There must be no such rule that states that an interim dividend should not be declared in a FY, for the FY that has finished. So the interim dividend is for FY 24, and as FY 25 is going on, such interim dividends will be announced in the future.
Posts tagged Value Pickr
Solex Energy – Undervalued Solar PV Manufacturer or Microcap Value Trap? (31-05-2024)
Disclosure: I am not a financial advisor. This is for informational purposes only. Please do your own research before making any investment decisions.
I am invested in the stock with 200 shares at ~1517 each.
Solex Energy (SOLEX) is an Indian company engaged in manufacturing solar photovoltaic modules and turnkey solar solutions. They currently have a manufacturing capacity of 700MW in Gujarat and are planning a significant expansion.
Growth Drivers:
- Massive Capacity Expansion: Solex is set to add a whopping 800MW capacity by September 2024(Solex Energy buys 800 MW module production line from Wuxi, GMEE Solar – pv magazine India), more than doubling their current production. They further plan to reach 4.5GW by FY26, indicating an aggressive growth strategy.
- Government Push for Renewables: The Indian government plans to add around 40GW solar every year for the next 5 years, and in addition to this there is the PM-SURYA yojna as well.
- Increasing Adoption of Solar Power: Solar energy costs continue to decline, making it an increasingly attractive option corporates as well
Positives:
- Attractive Valuation: With a market cap of only 1200 crore despite significant expansion plans, Solex could be undervalued (assuming they execute their plans effectively).
- Import Curbs: Recent import curbs by the Indian government (After modules, govt now considering non-tariff barrier for solar cell imports | Today News ) and the US government on solar panels from China could benefit domestic manufacturers like Solex by reducing competition, and opens US market for export.
Negatives:
- Execution Risk: Successfully implementing such a large capacity increase is crucial for their growth plans.
- Competition: The solar panel market is competitive in India itself, with established players and new entrants vying for market share.
Immediate Triggers:
- Strong FY Sales: By the end of this fiscal year, strong sales figures could lead to a re-rating of the stock price.
Risks:
- Commodity Price Fluctuations: Solar panel production relies on materials like silicon, whose price fluctuations can impact profitability.
- Trade Policies: Government trade policies can affect import costs of raw materials or finished panels.
- Chinese Threat: The dominance of Chinese manufacturers in the solar panel market can never be ignored.
- Increased Competition: A strong ramp up in capacity by many other players can also intensify competition in the market.
Summary:
The stock seems like a buying oppurtunity given it’s low valuation of just 1200cr, which seems undervalued given it’s plans to reach 4.5GW of capacity, provided Chinese import curbs stay in place in India and in US till FY27 at least.
Nithin’s Portfolio (31-05-2024)
Kenneth Andrade’s Recent Interview
- Capital Goods & Capex Dominated stocks are trading to significant premium where any of the large consumers.
- 4 Pharma companies as top 10 holdings : World’s generic manufacturer and capex cycle is almost year, over the course of last 5 years the industry has cleaned up its balance sheet and they are net positive. The ability to generate significant amount of profitability from the existing capex. 2024-25 will be years where this industry will hit its all time high terms of profitability and cash flow generation. Growth + category leaders + balance sheet + favorable valuation.
- Banks & Finance : Kenneth doesn’t have them as he mentions its an historic trade – he chose to be on asset side and not on liability side.
- His Macro Trade/Directional trade would be capex and industrials
- Breadth of the non capex/industrial is narrowing significantly.
- He states that his bet is not on industries but on capex themes
- Global Cycle : Metals/Export/Pharma – Global GDP growth is held up by defense, industrial capex, Governments are going to be largest spenders, consumers are taking back seat due to inflation
- Government put their balance sheet to work on capex side on rebuilding the entire industry, they will have to generate cash (i.e. were the inflation cycle is sitting)
- Kenneth is favorable on commodity, defense.
- IT companies : Significant hiring done with expectation for growth – now cutting down the head counts. IT will be in static phase
- With respect to the power/railway or others – everything boils down to commodities – which can generate huge free cash flow (so he is more interested towards metals, steel, bearings)
- New age companies : Zomato/Paytm – he plans to buy on second cycle, waiting for market to mature and markets correct. – tracking radar.
- Consumer : The valuation is not favorable
- Chemical market is fairly stressed across globe especially agro chemicals
- Consumer space : Middle class is heavily stressed, household debt – consolidation will happen – tracking.
- EV/Energy Transition/Climate Change : Not participating will wait for second cycle
- Generic Pharma/Pharma is mapping to the entire IT cycle that the IT has been through since. Pharma is the lowest cost manufacturer, getting market share from international business, US companies (generic business are extremely leveraged), Balance sheet of Indian companies are in favor, Interest rate going up in US,
India has the physical capacity + Financial capacity = where US has got none.
HDFC Asset Management Company (31-05-2024)
I get that. But if they call it as interim dividend, shouldn’t it be for FY25 and not FY24?
HDFC Asset Management Company (31-05-2024)
They have declared a new interim dividend, instead of the final dividend. They have not said anything about the final dividend in the above notice. Maybe as they are declaring a new interim dividend of same amount, maybe there won’t be the final dividend. Or, they will give both.
Not invested.
HDFC Asset Management Company (31-05-2024)
Does anyone understand what this means? In the last board meeting, company declared a final dividend of Rs. 70 per share as the final dividend for the completed year FY 24. Now they want to meet next week and re-declare it as an interim dividend for FY24. If the intention is to declare multiple dividends in one fiscal year, that is good news (especially if they also anticipate much higher profit growth). But why would declare it as interim dividend for FY24. Would make sense calling it so for current year
IZMO- bet on new technologies in Auto retail & defence (31-05-2024)
The company is not showing any significant FCF, it’s increasing intangible asset ( the quality of asset may only be known to the insiders) and nil dividend are some worrisome things for me. It had also promised some equity sell of its one of the US subsidiary (Frog Data) before FY 24 but didn’t update on that.
Piccadily Agro Industries Ltd (31-05-2024)
Thanks for your insights .Whats your take of Indri -i mean any consumer insights you have ? they are getting shares from what kind of TG ,brands ?
Piccadily Agro Industries Ltd (31-05-2024)
Thanks for your insights .Whats your take of Indri -i mean any consumer insights you have ? they are getting shares from what kind of TG ,brands ?
Piccadily Agro Industries Ltd (31-05-2024)
It will be good if you share some feedback on Indri and Camikara