When the value of inventory decreases over time due to factors like obsolescence or damage, it is called depreciation on stock. If this depreciation increases, the company’s inventory loses more value, which can reduce profits and affect financial health.
Posts tagged Value Pickr
Investing Basics – Feel free to ask the most basic questions (02-06-2024)
“Zero schedule” typically refers to a situation where production or manufacturing schedules are halted or minimized. This can happen due to “de-stocking,” which means reducing inventory levels, often to manage costs or respond to lower demand. In this scenario, companies stop or significantly reduce new production because they are using up existing inventory instead of making new products.
Fairchem Organics – Previously “Adi Finechem” (02-06-2024)
Hi
Thanks for a conscise summary of concall.
Few things i am trying to understand
- Company doesnt seem to have any pricing power. It seems most of its product are commodity in nature and customers are guiding the terms.(both product price and offtake.
- Company says isostearic acid is high value items. However it also says sales will not be increasing due to this product. How can a product achieve more than 15/18 % ebitda (existing 11%)on same raw material and same sales price?
Please share if you have an understanding for anove points.
Thanks in advance.
Disclosure:-under watchlist . Studying for potential investment. My views are not to be considered neutral.
Narayana Hrudayalaya Ltd (02-06-2024)
I believe next 2 years are going to be tough.
Cayman will come live and depreciation will go up which will impact margins. Expecting ramp up at moderate speed.
NCR cluster improving but most probably won’t have much poistive impact on overall margins as it is still small part of overall revenues.
Can’t expect much growth from Bengaluru and Kolkata as they are already at peak levels.
Key things to watch:
Clinics setup in Bangalore and how they can debottleneck the hospitals and what sort of OPD it can handle as indicated in Q4 concall.
What traction their in house developed applications can gather, very interesting to watch this. As this has the potential to become big in Saas area.
What opportunities they can find overseas as they are sitting on huge cash in Cayman entity.
Don’t expect much from Insurance biz. Immediately as this is going to be long term play.
Next 2 years will give opportunity to accumulate the stock. I’m expecting immense growth coming in in FY29-30 when stars will align again.
Disc.: Invested and biased, will add more at lower levels as this is a very very long term play from hereon.
Route Mobile – Internet, Mobile & Telecom (02-06-2024)
Fundamentally it looks good, wonder why there has been no major stock appreciation. Looks good for entry once crosses 200 EMA.
Prabhu – Portfolio (02-06-2024)
Portfolio Update:
| Name | Average Price | CMP | Allocation |
|---|---|---|---|
| Techno Electric Engg | 437 | 1,302 | 11% |
| Sun Pharma | 735 | 1,446 | 8% |
| Larsen and Toubro | 1,694 | 3,664 | 7% |
| Reliance Industries | 1,796 | 2,856 | 6% |
| Dixon Technologies | 4,340 | 9,319 | 6% |
| Zomato | 92 | 178 | 5% |
| ICICI Bank | 883 | 1,117 | 5% |
| Tata Power | 256 | 433 | 4% |
| RVNL | 109 | 379 | 4% |
| Infoedge | 4,095 | 5,674 | 4% |
| Dyancon Systems | 574 | 1,198 | 4% |
| Fineotex Chemicals | 282 | 354 | 3% |
| Artemis Medicare | 100 | 175 | 3% |
| Aarti Industries | 579 | 613 | 3% |
| Mazagon Dock | 1,076 | 3,190 | 3% |
| Motilal Oswal Financial | 1,165 | 2,242 | 3% |
| Amararaja Energy and Mobility | 824 | 1,194 | 3% |
| Caplin Point Laboratories | 1,053 | 1,291 | 3% |
| Oberoi Realty | 936 | 1,817 | 2% |
| Godawari Power and Ispat | 482 | 949 | 2% |
| PI Industries | 3,132 | 3,532 | 2% |
| Ion Exchange | 445 | 516 | 2% |
| Vinati Organics | 1,815 | 1,745 | 2% |
| Rossell India | 346 | 451 | 2% |
| Suraj Products | 526 | 792 | 1% |
Holding on to the core theme of the portfolio with Large caps like Sun Pharma, L&T, RIL, Dixon, Tata Power and Info Edge
Added recent themes in to the portfolio like Infra, EV, Batteries, Defence and Online aggregators
Regards
Prabhu
Investing Basics – Feel free to ask the most basic questions (02-06-2024)
Zero schedule because of de-stocking?. pls explain
Action construction equipment ltd (02-06-2024)
As Mr Agarwal has previously iterated that Monsoon months are lean period for them however the traction in Infra if continues then numbers would be slightly higher as compared to same months in previous year but don’t expect a big jump. Post monsoon activities will pick up pace so does the numbers for ACE.
Disc: Invested from covid lows.
Action construction equipment ltd (02-06-2024)
Updates for May Volumes in Vahan Registrations:
- 873 for May month
- Minor changes in VAHAN data for earlier months.
- Seasonal trend + Election related slowdown (MoM) was obvious in Apr & May. YoY the numbers are better.
- June will be crucial to see a pickup in volumes
Rahul Singh Portfolio (02-06-2024)
They had informed about a merger with Gujjubhai Foods Pvt Ltd after which equity will dilute and their shareholding will increase to 75%. But the market cap should remain constant, so the price must fall by proportionate amount. This is why I sold.
Regarding results:
- The plant and machinery is of less than 1Cr. Are they manufacturing the products or trading only?
- The debtor days are high compared to other FMCG companies. It is not a problem in growing company but since one of the debtor defaulted leading to loss, are the others safe?