rs 100 investment has to transform to Rs 3110 in 30 yrs, RoI CAGR is 12.14%. In spite of a total permanent capital loss, the 0.14% additional CAGR is available due to quarterly return of Rs 3 and not annual return of Rs 12.
So how does it matter whether company return the initial investment or not ?